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Wall Street Soars at the Opening, Lifted by Vaccine News; Dow up 1550 Pts

Stock MarketsNov 09, 2020 09:38AM ET
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© Reuters.

By Geoffrey Smith 

Investing.com -- U.S. stock markets skyrocketed at the open on Monday, after Pfizer (NYSE:PFE) and its German partner Biontech (NASDAQ:BNTX) announced what looked like a major breakthrough in the search for a vaccine against the Covid-19 coronavirus.

The news propelled beaten-down cyclical stocks sharply higher, as investors bet on a return to traditional working and leisure habits after a year devastated by lockdowns, soaring unemployment and battered business and consumer confidence.

By 9:35 AM ET (1435 GMT), the Dow Jones Industrial Average was up 1,551 points, or 5.5% at 29,875 points, while the S&P 500 was up 3.8% and the Nasdaq Composite was up 0.7%.

Pfizer and Biontech said they are on track to ask regulators to approve the drug for treating the coronavirus by the end of the month, after a late-stage trial showed it was over 90% effective in preventing infection. The U.S.'s top infectious diseases expert Anthony Fauci has said that 60% effectiveness would be acceptable. Newswires quoted him as saying on Monday that a 90% success rate was "extraordinary."

Pending endorsement from regulators, the announcement makes the widespread distribution of a vaccine a realistic possibility early in the new year. Pfizer said it could manufacture and distribute 1.3 billion doses by the end of next year. 

Pfizer stock rose 8.4% and Biontech stock rose 14.4%, but they were far from being the biggest beneficiaries of the news. That honor was reserved for the travel and leisure stocks that have seen their businesses decimated by the fear of infection. The rebound in consumer confidence that vaccine availability promises can make the difference between bankruptcy and viability to many stocks in these sectors, or at least reduce the risk of dilution via recapitalizations.

Accordingly, AMC Entertainment (NYSE:AMC), the world’s biggest operator of movie theaters, saw its stock rise 51%, while rival Cinemark (NYSE:CNK) stock rose 44%.

It was the same story with airlines and cruise stocks: Spirit Airlines (NYSE:SAVE) stock rose 25%, while JetBlue stock (NASDAQ:JBLU) rose 20%. Royal Caribbean Cruises (NYSE:RCL) stock rose 27% and Carnival (NYSE:CCL) stock rose 29%. Casino operator Wynn Resorts (NASDAQ:WYNN) rose 24%.

The flip side of the coin was equally sharp drops in the stocks that have profited most from the shift to remote working and online shopping this year: Zoom Video (NASDAQ:ZM) stock fell 17%, while Peloton Interactive (NASDAQ:PTON) stock fell 19.3%.

Another big loser - albeit unrelated to the Pfizer news - was Biogen (NASDAQ:BIIB) stock, which fell 32% after a Food and Drug Administration panel found overwhelmingly that its experimental drug for Alzheimer's was, in fact, ineffective. Biogen had soared last week on the news that the FDA was set to approve it. Alzheimer's is, after Covid-19, arguably the disease for which the rich world would pay most for a cure.

