Dow Jones Futures: Pfizer Coronavirus Vaccine Rollout Woes Stall Stock Market Rally; DocuSign Earnings Strong
Dow Jones futures tilted higher Thursday night, along with S&P 500 futures and Nasdaq futures. The stock market rally turned mixed Wednesday on an afternoon report that Pfizer (PFE) and BioNTech (BNTX) will supply half the number of coronavirus vaccine doses by year-end as previously hoped. Pfizer stock and BioNTech fell on the news, while rival Covid-19 vaccine maker Moderna (MRNA) soared.
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After the close, DocuSign (DOCU) headlined after-hours earnings reports. DocuSign stock rose overnight, but pared initial gains suggesting a possible breakout. That followed earnings breakouts Thursday by CrowdStrike (CRWD), Zscaler (ZS) and Elastic (ESTC).
Coronavirus Vaccine Rollout Limited
Pfizer and BioNTech will only be able to deliver 50 million coronavirus vaccine doses by year-end due to some poor raw materials. They had planned to ship 100 million doses by the end of the year. they still expect to ship more than 1 billion doses of their Covid vaccine in 2021.
The U.K. just approved the Pfizer vaccine this week, with vaccinations expected to start next week. An FDA panel will review the Pfizer-BioNTech vaccine on Dec. 10 and the Moderna coronavirus vaccine a week later.
Pfizer stock fell 1.7% on Thursday, with BioNTech down 3.5%, with nearly all of the losses coming in 30 minutes on the vaccine rollout woes. Moderna stock leapt 10% to a new closing high.
After the close, Moderna reaffirmed its goal of 20 million doses of its coronavirus vaccine being available by year-end. It sees 100 million to 120 million available worldwide in Q1, with 500 million to 1 billion doses in 2021. It also stated that Phase 1 trial participants retained high levels of antibodies some 119 days after the first coronavirus vaccine dose — 90 days after the second dose.
In overnight trade, Pfizer and BioNTech stock fell fractionally. MRNA stock edged lower.
Stimulus Deal ‘Hopeful Signs’
House Speaker Nancy Pelosi and Senate Majority Leader Mitch McConnell spoke Thursday to reaffirm their commitment to a new coronavirus stimulus deal, as lawmakers signal more willingness to compromise and reach an agreement soon. McConnell said earlier in the day that he sees “hopeful signs” for a stimulus deal. Pelosi and Senate Minority Leader Chuck Schumer said Wednesday that a new $908 billion bipartisan proposal could form the basis for stimulus deal talks.
CrowdStrike stock and Zscaler joined IBD Leaderboard on Thursday.
Dow Jones Futures Today
Dow Jones futures were up 0.1% vs. fair value. S&P 500 futures climbed 0.15%. Nasdaq 100 futures rose 0.2%.
Dow Jones futures will likely move at 8:30 a.m. ET, when the Labor Department releases the November jobs report.
Remember that overnight action in Dow futures and elsewhere doesn’t necessarily translate into actual trading in the next regular stock market session.
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Coronavirus Cases
Coronavirus cases worldwide reached 65.53 million. Covid-19 deaths topped 1.51 million.
Coronavirus cases in the U.S. have hit 14.53 million, with deaths above 282,000. Newly diagnosed U.S. Covid cases topped 218,000 so far Thursday with deaths above 2,900, both new daily records.
With local cases and hospitalizations soaring, the city of Los Angeles announced a stricter lockdown, closing all in-person activities for nonessential businesses. Walking or driving is barred, except for essential activities. The much-larger Los Angeles County had already closed down outdoor dining.
California Gov. Gavin Newsom late Thursday announced a limited stay-at-home order for many parts of the state, though his order would let nonessential retailers remain open with limited capacity.
The soaring coronavirus cases and increasing government shutdowns raise the stakes for the coronavirus vaccine rollouts and a possible stimulus deal.
Pfizer And Moderna Face Their Biggest Challenge: Vaccinating The World
Stock Market Rally Thursday
The stock market rally faltered right at the close on the Pfizer coronavirus vaccine news, after rising modestly on stimulus deal hopes.
The Dow Jones Industrial Average rose 0.3% in Thursday’s stock market trading, led by Boeing (BA). The S&P 500 index lost less than 0.1%. The Nasdaq composite climbed 0.2%. Thursday’s fade on higher volume means it was a stalling day for the Nasdaq.
Among the best ETFs, the Innovator IBD 50 ETF (FFTY) rose 0.2%, but closed near session lows. The iShares Expanded Tech-Software Sector ETF (IGV) climbed 0.5%. The VanEck Vectors Semiconductor ETF (SMH) lost a fraction.
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DocuSign Earnings
DocuSign earnings doubled to 22 cents a share. Revenue rose 53% to $382.9 million, the third straight quarter of accelerating growth. Analysts expected DocuSign earnings of 13 cents on sales of $361.2 million.
The e-signature software specialist, a big winner from the work-from-home trend, also reported strong billings and guided higher for current-quarter revenue.
DocuSign stock rose 3% overnight, backing well off a brief move above a 246.90 buy point. Investors could view 246.90 as an early entry or buy point from a very messy double-bottom base.
DOCU stock rallied 6.1% on Thursday to 231.01, rebounding from its 50-day line and breaking a trend line. That would have offered an early entry, but would have been highly risky right ahead of DocuSign earnings. If DOCU stock doesn’t clear the 246.90 entry on Thursday, investors might consider starting a position based off the 10-week line.
The DocuSign earnings report follows bullish results from security software leaders CrowdStrike and Zscaler stock, as well search provider Elastic.
CrowdStrike stock spiked nearly 14% on Thursday, gapping out of a base. ZS stock leapt 26% and Elastic stock nearly 13%, also capping out of bases. CRWD stock was the IBD Stock Of The Day.
Please follow Ed Carson on Twitter at @IBD_ECarson for stock market updates and more.
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