• US equities erase most of the early gains
• Oil price drops after EIA report
US indices erased early gains and are trading slightly lower as investors are still waiting for concrete decisions on the coronavirus stimulus package. House Speaker Pelosi and Treasury Secretary Mnuchin will speak again today following the expiration of the 48-hour deadline set by Democrats. Pelosi remains positive that a comprehensive stimulus agreement might be reached later this week, while White House economic adviser Larry Kudlow said it was a "sunny, optimistic morning" in terms of negotiations. Also Fed's Brainard called for more fiscal support amid ‘uneven’ recovery. Meanwhile, number of new coronavirus infections surpassed 60K on Tuesday. On the corporate front, earnings from Abbott and Verizon beat forecasts while results for Netflix disappointed. Shares of Nikola Corp rose nearly 10% on Wednesday after a General Motors executive told CNBC that he still sees a partnership with the electric-vehicle start-up being a great opportunity. Snap Inc stock soared 34.1% on upbeat quarterly results, as more people signed up to chat with friends and family during the COVID-19 pandemic. Stocks of social media giants Facebook Inc and Twitter Inc rose 4.6% and 6.6% respectively, while Pinterest stock jumped 10.3%.
U.S. crude futures dropped over 4% higher, while the international benchmark Brent contract fell over 3.6% after latest data from the EIA showed US crude oil stockpiles fell by 1.001 million barrels, slightly less than analysts’ estimates of a 1.021 million barrels. At the same time, Baker Hughes said that the demand recovery is beginning to level off and significant excess capacity remains, which could create volatility in the future.Elsewhere, gold futures rose 0.9% to $1,925/oz, while silver is trading 1.8% higher at $25.09/oz.
