- Summary:
- The Dow Jones futures are up sharply today as traders react to the news of coronavirus vaccine, weaker dollar, and positive Apple news from Europe
Dow Jones futures jumped by more than 588 points as traders cheer the latest news by Moderna and Goldman Sachs. The weaker dollar has also helped the blue-chip index today. It is trading at $27,172, which is the highest it has been since June 10.
Moderna vaccine news lift Dow Jones
The Dow Jones rose today as traders react to the latest news by Moderna, the upstart company that is challenging big companies. In a statement to the press, the firm said that its coronavirus vaccine was showing positive signs of creating antibodies. The study gave 45 people 25, 100, and 250 microgram of the vaccine. After two vaccinations, the vaccine showed positive signs of creating antibodies, which are essential in battling the disease. The company said:
“We look forward to beginning our Phase 3 study of mRNA-1273 this month to demonstrate our vaccine’s ability to significantly reduce the risk of COVID-19 disease.”
A vaccine is essential to win the battle against coronavirus. Indeed, other illnesses of the past have been defeated by a combination of a vaccine and therapy. The data came two days after another study found that remdesivir was doing well to treat the disease.
Goldman Sachs earnings
As mentioned earlier, Citi, JP Morgan, and Wells Fargo said that they had allocated more than $20 billion to provisions. Today, the story changed with Goldman Sachs, which reported better results. The firm’s revenue rose by 41% from the same quarter a year ago to $13.3 billion. Analysts were expecting the bank to make about $9 billion.
This revenue was mostly because of its FICC division, which rose to $4.24 billion. This was the highest increase in 9 years. Equities trading revenue rose to an eleven-year high of $2.94 billion. The firm said:
“Our strong financial performance across our client franchises demonstrates the inherent benefits of our diversified business model.”
The Dow Jones also rose because Apple, which won a landmark case in Europe. The victory was a big blow to Margarethe Vestager, the competition czar. This means that Apple will not be forced to pay $15 billion to Ireland authorities. Finally, the Dow Jones rose because of the weaker US dollar.
Dow Jones technical forecast
The Dow Jones futures are up sharply today. On the daily chart, the price is above the 50-day and 100-day exponential moving averages. It is also above the ascending trend line that is shown in black. Also, the momentum indicator has continued to rise and the price is slightly below the 78.6% Fibonacci retracement level. Therefore, I expect the price to continue rising as bulls target $27,633, which is the highest point in June.
On the flip side, a move below $26,000 will invalidate this thesis. This price is at the intersection of the ascending trendline and the 50-day and 100-day EMAs.
Dow Jones Daily Chart
