US OPEN: S&P500 near record highs, boosted by hopes for more stimulus

US indices opened higher as demand for riskier assets was boosted by hopes for fresh stimulus measures after the White House and Congress said they were ready to resume negotiations after failing to reach an agreement last week. Also, President Trump said he’s considering a tax cut on capital gains and an income tax cut for middle-income families. Traders also continue to monitor US-China tensions with trade talks scheduled for August 15th after Washington imposed sanctions on senior Hong Kong and Chinese officials.
Meanwhile the number of new coronavirus cases in the U.S. dropped by 18% over the past 14 days, according to a New York Times tracker, while deaths have fallen by 6%. Also number of hospitalizations due to COVID-19 in several key states (Arizona, California, Florida, Texas), is declining.
On the data front, US producer prices rose 0.6 % in July 2020, reversing a 0.2% decline in June and above analysts’ expectations of a 0.3 % increase. It was the largest increase in producer prices since October 2018.

Inovio Pharmaceuticals (INO.US) is expecting to start mid-to-late stage study of its Covid-19 vaccine candidate in September and receive emergency use authorization from the FDA sometime next year. Previously company announced that mid-stage studies will start this summer.

 

BioNTech (BNTX.US) said it may present results from a phase 2b/3 clinical trial of its Covid-19 vaccine candidate in October, and will try to bring the vaccine to market as quickly as possible. The company also posted weak quarterly results.

 

Novavax (NVAX.US) believes that its manufacturing capacity will be sufficient to meet demand for its Covid-19 vaccine, which it thinks could be as high as 600 million doses. Company should start a phase three trial as soon as late September.

 

Lyft (LYFT.US), Uber (UBER.US)— stocks of both companies fell approximately 1.6 % in extending trading after a San Francisco Superior Court judge ruled that California drivers should  be hired as employees with benefits instead as independent contractors.

 

Macerich (MAC.US)– reported quarterly loss of 18 cents per share while analysts' expected loss of 16 cents per share. Company's revenue also came in below market forecasts.  Store closures had negative impact on company's results, although  vast majority of stores were reopened by the end of the quarter.

 

Occidental Petroleum (OXY.US) stocks lost 4% in extended trading after the company reported disappointing quarterly results. Occidental  lost  $1.76 per share, while analysts' expected loss of a $1.68 per share. Company also booked a total impairment of $6.6 billion for the second quarter.

 

Bed, Bath & Beyond (BBBY.US) stock dropped 4% after the company suspended its plans for debt reductions, which had been implemented to soften the blow from the pandemic.

 

Simon Property Group (SPG.US) earned 83 cents per share, below analysts' expectations of 98 cents. Revenue also came in below forecasts due to unpaid rent from retailers which were forced to shut down their businesses during the pandemic.