Futures point to a higher open
U.S. stock futures were suggesting a positive open for Wall Street on Monday after AstraZeneca (NASDAQ: AZN) announced encouraging data from late-stage trials of its experimental Covid-19 vaccine.
At around 6:05 a.m. ET, futures tied to the blue-chip Dow were indicated 208.5 points, or 0.71% to 29,420.5. Those for the S&P 500 futures rose 21.37 points, or 0.6% to 3,575.62 while the tech-heavy Nasdaq 100 futures were up 43.13 points, or 0.36% to 11,948.88.
AstraZeneca said the vaccine was “highly effective” in preventing the virus, with up to 90% efficacy in participants receiving one of the dose regimens used in trials.
The U.K.-based pharmaceutical giant, which has been developing the vaccine with Oxford university, plans to apply for early approval of the vaccine where possible.
The company joins Pfizer (NYSE: PFE) and Moderna (NASDAQ: MRNA), which last week announced preliminary results from late-stage trials showing their vaccines were almost 95% effective.
Crude gains on vaccine news
Crude futures were also trading higher early Monday, supported by AstraZeneca-Oxford vaccine news and hopes that hopes that the Organization of the Petroleum Exporting Countries (OPEC) and its allies, will agree to extend output curbs at their meeting next week.
At around 6:05 a.m. ET, U.S. West Texas Intermediate (WTI) crude futures were at $42.88, up 46 cents, or 1.08% a barrel. International Brent crude futures climbed 56 cents, or 1.24% to $45.63 a barrel.
Trump administration to ban tech exports to 89 Chinese companies
On the trade front, Reuters is reporting that President Donald Trump’s administration is close to publishing a list of 89 Chinese aerospace and other companies that would be restricted from accessing U.S. technology exports because of their military ties.
The news agency said a spokesman for the U.S. Commerce Department declined to comment. If published, the list could block the companies from buying U.S. technology and further escalate trade tensions with China.
Ten days ago, Trump signed an executive order banning Americans from investing in Chinese firms that his administration says are controlled or owned by the Chinese military.
Tesla price target increased from $500 to $560 at Wedbush
In other news, Wedbush Securities analyst Daniel Ives says Tesla (NASDAQ: TSLA) is likely to hit its million delivery units target by 2023, with 2022 not out of the question.
Ives ratcheted up his bull-case price target for Tesla from $800 to $1,000 and its price target from $500 to $560. He, however, maintained a neutral rating on shares of the electric-car maker.
He said in a note to clients that he is seeing “a major inflection of EV demand globally” with “expectations that EV vehicles ramp from about 3% of total auto sales today to 10% by 2025.” The analyst added that China could represent nearly 40% of Tesla’s electric vehicle deliveries by 2022.
As of writing, Tesla stock was up $6.91, or 1.41% to $496.52 a share in the pre-market trading session on Monday.
