U.S. Stocks Set To Open Higher On Renewed Optimism
Inovio Pharmaceuticals States That Its COVID-19 Vaccine Produces Antibodies In Guinea Pigs And Mice
Yesterday, S&P 500 experienced a sell-off at the end of the session following the release of a report which questioned Moderna’s recent vaccine trial results.
Hopes for a vaccine were the main driver behind the recent market upside so this report was a material bearish catalyst for stocks.
Today, biotech company Inovio Pharmaceuticals shared promising results on its vaccine as it produced antibodies in mice and guinea pigs. Inovio shares are up more than 15% in the premarket trading session.
The general market also shows optimism, and S&P 500 futures are up more than 1% ahead of the market open. While the news from Inovio are a positive catalyst, the bigger driver for market upside is the fact that various researchers get promising results, which increases the chance to get a vaccine within a reasonable timeframe.
U.S. Treasury Launches 20-Year Bond
Looking to capitalize on low interest rates while providing financing for increased coronavirus-related expenditures, the U.S. Treasury will conduct a $20 billion auction for 20-year bonds.
Treasury Secretary Steven Mnuchin stated that there were also ideas to issue 50-year and even 100-year bonds, but the demand for such financial instruments was insufficient.
Currently, the U.S. debt has suprassed the $25 trillion mark, but the demand for U.S. debt obligations remains healthy as U.S. bonds are viewed as a safe haven asset of last resort together with the U.S. dollar.
Oil Continues Its Upside Move As Inventories Fall
Another development that is providing support for the equity market is the continued upside in the oil market.
Yesterday, API Crude Oil Stock Change report showed that crude inventories have declined by 4.84 million barrels. Just a month ago, fears about the availability of oil storage have pushed the WTI May 2020 contract into the negative territory, so news about declining inventories are bullish for oil.
If the data from API Crude Oil Stock Change report is confirmed by the EIA Weekly Petroleum Status report which is due today, oil-related equities may experience material upside and help the S&P 500 get to new highs.