After yesterday’s market euphoria global stock markets experience a slight correction today. Declines in Europe exceed 1% in some cases (e.g.: DAX and FTSE 100). Sell-off in the U.S. is minor compared to European equities as S&P 500 is trading 0.20% lower and DJIA is down 0.80%. Nasdaq, on the other hand, managed to broke above the flatline at press time which once again shows the strength of technological stocks.
US Bureau of Labor Statistics published its JOLTs Job Openings reading today. The data depicts all positions that are open on the last business day of the month, but not filled. Even though these figures are not as popular as they were in the past, they still reflect the condition of the American labour market in some way. The reading for the month of May came in above market expectations and amounted to 5.397 million (vs expected 4.850).
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Recently S&P 500 (US500) broke above 78.6% Fibo retracement of the February-March sell-off and rushed towards 3,230 pts area. This barrier serves as a key resistance now as it is marked with the June’s high. S&P 500 is trading slightly lower at press time. Nasdaq is a proof that market bulls are slowly regaining control as the index is adding roughly 0.50% at press time. Chances are that S&P 500 will finish the session higher as well. Source: xStation5
Novavax Inc (NVAX.US) announced $1.6 billion funding from Operation Warp Speed - U.S. government program which goal is to deliver millions of doses of vaccine for COVID-19 in 2021. Funding should support late-stage clinical development and establishing large-scale manufacturing as early as late 2020. Novavax shares opened with a huge bullish gap today as investors bet on company’s success in delivering effective and safe vaccines.
Regeneron (REGN.US) is also the recipient of Operation Warp Speed - the company is set to receive $450 million for the development of its Covid-19 anti-viral antibody cocktail. According to the company, some initial doses might be ready as soon as the end of the summer.
Bank of America Securities raised its price target on NVIDIA (NVDA.US) stock to $460 per share from $420 a share. Analysts pointed out that a robust gaming market ahead of new console launches might be a catalyst for the stock.
NVIDIA (NVDA.US) shares has been trading in an upward channel for the past weeks. The recovery rally is really astonishing as stocks quickly climbed to fresh all-time highs in May. Some analysts point out that new console launches (from Microsoft and Sony) might spark another wave of euphoria in gaming industry. As a result, NVIDIA could become a beneficiary of the upcoming months. Source: xStation5
