Dow recovers from earlier decline, turns constructive as Pfizer begins UK vaccine rollout
The Dow Jones Industrial Average and S&P 500 rose slightly on Tuesday, posting slight losses from earlier in the day when Pfizer began rolling out its coronavirus vaccine in the UK
The 30-share Dow was trading nearly 100 points, or 0.3%. The S&P 500 gained 0.2%. The Nasdaq Composite was flat. Both the Dow and S&P 500 traded lower at the start of the session.
Pfizer stock gained more than 2%, its highest level in more than a year. BioNTech, who co-developed the vaccine with Pfizer, increased inventory by 1.6%.
Britain ordered enough vaccine for 20 million of its residents to start. In the US, the Food and Drug Administration announced that a vaccine developed by Pfizer and BioNTech would provide some protection after the first dose. The FDA also said it did not find any safety concerns with the vaccine.
The Pfizer BioNTech vaccine came as dealers kept an eye on negotiations on additional fiscal incentives as the U.S. coronavirus number continued to rise.
Republican and Democratic leaders said Monday that Congress is trying to extend state funding for another week to try to reach an agreement on the new Covid-19 aid. The news came after a bipartisan group of senators tabled a $ 908 billion stimulus proposal last week.
“The news from DC that talks on fiscal stimulus have resumed is also a positive development (although this might all be hats, not beasts, until a deal actually gets past the president’s desk),” wrote Willie Delwiche, investment strategist at Baird. “These headlines come at a critical time as we remain in a challenging time from both a health and an economic perspective.”
Calls for a new relief bill to be enforced before the end of the year has risen recently as U.S. employment growth continues to slow and the number of Covid-19 cases continues to rise.
According to the Johns Hopkins University, more than 14.8 million coronavirus cases have been confirmed in the United States. The country’s daily infection rate is also at an all-time high, averaging seven days.
This recent surge in Covid-19 cases has prompted several states and cities to introduce stricter social distancing measures. New York Governor Andrew Cuomo said Monday that New York City could lose indoor dining next week, adding that stricter restrictions would be imposed if hospitals reach a critical point.
“You cannot overwhelm the hospital system,” said Cuomo. “Overpowering the hospital system means people die on a stretcher in a hallway.”
The spike in Covid infections combined with uncertainty about additional tax subsidies kept the Dow and S&P 500 off record levels on Monday. The Dow slipped nearly 150 points, or 0.5%. The S&P 500 retreated 0.2%. However, the Nasdaq Composite rose 0.5% to a new record as traders sold value stocks in favor of soaring growth names.
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