US OPEN: Wall Street opens higher as stimulus talks continue

 

US indices launched today’s session higher as the stimulus saga continues. Last week Trump’s Administration proposed a $1.8 trillion stimulus, however, the Democrats still demand a $2.2 trillion aid. House Speaker Nancy Pelosi has set a 48-hour deadline for reaching agreement (which runs by the end of Tuesday US time) and said over the weekend that she is still optimistic that a deal can be reached before the elections on November 3. President Trump meanwhile claimed to support a larger stimulus package than that proposed by Pelosi. However, it looks unlikely that Republicans in Senate will approve such a big deal. On the COVID-19 front number of infections surpassed 8.3 million. States across the Midwest are seeing a rise in coronavirus cases, with new infections and hospitalizations rising to record levels. Nationwide, the daily case average has risen by more than 16% on a week-over-week basis to nearly 55,000. Meanwhile, the earnings season continues with IBM expected to report after the market close.

 

Halliburton Co (HAL.US) reported its fourth consecutive quarterly loss today as low oil prices due to the COVID-19 pandemic negatively affected demand for its services. In the third quarter oilfield services provider reported a net loss y of $17 million, or 2 cents per share, compared with a profit of $295 million, or 34 cents per share, a year earlier.

CVS Health Corp (CVS.US) announced today it will hire 15,000 employees this year as the beginning of winter season could fuel a resurgence in the spread of COVID-19 and flu cases. Over 10,000 of the new employees will be full- and part-time licensed pharmacy technicians at its pharmacy locations and could help administer COVID-19 vaccines and tests.

 

Tesla (TSLA.US) shares rose 1.6% after the electric vehicle maker announced it would export China-made Model 3 sedans to more than 10 European countries this month.

Concho Resources (CXO.US) will acquire its rival  ConocoPhillips (COP.US)  in an all-stock transaction worth approx. $9.7 billion. Concho shareholders will receive 1.46 ConocoPhillips shares for every share they now own. According  to the last week's report from CNBC’s David Faber, both sides were in late-stage talks about a possible deal.

Hershey (HSY.US) – Citi upgraded chocolate maker rating to “buy” as company's sales have been pressured by the pandemic, but that it sees significant potential for future growth.

American Airlines (AAL.US) – currently grounded Boeing (BA) 737 Max jet is expected to return to service in December, pending Federal Aviation Administration recertification of the aircraft. Company will schedule a daily flight between Miami and New York on the Max from Dec. 29 through Jan. 4.