Wall Street opens in the green amid optimism over stimulus and vaccines

The main Wall Street indices started Tuesday’s session on the front foot as optimism over US stimulus negotiations and more COVID-19 vaccine news boosted investor sentiment.

Shortly after the opening bell, the Dow Jones Industrial was up 0.58% at 30,035 while the S&P 500 climbed 0.73% to 3,674 and the Nasdaq rose 0.68% to 12,524.

One of the factors lifting equities on Tuesday is the assessment by the FDA of Moderna Inc’s (NASDAQ:MRNA) COVID-19 vaccine candidate, which the regulator said was “highly effective”, raising hopes that the jab could be shipped out as soon as the weekend.

Meanwhile, tech giant Apple Inc (NASDAQ:AAPL) was also on the up, rising 3.6% to US$126.13 after the company said it is expecting to make 96 million iPhones in the first half of 2021, a 30% increase year-on-year.

7.50am: Wall Street to start higher on stimulus hopes

Hopes that a coronavirus aid bill, backed by both major political parties, will be passed into law swiftly has lifted sentiment in New York.

The Dow Jones 30-share average is expected to open 168 points higher at 30,030 while the broader-based S&P 500 is tipped to advance 22 points to open at around 3,669.

The Nasdaq Composite is predicted to rise 72 points to open at 12,512.

Sentiment has been boosted by the roll-out of vaccines to combat the spread of the coronavirus in the US and by the Electoral College members casting their votes as expected – i.e. for the people who won the recent election, although the rising number of coronavirus cases remains a concern.

Today’s key economic news in the US will centre on the factory sector, reports Daiwa Capital Markets.

“First up is the IP [industrial production] report for November, which Daiwa America chief economist Mike Moran expects will point to only modest growth in output of about 0.2%M/M [month-on-month]. A little later, the New York Fed will release its manufacturing survey for December, which last month pointed to slowest expansion since August. Export and import price readings for November round out the economic diary,” Daiwa said.

Three things to watch for on Tuesday:

• Macro data expected today includes US industrial and manufacturing production figures as well as  the Empire State manufacturing index for December
• The earnings calendar is thin, however, some investors may be interested in fourth quarter earnings from adhesive dispensing equipment maker Nordson Corp (NASDAQ:NDSN)
• Traders may also be focusing on any developments from the ongoing stimulus negotiations after a bipartisan aid bill was unveiled late on Monday

Story by ProactiveInvestors