Here are five things you must know for Tuesday, May 26:
1. -- Stock Futures Rise Sharply
Stock futures rose sharply Tuesday as investors came off the Memorial Day weekend embracing moves by economies across the globe to ease coronavirus lockdowns.
Contracts linked to the Dow Jones Industrial Average soared 497 points, futures for the S&P 500 jumped 55 points and Nasdaq futures were up 167 points.
Stocks closed last week higher, with the three major stock market benchmarks rising more than 3%.
“As is the financial market’s wont these days ... even the slimmest of positive news on the Covid-19 front triggers a bullish immune response and another wave of the peak-virus trade,” said Jeffrey Halley of Oanda.
Worries remain, however, over a resurgence in infections and an escalation of tensions between Washington and Beijing. China, on Monday, condemned a move by the United States to add 33 Chinese companies to its so-called entity list, which imposes license requirement on all exports, re-exports and transfers of items coming from the U.S.
2. -- Costco, Salesforce and Marvell Report Earnings This Week
The economic calendar Tuesday includes Consumer Confidence for May at 10 a.m. ET and New Home Sales for April at 10 a.m.
AutoZone (AZO) - Get Report reports earnings on Tuesday. Reports are expected later in the week from Costco (COST) - Get Report, Ralph Lauren (RL) - Get Report, HP Inc. (HPQ) - Get Report, NetApp (NTAP) - Get Report, Dollar General (DG) - Get Report, Dollar Tree (DLTR) - Get Report, Salesforce.com (CRM) - Get Report, Dell Technologies (DELL) - Get Report, Marvell Technologies (MRVL) - Get Report, GameStop (GME) - Get Report and Canopy Growth (CGC) - Get Report.
3. -- Novavax Begins Human Trials of Coronavirus Vaccine Candidate
The Phase 1 portion of the trial will enroll about 130 healthy participants 18 to 59 years of age at two sites in Australia. The trial will evaluate the safety and effectiveness of the company's vaccine candidate, NVX-CoV2373.
“Administering our vaccine in the first participants of this clinical trial is a significant achievement, bringing us one step closer toward addressing the fundamental need for a vaccine in the fight against the global Covid‑19 pandemic,” said Stanley C. Erck, president and CEO of Novavax. “We look forward to sharing the clinical results in July and, if promising, quickly initiating the Phase 2 portion of the trial.”
Novavax shares jumped 22.23% to $56.36.
4. -- New York Stock Exchange to Reopen Trading Floor
The New York Stock Exchange will reopen its trading floor Tuesday but only about 25% of the normal trader workforce will be back.
The NYSE closed the floor about two months ago due to the coronavirus pandemic and moved to all-electronic trading.
Traders who return Tuesday must wear masks and follow social-distancing guidelines.
To return to their jobs, floor traders must sign a liability waiver that prevents them from suing the NYSE if they get infected at the exchange, according to The Wall Street Journal.
They must acknowledge that returning to the floor could result in them “contracting Covid-19, respiratory failure, death, and transmitting Covid-19 to family or household members and others who may also suffer these effects,” according to the waiver, a copy of which was seen by Journal.
5. -- Latam Airlines Files for Bankruptcy
The airline was “healthy and profitable” before the pandemic grounded flights across the globe, said CEO Roberto Alvo,
“We are looking ahead to a post-Covid-19 future and are focused on transforming our group to adapt to a new and evolving way of flying, with the health and safety of our passengers and employees being paramount,” he said in a statement.