Los Angeles Times

Stocks climb on lat­est vac­cine news

- Business · Americas Stock Markets · US Stock Markets · Finance · Stocks & Markets · Vaccines · Infectious Diseases · Wall Street · Financial Markets · Medical Treatments · Health Conditions · United States of America · Wells Fargo · NASDAQ · Marriott International · JPMorgan Chase · AstraZeneca · Oxford University · Pfizer · Moderna Therapeutics · U.S. government · Donald Trump · Carnival Cruise Lines · Oxford · Regeneron Pharmaceuticals, Inc.

More en­cour­ag­ing news Mon­day on the devel­op­ment of coro­n­avirus vac­cines and treat­ments helped power stocks higher on Wall Street, as the mar­ket clawed back most of its losses from last week.

The Stan­dard & Poor’s 500 in­dex rose 0.6%, led by banks, en­ergy and in­dus­trial com­pa­nies, sec­tors that have been beaten down dur­ing the pan­demic. Health­care and tech­nol­ogy stocks, which traders have bid up sharply this year, closed lower. Trea­sury yields mostly rose, an­other sign of op­ti­mism among in­vestors.

The lat­est vac­cine de­vel­op­ments are help­ing to raise hopes that some nor­malcy will even­tu­ally be re­stored to every­day life and the econ­omy. It is also tem­per­ing lin­ger­ing con­cerns over ris­ing virus cases in the U. S. and new govern­ment restric­tions on busi­nesses aimed at lim­it­ing the spread.

“In­vestors con­tinue to em­brace and see the op­ti­mism in the devel­op­ment of vac­cines, pro­vid­ing light at the end of the tun­nel and mul­ti­ple choices on how to get there,” said Adam Taback, chief in­vest­ment off icer for Wells Fargo Pri­vate Bank.

The S& P 500 rose 20.05 points to 3,577.59. The bench­mark in­dex, which climbed to an all- time high a week ago, re­couped nearly three- fourths of its de­cline from last week. The Dow Jones in­dus­trial av­er­age gained 327.79 points, or 1.1%, to 29,591.27. The tech­nol­o­gy­heavy Nas­daq com­pos­ite added 25.66 points, or 0.2%, to 11,880.63.

Roughly 73% of the stocks in the S& P 500 rose. In an­other sig­nal that in­vestors were feel­ing con­fi­dent, the Russell 2000 in­dex of smaller stocks out­paced the broader mar­ket, pick­ing up 32.96 points, or 1.8%, to 1,818.30. The yield on the 10year Trea­sury rose to 0.86% from 0.81% late Fri­day.

Many of the com­pa­nies mak­ing gains would greatly ben­e­fit from a vac­cine al­low­ing peo­ple to travel, shop and dine out. Cruise line op­er­a­tor Car­ni­val rose 4.7% and ho­tel com­pany Mar­riott In­ter­na­tional gained 3.2%. JPMor­gan Chase rose 2.9%.

“You con­tinue to see some ro­ta­tion into sec­tors and se­cu­ri­ties that have been un­der­val­ued and still have some up­side po­ten­tial,” Taback said.

As­traZeneca is the lat­est drug de­vel­oper to re­port sur­pris­ingly good re­sults from on­go­ing vac­cine stud­ies. It said the po­ten­tial vac­cine, which is be­ing de­vel­oped with part­ner Ox­ford Univer­sity, was up to 90% ef­fec­tive. Un­like the vac­cines from ri­val can­di­dates, how­ever, As­traZeneca’s doesn’t have to be stored at ul­tra­cold tem­per­a­tures, mak­ing it eas­ier to dis­trib­ute.

Last week, Pfizer and Moderna both re­ported study re­sults show­ing their vac­cines were al­most 95% ef­fec­tive. And, over the week­end, Re­gen­eron Phar­ma­ceu­ti­cals re­ceived U. S. govern­ment ap­proval for emer­gency use of its COVID- 19 treat­ment. The drug, which Pres­i­dent Trump re­ceived when he was sick­ened last month, is meant to try to pre­vent hos­pi­tal­iza­tion and worsening dis­ease from de­vel­op­ing in pa­tients with mild- to- mod­er­ate symp­toms.

Even with its de­cline last week, the S& P 500 is on track for a 9.4% gain this month. Trad­ing is ex­pected to be light this week ahead of the Thanks­giv­ing hol­i­day on Thurs­day, when U. S. stock mar­kets will be closed. They will re­open on Fri­day for a half- day ses­sion.

Euro­pean mar­kets ended slightly lower and Asian mar­kets mostly rose.

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