ECONOMIC SILUET: Dow jumps to record high | Moderna coronavirus vaccine more than 94% effective

Senin, 16 November 2020

Dow jumps to record high | Moderna coronavirus vaccine more than 94% effective | Value stocks continue outperforming

MON, NOV 16, 2020

EVENING BRIEF

AS OF MON, NOV 16, 2020 • 04:39 ET

DJIA		29950.44
		+1.60%	+470.63

S&P 500		3626.91
		+1.16%	+41.76

NASDAQ		11924.13
		+0.80%	+94.84

Most Active

DOW
NAME	LAST	CHG	%CHG
AAPL	120.30	+1.04	+0.87%
BA	202.40	+15.29	+8.17%
INTC	46.19	+0.73	+1.61%

S&P 500
NAME	LAST	CHG	%CHG
GE	9.57	+0.32	+3.46%
CCL	17.57	+1.56	+9.74%
AAL	12.79	+0.55	+4.49%

NASDAQ
NAME	LAST	CHG	%CHG
AAPL	120.30	+1.04	+0.87%
MRNA	97.95	+8.56	+9.58%
AMD	83.73	+2.30	+2.82%

EDITOR'S NOTE

Coronavirus cases are on the rise in the U.S., but more positive news regarding a potential vaccine lifted stocks Monday.

The Dow Jones Industrial Average rose more than 400 points, notching intraday and record closing highs. The S&P 500 posted an all-time closing high, gaining 1.2%. The Nasdaq Composite lagged, but managed to end 0.8% higher.

Monday's gains came after Moderna said preliminary trial data showed its Covid-19 vaccine was more than 94% effective. The news boosted hopes for a strong economic recovery, and led to the continuation of a trend seen throughout last week: investors buying beaten-down value names and selling high-flying growth stocks.

The iShares Russell 1000 Value exchange-traded fund (IWD) rose 1.9% on Monday. The iShares Russell 1000 Growth ETF (IWF), meanwhile, advanced just 0.5%.

"The MRNA [Moderna] efficacy wasn't too shocking … but it simply reaffirms for investors how the beginning of the end has arrived for COVID, paving the way for a dramatically altered landscape by first-quarter 2021," wrote Adam Crisafulli, founder of Vital Knowledge.

To be sure, the move into value stocks and Moderna's vaccine data come as coronavirus cases and hospitalizations are rising in the U.S. More than 11 million cases have been confirmed across the country, according to data compiled by Johns Hopkins University, after increasing by around 1 million in under a week.

However, Crisafulli said the market "is willing to overlook all this for the time being."

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