Here are five things you must know for Friday, July 9:
1. — Stock Futures Point to a Wall Street Rebound
Stock futures rebounded modestly Friday from the previous session’s broad losses that were fueled by worries global growth could be stalled by the spread of COVID-19 variants.
The yield on the benchmark 10-year Treasury rose early Friday to 1.344%, putting an end to an eight-day bond market rally.
Contracts linked to the Dow Jones Industrial Average on Friday were up 200 points, S&P 500 futures rose 16 points and Nasdaq futures gained 3 points.
Stocks finished broadly lower Thursday and Treasury bond yields tumbled to below 1.3%, a five-month low, as investors feared growth would be dented by the spread of new coronavirus infections.
The reflation trade – in which assets benefiting from a strengthening economy and rising inflation outperform – has taken a beating this week amid indications that labor-market and raw-materials shortages were hampering growth in major economies around the world.
Analysts at Barclays, however, said the “sharp reversal in reflation trades looks overdone.” But they cautioned that stock markets could continue to see “erratic price action” amid “poor summer liquidity, activity data peaking, rising Covid cases,
supply bottlenecks and the (Federal Reserve) closer to tapering.
The economic calendar in the U.S. Friday is light. Greenbrier Cos. (GBX) – Get Report is scheduled to report quarterly earnings.
2. — Jim Cramer on the Stock Market Selloff
TheStreet’s Jim Cramer told his “Mad Money” viewers that it’s easy to understand why the market sold off on Thursday: America has one of the best vaccination programs in the world and it’s still getting hammered by the delta variant of COVID. Just imagine how bad the situation is in the rest of the world.
Cramer said we’re seeing a failure of global leadership when it comes to ending the pandemic.
Cramer said some older “Mad Money” viewers might remember that when it came to polio and smallpox, vaccinations were mandatory. There was no politics and no debate. But today, the FDA can’t even explain why COVID vaccines have yet to be fully approved and continue to operate under emergency use authorizations. These questions lead to skepticism and doubt and hesitation, Cramer said, and that’s how the delta variant has spread so quickly.
Cramer added that investors are also fretting over how politicians have been handling everything from big tech, to trade, to the railroads – and it’s not just in the United States. Cramer said China was an equal opportunity wealth destroyer as it blocks mergers, destroys initial public offering and flexes its might wherever possible.
Cramer’s Mad Money Recap: COVID, China, Cybersecurity
3. — Pfizer Seeks OK for Third Dose of COVID Vaccine
Pfizer (PFE) – Get Report said it would request U.S. emergency authorization from the Food and Drug Administration for a third booster dose of its COVID-19 vaccine, saying it could boost immunity and maybe protect against the delta variant of the virus.
Pfizer Dr. Mikael Dolsten told the Associated Press that early data from the company’s booster study suggested people’s antibody levels jump five- to 10-fold after a third dose, compared to their second dose months earlier.
But officials at the FDA and Centers for Disease Control said they would be taking a more cautious approach, saying in a joint statement that “Americans who have been fully vaccinated do not need a booster shot at this time.
“We are prepared for booster doses if and when the science
demonstrates that they are needed,” the agencies added.
Pfizer makes its COVID vaccine in partnership with Germany’s BioNTech (BNTX) – Get Report.
4. — Bitcoin Edges Higher After Slump
Bitcoin moved slightly higher early Friday after cryptocurrencies were swept up in Thursday’s stock market selloff.
Bitcoin rose to $32,930, up 0.9%. It declined to near $30,000 on Thursday, a key support level. The world’s largest cryptocurrency has risen 12.45% so far in 2021, according to CoinDesk.
Owing to the volatility in the previous session were comments from U.S. Sen. Elizabeth Warren, who warned of the growing risks posed to consumers and financial markets by the “highly opaque and volatile” cryptocurrency market, according to a Reuters report.
The senator also said in a letter to Securities and Exchange Commission Chairman Gary Gensler that she wanted answers by July 28 on the SEC’s authority to protect consumers investing and trading in cryptocurrencies.
5. — China Signals It’s Open to 737 MAX Test Flights
Chinese aviation officials have signaled they are open to conducting flight tests on Boeing’s (BA) – Get Report 737 MAX, a step toward lifting the plane’s grounding in the country after more than two years, Bloomberg reported, citing people familiar with the matter.
Boeing is preparing to send a delegation of around 35 pilots and engineers to meet with regulators in late July. It could still take many months after such a flight before a flying ban is lifted, Bloomberg noted, particularly if there is no break in the heightened trade tensions between the U.S. and China.
China’s regulators in March said they had “major concerns”about the plane, including design changes, new pilot training and the causes of the two MAX crashes.
The Federal Aviation Administration lifted the grounding of Boeing’s 737 MAX in November 2020.
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