5 things to know before the stock market opens Tuesday
Dow futures were pointing to an over 200 point drop at Tuesday's open after a tech-led rally boosted Wall Street to start the new week. Apple — heavily weighted in the Dow Jones Industrial Average, the S&P 500 and the Nasdaq — saw its stock surge nearly 2.7% on Monday to an all-time high. The Dow jumped almost 460 points, or 1.8%.
The S&P 500 gained 1.6%. The Nasdaq rose 2.2% to close at another record high, also with a tailwind from shares of Amazon, which hit an all-time high and broke above $3,000. In Tuesday's premarket, tech stocks took at pause. Many of the so-called reopening stocks, such as airlines and cruise lines, also were lower.
Novavax was a big winner in Tuesday's premarket trading, with shares rocketing over 35% after the federal government gave the biotech firm $1.6 billion for development of a potential coronavirus vaccine. The award is the biggest yet from the White House's program to accelerate progress toward Covid-19 vaccines and treatments. Novavax stock, before Tuesday's run-up, was nearly 2,000% higher in 2020.
Shares of Regeneron were up 3% in premarket trading after the drugmaker received a $450 million grant from the U.S. government to make and supply its double-antibody cocktail being tested against Covid-19.
2. Fauci on potential vaccines, younger patients
White House health advisor Dr. Anthony Fauci participates in a live stream Tuesday on the Facebook page for Sen. Doug Jones, D-Ala. During a National Institutes of Health Q&A on Monday, Fauci said protection from any potential coronavirus vaccine might be short-lived and could require a booster to prolong protection. Fauci also said the average age of new patients has dropped by roughly 15 years compared with only a few months ago as the virus reignites in America's Sun Belt.
For example, Republican Florida Gov. Ron DeSantis said Monday the median age of new Covid-19 patients in his state reached a low of 33. In March and April, new patients there were in their 50s and 60s. Florida, as of Sunday, was among 36 states with growing coronavirus cases. Total U.S. infections approached 3 million, with deaths exceeding 130,300. Cumulative global cases reached 11.6 million, with more than 538,700 fatalities.
3. Possible Biden VP pick tests positive
Atlanta Mayor Keisha Lance Bottoms — said to be under consideration to become Joe Biden's running mate — said she has tested positive for the coronavirus. She tweeted Monday that she has no symptoms. Later on CNN, she said one of her children has also tested positive.
Bottoms, 50, has gained national attention in recent weeks for her handling of the pandemic and the nationwide protest movement against police brutality and racism, both of which have had major impacts on Atlanta. Biden, the presumptive Democratic presidential nominee, has said he plans to pick a woman as his vice presidential running mate.
4. Paycheck Protection Program recipients revealed
The Trump administration has disclosed the names of many small businesses that received loans under a program intended to blunt the economic damage from the coronavirus pandemic. The disclosure comes in response to Democrats' demands for more transparency around the Paycheck Protection Program — funds established as part of the $2.2 trillion relief package signed into law by President Donald Trump in March.
Among the notable PPP recipients were Robert De Niro-backed Nobu restaurants, dozens of companies that handle last-mile delivery for Amazon, news organizations including Forbes and The Washington Times, and Kanye West's clothing-and-sneaker brand Yeezy.
5. U.S. increases pressure on TikTok, other Chinese apps
The U.S. is "looking at" banning TikTok and other Chinese social media apps, Secretary of State Mike Pompeo told Fox News. TikTok, owned by Beijing-based ByteDance, has been on Washington's radar since last year, with concerns that the platform censors content and that its data could be accessed by China.
In response to Monday's comments from Pompeo, TikTok said in a statement that the social network is "led by an American CEO, with hundreds of employees and key leaders across safety, security, product, and public policy here in the U.S."
"We have never provided user data to the Chinese government, nor would we do so if asked," it added.
— Reuters contributed to this report. Follow all the developments on Wall Street in real-time with CNBC's live markets blog. Get the latest on the pandemic with our coronavirus blog.
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