US OPEN: Equities advance after Trump signs relief package

• President Trump signs stimulus package

• Global equities advance after Christmas

• Tesla is set to start operations in India

Global stock markets are on the rise following Christmas. Stock indices advance as President Trump finally signed a combined $2.3 trillion coronavirus relief and government funding package. Even though the President was initially against $600 aid checks and demanded as much as $2,000 instead, he eventually conceded. Due to delaying the signing, 14 million Americans lost one week of expanded unemployment benefits. Brexit trade agreement is another factor, which pushes stocks higher. As today’s economic calendar is very light, investors are focused on latest headlines and politics. Liquidity is likely to be thinner as some stock exchanges including London Stock Exchange are still closed today. Meanwhile, Europe begins its rollout of the Covid-19 vaccine. 

US500 climbed to fresh all-time highs today on stimulus optimism. The index is still trading near 3,720 pts, but moves are mild. Markets are thin as some exchanges remain closed after Christmas (for instance London). Apart from that, today’s calendar is light as well, which means that traders might not witness any major moves.

Company News:

Tesla (TSLA.US) is set to start operations in India in early 2021, country’s transport minister said on Monday. Initially the company is expected to enter the market with sales. Electric vehicle producer might also look at assembly and manufacturing in the future. 

Myovant Sciences (MYOV.US) shares soar over 20% during today’s US session as the firm announced that it will work with Pfizer (PFE.US) to develop a treatment for men’s and women’s cancer. The deal is worth up to $4.2 billion in upfront and potential milestone payments. 

Analysts’ recommendations: 

• Advanced Micro Devices (AMD.US) stock price was raised to $102 from $93 a Mizuho while maintaining “buy” rating.

• Micron Technology (MU.US) stock price was raised to $85 from $75 at Mizuho while maintaining “buy” rating.

• QUALCOMM (QCOM.US) stock price target was raised to $163 from $154 at Mizuho while maintaining “buy” rating.

Advanced Micro Devices (AMD.US), as well as many other semiconductor stocks, are often seen as winners of the Covid era. Analysts from Mizuho still expect an upside potential in the sector, which might be reflected in their recent upgrades. AMD shares gained roughly 150% from the March low. Stock has recently retreated from its all-time highs, but still trades above $90 barrier. Source: xStation5