[ad_1]
Following Joe Biden’s election victory, the US stock market rebounded on Monday (9) on the good news of vaccine development from Pfizer and BioNTech. The Dow Jones Industrial Average was up 1,570 points or 5.6%, the S&P 500 Index was up 1.2%, both hit a record high, the Nasdaq Index was up 3.8% and the rate was up 2.6%.
The US pharmaceutical giant Pfizer announced that the potential vaccine for the new coronary pneumonia developed in cooperation with BioNTech has achieved 90% effectiveness in final human trials. Preliminary results showed that of the two doses of vaccine the subjects received, the protective effect was achieved 7 days after the first dose and 28 days after the second dose.
Additionally, the two companies said that no serious adverse reactions have been found in this trial, and they hope to continue to collect more safety data in the future and apply for an emergency use authorization (US) from the FDA later this month.
The good news about vaccines has pushed cyclical stocks generally higher. Cruise shares Royal Caribbean (RCL-US), Carnival (CCL-US), Norwegian Cruise Line (NCLH-US) increased between 20% and 30%, United Airlines (UAL-US), American Airlines (AAL- US), Southwest Airlines (LUV-US) were up at least 15% and Delta Airlines (DAL-US) were up 13%.
In the case of bank stocks, Citigroup (C-US) and Bank of America (BAC-US) rose more than 10%, while Goldman Sachs (GS-US) rose 6.6%.
Another important reason for the soaring rise in the main index is that the uncertainty of the US elections is reduced, along with the policy expectations caused by the separation of Congress.
The yield on 10-year US Treasury bonds increased to 0.922% from 0.821% last Friday (6), and the price of gold fell 3.9% to US $ 1,876 per ounce.
Starting Monday (9) at 9 p.m. Taipei time:
- The Dow Jones Index was up 1,570.56 points, or 5.55%, to 29,893.96 points temporarily.
- Nasdaq climbed 143.87 points, or 1.21%, to 12,039.09 points temporarily
- The S&P 500 Index climbed 131.73 points, or 3.75%, to 3,641.17 temporarily
- Commissions rose 64.90 points or 2.57%, temporarily to 2,594.17 points
- TSMC ADR rises 0.51% to $ 91.88 per share
- Yield on 10-year US Treasuries increased to 0.922%
- New York light crude oil rose 10.18% to $ 40.92 a barrel
- Brent crude rose 9.07% to US $ 43.03 a barrel
- Gold fell 3.88% to $ 1,876.00 an ounce
- The dollar index fell 0.02% to 92.205 points
Focus actions:
Pfizer (PFE-US) rose 13.74% in early trading to $ 41.40; BioNTech (BNTX-US) rose 24.34% to $ 114.39。
The US pharmaceutical company Pfizer announced that it has made a breakthrough in the final stage of vaccine trials. The effectiveness of the potential vaccine developed in cooperation with its German partner BioNTech exceeds 90%, which is much higher than the previous standard set by scientists and the White House epidemic prevention consultant Foqi.
There were 43,538 subjects in the aforementioned test, and 42% of the subjects came from different regions. If the vaccine meets the requirements for effectiveness and safety, the two companies previously planned to apply for an emergency authorization (US) from the US Food and Drug Administration (FDA) in late November.
McDonald’s (MCD-US) rose 3.19% to $ 223.47 in early trading.
Key figures from the third quarter 2020 earnings report
- Revenues: $ 5.42 billion, a 2% year-on-year decrease, better than the $ 5.4 billion expected by Refinitiv
- Net profit: $ 1.76 billion, an annual increase of 9.3%
- Adjusted EPS: $ 2.22, an annual increase of 5%, better than the $ 1.9 expected by Refinitiv
- Global Same Store Sales: 2.2% YoY Decrease
- Same-store sales in the US: an annual increase of 4.6%
Apple (AAPL-US) was up 0.87% in early trading to $ 119.72.
“Bloomberg” cited people familiar with the matter who reported that Apple is considering acquiring the well-known podcast studio Wondery. If the deal is successful, it is expected to be the largest acquisition in the podcast market.
According to people familiar with the matter, Wondery is asking for the sale of US $ 300 million to US $ 400 million. Besides Apple, Sony is also one of the active potential buyers. The acquisition agreement can be reached in the next few months.
Daily key economic data:
No
Wall Street Analysis:
Matthew Hornbach, Morgan Stanley’s head of global macro strategy, said: “Obviously this is an important day for the world. Vaccines have the ability to boost riskier assets, lower credit spreads and strengthen emerging currency markets.” .
Carsten Brzeski, an analyst at ING, said: “The main driving force behind the economic outlook comes from external factors. In the current situation, it represents vaccine research and development.”
QMA chief investment strategist Ed Keon said: “From an investment perspective, the important impact of the vaccine news is that we will eventually see a rotation of funds into small-cap, value stocks. This happened today.”
Chris Larkin, managing director of trade and investment products at E * Trade, said: “We have a lot of ammunition to drive the bull market. With increased election certainty, strong earnings performance and more optimistic news on vaccines , little can stop us “.
Altaf Kassam, head of investment strategy for the European division of State Street Global Advisors, believes that the dovish Biden represents a clearer, low-volatility foreign policy, along with market concerns about tax increases and regulation of the tech industry. . The adjustment may not occur and several reasons help to drive the market higher.
[ad_2]
