On December 15, the American stock indices closed in positive territory. The S&P 500 index rose 1.29% to 3695 points, the Dow Jones rose 1.13%, the NASDAQ rose 1.25%. The main positive driver was the optimistic expectations regarding the new package of fiscal support. Increased risk appetite allowed all 11 sectors to close in the green zone. The tech sector became one of the leaders of growth, adding 1.61%, the locomotive was the shares of Apple.
Corporate Update
According to media reports, Apple (AAPL: + 5%) plans to increase iPhone production by 30% YoY amid strong demand for the new iPhone 12 Pro models.
Eli Lilly (LLY: + 6%) released strong forecasts for 2021 and announced a deal to buy Prevail Therapeutics (PRVL: + 82%) for $ 1 billion.
China’s Baidu Corporation (BIDU: + 13.8%) is considering entering the electric vehicle market and is in talks with automakers.
Today, world stock exchanges are showing mostly positive dynamics. Two potential drivers of growth are in the spotlight: progress in negotiations between US lawmakers on a new package of economic support and the outcome of the Fed meeting. Congressmen continue to actively discuss the bill on measures to help the economy. At the moment, it is most likely that a package of about $ 750 billion will be accepted. This option excludes the most controversial aspects that have hindered a compromise over the past six months. Lawmakers plan to vote this week, while also approving other spending items, including an extension of government funding.
The Fed is expected to repeat the rhetoric of previous meetings, active actions of the regulator are unlikely, as well as changes in long-term forecasts for the rate. Jerome Powell will re-emphasize the importance of fiscal policy. Most likely, the parameters of the program for purchasing government bonds will not be changed, but this program itself can be extended, which will support optimism in the markets.
Today Top Movers
Niu Technologies (NIU) is up 0.79% at $29.41 in premarket trading on Wednesday. In spite of no news on the stock directly, a broader piece of news today has helped several stocks.
Hexo Corp (HEXO) share price increased 2.75% at $1.12 in today’s early morning session following the release of its first quarter fiscal 2021 financial results.
Marathon Patent Group Inc (MARA) is going up 5.80% in premarket session on Wednesday. Despite few business articles or no business news lately, this stock has drastically climbed in value.
Tilray Inc (TLRY) share price gaining 20.97% at $9.52 in premarket trading today following Its merger news with Aphria.
Top Upgrades & Downgrades
Credit Suisse turned bullish on Galera Therapeutics Inc. (GRTX), upgrading the stock to “Outperform” and assigning a $15.0 price target, representing potential upside of 18.48%.
Atlantica Sustainable Infrastructure plc (AY) has won the favor of Seaport Global’s equity research team. The firm upgraded the shares from Neutral to Buy and moved their price target to $38.0.
Wells Fargo & Company (WFC) received an upgrade from analysts at Keefe, Bruyette & Woods, who also set their one-year price target on the stock to $36.0. They changed their rating on WFC to Outperform from Market Perform in a recently issued research note.
Earlier Wednesday RBC Capital reduced its rating on Pfizer Inc. (PFE) stock to Sector Perform from Outperform and assigned the price target to $42.0.
KeyBanc analysts reduced their investment ratings, saying in research reports covered by the media that its rating for Aptiv PLC (APTV) has been changed to Sector Weight from Overweight.
Latest Insider Activity
Chewy Inc. (CHWY) Director STAR JAMES A announced the sale of shares taking place on Dec 11 at $85.06 for some 30,000 shares. The total came to more than $2.55 million.
CarGurus Inc. (CARG) General Counsel and Secretary Patton Kathleen Bender sold on Dec 14 a total 103,142 shares at $30.00 on average. The insider’s sale generated proceeds of almost $0.17 million.
Elys Game Technology Corp. (ELYS) Vice President of Technology Pasquini Luca declared the purchase of shares taking place on Dec 14 at $3.15 for some 1,000 shares. The transaction amount was around $3150.0.
Retractable Technologies Inc. (RVP) President and CEO SHAW THOMAS J bought on Dec 14 a total 14,076,660 shares at $12.85 on average. The purchase cost the insider an estimated $3,007.
Earnings To Watch
Top US earnings releases scheduled for today include Lennar Corporation (NYSE:LEN). It will announce its Nov 2020 financial results. The company is expected to report earnings of $2.37 per share from revenues of $6.65B in the three-month period.
Analysts expect Qutoutiao Inc. (NASDAQ:QTT) to report a net income (adjusted) of -$0.09 per share, when the bank releases its quarterly results shortly. Revenue for the fiscal quarter ended Sep 2020 is predicted to come in at $174.89M.
Herman Miller Inc. (MLHR), due to announce earnings after the market closes today, is expected to report earnings of $0.56 per share from revenues of $585.5M recently concluded three-month period.
