The major indices all surged higher this morning thanks to a positive coronavirus vaccine trial and the continued global reopening push. The shares of Moderna (MRNA, +25%) exploded higher in the wake of the firm’s promising trial results, but risk assets have been gaining ground across the board, with the price of crude oil, copper, and global equities all pushing higher. The battered financial sector has also been making bulls smile, as the XLF ETF erasing most of last week’s losses after the open, thanks to the uptick in Treasury yields, and the tightening credit spreads in the corporate bond market.
The following is our rough coverage of the 2021 Sohn Investment Conference, which is being held virtually and features Brad Gerstner, Bill Gurley, Octahedron's Ram Parameswaran, Glenernie's Andrew Nunneley, and Lux's Josh Wolfe. Q1 2021 hedge fund letters, conferences and more Keep checking back as we will be updating this post as the conference goes Read More
The Real Estate Sector And The Post-COVID Recovery
In economic news, the NAHB Housing Market Index came in at 37 above both the consensus estimate of 35 and last month’s reading of 30. The report gave a boost to the real estate sector and since mortgage rates remain near their all-time lows, the sector could be among the winners of the post-COVID recovery. Energy-related issues have also been favored this morning, amid signals that Chinese demand for crude oil is nearing its pre-pandemic levels and thanks to the reopening of the Asian giant’s economy.
Dow: 24,525, + 840 or 3.6%
S&P 500: 2,954 + 91 or 3.2%
Nasdaq: 9,248, + 233 or 2.6%
Russell 2000: 1,322, + 65 or 5.2%
Market breadth has been the strongest in weeks this morning thanks to the broad rally, with decliners advancing issues outnumbering decliners by a whopping 19-to-1 ratio on the NYSE at midday. Only 3 stocks hit new 52-week lows on the NYSE and the Nasdaq, while 103 stocks hit new 52-week highs. The major indices have been trading above their daily VWAPs (Volume-Weighted Average Price) throughout the morning session, pointing to intraday buying pressure. The most lockdown-sensitive industries have been leading the charge this morning following last week’s poor showing, but cyclical issues have all been screaming higher. Even the relatively weaker defensive sectors have been enjoying inflows, and that bodes very well for bulls ahead of the afternoon session. Stay tuned!