By Peter Nurse
Investing.com - U.S. stocks are seen opening higher Wednesday, with gains seen across all sectors as the optimism following the news of a workable vaccine for the Covid-19 virus persists.
At 7:15 AM ET (1205 GMT), the Dow Futures contract was up 200 points, or 0.7%, while S&P 500 Futures traded 21 points, or 0.7%, higher, and Nasdaq 100 Futures climbed 106 points, or 0.9%.
Democrat Joe Biden’s presidential election victory, although yet to be confirmed, coupled with Pfizer 's (NYSE:PFE) news that its Covid-19 vaccine was effective, prompted a repricing on Wall Street this week. Cyclical stocks, which require the economy to perform, have seen strong demand, at the expense of the stay-at-home or tech stocks which had done so well previously.
The Dow Jones Industrial Average is up 11% in November, rising in six of the last seven sessions and closing in on a new record high, while the Nasdaq Composite has fallen for the last two days.
That said, the rotation seems to be coming to an end - at least in the short term - with tech set to post strong gains Wednesday after two days of severe underperformance.
“The background story for markets remains the contrast between vaccine-related hopes and sharply rising infections, while investors stay on the lookout for more hints from President-elect Biden around his plans for virus response, fiscal stimulus and foreign policy,” said ING analyst Francesco Pesole, in a research note.
The United States reported a record number of new Covid-19 cases for the seventh day in a row on Tuesday, while the number of deaths surged to their highest daily count since August and hospital admissions hit an all-time high.
The economic data slate is largely empty Wednesday, as it's the Veterans Day and the Treasury market is closed. The earnings calendar also lacks a standout release, with the main focus being on Lemonade (NYSE:LMND), the online home insurer that went public in July.
Oil prices pushed higher Wednesday, continuing the recent positive tone generated by Pfizer’s vaccine news, and helped further U.S. crude inventories falling by more than expected.
Traders will focus on OPEC’s monthly oil report, which will update the cartel’s supply and demand forecasts.
U.S. crude futures traded 2.6% higher at $42.42 a barrel, while the international benchmark Brent contract rose 2.4% to $44.67. Both contracts are up more than 10% this week.
Elsewhere, gold futures fell 0.1% to $1,875.55/oz, while EUR/USD traded 0.4% lower at 1.1766.