D&D Note (11.16.2020) ~ Moderna Positive 94.5% Effectiveness Vaccine Data Boosts Market Rally To Record Close on DOW and S&P 500 ~
Moderna gave the markets a shot in the arm today with very positive preliminary data showing 94.5% effectiveness for their vaccine. Share of the company rose over 9% in todays trading.
This Moderna vaccine does not have the same rigorous cold storage needs and can be stored in a regular refrigerator (36 to 46 degrees Fahrenheit) for up to 30 days.
The Pfizer vaccine in contrast requires storage of minus 94 degrees Fahrenheit.
Moderna plans to have 20 million doses ready to ship in the U.S. by the end of the year, then 500 million to 1 billion does globally in 2021.
The newest vaccine news helped boost the reopen trade today with airlines and cruise ships rallying on the day.
The seemingly daily rotation means investors still need to have a barbell approach with having both reopen/cyclical stocks along with stay at home/tech stocks (with a focus on digital cloud economy). Do be cautious as we could still have a meaningful correction in tech shares before year end.
Shares of Virgin Galactic fell today after they announced indefinitely delaying its next spaceflight test. The company operates its spaceport in New Mexico which has renewed tightened restrictions due to Covid-19.
SpaceX successfully launched a full mission for NASA yesterday (putting 4 astronauts into space) seeing the the Falcon 9 rocket with the Crew Dragon spacecraft reach orbit to dock with the international space station.
The S&P 500 is back to the top of the current trading range and attempting a breakout. However, many technical analysts see a retest of the bottom of current range before any solid breakout can take place.
Both the DOW and the S&P 500 closed at record highs today.
DOW up 1.60%
S&P 500 up 1.16% (3626.91)
NASDAQ up 0.80%
VIX down -2.81% to 22.45
Oil up 3.19% to $41.41 a barrel.
Gold up 0.07% to $1887.70 an ounce.
The pandemic this year has caused a decline in birth rates. Barclays predicts China births will fall 8% and the Brookings Institute estimates U.S. births could decline by a half million.
California is “pulling an emergency brake” on the states reopening process according to Gov. Gavin Newsom. There are now 41 counties that have moved back up to the “purple” level which is the most restrictive tier.
San Francisco county has moved into the second-most restrictive tier due to a recent spike causing the closing of non-essential offices, shutting down indoor dining, and restricting gym capacity to 10%.
Global Virus cases: 54.75 million+
Global Virus deaths: 1.32 million+
U.S. Virus cases: 11.14 million+
U.S. Virus deaths: 246,854+
~ Dave James / Principal Trader and Market Strategist