Vaccine news unleashes new momentum in stock market as hunkered-down investors flee cash

first_img “It’s a risk on day. It’s going to be the reopening stocks and what’s going to lag is the stay-at-home stocks. We’re in a transition period,” said Doll, adding for the trade to persist, investors will need to have confidence the global economy will be able to grow at a sustainable pace.As the Dow and S&P 500 rallied to record highs, Treasury yields pressed higher, with the 10-year yield rising to 0.95%, its highest level since March. Yields move opposite price, and bonds sold off as investors focused on the potential improvement in the economy. “If you can look forward and say we’re going to return to something closer to normal life, a lot of those cheap stocks could look attractive. This could be the beginning of the rotation into value and small caps that we’ve talked about for a long time,” said Ed Keon, chief investment strategist at QMA.The small cap Russell 2000 jumped 5.5%. The high flying FANG names, however, lagged. Facebook and Amazon were both down nearly 3%, and analysts said they could now underperform if the value rotation continues.“We didn’t get a blue wave, and now we have an announcement of a vaccine, and there are people today who are capitulating. You don’t get a Dow up 1,300 points without people capitulating,” said Bob Doll, chief equities strategist and portfolio manager at Nuveen. Doll said the news has forced investors, who were waiting for the election to be over or worried about the pandemic, to take cash off the sidelines.- Advertisement – Stocks skyrocketed and bond yields surged as investors bet Pfizer’s Covid-19 vaccine will help the broader economy recover and revive cyclicals and other industries that were beaten down by the pandemic.The Dow was up more than 4%, while Nasdaq was up just 1% as laggard sectors like energy and financials outperformed tech. Stay-at-home plays, like Netflix and Zoom were sharply lower, but airlines rallied 16%. The S&P energy sector, still down 45% this year, was up more than 14%, and financials were up 8%.Pfizer announced earlier Monday that its vaccine is more than 90% effective, and while it will not be broadly distributed for months, investors bet that the economy will reopen and people will travel, return to work and be able to gather again in public in the next year.- Advertisement – – Advertisement – The Wall Street Bull (The Charging Bull) is seen during Covid-19 pandemic in Lower Manhattan, New York City, United States on May 26, 2020.Tayfun Coskun | Anadolu Agency | Getty Images The vaccine news comes as the coronavirus is again spreading at a rapid rate, with record levels of new cases that could result in more partial shutdowns and more months of social distancing and other precautionary behavior.But the vaccine should still help the outlook.“I think people are going to stop having anxiety everyday…I think we see the beginning of the end. That’s a big deal,” said Tom Lee, Fundstrat head of research. “I think the market was happy to wait until we got vaccine progress before we got the rotation. There was a huge amount of underperformance in these cyclicals and epicenter stocks. We could see months and months of this. This could rally for awhile.”Lee said the market is looking ahead, and is not focusing on valuations but on the prospect of earnings revisions for many companies. Cruise stocks, for instance, soared on optimism that bookings will increase. Royal Caribbean was up 25%. Movie theatre operator AMC Entertainment surged 60%.“The public mood will change, then the confidence surveys will show that. CEOs will have more visibility, and then people will start to say earnings will go up a lot,” said Lee.Lee said investors have been holding too much cash. “People have been doomsaying for so long. It’s more likely we’re going to rally for some period of time. We’re in the final months of the year, and that Santa Claus rally could kick in,” said Lee. Lee said stocks could rally another 10%, taking the S&P 500 to 3,900 by year end.Stocks also got a lift from the possible resolution of the U.S. election, with Democrat Joe Biden declared the presumptive winner on Saturday. President Donald Trump has not conceded, and Republicans are waging legal challenges to the results in some states.“Despite the Trump campaign’s commitment to more legal action, my observation is the markets are signaling the election has been resolved. The outcome has been determined,” said Michael Arone, chief investment strategist at State Street Global Advisors. “The market is moving on like this is a done deal.”Stocks rallied last week, as investors welcomed a split government, with a Democrat in the White House, but Republicans still holding the Senate. The fear had been that Biden could implement market unfriendly policies like higher corporate and capital gains tax rates if Democrats gained control of the Congress.JPMorgan strategists said the S&P 500 should be at 4000 by early next year based on the combination of the Biden victory and the vaccine. “The equity market is facing one of the best backdrops for sustained gains in years. After a prolonged period of elevated risks,” they wrote. Gridlock in Washington should likely result in no tax increase and a ratcheting down of trade wars.Analysts said there are plenty of risks remaining, including the fact that Congress has not passed a stimulus package.Lee said stimulus is a necessary bridge to help businesses and individuals get through the next couple of months, while they await a vaccine. If Congress continues to battle about it, that could be a negative.“This is not about a fiscal deficit. This is about people needing a financial lifeline urgently,” said Lee.Arone said the Pfizer news is extremely positive and the market should rally on it. The market expects change, but consumer behavior has to start to change to support the gains in leisure and other stocks. Value stocks have also had a number of false rallies.“The big question is once a solution is determined, given the environment, are we in this much greater growth, higher inflation, potentially higher rates – a global economic recovery? Of that, I’m more skeptical. I need to see more evidence of that,” he said. – Advertisement –last_img read more


