U.S. stocks fluctuated on Wednesday as investors remained hopeful that positive developments on the coronavirus vaccine front could result in a smoother economic recovery.
The Dow Jones Industrial Average last traded 30 points lower in the volatile session, after rising as much as 147 points at its session high. The S&P 500 dipped 0.1%, while the tech-heavy Nasdaq Composite climbed 0.1%. Small caps continued to outperform with the Russell 2000 gaining 0.7% and hitting an all-time high.
Pfizer released the final data on its vaccine candidate with BioNTech, which turned out even better than the initial data. The companies said the vaccine was 95% effective in preventing Covid-19 and fended off severe infection in the trial, adding that it plans to submit an application for emergency use authorization “within days.”
Dow-member Boeing jumped as much as 4% as the Federal Aviation Administration lifted its ban on Boeing’s 737 Max after a 20-month grounding following two deadly crashes. The stock last traded near the flat line.
Meanwhile, Target shares rose about 2% after the retailer’s third quarter earnings topped estimates because of booming digital sales.
“The vaccine announcement has moved the conversation about a return to normal from ‘if’ to ‘when,'” said Bill Callahan, investment strategist at Schroders. “What is most important is that the vaccine announcement removed some of the long term uncertainty, which had kept investors cautious.”
The major averages suffered their first negative day in three in the previous session. The Dow fell more than 150 points, while the S&P 500 lost 0.5%. The Nasdaq dipped just 0.2% amid a pop in Tesla shares following an announcement that the electric vehicle company will join the S&P 500.
Stocks are having a strong month on the back of positive developments around Covid-19 vaccines. The Dow is up more than 12% and the S&P 500 is up more than 10% in November. The Nasdaq Composite is up more than 9%, lagging as investors ditch technology shares for cyclical plays.
“The cyclical/value rotation continues as that cohort enjoys mild outperformance,” Adam Crisafulli, the founder of Vital Knowledge, said in a note on Wednesday. “The retail earnings in the last 36 hours have all revealed favorable consumer tailwinds, but not all those stocks saw gains.”
Lowe’s shares dropped 6% after the home improvement retailer reported third-quarter earnings and a profit outlook slightly short of estimates.
The U.S. is grappling with worsening Covid-19 infections ahead of a likely tough winter. The country is recording roughly 157,000 new coronavirus cases per day, on average, as of Tuesday, according to a CNBC analysis of Johns Hopkins data. That’s another new record and nearly 30% higher than infection levels a week ago.
Subscribe to CNBC PRO for exclusive insights and analysis, and live business day programming from around the world.
