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Stocks - Dow Racks up 911 Point Gain on Vaccine Progress, Stimulus Hopes

Stock MarketsMay 18, 2020 04:03PM ET
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© Reuters.

By Yasin Ebrahim

Investing.com - The Dow on Monday racked up its biggest one-day rally in more than a month, as news of progress on a potential Covid-19 vaccine and hopes of further central bank stimulus pushed stocks higher.

The Dow Jones Industrial Average rose 3.85%, or 911 points, the biggest one-day gain since Apr. 6. The S&P 500 gained 3.08%, while the Nasdaq Composite added 2.44%.

Moderna (NASDAQ:MRNA) said early-stage clinical results suggested its vaccine has a "high probability" to provide protection from coronavirus disease, sending its share 19.8% higher.

The positive update from Moderna bolstered investor hopes that a vaccine may be found sooner rather later, strengthening expectations for a quicker economic recovery at a time many countries continue efforts to reopen their economies.  

Travel and tourism sectors, which have been hit hard by the pandemic, were up sharply, led by cruise companies, hotels, and airlines.

Marriott International (NASDAQ:MAR), MGM Resorts (NYSE:MGM), United Airlines (NASDAQ:UAL) and Norwegian Cruise Line (NYSE:NCLH) were among the biggest movers, with the latter up about 18%.

Uber Technologies (NYSE:UBER), meanwhile, was also in rally mode, up 3.6%, as the ride-sharing company announced that it would cut 3,000 jobs and focus on its core ride-hailing and food delivery businesses as it continues on its path toward profitability.   

Energy stocks jumped on a surge in oil prices amid ongoing bets for a recovery in crude demand and on easing worries about storage capacity.

Exxon Mobil (NYSE:XOM) was up 8%, Apache (NYSE:APA) rose 12% and Halliburton (NYSE:HAL) gained 17%

On the economic front, investors digested better-than-expected housing data, as the NAHB Housing Market Index rose to a reading of 37 in May, topping economists' forecasts of 35.

The bold start to the week on Wall Street was also helped by growing expectations for more stimulus after Federal Reserve Jerome Powell signal the central bank stands ready to roll out more stimulus to support the economy.

"We’re not out of ammunition by any shot," Powell said. There was "no limit" to what the central bank can do with its lending programs that were announced in March, Powell added.

Powell returns to the spotlight on Tuesday and is expected to reiterate the Fed's commitment to support the economic recovery, according to a statement that Powell will deliver to the Senate Committee on Banking, Housing, and Urban Affairs.

“The Federal Reserve’s response to this extraordinary period has been guided by our mandate to promote maximum employment and stable prices for the American people, along with our responsibilities to promote stability of the financial system,” according to the statement. "We are committed to using our full range of tools to support the economy in this challenging time even as we recognize that these actions are only a part of a broader public-sector response."

