AstraZeneca’s vaccine-related setback supporting tech rally

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Commenting on AstraZeneca’s vaccine-related setback and today’s trading Gorilla Trades strategist Ken Berman said:

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Astrazeneca's Vaccine-Related Setback Supporting Rally In Tech Stocks

The major indices are all trading considerably higher at midday on the heels of a strong overnight bounce in the tech sector, and a rally in European and Asian stocks. AstraZeneca’s (AZN, -1.3%) vaccine-related setback has been supporting the rally in tech stocks, while weighing on the hardest hit industries, which shined during yesterday’s plunge. Amazon (AMZN, +3.3%), Microsoft (MSFT, +4%) and Apple (AAPL, +4.3%) have been leading the charge in early trading, with Tesla (TSLA, +4.8%), the signature stock of the summer also recovering some of its over 20% one-day plunge.

In economic news, the JOLTS job openings estimate crushed expectations for the second month in a row, coming in at 6.88 million, Last month’s reading was also revised higher by over 100,000, confirming the quick recovery, and Treasury yields have been pushing higher in the wake of the report, especially on the long-end of the curve. With tomorrow’s European Central Bank (ECB) meeting, bond markets will likely remain active all week, even if today’s bounce in stocks and the drop in the Volatility Index (VIX) prove durable.

Market Wrap

Dow: 27,954, - 453 or 1.7%

S&P 500: 3,392, + 61 or 1.8%

Nasdaq: 11,124, + 276 or 2.5%

Russell 2000: 1,518, + 14 or 0.9%

Market breadth has been in line with the performance of the major indices this morning, with advancing issues outnumbering decliners by a 7-to-3 ratio on the NYSE at midday. 17 stocks hit new 52-week lows on the NYSE and the Nasdaq, while 28 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. All of the key sectors joined today’s rally following Yesterday’s broad selloff, but with notable weakness among financials and energy-related issues due to the COVID-related worries. Stay tuned!