More vaccine news, new record highs
08-Dec-20 16:20 ET
Dow +104.09 at 30173.82, Nasdaq +62.83 at 12582.69, S&P +10.29 at 3702.26
briefing.com
[BRIEFING.COM] The S&P 500 (+0.3%), Nasdaq Composite (+0.5%), and Russell 2000 (+1.4%) closed at fresh record highs on Tuesday amid more encouraging vaccine news and a hopeful-sounding stimulus update. The Dow Jones Industrial Average (+0.4%) hit an intraday high, but the outperformance of the Russell 2000 deserves more recognition.
The positive vaccine coverage started with Pfizer (PFE 42.56, +1.31, +3.2%) and BioNTech (BNTX 128.11, +2.41, +1.9%), although the S&P 500 was down 0.4% at its low despite the news. Briefly, the UK began inoculating its citizens with the Pfizer-BioNTech vaccine, and the FDA said it saw no safety concerns for that vaccine that would preclude issuance of an emergency use authorization.
Next, peer-reviewed data published in The Lancet Journal indicated that the AstraZeneca (AZN 54.72, +0.46, +0.9%)-Oxford vaccine is safe and effective in preventing symptomatic COVID-19 and that it protects against severe disease and hospitalization. The S&P 500 turned positive shortly after this second headline.
The energy sector reclaimed its recent outperformer status with a 1.6% gain, which was emblematic of a lingering recovery optimism. The influential information technology sector advanced 0.4%, while the real estate sector lagged with a 0.5% decline.
Regarding stimulus, Senate Majority Leader McConnell suggested that the Senate should drop both liability protection and state and local government funding from a stimulus bill since there are so many disagreements on those issues. Mr. McConnell previously advocated for liability protection, but it was uncertain if Democratic leadership would similarly concede on the latter.
Separately, investors were cautioned that Tesla (TSLA 649.88, +8.12, +1.3%) announcing a $5.0 billion common stock "at-the-market" offering program was symptomatic of stretched equity prices, but for a stock blessed by animal spirts, shareholders thought differently. TSLA shares closed higher after being down as much as 3.6% intraday.
Longer-dated Treasuries finished with modest gains despite the vaccine/stimulus developments. The 2-yr yield was flat at 0.14%, and the 10-yr yield decreased two basis points to 0.91%. The U.S. Dollar Index increased 0.2% to 90.96. WTI crude futures declined 0.3%, or $0.13, to $45.64/bbl.
Reviewing Tuesday's economic data:
- Productivity in the third quarter increased at a seasonally adjusted annual rate of 4.6% (Briefing.com consensus 5.0%) on today's revision versus the preliminary estimate of 4.9%. Unit labor costs decreased at an annual rate of 6.6% (Briefing.com consensus -8.9%) versus the preliminary estimate of -8.9%.
- The key takeaway from the report is that it reflects the strong rebound in the third quarter, as the economy rebounded from the depths of the pandemic-related shutdown.
- The NFIB Small Business Optimism Index decreased to 101.4 from 104.0 in October.
Looking ahead, investors will receive the weekly MBA Mortgage Applications Index, the JOLTS - Job Openings report for October, and Wholesale Inventories for October on Wednesday.
- Nasdaq Composite +40.2% YTD
- Russell 2000 +14.9% YTD
- S&P 500 +14.6% YTD
- Dow Jones Industrial Average +5.7% YTD
Market Snapshot
| Dow | 30173.82 | +104.09 | (0.35%) | | Nasdaq | 12582.69 | +62.83 | (0.50%) | | SP 500 | 3702.26 | +10.29 | (0.28%) | | 10-yr Note | +1/32 | 0.921 |
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| | NYSE | Adv 1981 | Dec 1122 | Vol 911.2 mln | | Nasdaq | Adv 2323 | Dec 1308 | Vol 4.7 bln |
Industry Watch
| Strong: Energy, Materials, Health Care, Consumer Staples |
| | Weak: Real Estate, Utilities, Financials, Communication Services |
Moving the Market
-- S&P 500, Nasdaq, Russell 2000 close at record highs
-- FDA said it saw no safety concerns for the Pfizer (PFE)-BioNTech (BNTX) vaccine that would preclude issuance of an emergency use authorization
-- Peer-reviewed data indicates AstraZeneca (AZN)-Oxford vaccine is safe and effective
-- Hopeful-sounding stimulus concession from Senate Majority Leader McConnell
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WTI crude futures settle slightly lower
08-Dec-20 15:25 ET
Dow +103.78 at 30173.51, Nasdaq +56.89 at 12576.75, S&P +9.94 at 3701.91
[BRIEFING.COM] The S&P 500 is up 0.3% and is trading just above the 3700 level. The Russell 2000 outperforms with a 1.1% gain, emblematic of the lingering recovery optimism.
One last look at the S&P 500 sectors shows energy (+1.3%), consumer staples (+0.7%), materials (+0.5%), and information technology (+0.5%) leading the market higher, while the real estate sector (-0.5%) lags with a 0.5% decline.
WTI crude futures settled lower by 0.3%, or $0.13, to $45.64/bbl. |
