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Dow Cuts Some Gains as Tech Stumbles on Reopening Rollbacks

imageStock Markets3 hours ago (Jul 13, 2020 03:28PM ET)

(C) Reuters.

By Yasin Ebrahim – Wall Street eased from session highs on Monday, as tech reversed course after positive Covid-19 vaccine news was brushed aside as parts of the U.S. continued to rollback reopening plans.

The S&P 500 gained 0.35%, while the Nasdaq Composite fell 0.32% and the Dow Jones Industrial Average rose 1.17%.

Tech gave up earlier intraday gains, as FAANG stocks came under heavy pressure after hitting new highs, with Apple (NASDAQ:AAPL) cutting its gains to about 1% after rallying more than 3%.

In a sign that the economic recovery could be in jeopardy, California Governor Gavin Newsom said that all counties must close indoor activities.

The Los Angeles School District, the second-largest in the U.S., meanwhile, announced that it would begin the school year exclusively online on Aug. 18. The move comes as the recent surge in the spread of the virus across hotspots including California, Florida, Arizona, and Texas, took the total infections to 3.4 million with about 136,000 deaths nationwide.

The news offset positive vaccine news released earlier today.

Pharma giant Pfizer said that two of the four new coronavirus vaccine candidates that it was developing with German-based BioNTech (BNTX) received fast-track designation from the U.S. Food and Drug Administration.

Pfizer (NYSE:PFE) jumped 4.6%, while Biontech (NASDAQ:BNTX) jumped 11.4%.

The corporate earnings season, which got underway on Monday, also provided investors with clues on the pandemic’s impact on corporate results.

PepsiCo (NASDAQ:PEP) reported second-quarter results that beat consensus estimates on both the top and bottom lines, led by performance in its global snacks and foods business. Its shares rose more than 1%.

A slew of earnings from banks including Wells Fargo (NYSE:WFC), JPMorgan Chase (NYSE:JPM), and Citigroup (NYSE:C) – all of which are set to report quarterly results on Tuesday – will offer further insight into activity on Wall Street with an uptick trading income and higher loan loss provisions expected to garner investor attention.

Casino stocks, meanwhile, caught a bid as on news Macau lifted quarantine requirements.

Wynn Resorts (NASDAQ:WYNN) rose 11%, Las Vegas Sands (NYSE:LVS) was up 7.5%, and MGM Resorts (NYSE:MGM) rose 3.1%.

Dow Cuts Some Gains as Tech Stumbles on Reopening Rollbacks

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