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U.S. stocks closed higher on Tuesday as investors’ sentiment got a boost from positive news on the COVID-19 vaccine front that overshadowed worries of surging coronavirus cases and a record number of hospitalizations and slow progress in the sanction of another financial aid. The S&P 500 and Nasdaq hit new all-time highs, while the Dow Jones touched a new intra-day high. All three major indexes ended the day in green.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) advanced 0.4% or 104.09 points to finish the day at 30,173.88. The index has now ended in green for five out of the past six days. The S&P 500 gained 0.3% or 10.29 points to end the day at 3,702.25, setting a new high.
The S&P 500 had closed at a record high of 3699.12 points on Friday, which it surpassed on Tuesday. Energy stocks, which dragged down the index on Monday, bounced on Tuesday to drive the rally. The Energy Select Sector SPDR (XLE) was the biggest gainer, increasing 1.5%. The Health Care Select Sector SPDR (XLV) gained 0.8%. Six of the 11 sectors of the benchmark index closed in positive territory.
The fear-gauge CBOE Volatility Index (VIX) was down 3.1% to 20.64. A total of 10.41 billion shares were traded on Tuesday, lower than the last 20-session average of 11.48 billion. Advancers outnumbered decliners on the NYSE by a 1.85-to-1 ratio. On Nasdaq, a 1.80-to-1 ratio favored advancing issues.
Vaccine Hopes Lift Investors’ Spirit
Positive news on the vaccine front once again gave investors’ confidence a boost. On Tuesday, the U.K started rolling out Pfizer, Inc.’s (PFE - Free Report) coronavirus for its 20 million citizens. In the United States, The Food and Drug Administration said that Pfizer’s vaccine provides some level of protection after the first dose.
A committee of independent medical experts, as part of FDA, will meet on Thursday to vote on if an emergency use approval should be granted to Pfizer’s vaccine. If Pfizer gets an approval, it will be the first COVID-19 vaccine in the United States.
Separately, Johnson & Johnson (JNJ - Free Report) said that may release late-stage trial results of the COVID-19 vaccine it is developing in January, earlier than expected. Multiple positive news on the vaccine raised hopes among investors that the economy might finally start recovering once the vaccine reaches the masses. Shares of Pfizer jumped 3.2%, while BioNTech SE (BNTX - Free Report) , which is partnering Pfizer in the vaccine development, gained 1.9%.
Stimulus Talks Move at a Slow Pace
Investors are growing impatient as there is still no confirmation on the much-awaited fiscal stimulus. On Tuesday, bipartisan group led by Senator Joe Manchin and Mitt Romney were still working on the modalities of a $908 billion financial relief package.
Senate Majority Leader Mitch McConnell pushed for his own trimmed proposal. He said that lawmakers should pass a relief package that includes measures both parties can agree upon and should exclude provisions such as liability protections for businesses. He, however, said that both the sides have come to a consensus on some areas such as Paycheck Protection Program.
Economic Data
Not much economic data was released on Tuesday except for the third quarter productivity, which was revised to a rise of 4.6%, against the earlier forecast of an increase of 4.9%.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2021.
Image: Bigstock
Stock Market News for Dec 9, 2020
U.S. stocks closed higher on Tuesday as investors’ sentiment got a boost from positive news on the COVID-19 vaccine front that overshadowed worries of surging coronavirus cases and a record number of hospitalizations and slow progress in the sanction of another financial aid. The S&P 500 and Nasdaq hit new all-time highs, while the Dow Jones touched a new intra-day high. All three major indexes ended the day in green.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) advanced 0.4% or 104.09 points to finish the day at 30,173.88. The index has now ended in green for five out of the past six days. The S&P 500 gained 0.3% or 10.29 points to end the day at 3,702.25, setting a new high.
The S&P 500 had closed at a record high of 3699.12 points on Friday, which it surpassed on Tuesday. Energy stocks, which dragged down the index on Monday, bounced on Tuesday to drive the rally. The Energy Select Sector SPDR (XLE) was the biggest gainer, increasing 1.5%. The Health Care Select Sector SPDR (XLV) gained 0.8%. Six of the 11 sectors of the benchmark index closed in positive territory.
The tech-heavy Nasdaq gained 0.5% or 62.83 points to close at new record high of 12,582.77. Shares of Apple, Inc, (AAPL - Free Report) gained 0.5%, while Amazon.com, Inc. (AMZN - Free Report) added 0.6%. Apple and Amazon 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 3.1% to 20.64. A total of 10.41 billion shares were traded on Tuesday, lower than the last 20-session average of 11.48 billion. Advancers outnumbered decliners on the NYSE by a 1.85-to-1 ratio. On Nasdaq, a 1.80-to-1 ratio favored advancing issues.
Vaccine Hopes Lift Investors’ Spirit
Positive news on the vaccine front once again gave investors’ confidence a boost. On Tuesday, the U.K started rolling out Pfizer, Inc.’s (PFE - Free Report) coronavirus for its 20 million citizens. In the United States, The Food and Drug Administration said that Pfizer’s vaccine provides some level of protection after the first dose.
A committee of independent medical experts, as part of FDA, will meet on Thursday to vote on if an emergency use approval should be granted to Pfizer’s vaccine. If Pfizer gets an approval, it will be the first COVID-19 vaccine in the United States.
Separately, Johnson & Johnson (JNJ - Free Report) said that may release late-stage trial results of the COVID-19 vaccine it is developing in January, earlier than expected. Multiple positive news on the vaccine raised hopes among investors that the economy might finally start recovering once the vaccine reaches the masses. Shares of Pfizer jumped 3.2%, while BioNTech SE (BNTX - Free Report) , which is partnering Pfizer in the vaccine development, gained 1.9%.
Stimulus Talks Move at a Slow Pace
Investors are growing impatient as there is still no confirmation on the much-awaited fiscal stimulus. On Tuesday, bipartisan group led by Senator Joe Manchin and Mitt Romney were still working on the modalities of a $908 billion financial relief package.
Senate Majority Leader Mitch McConnell pushed for his own trimmed proposal. He said that lawmakers should pass a relief package that includes measures both parties can agree upon and should exclude provisions such as liability protections for businesses.
He, however, said that both the sides have come to a consensus on some areas such as Paycheck Protection Program.
Economic Data
Not much economic data was released on Tuesday except for the third quarter productivity, which was revised to a rise of 4.6%, against the earlier forecast of an increase of 4.9%.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2021.
Click here for the 6 trades >>