Continued Waves Of Vaccine News Lift Market Sentiment

November 23, 2020 02:08 PM
Continued waves of Covid-19 vaccine news have helped lift sentiment
AstraZeneca’s new vaccine was announced to be very effective
Tuesday and Wednesday bring a jam-packed economic schedule leading up to the Thanksgiving holiday
Stock Market Update for Traders


Last Week's Close

E-mini S&P 500 Futures (December):  Settled at 3554.25, down 25.75 on Friday and 27.75 on the week

E-mini Nasdaq-100 Futures (December): Settled at 11,905.75, down 81.50 on Friday and 27.75 on the week

The S&P 500 index and Nasdaq-100 incurred a swift wave of selling in the final hour Friday. Pick your poison for the reasoning, but in the end, it was simply a de-risking ahead of the weekend as the Covid-19 pandemic rages on. However, the Russell 2000 Small Cap Index barely budged and has found the best of this morning’s risk-on tailwind amid an overall healthy landscape as U.S. benchmarks broadly snap back. A weaker U.S. Dollar and continued waves of vaccine news have helped lift sentiment. 

AstraZeneca’s vaccine was announced to be very effective, with 70-90% efficacy rates reported. Though less effective than Pfizer’s or Moderna’s vaccines, adjusting the dosage impacts the success rate. It’s also much cheaper to manufacture and can be stored at normal refrigeration levels. During development, Oxford University and AstraZeneca promised equitable access to the vaccine and the news has lifted assets outside of the U.S. Additionally, the FDA approved an Emergency Use Authorization for Regeneron’s Covid-19 treatment drug.

On today’s economic calendar, Flash PMIs are front and center. In Europe, although Germany’s 57.9 print on manufacturing continues to drive a recovery in the sector, the services sector contracted worse than expected across the board. For the Eurozone, this is the third contraction in a row. The U.S. reads were due at 8:45 a.m. CT. San Francisco Fed President Mary Daly, a 2021 voter, spoke at noon CT. Tuesday and Wednesday bring a jam-packed schedule leading up to the Thanksgiving holiday.

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