Wall Street is preparing to open higher on bargain hunting, Merck boosts
- Merck Boosts Positive Data From COVID-19 Pill In Advanced-Stage Study
- Coty wins on sale of 9% of its stake in Wella to KKR
- Rising futures: Dow 0.25%, S&P 0.19%, Nasdaq 0.03%
Oct. 1 (Reuters) – Major Wall Street indexes were expected to rise on Friday, as large losses in September saw investors buy into cheaper sectors, while drugmaker Merck made headway on making headway in the development of ‘an oral COVID-19 drug.
Shares of Merck & Co Inc (MRK.N) jumped 8.3% in pre-market trading after the company’s investigational oral drug for COVID-19, molnupiravir, reduced risk by about 50% hospitalization or death for patients at risk of serious illness in a study. Read more
COVID vaccine makers Moderna Inc (MRNA.O) and Pfizer Inc (PFE.N) fell 4.4% and 1.3%, respectively, after the news broke.
Wall Street ended sharply lower on Thursday and the S&P 500 recorded its worst month since the start of the global health crisis, after a tumultuous month and quarter ravaged by concerns over COVID-19, inflation fears and budget wrangling in Washington.
“There are few alternatives for investors as they are somewhat negative in the bond market and liquidity (always makes) a very low return,” said Rick Meckler, partner at Cherry Lane Investments, a family investment office. in New Vernon, New Jersey.
“Investors are always looking for places to enter the market. There is always good support among buyers at lower prices, so I don’t think the market’s ability to rally to significant sales. be finished. “
The data showed that U.S. consumer spending rose more than expected in August, while the personal consumption expenditure index, a favorite inflation indicator of the Federal Reserve, maintained its upward trend throughout. of the month. Read more
Oil companies including Exxon Mobil (XOM.N) and Chevron Corp (CVX.N) rose about 0.5% pre-market, while big banks Morgan Stanley (MS.N), JPMorgan Chase & Co (JPM .N), Citigroup (CN), Bank of America (BAC.N) and Goldman Sachs Group (GS.N) also advanced.
Meanwhile, on Friday, the Democrat-controlled US Congress struggled to reach agreement on President Joe Biden’s broad agenda, with House Speaker Nancy Pelosi vowing to vote on a bill on infrastructure of $ 1 trillion. Read more
Biden signed a measure to continue funding the government until December 3, although Democrats and Republicans in Congress continued to fight to raise the debt ceiling beyond $ 28.4 trillion in order to avoid a credit default in the United States.
All eyes are now on factory activity data later today for signs of economic health and clues regarding the Federal Reserve’s timing to cut asset purchases and raise key interest rates .
As of 8:48 a.m. ET, Dow e-minis were up 84 points, or 0.25%, S&P 500 e-minis were up 8.25 points, or 0.19%, and e-minis Nasdaq 100 were up 5 points, or 0.03%.
The S&P 500 closed on Thursday below its 100-day moving average (DMA), a closely watched technical indicator, for the first time since November 2020. All three of Wall Street’s major indices are trading below their 100-DMA.
Cryptocurrency-related stocks rose as bitcoin rallied after Fed Chairman Jerome Powell said the United States had no plans to ban cryptocurrencies.
Coty Inc rose 5.1% after agreeing to sell an approximate 9% stake in professional beauty business Wella to KKR & Co Inc (KKR.N). Read more
Report by Devik Jain and Medha Singh in Bengaluru; Editing by Maju Samuel
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