Stock Market Has Vaccine Priced In
Here is a daily recap of the S&P 500 broken down by sector followed by sector heat map as stock market has vaccine priced in. 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:
Futures tied to major U.S. equity averages were little changed in overnight trading on Monday after days of gains on Wall Street pushed the S&P 500 within striking distance of a record high. Dow Jones Industrial Average futures were little changed. The S&P 500 and the Nasdaq 100 futures were also flat.
The S&P 500 (SPY) slipped -0.80% today. Sector decliners led advancers 9 to 2 as shown below in the sector graph. Losses ranged from -2.16% to less than 1%. Financials (XLF) and industrials (XLI) each enjoyed minor gains of less than 1%.
The Dow Jones index ended in negative territory by -104 points (-0.38%) to close at 27,686. The Nasdaq declined -185 points (-1.69%) to settle at 10,782.
Stock Market Has Vaccine Priced In
Stocks finished in the red on Tuesday as investors once again used the technology sector as an ATM to buy sector laggards such as financials and industrials (sector rotation from growth to value).
Facebook and Amazon each fell more than 2% along with Microsoft. Apple and Netflix were down 3.4% and 3%, respectively. Alphabet dipped 1.1%. Those losses offset gains from shares that benefit from the economy reopening.
“Markets are looking forward to better days ahead,” Jeff Buchbinder, equity strategist at LPL Financial, said in a note. “Although the timing is uncertain, the stock market is expressing confidence that the pandemic will end eventually with a vaccine—or multiple vaccines—and with help from better treatments in the interim.”
Russia Claims World’s First COVID-19 Vaccine
Both the S&P 500 and Dow traded higher earlier in the day after local news agencies reported Russian President Vladimir Putin claimed the country had given regulatory approval for the world’s first Covid-19 vaccine.
Goldman Sachs over the weekend raised its economic growth outlook, predicting at least one vaccine approved by the end of this year and widespread distribution of the drug by the second quarter of next year.
Investors still grappled with the uncertain fate of further coronavirus stimulus aimed at supporting Americans struggling during the pandemic.
Treasury Secretary Steven Mnuchin said Monday the White House is open to resuming coronavirus aid talks with Democrats and putting more relief money on the table to reach a compromise. However, Senate Majority Leader Mitch McConnell said Tuesday negotiations with Democrats were at a stalemate.
Over the weekend, Trump signed four executive orders to extend some coronavirus aid, including unemployment benefits, a payroll tax holiday, defer student loan payments through 2020 and to extend federal eviction protections.
Notable S&P 500 Movers…
Below I’ve highlighted some notable S&P 500 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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S&P 500 Sector Graph
S&P 500 (SPY)
Communication Services (XLC)
Consumer Discretionary (XLY)
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Consumer Staples (XLP)
Real Estate (XLRE)
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S&P 500 Sector Heat Map