US pre-open: Futures higher as vaccine optimism drives gains
Wall Street futures had stocks opening higher ahead of the bell on Monday as another round of positive Covid-19 vaccine headlines boosted optimism among traders.
As of 1240 GMT, Dow Jones futures were up 0.60%, while S&P 500 and Nasdaq-100 futures had the indices opening 0.51% and 0.29% firmer, respectively.
The Dow Jones closed 219.75 points lower on Friday as the US reported a record-high spike of 195,000 new cases
News that AstraZeneca and the University of Oxford's vaccine had proven itself to have an efficacy of 70% in interim analysis, with one dosing regimen showing effectiveness of 90% and a second demonstrating 62% efficacy, had market participants feeling even more positive about a potential economic reopening in 2021.
Cruise and airline stocks were in the green on the back of the announcement.
However, despite the positive vaccine news, new coronavirus cases were still on the rise, with the seven-day average up by at least 5% week-on-week across 43 states, according to Johns Hopkins University.
SpreadEx's Connor Campbell said: "Another vaccine update, another market rally this Monday, as investors celebrated the latest progress report from AstraZeneca.
"Whichever way you slice it, the science is continuing to move in the right direction, with 3 major vaccines almost ready to go. Pfizer seems first in line, with The Telegraph reporting that the company’s joint venture with BioNTech could be given UK regulatory approval this week – that'd be before the US, where the FDA won’t meet until 10 December to discuss authorisation."
On the macro front, the Chicago Fed's national activity index for October will be published at 1330 GMT, while IHS Markit's November manufacturing PMI flash will be released at 1445 GMT.
Federal Reserve presidents Mary Daly and Charles Evans will deliver speeches at 1800 GMT and 2000 GMT, respectively.
In the corporate space, Warner Music and Urban Outfitters will both report earnings.