Mikel Arteta reveals how Arsenal squad reacted to Tottenham defeat ahead of Liverpool clash

first_imgArteta sung Klopp’s praises ahead of Wednesday evening’s clash (Picture: Getty)There’s a massive 43 point difference between Arsenal and Liverpool in the Premier League table as it stands and Arteta waxed lyrical about the job Jurgen Klopp has done ahead of Wednesday night’s clash. ‘What they’ve done is phenomenal,’ Arteta added.‘The first two years took them some time to build the squad and create a new culture, a new philosophy and a game model that suited the coach. ‘Then they started recruiting every single player in relation to what they needed and that’s where I think they were really smart because they bought a specificity for every position that was required. ‘Financially they had a big backing and made some big signings which completely changed the club in my opinion.’AdvertisementAdvertisementMore: Arsenal FCArsenal flop Denis Suarez delivers verdict on Thomas Partey and Lucas Torreira movesThomas Partey debut? Ian Wright picks his Arsenal starting XI vs Manchester CityArsene Wenger explains why Mikel Arteta is ‘lucky’ to be managing ArsenalArteta could be tempted to rest players at home to Liverpool, given they take on Manchester City this coming weekend, but the Spaniard insists he will field the ‘strongest team possible’ against the newly-crowned champions.He said: ‘I believe that it’s very important to have energy and momentum going into important matches, and in order to do that you have to go game by game. ‘Today and tomorrow we will asses the players and how they are, and obviously they’ve been hit and a lot of them have played some crazy minutes up until now and again we’re going to have games every two and a half days. ‘We will try to put out the strongest team possible here and as well on Saturday, and to do that we need to know how everyone recovers from the game.’What will the result be on Wednesday night?Arsenal win0%Draw0%Liverpool win0%Share your resultsShare your resultsTweet your resultsFollow Metro Sport across our social channels, on Facebook, Twitter and Instagram. For more stories like this, check our sport page.MORE: Arsenal boss Mikel Arteta passionately defends Manchester City after Champions League ban is overturnedMORE: Jurgen Klopp makes confident prediction about Mikel Arteta & Arsenal’s top four hopes next season Comment Metro Sport ReporterTuesday 14 Jul 2020 3:44 pmShare this article via facebookShare this article via twitterShare this article via messengerShare this with Share this article via emailShare this article via flipboardCopy link214Shares Advertisement Toby Alderweireld’s late goal sealed a 2-1 win for Tottenham over Arsenal (Picture: Getty)Mikel Arteta says Arsenal’s squad were ‘touchy’ and immensely ‘disappointed’ in the wake of their north London derby defeat but he’s confident his players are ‘ready’ again ahead of a big week for the club. Son Heung-min cancelled out Alexandre Lacazette sublime opener to set up an enthralling match at the Tottenham Hotspur Stadium on Sunday afternoon and the hosts came away with all three points thanks to an 81st-minute header from Toby Alderweireld. The Gunners loss’ put a massive dent in their hopes of securing European football for next season but Arteta’s men must quickly pick themselves up again as they prepare to face Liverpool and Manchester City in the Premier League and FA Cup respectively over the coming days. Spurs came out on top in last weekend’s north London derby (Picture: Getty)Arsenal had 63 per cent of the possession against their bitter north London rivals and Arteta believes it shows just how far the team have come since he took over the reins from Unai Emery. Asked whether the statistic pleased or frustrated him, Arsenal’s head coach replied: ‘I’m not too concerned about the possession. ‘It’s how we attack the opponent’s box, how we generate situations to score goals, the dominance, how quickly we regain the ball, how close we do it next to the opponent’s goal. ‘Obviously it tells you how far we’ve come to be able to do that in an away ground against one of the biggest rivals. ‘It shows the personality and what the team wants to do and it’s going to be a big part of our identity but we are going to finish that having produced the three points and the security that we can control and dominate games against any opponent.’ Arteta previews Arsenal’s clash with league champions Liverpool.To view this video please enable JavaScript, and consider upgrading to a web browser that supports HTML5 video Play VideoLoaded: 0%0:00Progress: 0%PlayMuteCurrent Time 0:00/Duration Time 15:51FullscreenArteta previews Arsenal’s clash with league champions Liverpool.https://metro.co.uk/video/arteta-previews-arsenals-clash-league-champions-liverpool-2210408/This is a modal window.Beginning of dialog window. Escape will cancel and close the window.TextColorWhiteBlackRedGreenBlueYellowMagentaCyanTransparencyOpaqueSemi-TransparentBackgroundColorBlackWhiteRedGreenBlueYellowMagentaCyanTransparencyOpaqueSemi-TransparentTransparentWindowColorBlackWhiteRedGreenBlueYellowMagentaCyanTransparencyTransparentSemi-TransparentOpaqueFont Size50%75%100%125%150%175%200%300%400%Text Edge StyleNoneRaisedDepressedUniformDropshadowFont FamilyProportional Sans-SerifMonospace Sans-SerifProportional SerifMonospace SerifCasualScriptSmall CapsReset restore all settings to the default valuesDoneClose Modal DialogEnd of dialog window.Asked how his players felt following their 2-1 defeat at Spurs, Arteta responded: ‘They were touchy yesterday. AdvertisementAdvertisementADVERTISEMENT‘They know what it means to everybody, that kind of game. ‘They felt disappointed because of the way the game went, they feel they deserved much more but as well that the reflection of the game is that we lost the game. ‘But they are ready, they know that the games coming up in the next few days are massive for us, for the future of next season as well and they are willing to go and try again and put the same effort and commitment.’ Mikel Arteta reveals how Arsenal squad reacted to Tottenham defeat ahead of Liverpool clash Advertisementlast_img read more


