With futures flat for much of the overnight session, markets needed that extra oomph to start the week and push them above a key psychological level, and they got that after news that Pfizer and German biotech BioNTech SE were granted fast track designation by the FDA for two of the companies’ four vaccine candidates against the coronavirus. The news, which is purely procedural and was expected all along, was misinterpreted by the market as if the two companies have a promising virus vaccine, and sent Pfizer shares 2%, while BioNTech jumped 5%. More importantly, the news was enough to push Eminis up more than 21 point and above 3,200 which will surely help the market’s mood ahead of tomorrow’s official start of Q2 earnings which are expected to be the worst since the financial crisis.
Results from big banks will be in focus this week. The April-June reports will reveal the extent of the damage wreaked by the coronavirus-induced lockdowns on corporate profits. With a record jump in cases in the United States and some other hotspots around the world, analysts have predicted a return to S&P 500 earning s growth only by 2022. Full Story