The five biggest gainers on the Dow Jones Industrial Average Tuesday were largely cyclical stocks with some degree of upside levered to economic reopenings. This came on a risk-on day in markets.
The S&P 500 rose more than 1% by 2:20 PM EDT Tuesday in a broad sector rally. By noon, gaining stocks on the New York Stock Exchange were beating decliners by a 4-1 ratio. Treasury yields climbed, as did the price of oil.
While it is anybody’s guess when fiscal stimulus will come into the fray, Moderna (MRNA) - Get Moderna, Inc. Report and AstraZeneca (AZN) - Get Astrazeneca PLC Sponsored ADR Report are closer to getting coronavirus vaccines, with Moderna saying it could be granted emergency use authorization by December. This would be an enormous non-financial stimulant to the economy. Modern shares rose more than 2% by 2:30 PM.
The Dow, still somewhat of a proxy for economic activity in the U.S., at least among large cap stocks, rose more than 1%.
By 2:20, here were the biggest gainers on the index:
Travelers beat earnings estimates and reported an increase in premiums.
Goldman Sachs, sensitive to the yield curve and economic activity, rose substantially, but did underperform non-investment banks. Small banks, more tethered to the yield curve and economy outperformed investment banks.
Apple rose as several analysts said supplier checks in Asia point to strong iPhone 12 production and demand, as most other big tech stocks rose less than Apple.
Honeywell, partly correlated to aerospace trends, also has businesses sensitive to changes in the economy. Large-cap industrials were trading up over 1%.
American Express is highly correlated to consumer spending.
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