Women’s hockey: No. 1 Wisconsin looks to continue offensive production on the road against Bemidji State

first_imgThe No. 1 University of Wisconsin women’s hockey team (23-3-0, 13-3 WCHA) heads to Bemidji, Minnesota, this weekend for a road series against the Bemidji State Beavers (9-15-2, 6-8-2).The last time these teams met was in mid-November when the Badgers outscored the Beavers 8–0 in a dominant weekend sweep at LaBahn Arena that also featured a tremendous goalkeeping display from junior Kristen Campbell. Six different Badgers scored that weekend.Women’s hockey: Badgers outscore Bemidji State 8–0 in dominant weekend sweepThe No. 1 Wisconsin women’s hockey team continued its commanding 2018 campaign over the weekend, sweeping the Bemidji State Beavers Read…The Badgers should have no problem replicating their offensive from their previous meeting in November. Last weekend, Wisconsin’s offense got back on track with eight goals against St. Cloud State after struggling against Minnesota a week earlier.After leading the Badgers to a sweep of St. Cloud State, both Mekenzie Steffen and Campbell earned WCHA weekly honors. Steffen recorded her first career multi-goal game in Friday’s 5–0 victory, while Campbell registered a shutout in Friday’s victory while only allowing one goal over the weekend.The Beavers are led by sophomore Clair DeGeorge, who leads the team with 18 points (eight goals, 10 assists), and are 4-2-1 since play resumed after the winter recess. They are coming off an eight-goal weekend against Minnesota State that resulted in a 5–2 victory and a 3–3 tie.Look for Wisconsin to come out firing, as the Badgers are now outscoring their opponents 42-12 in the first period after last weekend’s sweep.Women’s hockey: Comparing success of this year’s Badgers to past championship teamsThe University of Wisconsin women’s hockey team has undoubtedly enjoyed a dominant season up to this point. With a No. Read…Wisconsin is 73-5-4 all-time against Bemidji State, with just one loss to the Beavers since 2013. The Badgers are 29-1-3 all-time on the road against the Beavers, and enter the weekend having won 17 straight against their WCHA rivals.Puck drop on Friday is set for 6 p.m., while Saturday’s game is set for 3 p.m. Both can be streamed on FloHockey and can be followed live on Twitter @BadgerWHockey.last_img read more