Two stocks are standing out in premarket trading this Wednesday morning. Moderna (Nasdaq: MRNA) is up 8.9% and Ross Stores (Nasdaq: ROSS) is up 6.6% as of 8:00 AM ET, each moving on a distinct catalyst. One is a legal resolution years in the making. The other is a blowout earnings report from one of retail’s most consistent operators.
Moderna: Patent Settlement Clears a Major Overhang
Moderna’s surge this morning traces back to a settlement announced Tuesday with Arbutus Biopharma and Roivant Sciences subsidiary Genevant Sciences. The dispute centered on lipid nanoparticle (LNP) delivery technology, the mechanism that makes mRNA vaccines work inside the body. Arbutus and Genevant argued Moderna used their proprietary LNP tech without authorization in its COVID vaccines, Spikevax and mResvia.
Moderna agreed to pay up to $2.25 billion to resolve all worldwide litigation, including a $950 million upfront payment due in July 2026 and a $1.3 billion contingent payment tied to the outcome of a separate government contractor liability appeal. In exchange, Moderna receives a global non-exclusive license to use the LNP technology for infectious disease applications with no future royalties owed.
That last part matters. Moderna’s entire pipeline, from its flu vaccine to its cancer immunotherapy work with Merck, depends on mRNA delivery. Removing the royalty burden and resolving all related litigation gives the company a cleaner runway to commercialize its next wave of products without a legal sword hanging over every approval.
The stock has already had a strong year. Moderna is up 69% year-to-date coming into this morning, rebounding sharply from a low of $22.28 over the past 52 weeks. The settlement adds another reason for investors to reconsider a company that had been written off by many. CEO Stephane Bancel set the tone on the Q4 earnings call in February: “We entered the new year with strong momentum despite the continued challenging environment in the U.S., poised to deliver up to 10 percent revenue growth.”
Ross Stores: Off-Price Retail Firing on All Cylinders
Ross Stores reported Q4 results after the close Tuesday that beat on every line that matters. Revenue came in at $6.635 billion, up 12.2% year over year, against an estimate of $6.437 billion. Diluted EPS hit $2.00 versus the $1.85 estimate. Comparable store sales grew 9% in the quarter, on top of a 3% comp gain the prior year. Operating margin landed at 12.3%, above the guided range of 11.5% to 11.8%.
CEO Jim Conroy didn’t undersell it:
“We are pleased to report that business momentum accelerated further in the fourth quarter, with both sales and earnings significantly surpassing our expectations.”
The company also raised its quarterly dividend 10% to $0.445 per share and authorized a new $2.55 billion share repurchase program, a 21% increase over the prior $2.1 billion program. Forward guidance was equally strong, with Q1 comp sales projected at 7% to 8% and full-year EPS guided to $7.02 to $7.36.
The backdrop helps explain the momentum. Consumer sentiment sits at 56.4 on the University of Michigan index, deep in pessimistic territory. When wallets tighten, shoppers trade down, and Ross is exactly where they land. The off-price model is not a defensive play right now. It is an offensive one.
Looking Forward
For Moderna, watch whether the FDA’s expected decision on its revised flu vaccine application, due by August 5, becomes the next catalyst. For Ross, the question is whether today’s gains hold as investors digest the full-year guidance. Both moves look grounded in real fundamentals this morning.
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