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Markets Begin Pricing In Post-Pandemic Reality

Mark Vickery
·3 min read

The Dow Jones leapt to session highs minutes before the close this Monday, up 470 points to a new record 29,950 — +1.6% on the day. This is the second consecutive Monday where excellent news on Covid-19 vaccine potential got the trading week off on the right foot. The S&P 500 rose 1.17%, 42 points, and the small-cap Russell 2000 was up 2.37% on the day — both also closing at new all-time highs. The Nasdaq, which set its historic high the first week of September, posted a 0.80% gain, up 95 points.

Last week, the Pfizer PFE-BioNTech BNTX vaccine candidate released performance data that wowed investors with a 90% efficacy rate. Moderna MRNA did them one better this morning, with a 84.5% success rate reported for its Covid-19 vaccine. Both times, not only Pharma but a multitude of other industries bid up strongly as well. Today, Energy rose 6.5% (+25% so far in November) and Industrials gained 2.5%. Tech, which was also in the green, gained just under 1% on the day.

Of the 11 sectors in the S&P 500, only Healthcare finished down, -0.25%. This might seem odd at a glance — a news story catalyst for market bulls deals directly with the healthcare of citizens around the world, yet the industry itself dips — but it does give some perspective into how pandemic-trampled stocks welcomed some investment rotation today: Carnival Cruise Lines CCL gained 9.7%, The Gap GPS was +9.4% and oil-driller HollyFrontier HFC posted gains of 9.17%.

Tomorrow morning, we expect economic reports on Retail Sales, Import Prices and Industrial Production. These are monthly metrics of the general economy which have mostly been improving in increments since the initial grip of the pandemic’s affects on the economy loosened.

Obviously, we are far from out of the woods on the Covid front — in fact, we are at all-time records of infections throughout the country, with dire predicaments now visiting hospital ICUs. But the sooner we see a Covid vaccine on the market, the sooner we will come through the other side of the pandemic. The market has decided the time is right to price this in.

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Carnival Corporation (CCL) : Free Stock Analysis Report
 
Pfizer Inc. (PFE) : Free Stock Analysis Report
 
The Gap, Inc. (GPS) : Free Stock Analysis Report
 
Moderna, Inc. (MRNA) : Free Stock Analysis Report
 
HollyFrontier Corporation (HFC) : Free Stock Analysis Report
 
BioNTech SE Sponsored ADR (BNTX) : Free Stock Analysis Report
 
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