S&P 500, Dow close at all-time highs on reignited vaccine hopes

By Stephen Culp NEW YORK (Reuters) - The S&P 500 and Dow Jones industrial average notched record closing highs on Monday as news of another promising coronavirus vaccine fanned hopes of eradicating COVID-19, while spiking infections and new shutdowns threatened to hobble a recovery from the pandemic recession. All three major U.S.

Reuters November 17, 2020 03:05:16 IST
S&P 500, Dow close at all-time highs on reignited vaccine hopes

SP 500 Dow close at alltime highs on reignited vaccine hopes

By Stephen Culp

NEW YORK (Reuters) - The S&P 500 and Dow Jones industrial average notched record closing highs on Monday as news of another promising coronavirus vaccine fanned hopes of eradicating COVID-19, while spiking infections and new shutdowns threatened to hobble a recovery from the pandemic recession.

All three major U.S. stock indexes advanced and with its new closing record, the blue-chip Dow is the last of the three to reclaim levels reached in February, before lockdowns sent the markets into free-fall.

The Russell 2000 <.RUT> also hit an all-time closing high.

Value, cyclical and small cap shares outperformed the broader market.

Moderna Inc said its experimental COVID-19 vaccine was 94.5% effective in preventing infection based on interim late-state data. It was the second drugmaker in as many weeks, after Pfizer Inc , to announce promising trial data in the development of a vaccine to defeat the pandemic.

Combined, pending further data and regulatory review, the United States could have as many as 60 million emergency doses available this year.

"More vaccine news is driving cyclicals, small caps and value, which would be primed if the economy reopens sooner than expected, returning us to some sense of normalcy," said Robert Pavlik, senior portfolio manager at Dakota Wealth in Fairfield, Connecticut.

Travel-related stocks, which have been clobbered by restrictions to contain the pandemic's spread, were in demand.

Shares of United Airlines Holdings Inc , American Airlines Group Inc , Carnival Corp and Norwegian Cruise Line Holdings Ltd all ended sharply higher.

But COVID-19 continued its U.S. rampage, with cases surging past 11 million and record infections in 40 states, prompting states to tighten social distancing mandates.

"Wall Street is looking out six to 12 months down the road," Pavlik added. "There is a question about ... what kind of damage will be inflicted on the economy between now and then."

Unofficially, the Dow Jones Industrial Average <.DJI> rose 478.72 points, or 1.62%, to 29,958.53, the S&P 500 <.SPX> gained 42.17 points, or 1.18%, to 3,627.32 and the Nasdaq Composite <.IXIC> added 94.84 points, or 0.8%, to 11,924.13.

Earnings from high-profile retailers are expected this week, with Walmart Inc and Home Depot Inc expected to report on Tuesday and Lowe's Companies Inc and Target Corp on Wednesday.

This, together with the Commerce Department's October retail sales data, expected on Tuesday, should provide evidence of how consumers are weathering a languid economic recovery as stimulus runs dry.

Simon Property Group Inc shares jumped after the biggest U.S. mall operator cut its purchase price for an 80% stake of rival Taubman Centers Inc , as the pandemic pressures the retailers.

(Reporting by Stephen Culp; Editing by Richard Chang)

This story has not been edited by Firstpost staff and is generated by auto-feed.

Updated Date:

TAGS:

also read

France, Germany to agree to NATO role against Islamic State - sources
| Reuters
World

France, Germany to agree to NATO role against Islamic State - sources | Reuters

By Robin Emmott and John Irish | BRUSSELS/PARIS BRUSSELS/PARIS France and Germany will agree to a U.S. plan for NATO to take a bigger role in the fight against Islamic militants at a meeting with President Donald Trump on Thursday, but insist the move is purely symbolic, four senior European diplomats said.The decision to allow the North Atlantic Treaty Organization to join the coalition against Islamic State in Syria and Iraq follows weeks of pressure on the two allies, who are wary of NATO confronting Russia in Syria and of alienating Arab countries who see NATO as pushing a pro-Western agenda."NATO as an institution will join the coalition," said one senior diplomat involved in the discussions. "The question is whether this just a symbolic gesture to the United States

China's Xi says navy should become world class
| Reuters
World

China's Xi says navy should become world class | Reuters

BEIJING Chinese President Xi Jinping on Wednesday called for greater efforts to make the country's navy a world class one, strong in operations on, below and above the surface, as it steps up its ability to project power far from its shores.China's navy has taken an increasingly prominent role in recent months, with a rising star admiral taking command, its first aircraft carrier sailing around self-ruled Taiwan and a new aircraft carrier launched last month.With President Donald Trump promising a US shipbuilding spree and unnerving Beijing with his unpredictable approach on hot button issues including Taiwan and the South and East China Seas, China is pushing to narrow the gap with the U.S. Navy.Inspecting navy headquarters, Xi said the navy should "aim for the top ranks in the world", the Defence Ministry said in a statement about his visit."Building a strong and modern navy is an important mark of a top ranking global military," the ministry paraphrased Xi as saying.