Stocks - Dow Racks up 911 Point Gain on Vaccine Progress, Stimulus Hopes
 

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Comments (32)
Mein Ki
Mein Ki May 19, 2020 6:06AM ET
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One Hundred Trillion Dollars, Royal Bank of Zimbabve
data junkie
data junkie May 18, 2020 9:09PM ET
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911? this number doesn't bode well
Market Predictor
Market Predictor May 18, 2020 8:52PM ET
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Why we need stimulus when market almost near its at all time high. If people are happy with the prospects of the companies and investing to push the market up, then what is the need to spend from countries pocket. Eventually something or the other would fall.. country or companies..
franklin neversoy
franklin neversoy May 18, 2020 8:18PM ET
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Over 90,000 deaths we in way to 100,000 another 8,000 cmon we can do it it be easy with cities opening up virus playground
James Holmgren
James Holmgren May 18, 2020 7:38PM ET
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Pump and dump.Look at the number of years they haveworked on a vaccine for HIVand haven't, found one yet. If investors were smart they would stay away and egnor this happy talk.
Mein Ki
Mein Ki May 18, 2020 7:38PM ET
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Trump and Dump, isn't it?
Ryan Droege
Ryan Droege May 18, 2020 7:38PM ET
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yep, never found one for SAR COV I. Experts say we wont be able to find one for SAR COV II.
Ryan Droege
Ryan Droege May 18, 2020 7:38PM ET
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correction: SARS, not SARS COV I
Lee Ballin
Lee Ballin May 18, 2020 7:35PM ET
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Some people made enough to pay their rent today
Tricky Dick
TrickyDick May 18, 2020 7:30PM ET
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Don't be surprised if the Fed bans short selling soon, as the risks of a massive sell-offs increase every day
Chirag Bakhai
Chirag Bakhai May 18, 2020 7:30PM ET
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The Fed doesn't control that *smh*
Tricky Dick
TrickyDick May 18, 2020 7:30PM ET
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Chirag Bakhai  Not yet *smh*
Midway Eholdings
Midway Eholdings May 18, 2020 7:23PM ET
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Still too many bears and shorts to sell yet.
rob finch
rob finch May 18, 2020 7:17PM ET
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it's nice to get some good news. cha ching.
andrew staggs
andrew staggs May 18, 2020 6:46PM ET
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it's obvious the stock market is like a video game now
Paul Browning
Paul Browning May 18, 2020 6:46PM ET
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More like a casino. The house always wins. This article is hyping band aids on a man dying with cancer.
Mein Ki
Mein Ki May 18, 2020 6:46PM ET
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online casino!
John Madden
John Madden May 18, 2020 6:43PM ET
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I'm sorry, are we living wonderland? Vaccine hope, reallyUS Market is a fairytale, where magic, hope, rumores and the FED makes you rich
Mein Ki
Mein Ki May 18, 2020 6:43PM ET
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cause its not "market" any more. Just abstractions for abstractions. All is possible inside of simulation. Fairytale is the weapon! Raise your eye-lids))) Wish you good trades!
Ryan Droege
Ryan Droege May 18, 2020 6:43PM ET
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I wish you were wrong. But that was well said.
TimAi Day
TimAi Day May 18, 2020 6:38PM ET
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I wouldnt short this market now.
katya litski
katya litski May 18, 2020 6:16PM ET
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trump did 911
kanna kawai
kanna kawai May 18, 2020 6:15PM ET
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He appears. This is good.
Jiang Botao
Jiang Botao May 18, 2020 6:11PM ET
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911 inside job
Etienne Schoen
Etienne Schoen May 18, 2020 6:06PM ET
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Why to care about fundamentals, P/E-ratios, chart analizis, behavioral finance etc. FED is putting each stock and every market at exactly the point where it wants to have it - byebye free market, byebye free world! And where is exactly rhe difference between the "freedom and trust of the Americas" and the "dictatorship of China"?
Brian Helmuth
Brian Helmuth May 18, 2020 6:04PM ET
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Why do markets ignore what the doctors have clearly stated, that we will not have a vaccine (WITH ONE ANTIBODY!!!!) by 2021. Remember, the virus can mutate a whole bunch by then. Why would one antibody matter if there are 40-50 antigens to worry about. This market is seriously irrational, insane, and ignorant. Traders running up prices on science they can't even read about I guess.
Max Vivcharyk
Max Vivcharyk May 18, 2020 6:04PM ET
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Bo one cares. Its just info reason. No cares facts. Exist good and bad news. Good you have to buy bad sell. Would you not to buy if everyone buying? You will. Thats what happens. Traders knows its may be fake but for day trading its still good news.
Ryan Droege
Ryan Droege May 18, 2020 6:04PM ET
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because people just trust the drivel coming from the media. yes, the author of the UN bi@we@pon$ treaty says a vaccine cannot be developed. they failed for the first SARS too. Long term, that's the truth and the markets will have to deal with it. but short term, Gov't and media will drive markets.
Tricky Dick
TrickyDick May 18, 2020 5:41PM ET
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Here is a real interesting fact about the "vaccine".  On May 15 2020 Moderna boardmember, Moncef Mohamed Slaoui was appointed Chief Scientist for the Trump administration's "Operation Warp Speed", a group designed to accelerate the development of a vaccine for the coronavirus. WOW that is warp speed, they did it over the weekend!
Space Lord
Space Lord May 18, 2020 5:25PM ET
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Hopes, fake vaccine and other trash
kilo bar
kilo bar May 18, 2020 5:25PM ET
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Wow!!  No economy and the market continues to soar.  Can't wait to get the vaccine!
Etienne Schoen
Etienne Schoen May 18, 2020 5:21PM ET
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As per today it is obvious for everybody that the "market" has nothing to do with a place where supply and demand come together and create "a correct price"! Look at this ridicoulous DJ cart ... There is one "institut" that manipulates the free play of forces and this institut seems to be the FED. Sorry to say, but that's just a joke what's going on the stock exchanges and it destroys trust in this system for years - I dont believe that covid is worth such a fundamental destroy of trust ...
Michael King
Michael King May 18, 2020 5:00PM ET
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As COVID19 virus is much more changeable and adaptive to human body, there will not be an effective vaccine for years just like there is no effective vaccine for flu virus. Actually flu virus has been becoming more detrimental year over year as over 10 million people were caught with the virus from Oct 2019 to Jan 2020 and over 15K people dead of it. But the market will still go up because of the FED. Some major risks of the market are the Trump trade war, the new waves of COVID 19 contractions and the devastating company earnings. This means always buy some shares when the market has a bigger dive and sell some shares when the market get a major rally. Always maintain positions in the market until a few days before the election day.
Klaus Weyers
Klaus Weyers May 18, 2020 5:00PM ET
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sell the rallies.. market going much lower
Sam Iam
Sam Iam May 18, 2020 4:49PM ET
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It's not rallying up on the vaccine. I don't think investors are rubbing their hands together saying "Yahoo, I'm going to get a shot! Let's buy some stocks." The huge rally was a short covering rally. If we get some follow-through on Wednesday with a higher close, that would be impressive and possible bull market ignition.
Tricky Dick
TrickyDick May 18, 2020 4:49PM ET
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How could we have a short covering rally when we haven't looked back since 18300?
Edward Chong
Edward Chong May 18, 2020 4:49PM ET
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is there a law saying 18300 cannot be the bottom?
Tricky Dick
TrickyDick May 18, 2020 4:49PM ET
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Edward Chong  I asked how we could have a short covering rally since we have been on the upswing since 18300 what is your freakin point except you are brain dead?
TimAi Day
TimAi Day May 18, 2020 4:49PM ET
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Tricky Dick I keep shorting this market. When it doesnt work, i cover and wait for the price to go higher to short again.
Edward Chong
Edward Chong May 18, 2020 4:49PM ET
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Tricky Dick sour grapes
Marius Amun Ra
Marius Amun Ra May 18, 2020 4:45PM ET
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yes! fake vacine for a fake virus! so much money to be made... ”high probability” LOL
Kenson Jean Baptiste
Kenson Jean Baptiste May 18, 2020 4:36PM ET
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Bulls Traps. Not gonna fall for this.
James Dorward
James Dorward May 18, 2020 4:36PM ET
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then you will miss out.
 
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