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Dow Moves Higher as Positive Vaccine News Renews Bets on Reopening Trade

Published 07/10/2020, 01:09 PM
Updated 07/10/2020, 01:16 PM
© Reuters.

By Yasin Ebrahim

Investing.com – Wall Street surged on Friday as investors swooped in to buy stocks tied to the progress of the economy following positive reports about a potential Covid-19 vaccine in the wake of a record-surge U.S. Covid cases.

The S&P 500 rose 0.44%, while the Nasdaq Composite was flat and the Dow Jones Industrial Average added 0.77%.

Gilead Sciences (NASDAQ:GILD) released data on Friday showing its antiviral drug, remdesivir, cut the risk of death for severely sick coronavirus patients by 62% compared with standard care alone, sending its shares up more than 2%.

Biontech (NASDAQ:BNTX), up 6%, also delivered positive news in the race of a vaccine, with CEO Ugur Sahin reportedly claiming the company could have a treatment ready for approval by December, according to the Wall Street Journal.

The promising update on a vaccine helped ease investor jitters over the rapid spread of coronavirus, which infected a record 60,565 people in the U.S. on Thursday.

Energy and financials, both of which had been under pressure this week, jumped more than 2%, pushing the broader market higher.

The rise in financials was underpinned by a swing higher in bank stocks ahead of earnings next week.

Citigroup (NYSE:C), JPMorgan (NYSE:JPM), and Wells Fargo (NYSE:WFC), all of which are set to report their second-quarter results on Tuesday, were up more than 2%. 

Renewed action on the reopening trade - bullish bets on stocks tied to the progress of the economic reopening - also benefited airlines and cruise lines, with the latter benefiting from a surge in cruise operator Carnival (NYSE:CUK).

Carnival (NYSE:CCL) jumped 8.2% on Friday after the cruise operator said it was cutting capacity and indicated that demand for 2021 is growing.

Tech stocks, however, lagged the broader move higher, as investors appeared to lock in some profit in megacap tech stocks.

Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT), Alphabet (NASDAQ:GOOGL) and Amazon.com (NASDAQ:AMZN), the so-called Fab 5, making up about 40% of the Nasdaq Index, were mostly in the red.

