Equity futures spent the early morning in positive territory as hopes for a fresh stimulus bill provided support despite a disappointing retail sales report. Senate leader Mitch McConnell has reportedly said he is optimistic a deal can be reached, supporting expectations that lawmakers can settle their differences and pass a bill before the end of the year.
ECONOMIC EVENTS: In the U.S., retail sales dropped 1.1% in November and fell 0.9% excluding autos, both of which were much weaker than expected. Markit's manufacturing PMI dipped 0.2 ticks to 56.5 in the preliminary December print after having risen 3.3 points to 56.7 in November. Business inventories tracked estimates with a 0.7% rise in October. The NAHB housing market index fell 4 points to 86 in December, slipping from a record high of 90 reached in November.
The Federal Reserve's FOMC resumed its meeting and will announce its decision at 2 p.m. ET, when it will also release its quarterly forecasts.
In Capitol Hill news, Politico's Jake Sherman tweeted that "negotiators are on the brink" of a $900B coronavirus rescue package that would include a new round of direct payments, but would leave out state and local aid and a liability shield.
TOP NEWS: Shares of Tilray (TLRY) and Aphria (APHA) trading in New York rose a respective 21% and 1% after the cannabis companies entered into a definitive agreement to combine their businesses to create an entity valued at roughly $3.9B. Under the terms of the arrangement, the shareholders of Aphria will receive 0.8381 shares of Tilray for each Aphria common share, while holders of Tilray shares will continue to hold their Tilray shares with no adjustment to their holdings. Upon the completion of the arrangement, Aphria shareholders will own approximately 62% of the outstanding Tilray shares on a fully diluted basis, resulting in a reverse acquisition of Tilray, representing a premium of 23% based on the share price at market close on December 15 to Tilray shareholders.
Brinker (EAT) shares were 2% lower near noon after the restaurant group withdrew its financial guidance for the second quarter as a result of recent dining room restrictions and COVID-19 related impacts. As a result of government mandates to close dining rooms, approximately 77% of Chili's and 69% of Maggiano's restaurants were operating with dining rooms open as of December 9, the company said.
In other COVID-19 news, The Wall Street Journal reported that while data show that some Moderna (MRNA) and Pfizer (PFE) trial volunteers experienced side effects from the coronavirus vaccines, even those who had harsh reactions recommend the shots. An FDA advisory panel is set to review the safety and efficacy of Moderna's experimental vaccine on Thursday.
Meanwhile, Starbucks (SBUX) was in focus after the company provided first quarter guidance at the Wolfe Research Consumer Access Day, noting that it expects comparable sales falling 5%-6% in the U.S. in Q1, but rising 4%-5% in China during the same period.
MAJOR MOVERS: Among the noteworthy gainers was Sio Gene Therapeutics (SIOX), which rose 16% after announcing six-month follow-up data from the low-dose cohort of the company's dose escalation study of AXO-AAV-GM1, its adeno-associated viral vector 9-based gene therapy candidate for the treatment of GM1 gangliosidosis. Also higher was American Outdoor Brands (AOUT), which gained 8% after reporting quarterly results.
Among the notable losers was Galapagos (GLPG), which declined 19% after saying that it and Gilead (GILD) will not pursue FDA approval of Jyseleca for rheumatoid arthritis. Also lower was Penumbra (PEN), which fell 7% after the company announced that it is voluntarily recalling all configurations of the Penumbra JET 7 Reperfusion Catheter with Xtra Flex technology, citing the catheter's susceptibility to distal tip damage.
INDEXES: Near midday, the Dow was down 34.87, or 0.12%, to 30,164.44, the Nasdaq was up 44.27, or 0.35%, to 12,639.33, and the S&P 500 was up 7.17, or 0.19%, to 3,701.79.
