US: Dow ends above 27,000 on positive vaccine news

The US stock market finished session higher on Wednesday, 22 July 2020, as investors took heart from better than expected second-quarter earnings reports and news of coronavirus vaccine deal between the US government and Pfizer and BioNTech. However, market gains capped amid simmering US-China tension after the U.S. State Department abruptly ordered China to close its consulate in Houston.

At closing bell, the Dow Jones Industrial Average rose 165.44 points, or 0.62%, to 27,005.84. The S&P 500 index gained 18.72 points, or 0.57%, to 3,276.2. The tech-heavy Nasdaq Composite Index added 25.76 points, or 0.24%, to 10,706.13.

Shares of Pfizer rose more than 5%. BioNTech's U.S.-listed shares gained 13.7% after the US government agreed to pay the drugmaker Pfizer and partner BioNTech $1.95 billion to secure produce 100 million doses of their experimental Covid-19 vaccine if it proves to be safe and effective. The Department of Health and Human Services added the U.S. can acquire an additional 500 million doses of the drug under the agreement.

 

Shares of United Airlines dipped 4.2% after the company reported a net loss of $1.62 billion for the second quarter. The coronavirus pandemic's impact on travel fueled an 87% year-over-year revenue decline for the Chicago-based airline.

ECONOMIC NEWS: US Existing Home Sales Spike In June- US existing home sales spiked by 20.7% to an annual rate of 4.72 million in June after plunging by 9.7% to a rate of 3.91 million in May, the National Association of Realtors reported on Wednesday. Despite the substantial monthly rebound, NAR noted existing home sales in June were down by 11.3% compared to the same month a year ago. The report also said the median existing home price for all housing types was $295,300 in June, up 4.1% from $283,600 in May and up 3.5% from $285,400 in June of 2019. Housing inventory at the end of June totaled 1.57 million units, up 1.3% from 1.55 million units at the end of May but still down 18.2% from 1.92 million units a year ago. The unsold inventory represents 4.0 months of supply at the current sales pace, down from both 4.8 months in May and 4.3 months in June of 2019. NAR also said single-family home sales surged up by 19.9% to an annual rate of 4.28 million in June, while existing condominium and co-op sales soared by 22.8% to a rate of 440,000.

Among Indian ADR, HDFC Bank fell 3.71% to $50.12, ICICI Bank shed 1.52% to $12.30, Tata Motors dropped 2.86% to $7.14, Wipro fell 0.26% to $3.91, and INFOSYS fell 1.52% to $12.30, while Dr Reddys Labs was up 0.33% to $54.75, Vedanta added 2.03% to $6.02, and WNS Holdings rose 1.16% to $61.92.

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