U.S. Stocks Extend Rally On Vaccine News, Goldman Sachs Earnings
(RTTNews) - Following the rally seen over the course of the previous session, stocks have shown another strong move to the upside in morning trading on Wednesday. With the continued advance, the S&P 500 has reached its best intraday level in well over four months.
Currently, the major averages are just off their best levels of the day. The Dow is up 364.04 points or 1.4 percent at 27,006.63, the Nasdaq is up 105.24 points or 1 percent at 10,593.82 and the S&P 500 is up 38.46 points or 1.2 percent at 3,235.98.
Upbeat news on the coronavirus vaccine front has contributed to the continued strength on Wall Street, helping traders shrug off news of a record single-day spike in new Covid-19 cases in the U.S.
Biotech firm Moderna (MRNA) said its experimental vaccine for Covid-19 was safe and produced strong immune responses in all 45 patients in an ongoing early-stage human trial.
An interim analysis of the open-label Phase 1 study of the vaccine candidate was published in the New England Journal of Medicine.
The latest news follows other recent positive developments on the coronavirus treatment and vaccine fronts, which have generated optimism the economic threat posed by the pandemic could be addressed in the relatively near future.
Upbeat earnings news from Goldman Sachs (GS) has added to the positive sentiment, with the financial giant reporting much stronger than expected second quarter results.
Goldman Sachs reported earnings of $6.26 per share on revenues of $13.3 billion compared to analyst estimates for earnings of $3.78 per share on revenues of $9.8 billion. The company benefited from strong results in its trading and investment banking divisions.
Traders are also reacting positively to a report from the Federal Reserve showing U.S. industrial production spiked by even more than anticipated in the month of June.
The report said industrial production soared by 5.4 percent in June after jumping by 1.4 percent in May. Economists had expected production to surge up by 4.3 percent.
Despite the substantial increase, the Fed noted industrial production remained 10.9 percent below its pre-pandemic February level.
Airline stocks have shown a particularly strong upward move on the vaccine news, with the NYSE Arca Airline Index soaring by 6.3 percent.
Substantial strength is also visible among networking stocks, as reflected by the 2.6 percent spike by the NYSE Arca Networking Index.
Brokerage stocks are also seeing considerable strength on the upbeat earnings news from Goldman Sachs, driving the NYSE Arca Broker/Dealer Index up by 2.3 percent.
Tobacco, oil service, and chemical stocks have also shown notable moves to the upside, moving higher along with most of the other major sectors.
In overseas trading, stock markets across the Asia-Pacific region moved mostly higher on Wednesday, although China's Shanghai Composite Index bucked the uptrend and tumbled by 1.6 percent. Japan's Nikkei 225 Index and Australia's S&P/ASX 200 Index jumped by 1.6 percent and 1.9 percent, respectively.
The major European markets have also shown strong moves to the upside on the day. While the French CAC 40 Index has soared by 2.6 percent, the U.K.'s FTSE 100 Index and the German DAX Index are both up by 2 percent.
In the bond market, treasuries have climbed off their initial lows but continue to see modest weakness. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, is up by 2.2 basis points at 0.637 percent.