Monday Morning Stock Market Movers: McDonald’s, Biogen, First Solar, Canopy Growth
The stock market rises out of the gates on Monday as a coronavirus vaccine appears to be on the way sooner rather than later and the Joe Biden election call ends most election uncertainty.
Dow Jones industry average
The futures rose 1,490 points or 5.3% to 29,680 and were able to open at an all-time high.
Futures rose 129 points, or 3.7%, to 3,629. That would also be a fresh all-time high. Tech stocks expose this, with futures on the tech heavy
rose by 84.50 points or 0.7% to 12162. In a massive risk, the yield on 10-year government bonds rose from below 0.85% to 0.93%. This is the highest level the return has reached since early June, when optimism about the economic recovery was so strong. The 30-year rate of return increased from 1.58% to 1.71%.
The most important factor Monday:
and (PFE) and
(BNTX) said in press releases that their vaccine candidate was 90% effective in participants without Covid-19. The two companies anticipate production of more than 1 billion doses in 2021. This greatly increases the likelihood of the vaccine being approved by the Food and Drug Administration in December and could catalyze an aggressive reopening in all states.
Plus, Joe Biden appears to become the 46th President of the United States, which ends most of the electoral uncertainty. If the Senate is still in the air, a stimulus package could still take place and support the economic recovery.
Oil rose with that
Energy Select Sector SPDR ETF
(XLE) up 12%. With an aggressively expanding yield curve, so too did bank stocks, even the diversified, large capitalization banks
(JPM) up more than 8%.
Here were some of the biggest moving companies on Monday:
Pfizer and BioNtech rose 14% to $ 41 per share and 23% to $ 113 per share after the vaccine announcement. The Covid-19 vaccine would be more meaningful to BioNtech’s outcome than Pfizer’s. Pfizer’s market capitalization by market capitalization is more than nine times that of BioNtech.
(BIIB) fell 28% to $ 236 after an FDA panel rated the company’s Alzheimer’s drug “no”. The stock was up more than 30% between Tuesday and Thursday prior to the FDA’s announcement.
(MCD) rose more than 5% to $ 227 per share. The company beat analysts’ estimates on both the top and bottom. Revenue was $ 5.42 billion versus estimates of $ 5.4 billion, and earnings per share were $ 2.22 versus $ 1.90 that was expected. Revenue in the same store in the US increased more than 4% year over year but declined more than 2% globally. The company increased its dividend by 3%. Investor Day could see new product launches like a premium chicken sandwich and a new loyalty program.
(CGC) rose 11% to $ 26.30 per share after the company posted a net loss of 9 cents, which was better than analyst estimates of 37 cents. Sales were $ 135 million Canadian, up from expectations of $ 118 million.
First Solar (FSLR) is up despite cutting it down to Buy from Conviction Buy at Goldman Sachs.
Write to at @ barrons.com