Your Monday Blip 11/9/20

Your Monday Blip 11/9/20

Markets jumped on a combination of positive vaccine news from Pfizer and reduced uncertainty now that Joe Biden has been declared “President Elect”. The Dow closed the day up 834 at 29,157 on heavy trading volume. The tech heavy NASDAQ closed lower. Today was a big day for value stocks and IBD continues to list markets as being in a rally.
New York based drug company Pizer and German biotech BioNtech released news that their phase III coronavirus vaccine trials showed 90% efficacy a week after participants had been given a second dose. No safety signals were observed and the study will continue until the final analysis can be made. Gurus are calling this the “covid kicker” saying the results were better than expected. Markets reacted with a surge by stocks that have been hammered by the lockdown to include airlines, energy, travel, leisure and banks while stocks that have benefited from the lockdown actually fell. These included outfits like Zoom Technology, Amazon and Home Depot. Go figure.
The Q3 earnings season has been overwhelmed by the focus of investors on the U.S. election, a look back by Bank of America shows that 67% of S&P 500 companies have beaten estimates on both the top and bottom line. The firm notes that small caps smashed it, with the S&P SmallCap 600 index Q3 earnings topping consensus expectations by 50%, driven by Consumer Discretionary, Financials and Industrials. Analysts, however, were a bit handicapped during the quarter with many companies not providing guidance. The question might now be: Will there be a big push higher of consensus estimates after U.S. corporations showed some pandemic resiliency?
Today is our first day with Securities America and while there were some glitches we have been able to work through these and are making progress.

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