Vaccine rolls out, but market rolls over
14-Dec-20 16:15 ET
Dow -184.82 at 29861.49, Nasdaq +62.17 at 12439.95, S&P -15.97 at 3647.50 https://www.briefing.com/stock-market-update
[BRIEFING.COM] The S&P 500 started Monday's session with a 0.9% gain as the U.S. began distributing the first COVID-19 vaccines to the public, but an orderly retreat ensued that left the benchmark index down 0.4% for the session. The Dow Jones Industrial Average (-0.6%) joined the benchmark index in the red after hitting an all-time high in early action.
The Nasdaq Composite (+0.5%) and Russell 2000 (+0.1%), however, ended the session in positive territory.
The vaccine rollout was officially authorized by the FDA after it approved the vaccine from Pfizer (PFE 39.21, -1.91, -4.6%) and BioNTech (BNTX 108.27, -19.03, -15.0%) for emergency use in patients ages 16 or older. The decision was widely expected, though, and the sharp declines in PFE and BNTX shares were indicative of the news being priced in already.
Within minutes after the open, the S&P 500 energy sector (-3.5%) and last week's hot IPO companies succumbed to profit-taking interest, sapping some enthusiasm from this market. The financials (-1.2%), materials (-1.3%), and industrials (-1.3%) sectors also lagged, while the consumer discretionary (+0.5%) and information technology (+0.4%) sectors closed higher.
One reported headwind for cyclical stocks was an acknowledgement from NYC Mayor Bill De Blasio that there's still a possibility of a full shutdown due to the rise in coronavirus cases in the city. Naturally, growth stocks outperformed, including Tesla (TSLA 639.83, +29.84, +4.5%) ahead of its reconstitution into the S&P 500 after Friday's close.
In stimulus news, reports indicated that the $908 billion bipartisan bill was going to be split into two bills: one bill for $748 billion that excludes state and local aid and liability protection and a second bill for $160 billion that includes both contents. House Speaker Pelosi said both sides remained in negotiations.
Separately, today was a busy day for M&A news, and none was larger than the $39 billion cash-and-stock deal involving Alexion Pharma (ALXN 156.31, +35.33, +29.2%) and AstraZeneca (AZN 50.03, -4.24, -7.8%). Alexion agreed to be acquired by AstraZeneca for $175.00 per share or a 45% premium to Friday's closing price for ALXN.
U.S. Treasuries finished little changed after starting the session in the red, as investors returned to bonds amid the lackluster intraday price action in the major indices. The 2-yr yield was flat at 0.11%, and the 10-yr yield was flat at 0.89%. The U.S. Dollar Index declined 0.3% to 90.69. WTI crude increased 0.9%, or $0.42, to $47.00/bbl.
Investors did not receive any economic data on Monday. Looking ahead to Tuesday, investors will receive Industrial Production and Capacity Utilization for November, the Empire State Manufacturing Index for December, Export and Import Prices for November, and Net Long-Term TIC Flows for October.
Nasdaq Composite +38.6% YTD
Russell 2000 +14.7% YTD
S&P 500 +12.9% YTD
Dow Jones Industrial Average +4.6% YTD
Dow 29861.49 -184.82 (-0.62%)
Nasdaq 12439.95 +62.17 (0.50%)
SP 500 3647.50 -15.97 (-0.44%)
10-yr Note 0/32 0.901
NYSE Adv 1230 Dec 1907 Vol 1.0 bln
Nasdaq Adv 1824 Dec 1830 Vol 4.4 bln
Strong: Consumer Discretionary, Information Technology
Weak: Energy, Materials, Financials, Industrials
Moving the Market
-- Vaccine rolls out, but S&P 500 and Dow roll over
-- Cyclical sectors lagged, while growth stocks outperformed
-- Energy sector and last week's hot IPO companies succumbed to profit-taking interest
-- NYC shutdown concerns
Energy stocks underperform despite higher oil prices
14-Dec-20 15:30 ET
Dow -50.85 at 29995.46, Nasdaq +119.64 at 12497.42, S&P +0.02 at 3663.49
[BRIEFING.COM] The S&P 500 is trading relatively unchanged amid losses in nine of its 11 sectors.
The energy sector is currently down the most with a steep 3.1% decline (trimming its monthly gain to 8.2%), followed by more tolerable declines in the financials (-0.8%), materials (-0.7%), and industrials (-0.7%) sectors. The consumer discretionary (+1.0%) and information technology (+0.9%) sectors trade comfortably higher.
WTI crude futures settled higher by 0.9%, or $0.42, to $47.00/bbl.