US Stock Markets Ended Nov. 13, 2020

Equity markets closed last week at all-time highs. Monday, equities had their biggest jump as the S&P 500 Index rallied over 3% on the open after Pfizer Inc. announced their COVID-19 vaccine was 90% effective and they would be able to deliver some 25m doses before year end. The reopening trade went wild as Marriott International, Live Nation Entertainment, Expedia Group Inc., Norwegian Cruise Line Holdings and Carnival Cruise Lines all traded up more than 15% last week. Value stocks rallied as lagging companies had renewed hope of returning to pre-pandemic operations. According to Bloomberg's factor model, momentum had its worst day ever recorded. In general, beleaguered companies received a significant boost that soon a safe and effective vaccine would offer relief from the economic stress of the COVID pandemic. Stocks faded some mid-week as U.S. COVID cases climbed to all-time highs. Risks have grown that vaccine relief might be too late which eroded some of Monday's gains. However, the S&P 500 Index closed Friday up 1.5% as Moderna Inc. released some data about their vaccine trial that seemed to indicate very positive results. More data is needed and doses delivered but if the first two vaccines both prove effective and millions of doses delivered this pandemic might start to ease sooner than later. Earnings season wound down as 25 names in the S&P 500 announced quarterly results. Among them were The Walt Disney Co., which rallied 8.5% last week. They announced their Disney+ streaming service had user growth that outpaced analyst expectations. CVS Health Corp. announced Q3 revenue of $67B besting analyst expectations while they also raised full year guidance and had same store sales growth of 5.7% all which helped boost their stock 9.3% last week. Cisco Systems Inc. rallied 10.3% last week after announcing quarterly revenue and earnings above analyst expectations as well as boosting their revenue estimates for next quarter. Looking ahead to next week, further vaccine news, COVID positivity rates and economic data on jobs, housing and manufacturing are all likely to impact equity markets.
Posted on Monday, November 16, 2020 @ 8:09 AM

These posts were prepared by First Trust Advisors L.P., and reflect the current opinion of the authors. They are based upon sources and data believed to be accurate and reliable. Opinions and forward looking statements expressed are subject to change without notice. This information does not constitute a solicitation or an offer to buy or sell any security.