US Stocks Begin Q3 In Mainly Upbeat Fashion

Pfizer Inc's shares rose more than 3 percent after the drugmaker said a Covid-19 vaccine being developed with German biotech firm BioNTech showed promise and was found to be well-tolerated in early-stage human trials.

The gains put Pfizer among the top boosts to both the S&P 500 and Dow Industrials while helping improve the mood on Wall Street even as the US Centres for Disease Control and Prevention reported an increase of 43,644 new cases of the coronavirus. U.S.-listed shares of BioNTech rose as much as 18.9 percent before fading into the close, ending down 3.9 percent.

"Pfizer news was certainly an impetus for the market to move even higher but in general it is this very positive momentum, looking beyond this re-spreading of the virus, looking beyond that to eventual treatments, eventual vaccine and eventual safe openings of the economy," said Tim Ghriskey, chief investment strategist at Inverness Counsel in New York.

Investors were also encouraged by some upbeat economic data as coronavirus-induced lockdowns have eased. A report on Wednesday showed a slump in global manufacturing had ebbed in June, with US figures hitting their highest level in more than a year.

On Thursday, all eyes will be on the Labor Department's nonfarm payrolls report.

The Dow Jones Industrial Average fell 0.3 percent to 25,734.97, the S&P 500 gained 0.50 percent to 3,115.86 and the Nasdaq Composite added 0.95 percent to 10,154.63.

The Dow was held in check partly by a 1.6 percent fall in Boeing Co shares, which lost ground for a second straight day following a 14 percent surge on Monday.

Updates on the progress in various Covid-19 vaccine programs are being closely watched by investors, and have been partly responsible for Wall Street's recent rally.

The S&P 500 closed its best quarter since 1998 on Tuesday, fuelled also by unprecedented levels of fiscal and monetary stimulus. Minutes from the Federal Reserve's June policy meeting showed policymakers broadly agreed to make full use of the tools at the central bank's disposal to support a recovery from the recession triggered by the coronavirus pandemic.

The Institute for Supply Management (ISM) said its index of national factory activity jumped to a reading of 52.6 last month from 43.1 in May, ending three straight months of contraction, or readings below 50.

The ADP National Employment Report on Wednesday showed US private payrolls increased by 2.369 million jobs, but still less than expected in June.

FedEx Corp jumped 11.7 percent after posting better-than-expected quarterly profit and revenue, helped by a surge in pandemic-fuelled home deliveries.

Drugmaker Amgen Inc climbed 8.2 percent after a federal appeals court upheld two patents for the drugmaker's multibillion-dollar rheumatoid arthritis drug Enbrel.

Advancing issues outnumbered declining ones on the NYSE by a 1.15-to-1 ratio; on Nasdaq, a 1.19-to-1 ratio favoured decliners.

The S&P 500 posted 18 new 52-week highs and no new lows; the Nasdaq Composite recorded 83 new highs and 11 new lows.

Volume on US exchanges was 10.57 billion shares, compared with the 13.46 billion average for the full session over the last 20 trading days. (Reuters)