Wall Street was buoyed by a dip in US bond yields, the US House of Representatives passing President Biden‘s $1.9 trillion coronavirus (COVID-19) relief package and positive news on Johnson & Johnson’s one-shot vaccine
4:06pm: Wide-sweeping rally carries S&P 500 to its best day since June
It was a banner day on Wall Street, as the Dow added 694 points, a 2.2% jump, to close Monday at 31,637. The Nasdaq flew 375 points, 2.8%, higher to 13,567, and the S&P 500 gained 98 points, 2.6%, to 3,909.
The small cap-centric Russell 2000 improved 72 points, 3.3%, to 2,274.
Overall, it was the best single day since June for the S&P 500, with only 40 components losing ground Monday, according to CNBC.
12:15pm: gains after its vaccines gets CDC signoff
The Dow roared nearly 668 points higher, 2.2%, to 31,600 at midday. The Nasdaq jumped 334 points, 2.6%, to 13,530, and the S&P 500 improved 90 points, 2.3%, to 3,901.
“Stocks are recouping some of the losses that were seen last week as optimism in relation to the Biden administration introducing the stimulus plan has lifted sentiment,” CMC Markets UK analyst David Madden wrote Monday.” Equities are also being assisted by the dip in bond yields. The ISM manufacturing reading for February was 60.8, up from 58.7 in January. It was the fastest rate of expansion since August 2018.”
The House passed a $1.9 trillion coronavirus relief package over the weekend.
(), the producer of the latest vaccine to get the green light from the Centers of DIsease Control and Prevention (CDC), saw its shares gain 1.1% to $160.25. The JNJ vaccine requires just one dose, and the company plans to initially ship four million doses, according to CNBC.
10.40am: Proactive North America headlines:
Corp () () (FRA:18P) completes its Cobalt Camp transaction with Kuya Silver
Inc secures licensing deal to develop post-cancer treatment nausea therapy STAR-OLZ in China
Aequus Pharmaceuticals Inc () () announces the commercial availability of Evolve preservative-free lubricating eye drops for dry eye care
Limited () (NYSEAMERICAN:FURY) (FRA:AUN1) says initial drill results show potential to expand the Eau Claire deposit
Orogen Royalties Inc () (OTCMKTS:EMRRF) (FRA:5EV) inks deal to option the Lemon Lake project in British Columbia to Acme Gold
Empress Royalty Corp () () closes in on deal to acquire silver stream on Tahuehueto project in Mexico
ImagineAR Inc () (OTCQB:IPNFF) partner GSI inks C$380,000 white-label app creation deal with rugby company World Tens Series
Algernon Pharmaceuticals Inc () () (FRA:AGW) contracts Hammersmith Medicines Research for Phase 1 DMT stroke study; adds to leadership
LiteLink Technologies Inc (CSE:LLT) (OTCMKTS:LLNKD) (FRA:C0B0) changes company name to TechX Technologies
() () () latest drill assays extend high grade gold zone at Aureus East project, Nova Scotia
Loop Insights Inc (TSXV: MTRX) () agrees to license AI technology to PPE producer Maitri Health Technologies in C$2M deal
Benchmark Metals Inc () () identifies over 20 new areas to follow-up at Lawyers after compiling geochemical results
() (OTCQB:MVMDF) (FRA:20MP) i poised for animal trials on its Ivectosol 1% solution
() () (FRA:20Q) making good progress with exploration at its flagship Lost Cities-Cutucu project in Ecuador
Esports Entertainment Group Inc () completes $30M acquisition of Malta-licensed Lucky Dino Gaming’s business assets
()says M400 and M4000 Smart Glasses now Microsoft Teams compatible
TruTrace Technologies Inc () () to bring blockchain-supported standardized protocols to the medical cannabis sector
10.25am: Out of the traps strongly
US markets had a spring in their step on the first day of the new month, rallying strongly after last week’s woes.
