US exchanges grow on optimism around COVID-19 vaccine and corporate news

Major US stock indexes began trading Monday on growth on news of progress in the development of a vaccine against coronavirus and on optimism around corporate reporting by companies, according to the auction.

As of 16.42 Moscow time, the Dow Jones Industrial Average (DJIA) index grew by 0.82%, to 26289.47 points, the S&P 500 wide market index – by 0.83%, to 3210.83 points. This is the maximum value since June 10. The high-tech NASDAQ index rose 1.4% to 10,766.61 points. Thus, the index continues to update record numbers.

Traders drew attention to the joint statement of the German biotechnology company BioNTech and the American pharmaceutical giant Pfizer that their two experimental vaccines against coronavirus received fast-track status from the US Food and Drug Administration (FDA). Pfizer shares are up 2.63%.

“The expectations are back that the Pfizer vaccine will be ready for approval by the end of October, which is earlier than expected – so this is very good news,” Reuters quoted Thomas Hayes, an analyst with Great Hill Capital LLC.

In addition, markets were optimistic about the financial statements of the American company PepsiCo Inc., one of the world’s largest manufacturers of soft drinks. The company reported a decrease in revenue in the second quarter by 3%, to $ 15.945 billion, but analysts were expecting a value of $ 15.35 billion. PepsiCo shares are up 0.68%.

Now the participants are waiting for the reports of American banks: JP Morgan, Citigroup and Wells Fargo will report on Tuesday, and Goldman Sachs, Bank of New York and Morgan Stanley on Wednesday and Thursday. “The market feels that the worst is over, and is expecting profits and forecasts from companies that are likely to exceed very low expectations,” Hayes added.

Shares of the American electric vehicle manufacturer Tesla are up 13.5%, continuing Friday growth. As a result of trading on Friday, the company’s shares went up by almost 11%.