Johannes Eisele/Agence France-Presse/Getty Images
Stocks were modestly higher after the opening bell Wednesday, as investors tried to reignite a rally in the face of a surge in COVID-19 cases after Pfizer and BioNTech reported their vaccine candidate proved both safe and effective in a final analysis of trial data.
What are major benchmarks doing?
The Dow Jones Industrial Average
DJIA,
rose 58 points, or 0. 2%, to 29,841, while the S&P 500
SPX,
was up about 1 point at 3,611. The Nasdaq Composite
COMP,
added 10 points, 0.1%, to trade near 11,909.
The Dow on Tuesday fell 167.09 points, or 0.6%, to close at 29,783.75, while the S&P 500 declined 17.38 points, or 0.5%, to finish at 3,609.53 — a day after both gauges posted record finishes. The Nasdaq Composite ended 24.79 points lower at 11,899.34, down 0.2%.
The small-cap Russell 2000
RUT,
continued to outperform, rising 6.57 points, or 0.4%, to a record 1,791.91.
What’s driving the market?
“It’s been a frantic few weeks, with the hype around the election barely easing off before vaccine euphoria took over,” said OANDA’s Craig Erlam, in emailed comments. “Perhaps we’re now seeing a little fatigue kicking in ahead of what is likely to be a lively end to the year.”
Investors got another round of positive news on the vaccine front Wednesday. Pfizer Inc.
PFE,
said the vaccine candidate it has developed with BioNTech SE
BNTX,
was 95% effective in a final analysis of clinical trial data. Pfizer plans to seek authorization for the vaccine within days, the companies said.
Pfizer shares rose 4% in premarket trade, while BioNTech was up more than 8%.
The U.S. recorded 159,431 new cases on Tuesday, and at least 1,583 people died, according to a New York Times tracker. In the last week, the U.S. averaged 158,254 cases a day, up 79% from the average two weeks ago, with cases rising in 50 states and territories, straining hospitals and health care resources.
Until Tuesday, optimism over a vaccine had tended to overshadow worries over the continued rise in cases. Two vaccine candidates have so far proved more than 90% effective in preventing COVID-19 infections in late-stage trials.
The balancing act “was well-illustrated by the performance in the S&P 500 yesterday, where the market opened lower, then regained almost fully the opening losses but then slipped again towards the end of the trading session,” said Elwin de Groot, head of macro strategy at Rabobank, in a note.
“Yes, with the S&P only a whisker from its all-time high it is obviously ‘risk-on’, but somehow if feels different,” he said.
Meanwhile, there is no sign of movement toward additional aid from Washington. Federal Reserve Chairman Jerome Powell on Tuesday made a fresh appeal to Congress to pass another coronavirus relief package to help troubled businesses and out-of-work Americans.
Powell aid he expected the economic recovery to continue “at a solid pace” but faced significant downside risks despite progress toward a vaccine and treatments.
In economic news, builders broke ground on more new homes in October, the government said. Housing starts ran at a 1.545 million annual rate, beating the MarketWatch consensus.
Investors will also hear from several Federal Reserve officials over the course of the day, including New York Fed President John Williams, St. Louis Fed President James Bullard, Dallas Fed President Robert Kaplan and Atlanta Fed President Raphael Bostic.
Which companies are in focus?
-
Boeing Co.
BA,
+3.23%
shares rose nearly 6%, leading Dow gainers in early trade, on expectations the Federal Aviation Administration would approve the return to service of the aerospace giant’s 737 MAX jets, which have been grounded since March 2019. -
Shares of cryptocurrency miner Marathon Patent Group Inc.
MARA,
+4.51%
surged nearly 12% in early trading Wednesday after the company provided an upbeat outlook on its potential to produce bitcoin. -
Shares of Target Corp.
TGT,
+2.85%
rose 1.5% after the retail chain announced earnings and revenue that topped forecasts. -
Shares of Lowe’s Cos.
LOW,
-5.92%
were down 6% after the home improvement retailer reported fiscal third-quarter sales that rose above expectations, but delivered an adjusted profit that was just in line with forecasts.
How are other assets trading?
The yield on the 10-year Treasury note
TMUBMUSD10Y,
was unchanged at 0.86% after the vaccine news. Yields and prices move in opposite directions.
The ICE U.S. Dollar Index
DXY,
a gauge of the greenback’s strength against its major rivals, was fractionally higher.
The pan-European Stoxx 600 index
SXXP,
climbed 0.4%, as did the U.K.’s FTSE 100 index
UKX,
Crude-oil futures rose on vaccine optimism, with the U.S. benchmark
CLZ20,
up 1.5% or 62 cents to $42.05 a barrel. Meanwhile, gold futures
GCZ20,
fell $9.80 to $1875.30 an ounce.
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