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* Banks, industrials, travel stocks rise
* Pfizer, J&J extend gains after positive vaccine updates
* Futures: Dow up 0.24%, S&P up 0.12%, Nasdaq down 0.08%
(Adds comments, updates prices)
By Shriya Ramakrishnan
Dec 9 (Reuters) - The S&P 500 was set to open at a record
high on Wednesday as hopes for a vaccine-linked economic
recovery and more domestic fiscal stimulus sparked demand for
economically sensitive stocks such as banks and industrials.
Investors have flocked to U.S. equities and shrugged off
weak economic data in recent weeks on signs that a working
COVID-19 vaccine would be available before the end of the year.
The U.S. Food and Drug Administration raised no new issues
about the safety or efficacy of Pfizer Inc's PFE.N candidate
on Tuesday, while Johnson & Johnson JNJ.N reported it could
obtain late-stage trial results for a single-dose vaccine
earlier than expected.
Both drugmakers' shares gained about 1%.
President-elect Joe Biden has vowed that his administration
would vaccinate 100 million Americans during his first 100 days
in office, push to reopen schools and strengthen mask mandates.
"The market remains very optimistic that some sort of a
stimulus deal would be cut before the end of the year, and that
would indicate the economy may not falter or wind up in a
double-dip recession," said Peter Cardillo, chief market
economist at Spartan Capital Securities in New York.
U.S. lawmakers continued to negotiate on the long-awaited
coronavirus relief package, but provisions on liability
protections for businesses and aid to state and local
governments have caused divisions between Republicans and
Democrats.
The Trump administration proposed a new $916 billion aid
package on Tuesday, after congressional Democrats shot down a
suggestion for a pared-down plan. At 8:19 a.m. ET, Dow e-minis 1YMcv1 were up 72 points, or
0.24%, S&P 500 e-minis EScv1 were up 4.5 points, or 0.12%, and
Nasdaq 100 e-minis NQcv1 were down 9.75 points, or 0.08%.
Major U.S. banks Citigroup C.N and Wells Fargo WFC.N
gained half a percent before the bell, while industrial
bellwether Boeing Co BA.N climbed 1.1%.
With overall valuations now at extremely high levels, some
investors worry stocks could be more vulnerable to any bad news
such as unexpected setbacks in the roll-out of vaccines or
delays in stimulus. Travel stocks, which have been battered by the COVID-19
pandemic, also clocked sharp gains. American Airlines Group Inc
AAL.O and United Airlines Holdings Inc UAL.O jumped 3.9% and
1.5%.
Campbell Soup Co CPB.N slipped 0.9% even as it reported a
21% surge in sales of soups in the United States alone.