U.S. stocks have diverged, the Dow closed up more than 800 points, and the price of gold plummeted by 5% in the day
Encouraged by the COVID-19 vaccine trial data from pharmaceutical giants Pfizer and BioNTech, the Dow Jones Industrial Average and S&P 500 both rose sharply on Monday. The Dow closed up 834 points, or 2.95%, the largest since June 5th. The single-day gain, the Dow once hit a record high in intraday trading, rising by 1,700 points. The S&P 500 index closed up 1.17% and hit a record high during the session. However, the Nasdaq Composite Index closed down 1.5%, and traders have moved from technology stocks to the sectors that were most severely dragged down by the new crown pneumonia epidemic earlier.
The strengthening of economic recovery expectations has caused a strong rebound in tourism, catering, and hotel stocks, while technology stocks are under pressure. Cruise operator Carnival shares soared 39.3%, Southwest Airlines rose 9.7%, and Disney rose 11.9%.
Aviation stocks rose collectively, Boeing rose 13.66%, American Airlines rose 15.62%, Delta Air Lines rose 16.53%, United Airlines rose 19.1%.
Bank stocks generally rose, with JPMorgan Chase and Bank of America up 13.5% and 14.2% respectively. Citigroup rose 11.5%.
Earlier earnings fell in home office stocks. Zoom Video fell 17.4% and Amazon fell 5.1%. Netflix fell 8.6%. Teladoc Health fell 13.7%.
Most of the large technology stocks fell, Apple fell 1.53%, Google rose 0.7%, Facebook fell 4.49%, and Microsoft fell 1.68%.
Some market analysts pointed out that from an investment perspective, the most important impact of vaccine news is that investors’ preferences will change from growth stocks to value stocks and small-cap stocks, and this change has already taken place.
Pfizer’s vaccine news may mean that there will soon be a viable method to control the new coronary pneumonia, which is an important link for economic recovery. GLOBALT’s portfolio manager, Tom Martin, said: “This news has really attracted investors. If the vaccine’s effectiveness is close to 90%, you can now start to imagine that at some point in the future, life will return to normal and the economy will resume. Open, that’s why stocks that plunged earlier are now rebounding.”
In terms of financial reports, Beyond Meat's third-quarter results fell short of expectations and fell more than 25% after the market. The adjusted loss per share for the third quarter was $0.28, which was worse than analysts' expected loss of $0.05. Net revenue in the third quarter was US$944.0 million, which was less than the US$132.1 million expected by analysts. The company said it was unable to predict the subsequent impact of the new crown pneumonia epidemic and continued to suspend the release of revenue guidance.
Vaccine test results are good, gold price plummeted by nearly 100 dollars
As Pfizer announced the good results of the late-stage new crown pneumonia vaccine trial, which prompted investors to dump gold and flock to risky assets, the price of gold plummeted by nearly 5% on Monday. Spot gold fell 4.8%, the biggest one-day drop since August, falling more than US$100 from the intraday high to US$1,857.61 per ounce, while US gold futures fell 5% to US$1,854.40.
Other precious metals also fell collectively. Silver fell 7.3% to US$23.73 per ounce, platinum fell 2.9% to US$863.02, and palladium fell 0.7% to US$2474.51.
The pharmaceutical giant Pfizer said that preliminary data from a large-scale study showed that the new coronary pneumonia vaccine in its experiment was more than 90% effective in preventing infection. Pfizer also cooperated with the biopharmaceutical company BioNTech and plans to release it later this month. Seek emergency use authorization in the United States.
Onda Securities analyst Edward Moya believes: “The news about vaccines has indeed exceeded everyone’s best expectations. Earlier, more and more people worried that we might not be able to obtain strong vaccine test results, and Pfizer’s The news has allowed investors to lift a large number of safe-haven transactions. However, the economy still needs large-scale stimulus, and Pfizer initially estimated that it can only provide 50 million doses of vaccine, so we are still optimistic about the future trend of gold. After all, we can often watch in the past. Then, whenever the price of gold drops below US$1,900, the market will become more interested in buying."
Crude oil demand recovery is expected to heat up, and oil prices soar by 8%
In extreme contrast to the performance of gold prices is the international oil price. After the announcement of the vaccine news, global risk assets have seen a general rise. On Monday, oil prices also rose by more than 8%, the largest one-day increase in six months. Brent crude oil rose $3.11, or 7.9%, to $42.56 per barrel, while WTI crude oil futures rose $3.15, or 8.5%, to $40.29. Burundi oil and WTI crude oil rose by more than $4 in early trading.
At the same time, Saudi Arabia indicated that it may adjust the OPEC+ production reduction agreement to balance the crude oil market. Saudi Energy Minister Salman pointed out that if OPEC+ members reach a consensus, the production reduction agreement can be adjusted to reduce the supply of crude oil. OPEC+ members, including OPEC member countries, Russia and other oil-producing countries, are currently reducing production by 7.7 million barrels per day, and they are considering reducing production to 5.7 million barrels from January next year.
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