D&D Note (11.9.2020) ~ Joe Biden Election Win And Pfizer Vaccine Results Sends Markets Higher ~
Markets immediately went up day over day post last Tuesdays election with President-elect Joe Biden’s win and the Senate looking to remain in GOP control.
This creates political gridlock which causes more certainty in the markets thus the rally.
Today we got amazing news from Pfizer that their vaccine is 90% effective. Shares rose 8.24%. Interestingly the funding for Pfizer’s vaccine came from Berlin Germany and not from Washington’s Operation Warp Speed.
The vaccine news created a massive rotation in the markets seeing havens selloff and value stocks rally.
Banks had their best day since March and Energy rallied over 14% along with a move in oil up over 7%.
Performance today by sector:
Energy up 14.22%
Financials up 8.17%
Industrials up 3.34%
Real Estate up 2.57%
Materials up 2.25%
Health up 0.73%
Communication Services down -0.25%
Consumer Staples down -0.46%
Technology down -0.73%
Consumer Discretionary down -1.59%
Stay at home stocks got hit hard today with Zoom falling -16.47%, Shopify down -12.96%, Chewy down -11.26%, Netflix down -8.39%, Amazon down -4.70%.
Individual winners today included Wynn Resorts up 27.68%, Delta Airlines up 16.16%, Bank of America up 13.94%, JP Morgan up 13.29%, Boeing up 13.35%, Disney up 10.81%.
More members of the Trump administration have tested positive for Coronavirus including Chief of Staff Mark Meadows, HUD Secretary Ben Carson, and David Bossie who had just been tapped to lead the effort in challenging the election results.
President Trump has yet to concede the election and as of now there is no transition in place.
In a tweet Trump announced Defense Secretary Mark Esper has been terminated. Many believe the Directors of the FBI and the CIA could be next to get fired.
The FED sent out a warning near the end of cash trading which brought markets off the highs of the day saying asset prices could fall if the virus is not contained.
The S&P 500 closed below its all time high.
DOW up 2.95%
S&P 500 up 1.17% (3550.50)
NASDAQ down -1.53%
VIX up 3.58% to 25.75
Oil up 7.57% to $39.95 a barrel.
Gold down -4.44% to $1865.00 an ounce.
While markets are hopeful of a vaccine the sobering reality is that it will take a few quarters before the doses of the vaccine actually get distributed.
The U.S. has crossed the 10 million mark for Covid-19 virus cases and is seeing record daily highs for nearly every day in the last week.
President-elect Joe Biden said, “Please, I implore you, wear a mask. Do it for yourself. Do it for your neighbor. A mask is not a political statement, but it is good way to start pulling the country together.”
Infectious disease experts warn that the apex of the pandemic is just now hitting over the coming winter months.
Global Virus cases: 50.76 million+
Global Virus deaths: 1.26 million+
U.S. Virus cases: 10.04 million+
U.S. Virus deaths: 237,835+
~ Dave James / Principal Trader and Market Strategist