5 things to know before the stock market opens Wednesday

Health, Fitness & Food

1. Dow set to build on two-session rally and back-to-back monthly gains

Dow futures were pointing to an over 150-point advance at Wednesday’s open as investors remained focused on the reopening of the U.S. economy despite civil unrest across the nation. The Dow Jones Industrial Average on Tuesday logged a second straight day of gains, after last month’s 4.2% rally and April’s 11% surge.

As of Tuesday’s close, the Dow and S&P 500 were both up more than 40% from their coronavirus lows on March 23. The Nasdaq was up nearly 45% over the same period and extended its year-to-date gain to 7%. The S&P 500 and the Dow cut their 2020 losses to about 4.6% and 9.8%, respectively.

2. ADP’s May report expected to show a loss of nearly 8.8 million private-sector jobs

Luis Mora stands in front of the closed offices of the New York State Department of Labor on May 7, 2020 in Brooklyn, New York City.

Stephanie Keith | Getty Images

Nearly 8.8 million private-sector jobs are expected to have been lost last month as some states started to ease their coronavirus mitigation measures. That’s a staggering number but less than half April’s shocking 20.2 million position plunge. The ADP’s May report on job trends at U.S. companies is out at 8:15 a.m. ET, two days before the government’s monthly employment numbers, which are seen showing similar payroll losses and a national unemployment rate approaching 20%.

As for the economy in the second quarter, the Atlanta Federal Reserve’s GDPNow tracker estimates an almost 53% contraction. The GDPNow reading undergoes regular revisions as more economic data comes in, and it’s generally more accurate as the end of the quarter approaches, which in this case is June 30.

3. Fauci worries about how long a potential coronavirus vaccine might last

Dr. Anthony Fauci speaking during the U.S. Senate committee on Health, Education, Labor and Pensions hearing on May 12th, 2020.

CNBC

White House health advisor Dr. Anthony Fauci is expressing concern about the level of protection a potential Covid-19 vaccine may deliver. If this coronavirus acts like others, a vaccine won’t likely provide a long duration of immunity, Fauci, the nation’s leading infectious disease expert, said during a Tuesday evening interview with the editor-in-chief of the Journal of the American Medical Association. Dr. Scott Gottlieb, the former FDA commissioner, told CNBC on Wednesday that a coronavirus vaccine will probably need to be administered every year, like the seasonal flu vaccine and unlike smallpox or polio vaccines, which provide immunity for life.

4. Nationwide protests calmer as Trump presses law-and-order message

Members of the D.C. National Guard stand on the steps of the Lincoln Memorial monitoring a large crowd of demonstrators participating in a peaceful protest against police brutality and the death of George Floyd, on June 2, 2020 in Washington, D.C.

Win McNamee | Getty Images

Protesters around the nation defied curfews in many cities to protest the May 25 death of George Floyd, but the demonstrations against police brutality were calmer than the destructive unrest in recent days. Authorities in New York City and Washington, D.C., ordered people off streets at 8 p.m. ET and 7 p.m. ET, respectively, even before it got dark out. President Donald Trump pressed his call for law and order, tweeting around midnight that New York City police are not being allowed to “perform their MAGIC” to bring the protests under control.

On Tuesday, New York Gov. Andrew Cuomo criticized New York Mayor Bill de Blasio for not deploying enough police officers stop the violence. Cuomo said he offered to send the National Guard to the city but de Blasio declined.

5. Biden slams Trump over protests and coronavirus, moves closer to clinching Democratic nomination

Democratic U.S. presidential candidate Joe Biden speaks about President Donald Trump’s response to protests and rioting across the United States during an event in Philadelphia, Pennsylvania, U.S. June 2, 2020.

Joshua Lott | Reuters

Former Vice President Joe Biden, the presumptive Democratic presidential nominee, slammed Trump’s handling of the protests against police brutality and the coronavirus pandemic. In his first formal address in public since sheltering in March, Biden said that as president he would do his job and “take responsibility.” He added, during Tuesday’s speech in Philadelphia, “I won’t blame others. I’ll never forget that the job isn’t about me.” On Tuesday, Biden also got a boost in primaries, putting him 70 delegates away from clinching the Democratic nomination.

Rep. Steve King, R-Iowa, who has a long history of racist remarks, lost his long-held U.S. House seat in Tuesday’s primary. Last year, King was stripped of his committee assignments because of comments he made about white nationalism. In the general election, Republican Iowa state Sen. Randy Feenstra will face J.D. Scholten, a paralegal and retired professional baseball player, who ran unopposed in Tuesday’s Democratic primary.

The Associated Press and NBC News contributed to this report.

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