US OPEN: Wall Street opens higher as investors monitor stimulus talks

US indices launched today's session higher as progress toward a new coronavirus-aid bill lifted market sentiment, while investors awaited new economic cues from the Federal Reserve's final meeting of the year. Yesterday House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin discussed the bipartisan $908 billion coronavirus package. Meanwhile, coronavirus vaccination already started in the US although infections continue to increase and the death toll surpassed 300K. The most populous state California is already suffering badly, while New York is headed toward a second full shutdown if new infections and hospitalizations continue at their current pace, Governor Andrew Cuomo said Monday. The Fed is expected to maintain interest rates at near-zero during its two-day meeting and signal it will stay there for years to come. The recent coronavirus vaccine roll-out is also expected to improve the bank's 2021 outlook. Meanwhile Joe Biden on Monday won the state-by-state Electoral College vote that formally determines the U.S. presidency.

 

Moderna (MRNA.US) – US FDA announced that company's  Covid-19 vaccine data meets expectations for emergency use. Such an authorization isn’t the same as a full approval, which can typically take months. Moderna, like Pfizer, has only submitted two months of follow-up safety data, but the agency usually requires six months for full approval. Separately company confirmed that some documents related to the submission of its Covid-19 vaccine candidate for European approval were accessed in a hacker attack on the European Medicines Agency, however but data on individual study participants were not disclosed.

Moderna (MRNA.US) stock launched today’s session slightly lower. Currently price is testing lower limit of the triangle formation. Should a break below occur, then another downward impulse towards support at $129.12 could be launched. On the other hand, if buyers manage to regain control then resistance at $170.42 could be at risk. Source: xStation5

Eli Lilly (LLY.US) will acquire Prevail Therapeutics for $880 million or $22.50 per share, with Prevail shareholders also receiving a “contingent value right” worth up to $4 per share subject to future regulatory approvals of Prevail drugs. Also Eli Lilly raised its quarterly dividend by 15% and provided upbeat full-year earnings forecast.

Regeneron Pharmaceuticals (REGN.US) will temporarily halt enrollment in a clinical trial for an experimental lymphoma treatment after the FDA requested changes in trial protocols.

Bristol-Myers (BMY.US) shares rose 2% in premarket after  Goldman Sachs added the drugmaker’s stock to its “Conviction List”. Bank believes that number of Food and Drug Administration approvals  should increase earnings estimates.

 

Apple (APPL.US) is planning to increase iPhone production to 96 million for the first half of 2021, according to the Nikkei Asia news which refers to a sales forecast that Apple shared with its suppliers. This would represent an increase of almost 30% over the same period in 2020.