The week is starting on a positive note with U.S. stock futures trending higher in Monday’s pre-market trading on the news related to the first deliveries of the Pfizer-BioNTech COVID-19 vaccine. Futures tied to the S&P 500, Dow Jones Industrial Average and Nasdaq 100 were advancing 0.57%, 0.66% and 0.37%, respectively, pointing to a rebound from losses in the previous week. This week, the market’s focus will be on coronavirus stimulus talks and the Federal Reserve’s policy meeting.
Pfizer and BioNTech are gearing up to commence the distribution of the first batches of their BNT162b2 COVID-19 vaccine in the U.S. after the FDA approved its emergency use authorization. Pfizer and BioNTech are gathering additional data to file a Biologics License Application with the FDA for full regulatory approval in 2021.
More on the vaccine front, Moderna shares advanced 3.6% in Monday’s pre-market trading as the biotech company announced that the U.S. government is exercising its option to purchase an additional 100 million doses of its mRNA-1273 COVID-19 vaccine candidate, bringing the total order secured to 200 million doses. Of the previous 100 million-dose order, 20 million doses will be delivered by the end of this year and the rest will be delivered in 1Q21. Meanwhile, the new order of 100 million doses will be delivered in 2Q21. The vaccine deliveries are subject to the receipt of an emergency use authorization from the FDA.
Tesla is pausing the production of its older EV models—the Model S sedan and Model X SUV— for 18 days beginning Dec. 24th, as per a CNBC report that cites an email to factory employees. In the internal email, CEO Elon Musk informed employees working on those production lines at the Fremont, California factory that they were being offered one week of paid leave and were encouraged to try and find work in other areas of the factory or “volunteer” to help make deliveries to customers during the shutdown.
Meanwhile, United Airlines predicts higher cash burn in 4Q as rising COVID-19 cases are impacting travel demand. It expects revenue to decline 70% and average cash burn of about $24 million-$26 million, plus $10 million of average debt principal payments and severance payments per day in 4Q. The carrier had earlier anticipated 4Q cash burn of $15 million-$20 million, plus $10 million of severance and debt principal payments.
Alibaba is being fined 500,000 yuan ($76,463) by the Chinese market regulator for improper disclosure of certain acquisitions. The regulator also fined Tencent-backed China Literature, and Shenzhen Hive Box Technology in an effort to take a tougher stance on the country’s tech giants. The regulator made the decision after reviewing the previous deals made by these firms, including Alibaba’s acquisition of department store chain Intime Retail.
In M&A news, workforce development solutions provider Pluralsight is set to be acquired by investment firm Vista Equity Partners in an all-cash deal of $3.5 billion. Pluralsight’s CEO Aaron Skonnard stated, “Through this partnership with Vista, we will be able to move faster and be more agile, accelerate our strategic vision and, ultimately, deliver deeper, more powerful solutions that help companies adapt and thrive in the digital age.” The transaction is expected to be completed in the first half of 2021, subject to regulatory approvals.
