Wall Street headed for record closing high as Moderna reignites vaccine hopes

By Stephen Culp NEW YORK (Reuters) - Wall Street stocks advanced on Monday, setting the S&P 500 and the Dow on course for all-time closing highs as news of another promising coronavirus vaccine bolstered hopes of eradicating the disease, while spiking infections and new shutdowns threaten to hobble a recovery from the pandemic recession. The blue-chip Dow Jones industrial average hit an intraday high and flirted with the 30,000 mark while the Russell 2000 was also on track for record close. Value, cyclical and small cap shares, which stand to benefit most from an economic rebound, outperformed the broader market

Reuters November 17, 2020 01:06:42 IST
Wall Street headed for record closing high as Moderna reignites vaccine hopes

Wall Street headed for record closing high as Moderna reignites vaccine hopes

By Stephen Culp

NEW YORK (Reuters) - Wall Street stocks advanced on Monday, setting the S&P 500 and the Dow on course for all-time closing highs as news of another promising coronavirus vaccine bolstered hopes of eradicating the disease, while spiking infections and new shutdowns threaten to hobble a recovery from the pandemic recession.

The blue-chip Dow Jones industrial average <.DJI> hit an intraday high and flirted with the 30,000 mark while the Russell 2000 <.RUT> was also on track for record close.

Value, cyclical and small cap shares, which stand to benefit most from an economic rebound, 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 my 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.

"It's good news along the lines of Pfizer's news a week ago," said Peter Tuz, president of Chase Investment Counsel in Charlottesville, Virginia. "We have another vaccine that down the road that will enable us to get back to life as we used to live it."

"We're seeing the end of the tunnel getting closer."

Travel-related stocks, which were clobbered by restrictions enacted 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 jumped between 3.4% and 8.3%.

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

"It's the great conundrum," Tuz added. "Do you invest for the next three months that are likely to be pretty bleak, or do you invest for the period after that that's likely to be much better?"

"It is a battle between short term bad news and longer term great news regarding the vaccine," Tuz said.

The Dow Jones Industrial Average <.DJI> rose 337.29 points, or 1.14%, to 29,817.1, the S&P 500 <.SPX> gained 26.18 points, or 0.73%, at 3,611.33 and the Nasdaq Composite <.IXIC> added 48.65 points, or 0.41%, at 11,877.94.

Of the 11 major sectors of the S&P 500, energy stocks <.SPNY> were enjoying the largest percentage gain.

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 as to how consumers are weathering a languid economic recovery as stimulus runs dry.

Simon Property Group Inc jumped 6.0% 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.

Advancing issues outnumbered decliners on the NYSE by a 3.97-to-1 ratio. On Nasdaq, a 2.02-to-1 ratio favored advancers.

The S&P 500 posted 40 new 52-week highs and no new lows. The Nasdaq Composite recorded 154 new highs and 12 new lows.

(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:

Find latest and upcoming tech gadgets online on Tech2 Gadgets. Get technology news, gadgets reviews & ratings. Popular gadgets including laptop, tablet and mobile specifications, features, prices, comparison.

also read

Water cannon fired at Frankfurt anti-lockdown rally
World

Water cannon fired at Frankfurt anti-lockdown rally

MUNICH/FRANKFURT (Reuters) - German police fired water cannon during an anti-lockdown rally in Frankfurt on Saturday and eventually broke up the gathering as rules like wearing masks and socially distancing were not observed. About 600 people from the loosely organized Querdenker movement that opposes the government’s measures to halt the rise in coronavirus infections took to the streets in Frankfurt.

Marie Antoinette's silk shoe goes up for sale in Versailles
World

Marie Antoinette's silk shoe goes up for sale in Versailles

By Christian Hartmann PARIS (Reuters) - A silk shoe that belonged to Marie Antoinette, the last queen of France who was executed during the French Revolution, will go up for auction on Sunday - with a starting price of 10,000 euros ($11,800).

Thai king calls for unity after protesters turn back on motorcade
World

Thai king calls for unity after protesters turn back on motorcade

By Juarawee Kittisilpa and Matthew Tostevin BANGKOK (Reuters) - Thailand's King Maha Vajiralongkorn told well-wishers of the importance of unity as he marked the opening of a new railway line on Saturday, after thousands of protesters had turned their backs on his motorcade as it passed through central Bangkok. Around 2,500 demonstrators had gathered at the capital's Democracy Monument in the latest of months of protests against Prime Minister Prayuth Chan-ocha, demanding changes to the constitution as well as reforms of the monarchy. The protesters draped the centrepiece of the monument, which has become a rallying point for the protests, in a cloth covered in grievances and insults