Stock gains held strong by midday Tuesday.
The S&P 500 rose 0.9%, beating the tech-heavy Nasdaq’s gain of 0.8%. The 10-Year Treasury yield rose to 0.78%, although it was at 0.79% in the morning, its highest point since early June, when optimism on the V-shaped economic recovery was the prevailing market force by a wide margin. Yields rise when prices fall.
Moderna’s (MRNA) - Get Report CEO said the company may enjoy emergency use authorization of its coronavirus vaccine by December if trials leading up to that point are successful. The stock rose more than 2%, indicating investors see the development as a genuine step forward in the approval and distribution process. Biotech stocks like Gilead Sciences (GILD) - Get Report and Regeneron (REGN) - Get Report fell roughly 1%.
If fiscal stimulus doesn’t come soon, a vaccine will be even more key to unlocking the continued economic recovery, especially if virus cases keep ticking up, as they have been in the fall.
Shares of Procter and Gamble (PG) - Get Report rose 1.6% after the company beat revenue and earnings estimates, with revenue coming in at $19.32 billion, beating estimates by about $1 billion. Management raised sales guidance close to the mid-single digits in percentage terms and said the current quarter saw consumer opting for the more expensive products.
This is a positive indicator for other consumer stocks. Large cap consumer discretionary stocks rose a bit less than 1%, outpacing the gain on staples, which rose about 0.5%.
Other cyclicals rose, with banks up abut 2%, as the yield curve aggressively expanded, a major positive for bank profitability.