Dow Jones futures lower, Johnson & Johnson and Netflix results loom
The Dow Jones is expected to open lower on Thursday as a spate of high profile earnings releases loom.
US markets and Dow Jones futures in focus
Global equity markets rose strongly overnight, after US biotechnology company Moderna, revealed positive interim results from the phase 1 clinical trials of its Covid-19 vaccine.
The Moderna share price finished out the session up 6.90% at US$80.22 per share off the back of this news, with the company noting that it expected to commence phase 3 clinical trials on its Covid-19 vaccine, with 30,000 participants, on 27 July.
The best performing Dow Jones constituents on Wednesday were Boeing (+4.43%), Raytheon (+4.08%) and American Express (+2.66%); while the worst performing were Procter & Gamble, Verizon, and UnitedHealth.
Looking at the catalyst behind these bullish market moves, IG’s market analyst, Kyle Rodda today wrote that while cases of the coronavirus continue to grow at an alarming rate, equities rallied overnight nonetheless, ‘as market sentiment found itself juiced by separate announcements from US biotech company Moderna, and the University of Oxford, that progress is being made in their respective efforts to develop a COVID-19 vaccine.’
Interestingly, while US markets rose strongly on Wednesday, Dow Jones futures are currently suggesting the key US benchmark will open some 97 points or 0.36% lower, as of 1:09AM (New York time).
Events to watch out for heading into Thursday’s session
Specifically, as part of their latest quarterly results Goldman Sachs revealed that its Q2 revenues came in 41% higher, at US$13.30 billion. Goldman’s investment banking arm performed particularly well, with quarterly revenues coming in at $2.66 billion – representing growth of 36% on a year-over-year basis. Q2 FY20 net earnings came in at US$2.42 billion.
Speaking to the uncertainty of the current economic environment as a result of the coronavirus however, Goldman also made a US$1.59 billion credit loss provision.
By comparison, JP Morgan revealed second quarter net revenues of US$33.81 billion (+15%), against net income of US$4.687 billion, down 51%, on a year-over-year basis. Management attributed this decline to 'reserve builds across the firm.'
Mind you, like Goldman, JP Morgan also made significant credit provisions as a result of Covid-19, with JP Morgan booking a US$10.5 billion provision charge.
Elsewhere, initial jobless claims, for the week ending 11 July, and continuing jobless claims for the week ending 4 July, are set to be released on Thursday. Retail sales data (June) and business inventories data (May) are also set to be released.
Want to trade local and international markets: long or short?
Create an IG trading account or log in to your existing account to get started now.
This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
Seize a share opportunity today
Go long or short on thousands of international stocks.
- Increase your market exposure with leverage
- Get commission from just 0.08% on major global shares
- Trade CFDs straight into order books with direct market access
Live prices on most popular markets