Stock Market Today Mid-Morning Updates
On Wednesday, the Dow Jones Industrial Average is down by 200 points after back-to-back gains on Wall Street. Mortgage rates are increasing after a brief decline in May. However, mortgage demand has also fallen to the lowest in 22 years as slowing home sales and rising rates continue to be at bay. U.S. Secretary of the Treasury Janet Yellen says that despite persistent inflation, it was not because of President Biden’s $1.9 trillion Covid-19 spending legislation that caused it. She will also address a House panel today.
Shares of Moderna (NASDAQ: MRNA) is up after it announced a modified version of its Covid-19 booster shot prompted stronger immune response than the company’s original vaccine against the omicron variant. The company will prepare data for the FDA in the coming weeks. DocuSign (NASDAQ: DOCU) is also up after the company announced an expanded global partnership with Microsoft (NASDAQ: MSFT). The deal will enhance the integration of DocuSign technology into Microsoft’s family of software applications.
Among the Dow Jones leaders, shares of Apple (NASDAQ: AAPL) are up by 0.59% today while Microsoft is down by 0.12%. Meanwhile, Disney (NYSE: DIS) and Nike (NYSE: NKE) are trading higher on Wednesday. Among the Dow financial leaders, Visa (NYSE: V) is up by 0.33% while JPMorgan Chase (NYSE: JPM) is down by 0.67%
Shares of EV leader Tesla (NASDAQ: TSLA) are up by 4.21% on Wednesday. Rival EV companies like Rivian (NASDAQ: RIVN) are also up by 4.58%. Lucid Group (NASDAQ: LCID) is up by 4.69% today. Chinese EV leaders like Nio (NYSE: NIO) and Xpeng Motors (NYSE: XPEV) are trading higher today as well.
Dow Jones Today: U.S. Treasury Yields Breaches 3% Again; Fed GDP Tracker Indicates A Possible Recession
Following the stock market opening on Wednesday, the S&P 500 and Dow are trading lower at 0.48% and 0.67% respectively. The Nasdaq, however, is trading higher by 0.34%. Among exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (NASDAQ: QQQ) is up by 0.42% while the SPDR S&P 500 ETF (NYSEARCA: SPY) is down by 0.14%.
The benchmark 10-year U.S. Treasury yield is above 3% today. This comes as investors eagerly await a key inflation indicator this Friday and also access the signs that the economy is slowing down. The Atlanta Federal Reserve’s GDPNow tracker indicates an annualized gain of just 0.9% for the second quarter, down from estimates of a 1.3% increase.
With first-quarter growth already down 1.5%, a second consecutive quarter of negative growth is defined as a recession. GDPNow utilizes economic data in real-time and uses it to project how the economy will fare. Talks of recession have become recent in the last few months amid rising inflation that has also eaten into the profits of many companies. However, there are also those that believe that a combination of resilience in consumer spending and job growth could keep the U.S. out of a recession.
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Roku Stock In Focus After News Of Potential Netflix Takeover Surfaces
In other news, Roku (NASDAQ: ROKU) is front and center in the stock market today. For the most part, this follows a Business Insider report about leading streaming firm Netflix (NASDAQ: NFLX) looking to acquire it. After considering ROKU stock’s general year-to-date losses thus far, this would not be all too surprising. According to the report, the company has “abruptly,” closed the trading window for its employees. This would forbid them from selling stock even “when they should normally be able to do so.” Without any official explanations from Roku, most would begin to speculate the meaning behind such a move.
Notably, this would be where mentions of Netflix begin to spring up. According to the Business Insider source, the two companies have been having active discussions over recent weeks. For one thing, Roku’s industry-leading streaming hardware offerings would synergize well with Netflix’s portfolio. Pair all this with the sudden trading halt and talks of a potential takeover would grow. Accordingly, ROKU stock is now gaining by over 7% at the stock market open today. While time will tell if this deal solidifies, there could be plenty of eyes on the company’s shares today.
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Novavax Stock Rises Following Green Light From FDA Panel On Coronavirus Shot
Novavax (NASDAQ: NVAX) would be another firm to consider in the stock market now. Overall, the vaccine maker’s stock could be worth noting following the result of its latest regulatory evaluation. Getting straight into it, the U.S. Food and Drug Administration’s (FDA) advisory committee now recommends Novavax’s coronavirus vaccine. This approval is for the use of the company’s 2-shot regimen in individuals aged 18 years old and above. In detail, the current recommendation for an emergency use authorization (EUA) would make Novavax’s coronavirus vaccine the fourth to receive this regulatory nod.
Worth mentioning, that during the Vaccines and Related Biological Product Advisory Committee meeting, the panel voted 21 to 0 to grant the treatment EUA status. Providing further commentary on this is CEO Stanley Erck. He states, “The advisory committee’s positive recommendation acknowledges the strength of our data and the importance of a protein-based COVID-19 vaccine developed using an innovative approach to traditional vaccine technology.” Erck continues, “Consistent with submissions to regulatory authorities worldwide, we have already submitted an amendment with updated manufacturing information for the EUA to the FDA for review.” All in all, it seems like Novavax is kicking into high gear on the operational end now.
In the larger scheme of things, the endorsement of Novavax’s coronavirus treatment could be a push by U.S. officials to bolster vaccination rates. This could be plausible as the company’s shot is essentially a more conventional protein vaccine. The likes of which have been used for decades to prevent hepatitis B and shingles among other illnesses. As such, I could understand if NVAX stock gains attention from investors today.