Commenting on the global vaccine rally and today’s trading, Gorilla Trades strategist Ken Berman said:
The Global Vaccine Rally Fails To Revitalize
The major indices are all trading slightly lower at midday as stocks continued to struggle overnight following yesterday's late-session dip. That said, the large-cap benchmarks are off their morning lows, despite the global headwinds, with the promising coronavirus vaccine-related developments providing support for the U.S. market. The U.K. became the first country to approve Pfizer's (PFE, +3.1%) 94.5% efficient candidate but that wasn’t enough to revitalize the global vaccine rally, as the short-term economic outlook remains uncertain.
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In economic news, the ADP payrolls number came in at 307,000, way below expectations, adding to the growing list of worrisome job market indicators. The Eurozone Producer Price Index (PPI) was well above the consensus estimate, easing deflationary fears while German retail sales also beat expectations. The dollar continues to hit new multi-year lows compared to several of its major peers, including the euro, due to the divergent reports and the slight risk-off shift wasn’t enough to stop the bleeding of the currency.
Dow: 29,805, -19 or 0.1%
S&P 500: 3,360 - 2 or 0.1%
Nasdaq: 12,328, - 28 or 0.2%
Russell 2000: 1,830, - 6 or 0.4%
Market breadth has been in line with the performance of the major indices this morning, with decliners outnumbering advancing issues by a 6-to-5 ratio on the NYSE at midday. Only 3 stocks hit new 52-week lows on the NYSE and the Nasdaq, while 47 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. The energy sector is having a very strong session amid the hopes that the OPEC will extend its supply cuts today, with communication services and healthcare stocks also gaining ground, but consumer-related issues have been showing weakness in early trading because of the disappointing job market data. Stay tuned!