The Dow crossed the 30,000 points mark on Tuesday as investors hoped for a swift economic recovery following progress in coronavirus vaccine development and transition of President-elect Joe Biden to the White House. Major indexes closed in the positive territory yesterday. Markets will be closed on Thursday on account of Thanksgiving holiday.
The Dow Jones Industrial Average (DJI) rose 454.97 points, or 1.5%, to close at 30,046.24 and the S&P 500 rose 57.82 points, or 1.5%, to close at 3,635.41. The Nasdaq Composite Index closed at 12,036.79, adding 156.15 points, or 1.3%. The fear-gauge CBOE Volatility Index (VIX) decreased 4.5%, to close at 21.64. Advancing issues outnumbered declining ones for 4.30-to-1 ratio on the NYSE and a 2.40-to-1 ratio on the Nasdaq favored advancers.
How Did the Benchmarks Perform?
On Tuesday, the Dow crossed the 30,000-point mark and has jumped nearly 10% in November, its biggest monthly gain since 1987. Chevron Corporation CVX was the biggest gainer of the blue-chip index rising 5% for the session. Shares of Chevron carries a Zacks Rank #4 (Sell). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The S&P 500 also notched a record close yesterday and the small-cap Russell 2000 also hit an all-time high, gaining 1.9%. Of the 11 major sectors of the S&P 500, only the real estate sector ended in the red. The broader indexes energy sector emerged as the biggest gainer jumping 5.2% for the session, followed by a 3.5% gain in financials and at least 2.3% gain in materials and communication services sectors.
Overall, the S&P 500 posted 50 new 52-week highs and no new lows, while the Nasdaq Composite recorded 180 new highs and eight new lows.
Early Availability of Vaccine Drove Stocks Higher
A spate of positive news on the coronavirus vaccine front raised investor’s expectations about a swift economic recovery. Earlier on Monday, AstraZeneca PLC AZN and The University of Oxford had reported that their coronavirus vaccine candidate (AZD1222) has met primary endpoint and the vaccine had an efficiency of nearly 90%. This news followed positive developments from other vaccine developers like Pfizer Inc. PFE and Moderna, Inc. MRNA, which were reported earlier this month. Hopes that a vaccine will be available by the end of 2020 leading to a quicker and swift economic recovery encouraged traders to invest in economically-sensitive stocks.
Trump Administration Approved Presidential Transition
On Tuesday, General Services Administration chief Emily Murphy informed President-elect Joe Biden that the Trump administration is making federal resources available for Biden’s transition into office. The letter from Murphy clearly acknowledges Trump’s defeat in the Nov 3 election accompanied by a tweet from President Donald Trump that he approved of the new administration’s move to the White House. However, Trump also said that he will “keep up the good fight”, even though he has failed to win any legal victories against invalidating votes for Biden. Additionally, Trump’s legal team suffered another blow as the Pennsylvania certifiedBiden’s win in the state.
Consumer Confidence Declined in November
On Tuesday, the Conference Board reported that the index of consumer confidence slipped to 96.1 in November from an upwardly revised 101.4 in the month before. This three-month low figure also missed the consensus estimate of 97.3, as a surge in coronavirus cases in several states forced administration to reimpose restrictions.
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AstraZeneca PLC (AZN) : Free Stock Analysis Report
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