AstraZeneca vaccine gets UK green light
U.S. stock markets are expected to open higher on Wednesday after the Santa Claus rally hit a roadblock during the previous session.
As of 5:10 a.m. ET, futures for the blue-chip Dow were indicated 104 points, or 0.34% higher to 30,342. The S&P 500 future ticked up 14.38 points, or 0.39% to 3,734.38 while tech-heavy Nasdaq 100 futures gained 51.50 points, or 0.40% to 12,892.50.
Market sentiment has been boosted by news that the United Kingdom has approved the coronavirus vaccine developed by AstraZeneca (NASDAQ: AZN) in collaboration with Oxford University.
AstraZeneca said it was working with the UK government to start vaccinations early next year. According to UK health secretary Matt Hancock, the country has ordered 100 million doses of the new vaccine and eventually all adults will be given the shot.
Shares of the drugmaker climbed 2.30% to $51.05 each in the pre-market trading session.
McConnell links larger stimulus checks to Section 230 repeal
Meanwhile, Senate Majority Leader Mitch McConnell on Tuesday introduced a bill that would increase the size of stimulus checks from $600 to $2,000, set up a new commission to study election fraud, and repeal the Section 230 liability protection for social media companies.
McConnell introduced the bill after earlier blocking an attempt by Senate Minority Leader Chuck Schumer to unanimously approve a bill passed by the House of Representatives to increase stimulus checks in the coronavirus relief package from $600 to $2,000.
His decision to block a vote on raising the payments came as an increasing number of GOP senators expressed their support for the bigger checks. They include Senators Kelly Loeffler and David Purdue who will be fighting for their political lives in the Georgia runoffs on January 5.
Treasury Secretary Steven Mnuchin said the Trump administration already started sending the $600 stimulus checks to millions of Americans last night, and if the Senate approves the $2,000 increase, it will be added to the original sum.
Third Point reportedly wants Intel to consider strategic alternatives
Hedge fund Third Point has urged Intel (NASDAQ: INTC)’s board of directors to consider strategic alternatives including a possible move from manufacturing, Reuters reported on Tuesday.
According to the report, the hedge fund wrote a letter to Intel saying it was highly concerned about losses of talented chip designers who were “demoralized by the status quo.”
Third Point said Intel has significantly underperformed its rivals in the past five years, including shedding more than $60 billion of its market capitalization this year alone.
“Considering these and other challenges, we suggest the Board retain a reputable investment advisor to evaluate strategic alternatives, including whether Intel should remain an integrated device manufacturer and the potential divestment of certain failed acquisitions,” the letter read.
The hedge fund, which is led by Dan Loeb, reportedly owns a stake of nearly $1 billion in Intel.
Shares of Intel ended Tuesday’s session with a gain of 4.93% to $49.39 each. The stock was marked 0.95% lower in the pre-market trading session Wednesday.
