The front facade of the New York Stock Exchange (NYSE) is seen in New York City, New York, U.S., June 26, 2020.
Brendan McDermid | Reuters
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9:31: Stocks start the quarter in the green
U.S. equities started the third quarter on a strong note on Wednesday. The Dow Jones Industrial Average jumped about 90 points, or 0.35%, at the opening bell. The S&P 500 and Nasdaq Composite rose 0.25% and 0.2%, respectively. Stocks got a boost from a strong private payrolls report and positive data on a coronavirus vaccine from Pfizer. — Fitzgerald
9:14 am: Pfizer surges on vaccine promise
Shares of drugmaker Pfizer surged more than 6% in premarket trading on Wednesday after the company said its vaccine, in partnership with BioNTech, showed positive data. Covid-19 patients has neutralizing antibodies after receiving the vaccine.
“We are encouraged by the clinical data of BNT162b1, one of four mRNA constructs we are evaluating clinically, and for which we have positive, preliminary, topline findings,” said Kathrin U. Jansen, Ph.D., Senior Vice President and Head of Vaccine Research & Development, Pfizer. “We are dedicated to develop potentially groundbreaking vaccines and medicines, and in the face of this global health crisis, we approach this goal with the utmost urgency. We look forward to publishing our clinical data in a peer-reviewed journal as quickly as possible,” the company said in a release.
Pfizer said if the vaccine receives regulatory approval, the drug companies are expecting to manufacture up to 100 million doses by the end of 2020 and potentially more than 1.2 billion doses by the end of 2021. — Fitzgerald
9:08 am: Reopening names rebound after revised jobs data, vaccine report
Stocks of companies that would perform best under a reopening of the U.S. economy rebounded before after a positive private payrolls report and a report that Pfizer’s coronavirus vaccine saw positive results. Airlines, which had been among the largest laggards in the premarket session just one hour ago, rose across the board. United gained 6.2%, American added 3.2% and Southwest advanced 2.6%. Cruise-line company Carnival added 1.7% while mall owner Simon Property Group climbed 2%. — Franck
9:04 am: Stock futures turn positive on vaccine news
Shares of Pfizer jumped 3% in premarket trading on Wednesday on news the company’s Covid-19 vaccine —in partnership with BioNTech — helped immune response in patients with the deadly virus. The study results showed the vaccine created neutralizing antibodies. BioNTech rose 7% in premarket trading before halting for news pending. The report said the drug did cause a fever and other side effects. The study results were released online and have not been released in a journal yet. Stock futures turned positive on the news, also helped by the strong ADP jobs report. — Fitzgerald
8:38 am: Job gains could fade and rebound could be threatened by surging virus outbreak
As the second half begins, the resurgence of Covid-19 is threatening the economic rebound and the jobs recovery. Several economists told CNBC they are not yet ready to change their forecasts for a bounce back in the third quarter, but they are monitoring the situation as states close some activities or hold off some reopenings in response. Economists expect 2.9 million jobs were added in June, but several say July data could show job losses if more of the economy is shut down.
In the second quarter, economists expect the initial shutdowns resulted in a more than 30% contraction in gross domestic product. By the third quarter, economists surveyed by CNBC/Moody’s Analytics expect a median gain of 13.5% for the third quarter. —Domm
8:22 am: Private payrolls rise 2.37 million in June, May’s number revised
Businesses continuing hiring workers in June following the coronavirus shutdown. Private payrolls rose by 2.369 million in June, a bit below the 2.5 million estimate from economists surveyed by Dow Jones, according to ADP. Another bright spot of the report was the revised May reading, which initially saw jobs lost. May’s number went from an initially reported loss of 2.76 million to a gain of 3.065 million. — Fitzgerald, Cox
8:15 am: Beyond Meat soars after China announcement
Shares of Beyond Meat jumped more than 10% in premarket trading after the company announced a deal with Alibaba to sell its meatless burger patties in Freshippo grocery stores in mainland China. Beyond products will be in 50 locations in Shanghai by the end of this week and another 48 locations in other cities by September. —Pound, Lucas
8:02 am: Reopening names down in premarket after eight states report record cases
Stocks popular among investors betting on the reopening of the U.S. economy slid in premarket trading after eight states reported all-time highs of Covid-19 cases on Tuesday. Fears that government will be forced to re-impose strict distancing and travel limitation hit stocks of travel and retail stocks especially hard. Airlines including American Airlines (down 2%) and car-rental company Avis (down 2.2%) comprised some of the biggest laggards before the bell. Cruise-line operator Carnival retreated 2.4% while retailers Kohl’s and Gap lost 2.8% and 1%, respectively. — Franck
7:59 am: Second quarter best in decades
U.S. equities wrapped up their best quarter in decades on Tuesday as markets recovered from the historic sell-off triggered by the coronavirus. The Dow gained 17.8% in the second quarter, posting its best quarter since 1987, while the S&P 500 finished the period with a near 20% gain, its best since 1998. The technology-heavy Nasdaq Composite soared 30.6% for the quarter, the most since 1999. The Nasdaq was the first of the major averages to make back all of its coronavirus losses.— Fitzgerald
7:52 am: Senate passes extension for PPP
The Senate agreed to extend the Paycheck Protection Program through Aug. 8 just hours before the program was set to expire. About $660 billion has been approved for use in the program, with about $130 billion remaining. Sen. Marco Rubio, the Florida Republican who is chairman of the Small Business Committee, said on Twitter that “what we really need to pass very soon is targeted help for those who need a second round of aid.” —Pound, Associated Press
7:51 am: ADP expected to show 2.5 million private payrolls added in June
Economists expect the ADP private sector jobs report to show 2.5 million payrolls were added in June. The 8:15 a.m. ET report is viewed as a preview of sorts for the government’s employment report, which is due Thursday morning. The government report is expected to show that 2.9 million jobs were created in June, up from the 2.5 million in May, according to Dow Jones. The ADP number does not correlate with government data many times. For May, ADP showed a decline of 2.76 million jobs. Economists had expected a substantial 8 million decline in May payrolls, and were surprised by the gain. — Domm
7:50 am: FedEx shares jump after earnings beat, JPMorgan upgrade
Shares of FedEx jumped more than 11% during premarket trading after the company’s fourth quarter results beat analyst estimates on the top and bottom line as consumers flocked online amid the pandemic. Separately, JPMorgan upgraded shares to an overweight rating, based on the company’s ability to hike prices.
CNBC PRO subscribers can read more about the firm’s bull case here. – Stevens
7:35 am: New quarter, Dow futures sink 200 points
In the first trading day of the third quarter, U.S. equity futures ticked lower and pointed to losses at the open on Wednesday. Dow futures dropped about 220 points, or 0.9%. S&P 500 futures fell 0.6% and Nasdaq-100 futures slid 0.4%.
On Tuesday, the Dow climbed 217 points, or 0.85%, to close out the best quarter for stocks in decades. The S&P rallied 1.54% and the Nasdaq Composite closed up 1.9%. — Fitzgerald
— with reporting from CNBC’s Patti Domm.
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