The S&P 500 and Dow hit record closing highs on Monday as news of another promising coronavirus vaccine, this one from Moderna, spurred investors’ hopes for a rapid resolution to the COVID-19 pandemic. In both Canada and the U.S., small- cap, value and cyclical stocks led the way. The TSX ended up more than 208 points, led by energy, financials and real estate.
However, hopes faded a bit Tuesday as the grim reality of surging virus cases and lacklustre retail sales sent U.S. markets lower. The number of newly reported Covid-19 cases in the U.S. jumped on Monday to over 166,000 from a day earlier, while hospitalizations hit another high. Meanwhile, U.S. retail sales rose in October at their slowest pace since the spring – an especially troubling fact given those numbers reflect sales before the latest prolonged spike in cases. By Tuesday’s close, all three major U.S. indexes were in the red, while the TSX registered a small gain of 58 points.
U.S. stocks fell even further Wednesday as coronavirus cases continued to spiral out of control in much of the U.S. Also weighing on markets were Tuesday comments from Fed Chair Jerome Powell, who highlighted the uncertainty of the recovery in light of surging infections. By day’s end, the Dow was down nearly 350 points, the Nasdaq was off almost 100, and the TSX erased Tuesday’s gains, losing 58.
U.S. stocks reversed early losses Thursday to end the session slightly in the green, lifted once again by key tech names. While disappointing jobs data showed that new jobless claims in the U.S. actually increased last week to 742,000, momentum appeared to shift later in the day on renewed hopes for a coronavirus relief bill.
Dow and S&P Flat; TSX Registers Modest Gains
For the four trading days covered in this report, the Dow added just 3 points to close at 29,483, the S&P 500 lost just 3 points to settle at 3,582, while the tech-heavy Nasdaq rose 76 points to close at 11,904. In Canada, the TSX climbed 234 points to end at 16,909.
source https://richarddri.ca/vaccine-news-lift-markets-but-coronavirus-fears-still-weigh-heavy/
Dri Financial Group 