Investors Cheer Reopening Alongside Vaccine Potential

Here is a daily recap of the S&P 500 broken down by sector followed by sector heat map as investors cheer reopening alongside vaccine potential. Stocks in heat map are based on the top 10 holdings of each sector ETF. Click on each picture to zoom in. Below is a summary of today’s action on Wall Street provided by CNBC:

Dow futures jump more than 200 points on hopes of a coronavirus vaccine

Stock futures opened higher in overnight trading Monday to begin a holiday-shortened week, as optimism about a potential coronavirus vaccine built. Futures on the Dow Jones Industrial Average jumped about 250 points. The S&P 500 futures rose 1.2% and the Nasdaq 100 futures climbed 1.1%. Trading volumes remained thin in overnight action.

The S&P 500 (SPY) rose +1.23% today. Sector advancers led decliners 9 to 2 as shown below in the sector graph. Gains ranged from +5.20% to less than 1%. Healthcare (XLV) and technology (XLK) suffered minor losses of less than 1%.

The Dow Jones index climbed +529 points (+2.17%) to close at 24,995. The Nasdaq advanced +15 points (+0.17%) to settle at 9,340.

Investors Cheer Reopening Alongside Vaccine Potential

Stocks added to gains on Tuesday as investors focused on a reopening of the US economy and potential coronavirus vaccines.

Here’s what investors were paying attention to:

  • The S&P 500 exceeded its 200-day moving average for the first time since March 5, but failed to close above the key level. Many technical analysts look at that moving average as a sign of the long-term trend. Rising above it could signal a change in long-term trend from bearish to bullish.
  • American biotech company Novavax said Monday it started the first human study of its experimental coronavirus vaccine. The company said it expects initial results on safety and immune responses in July. Last week, another biotech company, Moderna, reported positive development on its vaccine trial where all 45 participants had developed coronavirus antibodies. There are 10 vaccines in clinical evaluation and 114 in pre-clinical evaluation, according to a running tally by Fundstrat.
  • Economic activity continued to pick up as states begin opening up their economies. New Jersey Gov. Phil Murphy said professional sports teams in the state can resume training and competition, with their leagues’ approval.
  • Some of the biggest gainers were directly tied to the reopening. Carnival shares jumped 12.6%. MGM Resorts climbed 11%. United Airlines and Southwest Airlines rose more than 12% each.
  • Bank stocks got a boost amid the optimism over the economic reopening. Citigroup and Wells Fargo were both up more than 8.6% while Bank of America and JPMorgan Chase advanced over 7% each. JPMorgan shares hit their session highs after CEO Jamie Dimon said the bank is “very valuable” at current prices.

President Donald Trump tweeted about Tuesday’s rally, saying:

Key Takeaway…

Notable S&P 500 Movers…

Below I’ve highlighted some notable S&P movers (both winners & losers).

Credit: Sector Graph provided by Sector SPDR app. Sector breakdown provided by Charles Schwab. Sector heat map provided by finviz. Information Credit: News Headlines and quotes were taken from CNBC in the writing of this post.

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5/26/20

S&P 500 Sector Graph

Investors Cheer Reopening Alongside Vaccine Potential

S&P 500 (SPY)

Investors Cheer Reopening Alongside Vaccine Potential

Communication Services (XLC)

Investors Cheer Reopening Alongside Vaccine Potential

Consumer Discretionary (XLY)

Investors Cheer Reopening Alongside Vaccine Potential

Consumer Staples (XLP)

Investors Cheer Reopening Alongside Vaccine Potential

Energy (XLE)

Investors Cheer Reopening Alongside Vaccine Potential

Episode 1: Basic Investment Strategy – Simply Stock Info: The Podcast

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Financials (XLF)

Investors Cheer Reopening Alongside Vaccine Potential

Real Estate (XLRE)

Healthcare (XLV)

Industrials (XLI)

Materials (XLB)

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Technology (XLK)

Investors Cheer Reopening Alongside Vaccine Potential

Utilities (XLU)

S&P 500 Sector Heat Map

 

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