Covid Vaccine On The Fast Track

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Posted: Jul 13, 2020 12:36 PM
Covid Vaccine On The Fast Track

Source: AP Photo/Eugene Hoshiko

Friday’s session saw a rebound in energy that I’m not prepared to chase, but other actions in the session inform today’s early action and perhaps set the tone for the entire week.  Technology took a break, the bigger names remained on the move and are poised to move higher at the open.  Moreover, with Analog Devices (ADI) taking over Maxim (MXIM), semiconductors could fetch a bid on hopes of industry consolidation.

S&P 500 Index

+1.05%

 

Communication Services XLC

+1.73%

 

Consumer Discretionary XLY

+1.19%

 

Consumer Staples XLP

+1.84%

 

Energy XLE

+3.19%

 

Financials XLF

+3.44%

 

Health Care XLV

 

-0.24%

Industrials XLI

+1.30%

 

Materials XLB

+1.74%

 

Real Estate XLRE

+0.11%

 

Technology XLK

 

-0.03%

Utilities XLU

+1.89%

 

 

News from Pfizer (PFE) and Biontech (BNTX) have received FDA’s ‘Fast Track' approval for two Covid-19 vaccines and will begin manufacturing them to have 100 million doses by the end of the year helped the board market, but put strong bids in for those industries facing the most difficult challenges.

Cruise ship operators and airline shares posted strong gains on Friday and look to open with gusto this morning, too.

Carnival Cruises

XLY

$16.16

+1.58

+10.84%

Royal Caribbean Cruises

XLY

$51.77

+4.65

+9.87%

Marathon Petroleum

XLE

$5.35

+2.85

+8.55%

United Airlines

XLI

$32.67

+2.50

+8.29%

Netflix Inc.

XLC

$548

+40.97

+8.07%

Norwegian Cruise Line

XLY

$16.80

+1.20

+7.89%

Portfolio Approach

We added a new position in Consumer Staples on Friday.


Today’s Session

The Dow and S&P 500 continue to move closer toward key breakout points that could propel them to retest pre-coronavirus highs. 

The S&P cleared a big hurdle last week and now needs to close above 3,232 to begin its move to reclaim 3,393.