New records set on Pfizer/BioNTech vaccine news
09-Nov-20 16:20 ET
Dow +834.57 at 29157.91, Nasdaq -181.45 at 11713.71, S&P +41.06 at 3550.64
briefing.com
[BRIEFING.COM] The S&P 500 advanced as much as 3.9% on Monday after Pfizer (PFE 39.20, +2.80, +7.7%) and BioNTech (BNTX 104.80, +12.80, +13.9%) announced that their collaborative COVID-19 vaccine was more than 90% effective in patients without evidence of prior infection. Investors took profits, though, leaving the benchmark index up 1.2% for the session.
Investors also rotated out of growth stocks and into value/cyclical/small-cap stocks, which benefited the Dow Jones Industrial Average (+3.0%) and Russell 2000 (+3.7%) at the expense of the Nasdaq Composite (-1.5%). Each index set new intraday highs shortly after the open, but gradually retraced gains throughout the day and into the close.
Pfizer and BioNTech plan to request FDA emergency use authorization for their two-dose vaccine later this month, providing hope that the economy can return to pre-pandemic levels in 2021 and re-instill a sense of normalcy. Distressed cyclical sectors were the biggest beneficiaries of this hopeful thinking.
The energy (+14.2%) and financials (+8.2%) sectors finished comfortably atop the leaderboard, aided by noticeably higher oil prices ($40.31, +3.17, +8.5%) and curve-steepening activity caused by selling in longer-dated Treasuries. The consumer discretionary (-1.6%), information technology (-0.7%), consumer staples (-0.5%), and communication services (-0.3%) sectors closed lower.
The 2-yr yield increased two basis points to 0.18%, while the 10-yr yield increased 11 basis points to 0.96%. The U.S. Dollar Index advanced 0.6% to 92.82.
In other important news, Joe Biden was projected the winner of the U.S. presidential election, although President Trump did not concede and said he would file legal challenges. Note, media reports indicated that Mr. Trump would unlikely succeed in overturning the election results.
It's worth mentioning that at one point today, the S&P 500 was up as much as 11.5% in less than six sessions. Presumably, that left it primed for profit taking amid an understanding that the market still has to get through the new wave of coronavirus and uncertainty surrounding another stimulus package.
Separately, McDonald's (MCD 213.22, -3.34, -1.5%) beat EPS estimates and said it will test a plant-based burger in several markets. Biogen (BIIB 236.26, -92.64, -28.2%) shares plunged 28% after the FDA's Advisory Committee rebuked the company's Alzheimer's drug. V.F. Corp (VFC 77.81, +7.80, +11.1%) agreed to acquire Supreme for $2.1 billion.
Investors did not receive any economic data on Monday. Looking ahead, investors will receive the JOLTS - Job Openings report on Tuesday.
- Nasdaq Composite +30.6% YTD
- S&P 500 +9.9% YTD
- Dow Jones Industrial Average +2.2% YTD
- Russell 2000 +2.2% YTD
Market Snapshot
| Dow | 29157.91 | +834.57 | (2.95%) | | Nasdaq | 11713.71 | -181.45 | (-1.53%) | | SP 500 | 3550.64 | +41.06 | (1.17%) | | 10-yr Note | -11/32 | 0.929 |
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| | NYSE | Adv 2381 | Dec 674 | Vol 1.7 bln | | Nasdaq | Adv 2269 | Dec 1142 | Vol 5.8 bln |
Industry Watch
| Strong: Energy, Financials, Industrials, Real Estate, Materials |
| | Weak: Consumer Discretionary, Information Technology, Consumer Staples, Communication Services |
Moving the Market
-- Record highs after Pfizer (PFE) and BioNTech (BTNX) announced their COVID-19 vaccine candidate is more than 90% effective
-- Profit-taking leaves major indices well off session highs
-- Joe Biden projected the winner of the presidential election
-- Cyclical stocks and oil prices rallied; growth stocks underperformed; Treasury yields rose
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WTI crude futures rally 8.5% on growth optimism
09-Nov-20 15:25 ET
Dow +1202.30 at 29525.64, Nasdaq -21.75 at 11873.41, S&P +86.90 at 3596.48
[BRIEFING.COM] The S&P 500 continues to trade near its lower levels of the day with a 2.4% gain. Recall, it was up 3.9% in the opening minutes of trading.
One last look at the sector performances shows energy (+15.7%) and financials (+9.5%) still way in the lead, followed by industrials (+4.7%) and real estate (+4.2%). The consumer discretionary sector is down 0.3%.
WTI crude futures settled sharply higher by 8.5%, or $3.17, to $40.31/bbl. |
