Stocks closed near the highs of the Monday session after Moderna announced its COVID-19 vaccine was 94.5% effective in patients participating in its Phase III trials lifting travel and other economically sensitive stocks that would benefit from a recovery.
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MODERNA MOVES VAX RALLY AHEAD
Moderna's CEO Stephane Bancel told FOX Business the vaccine could see FDA approval in the next several weeks to months.
“The emergency use approval I think could happen in December and then I think in Q1, the first quarter to have a full approval were every American who wants a vaccine that is of 18 years of age can get access to a vaccine,” said Bancel during an appearance on 'Mornings With Maria' Monday.
|I:DJI||DOW JONES AVERAGES||29910.37||+37.90||+0.13%|
|I:COMP||NASDAQ COMPOSITE INDEX||12205.846315||+111.44||+0.92%|
DOW HITS RECORDS, JOINS S&P and RUSSELL
The Dow Jones Industrial Average, inching closer to the record-smashing 30,000 level, jumped over 471 points or 1.6%, while the S&P 500 rose 1.17% to a fresh record and the Nasdaq Composite rose 0.8% despite concerns that some large-cap tech companies could face headwinds.
Dow Transports and the Russell 2000 also secured fresh records.
Moderna shares jumped over 9% putting other vaccine makers in the spotlight for investors again, after Pfizer and its German partner, BioNTech, announced last week that its coronavirus vaccine proved 90% effective in late-stage trials. Pfizer shares fell almost 3%, following a strong rally in the prior week.
President Donald Trump weighed in, noting the Dow's move towards the 30,000 level.
Investors built on a robust week for U.S. stocks after the S&P 500 hit a fresh record and the Russell 2000, a benchmark of domestic-focused companies, also hit a record on Friday passing levels not seen since August 2018.
COVID-19 CASES SURGE
Cases of COVID-19 have surged around the U.S. and the globe in recent days, with the U.S. adding close to 1 million cases over the past week, according to data compiled by Johns Hopkins University.
The U.S. has now topped 11 million cases, the most on the planet.
BIDEN-HARRIS HOST ECONOMIC POW-WOW
President-elect Joe Biden and Vice President-elect Kamala Harris hosted CEOs from Target, GM, Gap and Microsoft to discuss the ongoing economic recovery and their plan to revive jobs and small businesses hurt by the pandemic.
|GM||GENERAL MOTORS COMPANY||45.06||-0.40||-0.88%|
In economic news, the New York Fed's Empire State Manufacturing Index came in weaker-than-expected, with a reading of 6.3, compared to expectations of 12.8 for the month of November.
|PNC||PNC FINL SVC||139.79||-0.86||-0.61%|
SPACEX LIFTS OFF
Space stocks saw some action after the successful launch of Elon Musk's SpaceX rocket Sunday evening set the tone for more advances in the industry. Virgin Galatic shares fell.
|SPCE||VIRGIN GALACTIC HOLDINGS INC.||27.17||+0.07||+0.26%|
|UFO||PROCURE ETF TRUST II PROCURE SPACE ETF||25.05||+0.08||+0.31%|
RETAIL EARNINGS ON DECK
Home improvement names Home Depot and Lowe's report results Tuesday and Wednesday. On Monday, Home Depot announced plans to purchase HD Supply for $8 billion, or $56.50 a share, roughly a 25% premium to Friday's close.
|HD||THE HOME DEPOT INC.||275.99||+2.03||+0.74%|
|LOW||LOWE'S COMPANIES INC.||154.67||-0.21||-0.14%|
|HDS||HD SUPPLY INC||55.81||+0.03||+0.05%|
Walmart reports Tuesday while Target, Macy's and Footlocker will follow later this week.
Crude oil continued its march higher, rising 1.2% to $41.62 per barrel. In other commodities, gold was little changed at $1,886 an ounce.