US stock market dips amid doubts about coronavirus vaccine test success

12 months ago

New York. May 20. INTERFAX – US stocks tumbled after Tuesday’s trading after Stat medical firm questioned reports from Moderna Inc., a US-based biotech pharmaceutical company. (SPB: MRNA) on the results of the first phase of a coronavirus vaccine test.

Monday Moderna Inc. announced that the initial test phase of a new type of human coronavirus vaccine was tested positive. The company indicated that during the first phase of clinical trials involving 45 people, the mRNA-1273 vaccine showed itself to be “generally safe and well tolerated.”

However, according to the medical publication Stat, Moderna did not provide enough information to judge the results of the studies.

In addition, traders evaluated the statements of US Treasury Secretary Stephen Mnuchin and Chairman of the Federal Reserve (FRS) Jerome Powell in the Senate Banking Committee.

According to Mnuchin, the United States will emerge from the pandemic of the coronavirus infection COVID-19 more than ever before. He also said that the Ministry of Finance is ready to increase the volume of funds provided by the Federal Reserve System (FRS) and take on more risks in the framework of lending programs.

Meanwhile, during the same speech, US Central Bank chairman Jerome Powell said the Fed and the Treasury could do more to help the economy, The Wall Street Journal reports. He believes that the main Fed support programs will work before the end of this month or in the first week of June.

Decrease in indices was promoted by falling quotations of large American banks. Wells Fargo & Co. Papers (SPB: WFC) fell 5.8%, Bank of America Corp. (SPB: BAC) – by 3.1%. Citigroup Inc. (SPB: C) lost 2.7%, JPMorgan Chase & Co. (SPB: JPM) – about 2%.

Quotes Southwest Airlines on Tuesday rose 2.2%. The airline raised its forecast for operating revenue and flight congestion in May amid signs of a recovery in demand for air travel, and also reported a “slight improvement” in travel demand in June.

Securities of another industry representative – United Airlines Holdings (SPB: UAL) Inc. – fell by 1.9%. The airline also reported a slight increase in demand and a decrease in cancellations until the end of the second quarter after a 95% drop in bookings in April. United expects further improvement in July.

Cost Walmart Inc. (SPB: WMT) decreased by 2.1%. The largest US retailer in the first quarter of fiscal year 2021 increased net income by 3.9%. At the same time, the company withdrew the forecast of financial indicators for 2021 fiscod due to the uncertainty associated with the pandemic of the coronavirus infection COVID-19.

Shares in Home Depot Inc., the US largest online store chain (SPB: HD) fell by almost 3%. The company reported lower-than-expected earnings in the first fiscal quarter, but its revenue and comparable sales were stronger than expected.

Paper manufacturer of electric vehicles Tesla Inc. (SPB: TSLA) lost 0.7%. The head of the company, Ilon Musk, announced on Twitter about an increase in the price of fully autonomous electric vehicles by $ 1 thousand from July 1. According to MarketWatch, now the cost of such a configuration is $ 7 thousand.

Capitalization of clothing and retailer Centric Brands Inc. fell by 29.6%. On Monday, the company filed for bankruptcy. Investment funds Blackstone, Ares and HPS Investment Partners will provide the company with DIP financing (a debtor owned) in the amount of $ 435 million. Head of Centric Brands Jason Rebin noted that the outbreak of coronavirus led to a reduction in wholesale orders and cash flow.

The Dow Jones Industrial Average index fell by 390.51 points (1.59%) – up to 24206.86 points.

Standard & Poor’s 500 lost 30.97 points (1.05%) and amounted to 2922.94 points.

Nasdaq Composite decreased by 49.72 points (0.54%) – up to 9185.10 points.

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