Commenting on Pfizer and Biontech filing for the emergency approval of their coronavirus vaccine candidate in Europe and today’s trading, Gorilla Trades strategist Ken Berman said:
Pfizer And Biontech File For Emergency Approval
The major indices are all trading significantly higher at midday, erasing yesterday’s losses and closing in on their record highs. The Nasdaq and the S&P 500 already hit new all-time highs in early trading, and the Dow also recaptured the historic 30,000 level. Risk assets surged higher overnight, lifting U.S. index futures following yesterday’s month-end profit-taking dip on Wall Street. Pfizer (PFE, +3.5%) and Biontech (BNTX, -3.7%) filed for the emergency approval of their COVID vaccine candidate in Europe as the push for the global distribution of the vaccines is gaining steam, supporting risk assets across the board.
The first London Value Investor Conference was held in April 2012 and it has since grown to become the largest gathering of Value Investors in Europe, bringing together some of the best investors every year. At this year’s conference, held on May 19th, Simon Brewer, the former CIO of Morgan Stanley and Senior Adviser to Read More
In economic news, the ISM manufacturing PMI was a tad below the consensus estimates, but it remained firmly above the key 50 level, and since construction spending beat expectations, the outlook for the sector remains bright. Even though the Eurozone Consumer Price Index missed expectations and nearly all of the European manufacturing PMIs have been revised lower, the global rally remained intact. Stocks added to their early gains after a bipartisan group of senators released a $900 billion stimulus proposal in an attempt to restart the negotiations between the two parties and provide quick relief amid the resurgence of the virus.
Dow: 29,946, + 308 or 1.0%
S&P 500: 3,669 + 47 or 1.3%
Nasdaq: 12,340, + 142 or 1.2%
Russell 2000: 1,840, + 20 or 1.1%
Market breadth has been relatively strong this morning, with advancing issues outnumbering decliners by a more than 5-to-1 ratio on the NYSE at midday. Only 2 stocks hit new 52-week lows on the NYSE and the Nasdaq, while 164 stocks hit new 52-week highs. The major indices have been trading above their daily VWAPs (Volume-Weighted Average Price) for most of the morning session, pointing to intraday buying pressure. Yesterday’s trends reversed this morning, yet again, at the level of the main sectors, as the positive vaccine-related developments triggered a strong rebound in the hardest-hit industries and cyclical issues, while the key defensive sectors and tech stocks have been showing relative weakness in the first hours of trading. Stay tuned!