- US stocks continued their post-election rally on Wednesday as the rotation into value stocks continued.
- A positive COVID-19 vaccine update from Pfizer on Monday led to a surge in the reopening trade which benefited cyclical stocks at the expense of growth stocks.
- Despite the positive news on the successful development of a COVID-19 vaccine, daily cases continue to surge to record highs as hospitalizations and deaths also tick higher.
- Watch major indexes update live here.
US stocks continued to move higher on Wednesday, led by the Nasdaq, as the post-election rally in stocks grinded on, helped in part by continued enthusiasm surrounding a successful COVID-19 vaccine developed by Pfizer and BioNtech.
The optimistic COVID-19 vaccine news led to a violent rotation into value stocks at the expense of growth stocks. Despite that good news, however, new daily virus cases continue to hit records in the US, with hospitalizations at an all-time high and deaths continuing to tick higher.
Here’s where US indexes stood at 10:07 a.m. ET on Monday:
- S&P 500: 3,560, up 0.42%
- Dow Jones industrial average: 29,393, down 0.09% (27 points)
- Nasdaq composite: 11,707, up 1.33%
Read more: Biotech execs hunting for COVID-19 vaccines and treatments have raked in more than $1 billion by selling company stock this year. Here are the 27 leaders who’ve cashed in the most.
The CEO of Pfizer sold $5.6 million worth of stock on Monday, the same day the company announced the positive results of its COVID-19 vaccine. The stock sale was part of a 10b5-1 plan set up earlier in the year.
Bill Ackman is one investor who is concerned about the complacency surrounding a rise in COVID-19 cases, as he is once again protecting against potential downside in the stock market by opening up hedging positions against corporate credit, according to an interview at a conference held by the Financial Times.
Ackman described the recent vaccine news as “bearish” because it could spur people to take the virus less seriously, and predicted a difficult few months before the economic recovery takes off.
But Goldman Sachs thinks there’s still upside left in stocks, according to a note published on Wednesday. The firm sees the S&P 500 jumping another 11% by mid-2021 as corporate profits stage a rebound, according to the note.
Oil prices moved higher. West Texas Intermediate crude climbed as much as 3%, to $42.61 per barrel. Brent crude, oil’s international benchmark, jumped 2.8%, to $44.84 per barrel, at intraday highs.
Gold slid on Wednesday, falling as much as 0.88%, to $1,859 per ounce.
Read more: We just got our first evidence that a coronavirus vaccine works. Here’s everything we know about the race for a vaccine and when you might be able to get a shot.
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