US stocks jump on vaccine progress, good Goldman earnings

NEW YORK: US stocks opened higher Wednesday, buoyed by progress on a leading coronavirus vaccine candidate and better-than-expected earnings from Dow member Goldman Sachs.

About 20 minutes into trading, the Dow Jones Industrial Average was at 26,975.95, up 1.3 percent.

The broad-based S&P 500 climbed 1.1 percent to 3,233.10, while the tech-rich Nasdaq Composite Index advanced 0.9 percent to 10,585.59.

Investors cheered an announcement late Tuesday from Moderna that it will enter the final stage of human trials for its COVID-19 vaccine later this month. The statement came as the results from an earlier trial intended to prove the vaccine was safe and triggered antibody production were published.

Shares of Moderna rocketed 11.5 percent higher. The announcement also boosted equities most encumbered by social distancing measures that are expected to be necessary until a vaccine is available, including airlines, hotels and cruise companies.

Another early winner was Goldman Sachs, which jumped 2.9 percent after reporting a 41 percent surge in second-quarter revenues to $13.3 billion due to strength in investment underwriting and trading.

Apple also gained, rising 2.0 percent after a European court annulled an EU order that Apple repay Ireland 13 billion euros ($15 billion) in back taxes.

The ruling, a major setback for Brussels, could now face another appeal at the top European Court of Justice.