Dow surges over 600 points as J&J’s coronavirus vaccine debuts
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U.S. equity markets rallied Monday as investors celebrated the approval of a third COVID-19 vaccine and as the U.S. House of Representatives passed a $1.9 trillion relief package.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| I:DJI | DOW JONES AVERAGES | 31578.22 | +645.85 | +2.09% |
| SP500 | S&P 500 | 3899.6 | +88.45 | +2.32% |
| I:COMP | NASDAQ COMPOSITE INDEX | 13526.009516 | +333.66 | +2.53% |
Midmorning, the Dow Jones Industrial Average was higher by 647 points, or 2.09%, while the S&P 500 and the Nasdaq Composite gained 2.05% and 1.74%, respectively.
The gains came as the 10-year yield slid 4.5 basis points to 1.41%. The benchmark yield last week touched a one-year high of 1.61%, causing jitters among stock-market investors as it topped the S&P 500’s dividend yield.
President Biden’s COVID-19 relief package cleared the House in a 219 to 212 vote, mostly along party lines, that saw two Democrats vote against the measure.
The bill, which gives $1,400 checks to most Americans and extends unemployment benefits among other things, has been criticized by Republicans as a “blue state bailout” with only 9% of the money going towards pandemic relief.
BITCOIN BUYERS PUNISHED BY SURGING BOND YIELDS
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| JNJ | JOHNSON & JOHNSON | 160.11 | +2.10 | +1.33% |
In stocks, Johnson & Johnson’s single-shot COVID-19 vaccine received emergency-use authorization from the U.S. Food and Drug Administration and is expected to begin shipping 4 million doses immediately.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| MRNA | MODERNA, INC. | 154.46 | -0.35 | -0.23% |
| PFE | PFIZER INC. | 33.78 | +0.27 | +0.79% |
| BNTX | BIONTECH SE | 110.61 | +1.58 | +1.45% |
Other vaccine makers were in focus with Moderna trading lower.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| DAL | DELTA AIR LINES INC. | 48.37 | +0.47 | +0.98% |
| RCL | ROYAL CARIBBEAN CRUISES | 90.60 | -2.81 | -3.01% |
| MAR | MARRIOTT INTERNATIONAL, INC. | 149.37 | +1.30 | +0.88% |
News of another vaccine boosted airlines, cruise ship operators and other companies that have been hit hard by restrictions aimed at slowing the spread of COVID-19.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| XOM | EXXON MOBIL CORP. | 56.66 | +2.34 | +4.31% |
| CVX | CHEVRON CORP. | 102.08 | +2.31 | +2.32% |
Elsewhere, ExxonMobil Corp. shares spiked after CNBC reported activist investor Jeff Ubben will join the company’s board of directors.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| BRK.B | BERKSHIRE HATHAWAY, INC. | 249.96 | +9.43 | +3.92% |
WARREN BUFFETT: ALWAYS BET ON AMERICA
In earnings, Berkshire Hathaway reported operating income, Warren Buffett’s preferred performance measure, rose 14% from a year ago. The company, which bought back $25 billion of stock in 2020 plans to continue share repurchases in the current fiscal year.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| DKNG | DRAFTKINGS | 67.44 | +5.91 | +9.61% |
DraftKings Inc. received multiple upgrades and price target hikes after the sports-betting platform last week raised its outlook for the current fiscal year.
In commodities, West Texas Intermediate crude oil ticked up 34 cents to $61.84 per barrel and gold added $11 to $1,739.80 an ounce.
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Global markets were higher across the board.
France’s CAC 40 paced the advance in Europe, trading up 1.45%, while Britain’s FTSE 100 and Germany’s DAX 30 climbed 1.4% and 1.27%, respectively.
In Asia, Japan’s Nikkei 225 surged 2.41%, Hong Kong’s Hang Seng index advanced 1.63% and China’s Shanghai Composite index rose 1.21%.
