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Stock Market News for Nov 10, 2020

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Wall Street ended mostly higher on Monday as investor confidence got a boost after data from late-stage clinical trials of coronavirus vaccine from two drugmakers showed positive results. This sent the stocks rallying barring a few tech giants. The Dow Jones and S&P 500 posted sharp gains but fell shy of their records. However, the Nasdaq finished the day in red.

How Did The Benchmarks Perform?

The Dow Jones Industrial Average (DJI) gained 3% or 834.57 points to end the day at 29,157.97, marking its best day in terms of percentage gains since Jun 5. Notably, during the intraday session, the blue-chip index soared nearly 5.7% or more than 1,600 points to touch a fresh all-time high of 29,933.83, surpassing its previous all-time high of 29,568.57 recorded on Feb 12.

The S&P 500 increased 1.17% or 41.06 points to close at 3,550.50. The Energy Select Sector SPDR (XLE) and Financials Select Sector SPDR (XLF), which were affected the most due to the coronavirus pandemic were the biggest gainers, gaining 14.3% and 8.2%, respectively. Seven out of eleven sectors of the benchmark index closed in positive territory.

The tech-heavy Nasdaq dropped in the afternoon session to end the day in the red after declining 1.5% or 181.45 points to end at 11,713.78.  The Big Tech were the biggest losers, with shares of Facebook, Inc. , Amazon,com, Inc. (AMZN - Free Report) and Apple, Inc. (AAPL - Free Report) , declining  5%, 5.1% and 2%, respectively. Amazon, Facebook and Apple each carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

The fear-gauge CBOE Volatility Index (VIX) was down 1.6% to 24.46. A total of 17.2 billion shares were traded on Monday, higher than the last 20-session average of 9.68 billion. Monday also witnessed the busiest trading session since June. Advancers outnumbered decliners on the NYSE by a 3.22-to-1 ratio. On Nasdaq, a 1.96-to-1 ratio favored advancing issues.

Stocks Rally on Vaccine Hopes

On Monday, drugmakers Pfizer, Inc. (PFE - Free Report) and BioNTech SE BNTX said that their vaccine candidate showed positive results from their final-stage trail. The companies said that the vaccine candidate was found to be more than 90% effective. Although the vaccines are yet to be fully developed, the companies said that they are planning to submit the Emergency Use Authorization to the Food and Drug Administration soon. Shares of Pfizer and BioNTech gained 7.7% and 13.9%, respectively.

This gave investor confidence a boost send stocks on a rally. Travel, energy, restaurant and hospitality companies which took the maximum beating following the coronavirus outbreak in March had one of the best sessions in a long time on Monday, following the announcement. Financial stocks also rallied on hopes of a quicker recovery of the economy.

Besides, airline and cruise stocks also jumped following the announcement by Pfizer. Shares of Southwest Airline Company (LUV - Free Report) jumped 9.7%, while shares of cruise operator Carnival Corporation & Plc (CCL - Free Report) surged 39.3%.

Tech Stocks Hit Hard

Tech stocks which have had a rally since the coronavirus outbreak, were one of the biggest losers on Monday. Also, work-from-home stocks that were one of the biggest beneficiaries of the pandemic were hit hard, as vaccine hopes rose again. Shares of Zoom Video Communications, Inc. (ZM - Free Report) declined 17.4%, while Netflix, Inc. (NFLX - Free Report) plummeted 8.6%.

Stocks That Made Headline

Deutsche Bank Continues Revamping, To Sell IT Unit to TCS

As part of the planned transformation and moving ahead with its job-cutting target, Deutsche Bank AG (DB - Free Report) has entered into an agreement with Tata Consultancy Services (TCS - Free Report) to sell the bank’s technology services unit, Postbank Systems AG. (Read More)

Goldman to Meet Strategic Targets, Remains on Track

At the Bank of America  (BAC - Free Report) Future of Financials Virtual Conference 2020, Goldman Sachs (GS - Free Report) chief financial officer Stephen Scherr noted that the bank is on track for meeting strategic targets planned earlier this year. (Read More)

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