Stocks Mixed as V-Shaped Recovery in Doubt
Stocks trade mixed midday Monday amid unease about the growing numbers of COVID-19 cases in the United States, and as the underlying tone takes a wait-and-see feel ahead of a barrage of earnings later this week. While the Dow is off 25 points, the S&P 500 sports a modest gain and the Nasdaq is rallying 1.5%.
The energy sector is in focus after Chevron (CVX) seized the opportunity to gobble up Noble Energy (NBL) in a $5 billion deal. Meanwhile, Halliburton (HAL) shares jumped 6% after the company reported earnings that topped analyst estimates.
IBM reports earnings after the closing bell, and Coke (KO), UBS, and Comerica (CMA) are among the large caps reporting Tuesday morning.
Vaccine news continues to move stocks as the number of COVID-19 cases appears to be plateauing after 64,000 new cases were reported in the United States on Sunday. AstraZeneca (AZN) shares dipped ahead of the release of results from a study of a vaccine from Oxford University, which has already sparked a fair amount of optimism and that AstraZeneca has agreed to distribute. Shares of Enzymatica, a Swedish biotech, surged on reports a mouth spray showed promising results against COVID-19 in a research lab.
With a light economic calendar until the second half of the trading week, Treasury bonds are rangebound. Gold is modestly higher, while crude oil is flat.
The ever-increasing numbers of COVID-19 cases in the U.S. have perhaps dashed hopes for a V-shaped economic recovery, but the prospect of additional stimulus continues to bolster investor sentiment. Treasury Secretary Steven Mnuchin and Senate Majority Leader Mitch McConnell will meet in the White House to discuss a proposed $1 trillion relief bill; however, the package is a far cry from the $3.5 trillion proposal that the Senate Democrats have put forward.
Source : InvestingChannel,