US OPEN: Wall Street opens higher on vaccine hopes

• US stocks opened sharply higher  - S&P 500 above 3000 pts
• Tensions between Washington and Beijing continue to escalate
• Novavax (NVAX.US) stocks surge over 16% amid optimism about a coronavirus vaccine

US indices opened higher as optimism grew about the reopening of the economy and a potential coronavirus vaccine. Yesterday American biotech firm Novavax announced it started the first human study of its experimental coronavirus vaccine.
All of this has tended to overshadow the rising tensions between China and US. Chinese President Xi saying his country will step up preparedness for military combat, as well as a warning from the World Health Organization that countries with declining numbers of Covid-19 cases could still see an “immediate second peak”. 

Today New York Stock Exchange will partially reopen the trading floors  for the first time since March 20.
The Intercontinental Exchange Inc's NYSE floor will be different, with protective masks, strict social distancing requirements, and just around a quarter of the people, NYSE Chief Commercial Officer John Tuttle said in an interview. Still, he says the reopening is meaningful.
"The floor represents so much more than the several tens-of-thousands of square feet it occupies," he said. "It's a symbol of America, and it's a symbol of capital markets; it's a symbol of the economy and after two months of the country and essentially the world being offline, we want to lead from the front."

 

S&P 500 (US500)  is trading above 3000 pts for the first time since 6 March. The price is currently testing 200 MA (redline). If buyers manage to break above it, an upward impulse towards 3159.7 pts could be launched. On the other hand, once sellers regain control, the support at 2828.3 pts may be at risk. Source: xStation5

Novavax (NVAX.US) will start human trials of its experimental coronavirus vaccine in Australia. Company expects that initial results will be available in July. If the trials proves successful, they will be expanded to the United States.

Novavax (NVAX.US) shares jumped over 16% in pre-market trading. If current upbeat moods prevail, then price may be heading towards major resistance at $62.33 per share. Local support can be found at $52.16. Source: xStation5

Merck (MRK.US)  announced the acquisition of Themis, whose coronavirus vaccine will soon start human trials. Merck also collaborates with the non-profit vaccine researcher IAVI, and also works with private Ridgeback Biotherapeutics to develop antiviral treatment for patients with Covid-19.

Gilead Sciences (GILD.US) – according to peer-reviewed data published in The New England Journal of Medicine,  company's coronavirus drug remdesivir is effective at helping patients recover in faster pace. Recovery period was reduced by nearly a third –  about four days – compared to patients which received placebo.

Hertz (HTZ.US)  has filed for bankruptcy protection under Chapter 11 after negotiating with creditors proved unsuccessful. The coronavirus pandemic has seriously affected the car rental company.

AutoZone (AZO.US) posted quarterly earnings of $ 14.39 per share, compared to the $ 13.80 a share consensus estimate. Revenue also came above market expectations. Store sales fell just 1% compared to the 6.3% decline expected by analysts.

Molson Coors (TAP.US) is furloughing an unspecified number of employees in North America and in Europe. Beer brewing company i s also suspending its quarterly dividend.  Company's business was significantly affected by the pandemic-related closures of restaurants and bars.

Take-Two Interactive (TTWO.US) – The video game maker’s stock was upgraded to “outperform” from “market perform” at BMO Capital, which sees tailwinds from consumers staying at home continuing to benefit the video game industry.

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