US open: Traders optimistic following another round of positive vaccine headlines

Wall Street stocks opened higher on Monday as another round of positive Covid-19 vaccine headlines boosted optimism among traders.

As of 1540 GMT, the Dow Jones Industrial Average was up 0.62% at 29,446.17, while the S&P 500 was 0.38% firmer at 3,570.93 and the Dow Jones came out the fate 0.09% stronger at 11,866.10.

The Dow Jones opened 182.69 points higher on Monday, clawing back some of the losses recorded in the final session of last week that came as the US reported a record-high spike of 195,000 new cases.

News that AstraZeneca and the University of Oxford's vaccine had proven itself to have an efficacy of 70% in interim analysis, with one dosing regimen showing effectiveness of 90% and a second demonstrating 62% efficacy, had market participants feeling even more positive about a potential economic reopening in 2021.

Cruise and airline stocks were in the green on the back of the announcement.

However, despite the positive vaccine news, new coronavirus cases were still on the rise, with the seven-day average up by at least 5% week-on-week across 43 states, according to Johns Hopkins University.

Also in the news, Donald Trump has again been urged by allies like Chris Christie, Larry Hogan, Kevin Cramer and Steve Schwarzman, to concede the election after continuing to make unsubstantiated claims of widespread electoral fraud.

The president's latest setback came after a Pennsylvania judge dismissed an attempt to have millions of postal votes in the state invalidated.

SpreadEx's Connor Campbell said: "The Dow Jones added 230 points after the bell, the US index once again closing in on 29,500 despite Donald Trump's continued refusal to concede and an alarming Covid-19 situation that will likely see daily cases cross 200,000 this week."

On the macro front, the Chicago Fed's national activity index rose from 0.32 in September to 0.83 last month as 61 of the 85 individual indicators made positive contributions.

Elsewhere, IHS Markit's November manufacturing PMI flash printed at 56.7, up from 53.4 in October to beat market expectations for a reading of 53. The reading marked the strongest expansion in factory activity since September 2014 as business confidence soared to the strongest since February 2015.

The flash services index also rose to 57.7.

Still to come, Federal Reserve presidents Mary Daly and Charles Evans will deliver speeches at 1800 GMT and 2000 GMT, respectively.

In the corporate space, Warner Music was in the green after revenues topped forecasts, while Urban Outfitters will report earnings after the close.