Stocks rose marginally Monday, with one of the biggest early morning tailwinds coming in the form of potential biotech merger that could create a Coronavirus vaccine making machine. There are currently no deal talks in progress according to a another report.
All three major U.S indices rose, with the S&P 500 up as much as 0.7%, before the gains moderated to 0.2%. The 10-Year Treasury yield rose marginally to 0.91%, roughly where it ended Friday. Yields rise as prices fall.
Astrazeneca (AZN) - Get Report reportedly approached Gilead Sciences (GILD) - Get Report about a merger, which would create a roughly $170 billion by market cap biotech giant. Though sources have since told CNBC's David Faber that a talk isn't on the table, such a combination could create an entity positioned to efficiently create a vaccine at large scale, a huge booster to the broader market. AstraZeneca has a market cap of almost $70 billion, with the stock falling 2.6% Monday, as paying for the $97 billion Gilead may be a tall task. Gilead rose more than 1%.
CNBC's David Faber then tweeted that there are no deal talks in progress.
In other good news for stocks, New York is initiating its phase 1 reopening process Monday.
OPEC also agreed over the weekend to extend its oil production cut. In May, the cartel cut production by 9.7 million barrels per day and recently agreed to extend that for one month at a cut of 9.6 million barrels per day. Crude oil, which has had a viscous run of late, fell 1.6% to $38.90 a barrel. Oil stocks rose, as the Energy Select SPDR ETF (XLE) - Get Report rose 3.45%. Exxon Mobil (XOM) - Get Report and Chevron (CVX) - Get Report rose 3.4% and 2%, respectively.
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