The major averages are kicking off the third quarter with an advance after the second quarter saw the best performance out of the S&P in over two decades. Encouraging news on the COVID-19 vaccine front is certainly playing a role in this morning's rise after Pfizer (PFE) and a smaller partner provided some early data on one of four candidates they are studying to fight the disease.
ECONOMIC EVENTS: In U.S. data, ADP reported private payrolls rose 2.37M in June. The ISM manufacturing index reading for June jumped 9.5 points to 52.6, which was stronger than expected. Construction spending fell 2.1% in May.
TOP NEWS: Shares of Pfizer are 4% higher near noon after the company and partner BioNTech (BNTX) announced preliminary data from the most advanced of four investigational vaccine candidates from their BNT162 mRNA-based vaccine program against the virus causing the current global pandemic. The vaccine candidate showed the ability to generate an immune response higher than that from a panel of plasma from recovered patients along with an "acceptable" safety and tolerability profile, Goldman Sachs analyst Terence Flynn noted.
Meanwhile, FedEx (FDX) shares have jumped 14% after the shipping giant reported results last night that came in well ahead of "bearish pandemic" forecasts, according to Barclays analyst Brandon Oglenski. JPMorgan analyst Brian Ossenbeck upgraded FedEx to Overweight from Neutral following the "solid" earnings beat, telling investors that ground's margin gains appear supported by structural initiatives over the last year and express weathered the collapse in business-to-business better than expected.
Additionally, shares of Constellation Brands (STZ) are up 8% after the company reported quarterly results and announced its purchase of Empathy Wines, a "digitally-native wine brand and direct-to-consumer platform."
Automakers have been reporting on their quarterly sales and production figures throughout the morning. General Motors (GM) announced it delivered 492,489 vehicles in the second quarter of 2020, a decrease in total vehicle sales of about 34% compared to a year ago, while FCA US (FCAU) reported second quarter sales of 367,086 vehicles, a 39% decline over the same period a year earlier.
MAJOR MOVERS: Among the noteworthy gainers was Akero Therapeutics (AKRO), which rose 27% after reporting 16-week data from its Phase 2a study of efruxifermin. Also higher was AxoGen (AXGN), which gained 25% after reporting quarterly results.
Among the notable losers was Inovio (INO), which slid 23% after analysts from Maxim and Roth Capital downgraded the stock and after Pfizer reported its own vaccine news. Also lower was SteelCase (SCS), which fell 10% after reporting quarterly results.
INDEXES: Near midday, the Dow was down 1.50, or 0.01%, to 25,811.38, the Nasdaq was up 64.99, or 0.65%, to 10,123.75, and the S&P 500 was up 11.64, or 0.38%, to 3,111.93.