Wall Street was buoyed by a dip in US bond yields, the US House of Representatives passing President Biden‘s $1.9 trillion coronavirus (COVID-19) relief package and positive news on ‘s one-shot vaccine, sending all three main indices soaring higher in early trading.
The Dow Jones Industrial Average jumped 611.78 points or 1.98% to 31,544.15, the broader S&P 500 climbed 1.81% or 68.97 points to 3879.66 while the tech-heavy Nasdaq Composite was up 232.39 points or 1.76% to 13,424.73.
Helping out was a positive US manufacturing report. The IHS Markit PMI came in at 58.6 in February, down from a strong 59.2 in January but in line with an initial reading of 58.5.
IHS said: “Although the rate of overall growth eased, it was the second-fastest since April 2010 and was supported by sharp increases in output and new orders. Unprecedented supply chain disruption remained apparent, however, with supplier shortages and transportation delays leading to a substantial rise in input costs. Firms were, however, able to partially pass on input prices to clients through the fastest increase in charges since July 2008.”
However, signs of rising prices might start causing concern, given last week’s market falls were based on stronger bond yields amid worries about higher inflation possibly leading to central banks increasing interest rates.
7.00am: March to begin with good rally
US markets are expected to start March in positive fashion on Monday recovering from last week’s slump as government bonds climbed higher and investors awaited data on the manufacturing sector plus a batch of Federal Reserve speakers amid revived optimism over a swift economic recovery from the coronavirus (COVID-19) pandemic.
Futures for the Dow Jones Industrials Average were up more than 1% boosted by vaccine hopes and progress for a new $1.9 trillion coronavirus relief package. S&P 500 futures were 1.2% higher, while Nasdaq-100 futures added 1.5% after a bruising period last week for technology stocks.
The advances came as the yield on 10-year Treasury notes, the benchmark borrowing cost in global debt markets, slipped to 1.416% from 1.459%. Stocks were impacted last week by volatile moves in bond markets which reflected uncertainty over the prospect of a long period of low-interest rates as the country weathers the pandemic.
Investors will look to a speech from Fed governor Lael Brainard on Monday for clues as to whether the central bank will push back against higher bond yields. Ms. Brainard is due to address a conference of the Institute of International Bankers on financial stability. The New York Fed’s John Williams, Cleveland Fed’s Loretta Mester and Minneapolis Fed’s Neel Kashkari are also scheduled to make public appearances Monday.
On the data front, February’s ISM manufacturing index is due out at 10.00am and is expected to show another month of robust growth in activity at US factories.
China’s manufacturing activity eased in February, posting the slowest rate of expansion in nine months, according to a private survey of manufacturers. But it was still the 10th consecutive month in which the Caixin index held above the 50 mark, which separates expansion from contraction.
The corporate earnings season is winding down, with only Zoom Video Communications and Novavax scheduled to report quarterly results on Monday but after the markets close.
Oil markets resumed their rally ahead of Thursday’s meeting of the OPEC cartel, with Brent-crude futures up 1.7% to $65.52 a barrel, extending their advance this year to 27%. Analysts expect the cartel, which has held back millions of barrels of crude oil a day since last spring to bolster prices, to agree to boost production in April.
Five things to watch on Monday:
- began shipping its single-dose shot vaccine after it became the third authorized COVID-19 vaccine in the United States over the weekend.
- Tech giants Apple, Microsoft, Facebook and Amazon.com all rebound strongly after last week’s sell-offs.
- Shares of hotel operators, airlines, and cruise firms rose on pandemic recovery hopes, including Hilton, , American Airlines, Carnival Corp, and Royal Caribbean Cruises.
- Texas’s largest and oldest electric power firm, Brazos Electric Power Cooperative has filed for bankruptcy protection in federal court in Houston, citing a disputed $1.8 billion bill from the state’s grid operator.
- Huawei chief financial officer Meng Wanzhou will return to a Canadian court Monday for the final phase of the arguments in her US extradition case, which would focus on whether her arrest was politically motivated and if abuses of process occurred during her detainment.