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Dow Cuts Gains as Pfizer Halves Vaccine Rollout Target on Supply Chain Woes

Published 12/03/2020, 03:46 PM
Updated 12/03/2020, 04:01 PM
© Reuters.

By Yasin Ebrahim

Investing.com - The Dow pared gains into the close on Thursday even as Pfizer halved the number of Covid-19 vaccine doses it plans to ship out this year, denting investor optimism on a faster return to normal for global economies.  

The Dow Jones Industrial Average rose 0.29%, or 86 points, ending the day below the key 30,000 level. The S&P 500 closed flat, while the Nasdaq Composite added 0.23%.

 
Pfizer said it expects to ship half the doses of its Covid-19 vaccine, developed in partnership with BioNTech SE (NASDAQ:BNTX, as raw materials used in early production of the vaccine were not up to standard, the Wall Street Journal reported, citing unknown sources. Pfizer (NYSE:PFE) ended nearly 2% lower.
 
The company said it expects to ship about 50 million doses this year, cooling hopes of a sooner rather than later vaccine widespread rollout that is needed to reopen economies worldwide. 

The negative vaccine news offset a rise in major dow component Boeing (NYSE:BA), up about 6%, after Ryanair placed an order for 75 additional 737 MAX airplanes, increasing its order book to 210 jets.

The Federal Aviation Authority ungrounded Boeing's 737 Max, which was involved in two fatal crashes.

The road to redemption for Boeing 737 Max's will continue as other airlines have pledged to fly the jets again.

American Airlines Group (NASDAQ:AAL) said it will fly the Max jets at the end of the year. Southwest Airlines (NYSE:LUV) will fly the planes in the second quarter.

Sentiment on stocks was also swayed by the latest developments on stimulus. House Speaker Nancy Pelosi and Senate Majority Leader Mitch McConnell on Thursday discussed a coronavirus relief deal and measures to avoid a government shutdown.
 
Energy enjoyed runaway gains, spurred by surging oil prices after the major produces tapered production cuts by 500,000 barrels per day to 7.2 million barrels a day. It was less than the expected 1.9 million barrels taper expected.

In tech, Snowflake (NYSE:SNOW) jumped 16% after its third-quarter results prompted a slew of upgrades from Wall Street analysts.

"The company continues to execute on the longer-term opportunity, with little to no impact from COVID. We’re impressed by customers’ embracing the broader data cloud platform…" Credit Suisse (SIX:CSGN) said in a note after upgrading its price target on the stock to $265 from $250.

On the economic front, jobless claims fell for the first time in two weeks data. But Jefferies (NYSE:JEF) said the decline this week is "encouraging, but also difficult to trust."

In the week ended Nov. 28, 712,000 people filed for unemployment insurance, down 75,000 from the prior week's upwardly revised 787,000, and lower than the 775,000 claims expected.

In other news, Tesla (NASDAQ:TSLA) jumped 4% after Goldman Sachs (NYSE:GS) hiked its price target on Tesla to $780 from $355 on signs of faster electric vehicles adoption.

Latest comments

Crap article old news
this year is almost over ****we begin more next year
sounds like there were hiccups in the approval process and cold chain process. Perhaps the news is tempered a bit so as not to spook markets. .. glad I can read between these lines.
ruh roh...raw materials used in early production of the vaccine were not up to standard. pretty scary to be first in line for this vaccine!
I agree with you on that! After all, it’s Donny’s vaccine!
First in line being the brits
ok mr wong. LoL
Pfizer always said that it would rollout 50 million doses in 2020 and 1.3 billion doses in 2021. People speculated that maybe it could rollout 100 million and then got disappointed when reports came out that proved pfizer right. Market participants are like kindergardeners.
Don’t want to say I told you so, but I told you three months ago the heavy lifting was not the development of the vaccines, but the complex logistics of getting it in peoples’ arms. Any President would have been able to get a viable vaccine in less than a year under such trying circumstances. But only someone of President Biden’s caliber can get it distributed properly. That’s just one of many reasons why Donny was shown the door. Perhaps he should leave now before he also screws up the deployment....
how foolish to think that the president is responsible vaccine distribution, unless of course biden is a manager at pfizer.
Sounds like what David Wong would say. Must be his second kr third account. Thom Wong.
This author need to check his facts. The latest guidance form Pfizer & Biontech was on 20 November 2020 and it stated :   "Based on current projections, the companies expect to produce globally up to 50 million doses in 2020 and up to 1.3 billion doses by the end of 2021; the companies will be ready to distribute the vaccine within hours after authorization" https://investors.biontech.de/news-releases/news-release-details/pfizer-and-biontech-submit-emergency-use-authorization-request https://investors.pfizer.com/investor-news/press-release-details/2020/Pfizer-and-BioNTech-to-Submit-Emergency-Use-Authorization-Request-Today-to-the-U.S.-FDA-for-COVID-19-Vaccine/default.aspx The 100mil was initial estimates and the 20 November guidance surely could not have any effect on the DOW or Nasdaq or S&P. He just repeats the narrative of the WSJ without checking the facts and then blame a historic guidance for todays moves in the market. Spreading misinformation.
Great time to resuscitate the "vaccine hopes wanes" headline .
oh dear really ? are there issues? the first of many such type of statements
does all these news impacr gold / silver price YES always in the negative impact anything to suppress the price of gold .Not for long .
I can see gold to continue dropping until there is a potential war, otherwise nope
Gold isnt being suppressed. Its a myth. It’s going a lot lower too.
ahahahah gold is going to skyrocket to 3000
seriously why do people freak out on this? it is common sense that there will be supplies issue since have 7 billion + on the planet. do the peopple just magically think vaccine will just pop out in mass within weeks...
Next vaccine will be approved on dec 17th then watch Pfizer get some news out then. The Democratic party had players in these fields playing games with out lives. Maybe time for Republicans to pull all federal funding to Pfizer
Oh noes! Not my vaccine hopes!
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