Latest comments

If vaccine is ready by December, with current rate of more than 1 million positive cases/month in US, the US confirmed COVID case may exceed 10 million in before December.
Nonsense. I csnt believe you all keep perpetuating this silly narrative. Its earnings next week. Its s run up to earnings. The COVID cases are spiking this isnt a re-opening spike. Banks would have jumped much much more. Industrials and Materials would have too. CCL jumped on news of more bookings. Banks jumoed on earnings.
Oh dear, again this fairy tale of vaccine. Ready for registration means completed phase 3 trials and evaluated side effects? Don't think so. Even if it were effective against Covid, vaccination of hundreds of millions people by rushed vaccine could be disaster it self
Market timing. The first lesson is the only lesson I learned and the lesson I know. 1. Media leads the market a1) buyback 2  Media follows the market b2) buybacks 3 North bound markets A1(USA#1 b2) intermissions c3) complication Or I as you wouldnt be here or on any other site for that matter
you sound like a piece of trash. English?
Nobody wants the fake vaccines.. Soros, Fauci, Bill Gates, and Oprah wanted to slim down the population so it was under their control.
The day the vaccine is confirmed, it will be doomsday for the market. Coz it would tbe a crystal clear indication of the END OF FED HANDHOLDING. The Fed will then realize it's blunder.
We've already had dozens of news like this. Every time the market goes up. Powell says in one day that FED will do everything to keep the economy and market goes up, the next day he says the SAME THING and market goes up again and so on. This market is going up for basically 2 months with the SAME NEWS over and over, and basically just news, nothing concrete. There's no economy, no reality, just speculation. The market cannot predict anything, an ocean of uncertainty ahead, and it if could predict something it wouldn't be a recovery.
Exactly right
Market was never ever certain and predictable, if it would have been accurately predictable there would be upper and lower circuits everyday. it's all work on greed and fear mentality
so your buying up bio tech with no idea what the long term ramifications of the vaccine will be because we have short cutted testing. what happens if in the long term adverse side effects occur. when do we start discussing ending these riots and rebuilding . i dont know what universe these writers are in
that happened maybe 4 times already with the same drug...
The Covid crash was the bear trap. the bubble has just begun inflating. There is no greed yet. Just a bunch of bored individuals trading. There is right now a strong bearish sentiment. Bubbles burst when there are no Bears left.
One more lie by trump administration.
There is an euphoria/mania phase until late 2021. We are in the media attention phase. Wait for enthusiasm, greed, delusion and new paradigm phases - late 2021...
millions more people are projected to suffer and die from the secondary effects from lockdowns than from covid, including missed medical care and economic implications on health/healthcare due to the global recessions
things like routine cancer screenings, preventative care, tuberculosis detection and treatments in other countries were cancelled because of a virus that we now know has a lower mortality rate than the common flu for most people
Hopefully, it’s a million and one (not mentioning any names).
I hope it's you
Pump and Dump Happy talk
there are much more de.a.dly things out there than COVID-1984, this pandem.ic is more theatrics than substance. even the common flu. is more de.adly for the vast majority of the population.
more COVID-1984 fearmongering and hype for the sheep. nobody cares about a $2000/dose vaccine that is under 50% effective for something that is asymptomatic in 99% of people and will die out soon due to herd immunity anyway... nobody except the drug companies who are looking to make a fortune of it. the market is up because the fed keeps printing trillions
demented biden will get destroyed at the debates. if biden were to win, expect the economy to collapse.
 demented biden will get destroyed at the debates. if biden were to win, expect the economy to collapse.
 It would be the Best thing that could ever happen to the Economy!  The Last four years we have Not a SINGLE trade deal. (I'm talking one that's Actually been Implemented, not Just talked about!) Not ONE! biden is not the greatest, but at least he could be a better negotiator...Unlike do-Nothing trump draft dodger
Just question. Who cares about s vaccine? Dead rate of infected people is 0,04%
bs
.04%? Where did you get this imaginary number from?
Be prepared for Black Monday...
black mind...
wear the mask, social distancing, sanitize hand, is not rocket science, be responsible to your household family and friends
Yeah, that's clearly why the usa is leading the world on the Covid issue. Go AmeriKA!!
Bears keep stepping in same trap over and over again. Help daddy!
they keep saying the same thing for months now. The US economy will take years if not decades to recover.
lol! This is a drug that's been around and talked about since the pandemic began. So it helps people NEAR DEATH. How's that much of anything regarding opening up an economy where the virus is spreading like wildfire. Ya, this smells of a FRIDAY release of propaganda to manipulate market HOPES. You Hope's, that IPO that keeps giving in the face of complete financial meltdown. Let's see if this sells off by the end of the day. If not, it will come Monday. What a complete comedy show.
Amen to that.
Preach kenny!
Vaccine or not, latest reports indicate that people who got infected and produced antobodies, antibody concentration declined very fast. Sure the vaccine induces eventually an even bigger antibodi count, and yet it is not clear how long averagely you will be immun. Spawns of 6-18 months could be realistic. Thus you would have to get another shot (remember that vaccine supplies are limited, you wouldnt be able to just give two shots to everyone). At worst it could happen that if you start giving shots by stages over a long time period, that during the long process of giving shots, the first candidates lost their immunity again. And then we are in the same mess again...
Then it means end of mankind then.
Still with this ignorance. Depressing. The body no longer needs antibodies if it has defeated the virus. This results in a drop in antibodies. Do you think that all the antibodies of all the viruses that your body has encountered circulate continuously in your body? The body only needs to know how to create them when the virus returns.
No, mankind will survive this is just an inconvenience.
IF there is a vaccine that will be available in 2021 at soonest. Until then people would not be careful anymore at all and the virus would spread out even quicker... Not good for the economy
by the time a vaccine comes out, the virus has already mutated and the vaccine won't work. save your breath n just wear a *******mask
JPMorgan to report next Tuesady on next quarter economic analysis and forecast. That will put volatility coming from news headlines, optimism and pessimism to rest. Many are foreseeing a positive forecast and a nice stock market growth period this next quarter. Remdesiver reducing death rate by 62% just boosted that forecast.
If anyone believes anything JP Morgan or Goldman says ill sell you some Ocean Front property in Kansas on the cheap!
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