US OPEN: Wall Street climbs as political theater drags on

US indices are trading higher as the political theater over a U.S. fiscal stimulus package continues. House Speaker Pelosi and Treasury Secretary Mnuchin will continue negotiations today in spite of the expiration of the 48-hour deadline set by Democrats. Pelosi hopes that stimulus deal could be reached before the weekend, which would be bigger, better and retroactive. Meanwhile, investors remain concerned about the surging number of new COVID-19 cases as the US reported more than 60K new infections yesterday. On the positive side, AstraZeneca is allowed resume its coronavirus vaccine trial this week and there is possibility that Moderna will obtain emergency approval for its virus vaccine candidate in December. Meanwhile Fed Governor Lael Brainard said that the economic recovery in the US remains highly uncertain and highly uneven, with certain sectors and groups experiencing substantial hardship, in prepared remarks to the Society of Professional Economists Annual Online Conference. Fed is committed to providing sustained accommodation to achieve a broad-based recovery but  further fiscal support will be needed alongside accommodative monetary policy to turn this K-shaped recovery into a broad-based and inclusive recovery. On the earnings front, Tesla will report its quarterly results today after markets close.

 

Snap (SNAP.US) - company posted a quarterly profit of 1 cent per share, while analysts' expected a 5 cents per share loss. Revenue also came in above forecasts, with stronger-than-expected user growth as more people signed up to use the service amid the pandemic.

 

Verizon (VZ.US) reported quarterly earnings of $1.25 per share, slightly above analysts’ expectations of $1.23 per share. Revenue came in line with markets estimates. Verizon raised its full-year earnings guidance, and added more phone subscribers than expected.

 

AutoNation (AN.US) stock rose 8% in premarket trading after company reported quarterly earnings of $2.38 per share, well above the market forecasts of $1.65 a share. Revenue also beat expectations. The auto retailer increased its share repurchase authorization to $500 million.

Thermo Fisher Scientific (TMO) – posted quarterly earnings of $5.63 per share, beating analysts' estimates of $4.31 a share. Revenue also came in above expectations, thanks to higher demand for analytical instruments and specialty diagnostics.

Texas Instruments (TXN.US) – quarterly earnings came above Wall Street estimates by 17 cents a share, with quarterly profit of $1.45 per share. Revenue also beat market expectations. Company posted its first quarterly revenue growth in nearly two years, helped by growing demand for electronic gadgets.