Commenting on the announcement of a COVID-19 vaccine by Russia and today’s trading, Gorilla Trades strategist Ken Berman said:
Q3 2020 hedge fund letters, conferences and more
Russia Announces Covid-19 Vaccine
The major indices are all trading significantly higher at midday thanks to a broad-based morning rally on Wall Street. Yet another positive COVID-19 vaccine-related announcement fueled the global push to new recovery highs, this time from Russia, and domestic stocks joined the party in earnest, with the Dow leading the way higher and topping the historic 30,000 level for the first time ever. President Trump reportedly ordered its team to begin the transition process with Joe Biden’s campaign, with a two-week delay, which gave an additional boost to U.S. assets.
While equities are nearing their all-time highs, the U.S. COVID trends remain worrisome, with the number of hospitalizations hitting record highs on a daily basis, and the number of deaths also getting close to the grim spring figures. Today's economic releases have been a mixed bag, with the crucial CB Consumer confidence number and the Richmond Manufacturing Index both slightly missing expectations. Housing prices rose by much more-than-expected in October, according to the Case-Shiller Index, confirming the blowout sales data of the past couple of weeks.
Market Wrap
Dow: 30,021, + 430 or 1.5%
S&P 500: 3,627 + 49 or 1.4%
Nasdaq: 11,995, + 115 or 1.0%
Russell 2000: 1,848, + 30 or 1.6%
Market breadth has been relatively strong this morning, with advancing issues outnumbering decliners by a 5-to-1 ratio on the NYSE at midday. Only 2 stocks hit new 52-week lows on the NYSE and the Nasdaq, while 261 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 have remained intact at the level of the key sectors, as the vaccine rally is gaining momentum globally, with cyclical issues surging higher and even the relatively weak tech and defensive issues trading in the green at midday. Stay tuned!
