5 things to know before the stock market opens July 7, 2020

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1. Dow to drop as tech pauses, reopen stocks stumble

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% higher 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 towards Covid-19 vaccines and treatments.

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

Dr. Anthony Fauci, director of the National Institute for Allergy and Infectious Diseases, testifies before the Senate Health, Education, Labor and Pensions (HELP) Committee hearing on Capitol Hill in Washington DC on June 30, 2020 in Washington, DC.

Kevin Dietsch | AFP via Getty Images

White House health advisor Dr. Anthony Fauci participates in a live stream Tuesday on the Facebook page for Sen. Doug Jones, D-Ala. On Monday, during a National Institutes of Health Q&A, 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. Back in March and April, new patients there were in their 50s and 60s. Florida, as of Sunday, was among 36 states across America 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

Paras Griffin | Getty Images

Atlanta Mayor Keisha Lance Bottoms — said to be under consideration to become Joe Biden’s running mate — said she’s tested positive for the coronavirus. She tweeted Monday that she has no symptoms so far. 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 president.

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.

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 conerns that the platform censors content and that its data could be accessed by China. In response to Monday’s comments from Pompeo, TikTok told CNBC 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.” The statement TikTok added, “We have never provided user data to the Chinese government, nor would we do so if asked.”

Reuters contributed to this report.

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