Citi chief U.S. equity strategist Tobias Levkovich makes future market trend predictions amid positive COVID news.
U.S. stock futures rallied Wednesday morning after President Biden said all U.S. adults could receive a COVID-19 vaccine by midyear.
“We’re now on track to have enough vaccine supply for every adult in America by the end of May,” Biden said Tuesday. However, he warned that life may not return to normal until “this time next year.”
Merck & Co. and Johnson & Johnson announced on Tuesday they would team up to manufacture the latter’s recently approved single-shot COVID-19 vaccine. The partnership comes after Johnson & Johnson agreed to supply 100 million doses by June, but had run into supply and material issues.
Dow Jones Industrial Average futures were higher by 205 points, or 0.65%, while S&P 500 futures and Nasdaq Composite futures were up 0.62% and 0.71%, respectively. The early advance has the major averages on track to win back a portion of Tuesday’s losses.
Elsewhere, Homebuilders D.R. Horton Inc. and Toll Brothers Inc. were in focus after the Mortgage Bankers Association said mortgage rates last week rose at their fastest pace in over a year. Higher rates are the latest worry for the sector, which has recently had to grapple with a lumber shortage.
Meanwhile, Las Vegas Sands Corp. reached a deal to sell its Las Vegas real estate for $6.25 billion as it shifts its focus to opportunities in Asia. Properties being sold include Venetian Resort Las Vegas and the Sands Expo and Convention Center.
In earnings, Nordstrom Inc. reported sales in its holiday quarter fell 20% from a year ago amid an uncertain retail environment due to COVID-19. The department store chain said it would have to clear excess merchandise through its off-price channel.
In commodities, West Texas Intermediate crude oil rallied 94 cents to $60.69 per barrel and gold slid $11.40 to $1,722.20 an ounce.
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Overseas markets were higher across the board.
Germany’s DAX 30 paced the gains in Europe, trading up 0.9%, while Britain’s FTSE 100 and France’s CAC 40 were higher by 0.82% and 0.62%, respectively.
In Asia, Hong Kong’s Hang Seng index advanced 2.7%, China’s Shanghai Composite index rose 1.95% and Japan’s Nikkei 225 gained 0.51%.
