Stocks Soar On Vaccine News & Why It Matters For Your Money

Before Monday’s open, Pfizer Inc and BionNTech, announced great news on their quest to develop a vaccine for Covid-19. The vaccine achieved a very strong 90% efficacy in their Phase 3 study which bodes very well for the global fight against Covid-19. This sent stocks futures soaring, as we get one step closer to moving back to a “normal” life.

Before Monday’s open, Dow futures are up close to 1,700 points or nearly 6% as just about every Dow stock is up big in the pre-market. The S&P 500 futures are up over 150 points or about 4.4%, and the small-cap Russell 2000 futures are 115 points or a whopping 7%! Meanwhile, the tech-heavy Nasdaq 100 futures are up around 100 points or just under 1%.

There are two big take-aways this morning for Wall Street:

  1. All of the Covid-related beaten down areas of the market are set to rally hard as the stay at home stocks are pulling back.
  2. A Biden presidency will likely end the trade war between the U.S. and China (or at the very least reduce tensions).

In the pre-market, before Monday’s open, Gary Kaltbaum, President of Kaltbaum Capital Management and a Fox Business Contributor, sent out this report to members of his ConvictionLeaders.com service and it perfectly sums up today’s action:

Most all the names that have benefited so much from the pandemic are being blasted this morning while everything that has been dead money are now gapping up strongly. As we write this (Note: the numbers below were written in the pre-market and they have changed because the market is trading all over the map this morning):

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ZOOM down 15%.

PELOTON down 15%.

NETFLIX NFLX down 5%.

AMAZON down 4%.

ETSY down 12%.

ROKU down 5%.

We also suspect any other drug and especially any other biotech company that was trying for a vaccine will be hit also. Those are just a few. You can add all the tech/software names that enable all of this to also be soft in here. As we scan, we are seeing a lot of 5%+ to the downside.

On the other end:

AIRLINES are gapping up 10-20%.

CRUISE LINES are gapping up 15-20%.

HOTELS are gapping up 10%+.

CASINOS are gapping up 10%+.

FINANCIALS are soaring.

RESTAURANTS are soaring.

ECONOMICALLY SENSITIVE names are soaring. 

ENERGY is soaring.

Bottom Line:

It will be a very interesting week to see if the stay at home stock trade unwinds or if this is a temporary pullback in a bull market.

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