Dow advances, S&P ekes out gain as vaccine timeline comes into focus

By Stephen Culp

NEW YORK (Reuters) – The S&P 500 posted a nominal gain on Friday as further clarity regarding the timeline for the development of a coronavirus vaccine and much better-than-expected retail sales data and brought buyers back to the market.

The Dow also joined the S&P in positive territory, both indexes snapping a three-day losing streak driven by halted vaccine trials and continued wrangling in Washington over a new pandemic relief package. But the Nasdaq ended the session lower.

Even so, they all posted gains on the week.

Pfizer Inc <PFE.N> announced it could apply for U.S. authorization for the COVID-19 vaccine it is developing with German partner BioNTech <22UAy.F> in November. Pfizer’s stock gained 3.8%.

“The two highest-level market movers are the vaccine timeline and stimulus optimism,” said Ross Mayfield, investment strategist at Baird in Louisville, Kentucky. “Sometimes the market gets a reality check that even if we get a vaccine early next year that’s an incredibly aggressive and optimistic timeline.”

Retail sales <USRSL=ECI> in September blew past analyst expectations and consumer sentiment for the current month surprised to the upside, according to two separate economic reports. But with previous stimulus having run its course, the outlook is uncertain unless Washington can reach an agreement on a fresh round of fiscal aid.

“It’s important from the retail sales data to see that the consumer is not just limping a long but exceeding expectations,” Mayfield added. “I don’t know how long this can continue without stimulus but it’s heartening to see the consumer has held up pretty well despite some dire expectations.”

On the stimulus front, U.S. Treasury Secretary Steven Mnuchin told House Speaker Nancy Pelosi that President Donald Trump would “weigh in” with Senate Majority Leader Mitch McConnell if an agreement is reached

Read More Here...

Bookmark the permalink.

Comments are closed.