Wall Street Soars at the Opening, Lifted by Vaccine News; Dow up 1550 Pts
 

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Comments (19)
Patric Ndayeni
Patric Ndayeni Nov 09, 2020 12:54PM ET
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it will be hard to see Biden effort to lift the economy due to this covid pandemic I wish it can be over
Patric Ndayeni
Patric Ndayeni Nov 09, 2020 12:53PM ET
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it will be hard to see Biden effort to lift the economy due to this covid pandemic I wish it can be over
jemin An
jemin An Nov 09, 2020 12:10PM ET
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Does they use vaccine news For political goal? only 94 person result, and needed 2 months safety check remain. Maybe they, someone who wants market rally, use this news and throw it when the peak of Trumps resistance for election?
John Klan
John Klan Nov 09, 2020 11:53AM ET
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Biden really needed that alzheimers drug to work. Now he's really up the creek . Can you say President Harris....
Kamran MAbed
Kamran MAbed Nov 09, 2020 11:50AM ET
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A day you will miss Trump as he knows economics. However, the markets after covid19 in 2021 will collapse as each issue has its own side effects. The case here is money printing and following inflation
Keith Messmer
Keith Messmer Nov 09, 2020 11:47AM ET
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one no one has any clue about the long term effects of this medication or how long the effects last. the markets right now are grasping at straws and there is no rational reason for what is foing on.
Pravin More
Pravin More Nov 09, 2020 11:47AM ET
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It is better to have medicine than death at least there is big possibility of improvement if any thing go wrong..... Think positive and hope for the best for the humen being.
Adam Ryan
Adam Ryan Nov 09, 2020 11:31AM ET
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This is start for bubble and Market gonna crash in 2021.  Everyone who support Biden will cry and will miss Trump in 2022!
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Manny Brum
Manny Brum Nov 09, 2020 11:31AM ET
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Like it or not a crash is coming either way. The difference is if Trump got in the bubble would get bigger and the eventual crash would as well. Studies show Wall Street has the highest gains with a Dem president and a split Congress. Rep president and rep Congress is third highest.
Adam Ryan
Adam Ryan Nov 09, 2020 11:31AM ET
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Manny Brum  Trump can pump dollar in market. Biden won't do it like Obama in 2008, its took 3 years market to recover get new high.... Under trump only took few month to reach 28000 same level before covid...
Bulls MakeMore
Bulls MakeMore Nov 09, 2020 11:31AM ET
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Adam Ryan not according to all the experts...if you cynically think it's some kind of coordinated "pump n dump" we might as well profit from the "pump" right? could be a multi-month pump effect
Bulls MakeMore
Bulls MakeMore Nov 09, 2020 11:31AM ET
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...fyi I agree Biden/Dem economics will hurt the economy eventually, but it will take some time to show up, maybe even a year or so...but by the next election it will be obvious the Dem plan failed
Chris Scheer
Chris Scheer Nov 09, 2020 11:31AM ET
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TeaMaker Tex
TeaMaker Tex Nov 09, 2020 11:27AM ET
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Hilarious that Pfizer comes out with cure after election. Typical Trump management style.
kunal parekh
kunal parekh Nov 09, 2020 11:27AM ET
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their labs makes vaccine first and then viruses.. just manage nicely to put them in news and markets...
Nick NK
Nick NK Nov 09, 2020 11:20AM ET
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A day after the election results this comes out! hmmmm.. coincidence? !
kunal parekh
kunal parekh Nov 09, 2020 11:20AM ET
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their labs makes vaccine first and then viruses.. just manage nicely to put them in news and markets...
Mitchel Pioneer
Mitchel Pioneer Nov 09, 2020 11:06AM ET
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Reckless US consumers have already overextended themselves, as can be seen by asset bubbles the likes of which the world as ever seen.  Cars, boats, motorhomes, etc.  Do they really think the US consumer can keep up this pace even with a vaccine?  We'll see as the US working class financially implodes under the greatest weight of debt in their lifetime.
Bernard Tan
Bernard Tan Nov 09, 2020 10:46AM ET
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Is this real vaccine or one thats not approved yet?
Musical Critic
Musical Critic Nov 09, 2020 10:42AM ET
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Fake vaccine news only to PUMP UP the markets.. a mere ***will burst this bubble!!!
Mojo Snake
Mojo Snake Nov 09, 2020 10:25AM ET
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Headline should be "Donald Trump gives market last win before the crash!!!"
jean jean
jean jean Nov 09, 2020 10:25AM ET
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False news .... The vaccine does not make new money that reaches investors (the big investment banks that set the trend on Wall Street) .... The only explanation would be that large investors already have easy access to unlimited funds (new money). It does not seem to matter how much the amount of the future stimulus will be or when it will be legislated.
James Pattison
James Pattison Nov 09, 2020 10:09AM ET
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What goes together better than a fake pandemic thana fake election and a fake president...
Jurgen Daub
Jurgen Daub Nov 09, 2020 10:09AM ET
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hood for you i guess
Jurgen Daub
Jurgen Daub Nov 09, 2020 10:09AM ET
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James Long
James Long Nov 09, 2020 10:09AM ET
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They found one case of potential voter fraud. A woman died and her daughter tried to cast her vote. she voted for Trump !
Bonney Lake
Bonney Lake Nov 09, 2020 10:07AM ET
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Good, now we don't need to talk about that loser anymore
Brian Walsh
Brian Walsh Nov 09, 2020 10:07AM ET
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If the election cheating goes overlooked & the projected winner is the one the media has called early than you're stuck with the buffoon loser until they 25'd him , which probably won't take long, then your stuck with heels-up Harris, the commies ********
Matt Rustad
Matt Rustad Nov 09, 2020 10:07AM ET
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Brian Walsh the guy literally accusing everyone of being corrupt whenever something doesnt go his way? Why would this be any different?
Eudon Hickey
Eudon Hickey Nov 09, 2020 10:07AM ET
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Who would have thought?
Stacy Starner
Stacy Starner Nov 09, 2020 10:06AM ET
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Funny how a company now has a final stage vaccine ridiculous. Country is so jacked
Mahesh Gupta
Mahesh Gupta Nov 09, 2020 10:03AM ET
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This is nothing only politics. what happens in a day after winning the election.
 
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