Stocks resumed their recent rally following continued coronavirus vaccine hopes and solid economic data while overlooking an intense presidential debate — and more in Wednesday’s stock market update.
Regeneron Pharmaceuticals Inc. (Nasdaq: REGN) reported initial data on its COVID-19 therapeutic antibody REGN-COV2 in non-hospitalize patients, which argued for the efficacy of the current vaccination strategies. The flurry of upbeat economic news released ahead of the opening bell and after provided bullish sentiment that the recovery has solid momentum.
The Dow jumped 1.2% with the afternoon high tapping 28,026.
The S&P 500 soared 0.8% after reaching an intraday peak of 3,393.
The Nasdaq advanced 0.7% with the second-half high reaching 11,277.
The Russell 2000 added 0.2% following the morning run to 1,528.
Healthcare showed the most sector strength after rallying 1.6% while Financials and Consumer Staples were up 1.4% and 1.2%. Energy and Industrials were the only sector laggards after falling 0.3%.
Asana, Inc. (NYSE: ASAN) opened trading at $27 from a direct listing reference of $21. It closed at $28.80 in its initial public offering debut. Asana’s main product, which has attracted 1.2 million paying users, helps workers communicate and coordinate. The company was started in 2008 by Facebook Inc. (Nasdaq: FB) cofounder Dustin Moskovitz.
Palantir Technologies Inc. (NYSE: PLTR) opened trading at $10, from a direct listing price of $7.25, while closing at $9.50. The company started out helping defense and intelligence agencies analyze data about potential threats while expanding to offer data analytics to commercial and nondefense customers.
There are a number of key earnings before Thursday’s opening bell with Bed Bath & Beyond Inc. (Nasdaq: BBBY), Conagra Brands Inc. (NYSE: CAG), Constellation Brands Inc. (NYSE: STZ), and PepsiCo, Inc. (Nasdaq: PEP) announcing numbers.
PepsiCo is expected to earn $1.49 a share on revenue of $17.23 billion. The company has beaten estimates by seven cents, four cents, a penny and six cents over the past four quarters.
European markets closed mostly lower as traders reacted to the U.S. presidential debate.
France’s CAC 40 dropped 0.6% while Germany’s DAX 30 and UK’s FTSE 100 fell 0.5%. The Stoxx 600 slipped 0.1%. The Belgium20 was up a half-point, or 0.02%.
Asian markets were mixed for the second-straight session despite better-than-expected economic news out of China.
South Korea’s Kospi rallied 0.9% and Hong Kong’s Hang Seng gained 0.8%. Australia’s S&P/ASX 200 tumbled 2.3% and Japan’s Nikkei sank 1.5%. China’s Shanghai slipped 0.2%.
China’s Purchasing Manager’s Index came in at 51.5 for September, versus forecasts of 51.2, and the 51 reading in August.
The iShares 20+ Year Treasury Bond ETF (Nasdaq: TLT) was down for the second time in three sessions after tumbling to an intraday low to $162.55. Prior and upper support at $163-$162.50 was tripped but held. A close below the latter reopens downside risk toward $161-$160.50 with the late August low at $160.64.
Lowered resistance is at $164-$164.50 followed by $165.50-$166 and the 50-day moving average.
The iPath S&P Vix Short-Term Futures (NYSEArca: VIX) closed slightly higher for the second-straight session despite tagging a morning low of 25.06. Current and upper support at 25.50-25 and the 50-day moving average was breached but held for the second time in three sessions. A close below the 25 level would be a slightly bullish signal for the stock market.
Resistance remains at 27-27.50 followed by 29-29.50 and the 200-day moving average.
The SPDR Small-Cap 600 ETF (NYSE: SLY) was up for the fourth time in five sessions after testing a morning high of $61.77. Lower resistance at $61.50-$62 was cleared but held. A close above $62.75 and the 50-day moving average would be a more bullish signal for a retest towards $63.50-$64.
Current support is at $60.50-$60. A close below the latter would be a renewed bearish development with additional pullback potential towards $58.50-$58 and the late September low at $57.90.
RSI (relative strength indicator) has flatlined with upper support at 45-40 holding. A move below the latter would signal additional weakness towards 35-30 and levels from earlier in the month. Resistance is at 50.
The Technology Select Sector SPDR (NYSE Arca: XLK) showed strength for the fourth time in five sessions with the intraday peak reaching $117.89. Lower resistance at $117.50-$118 was cleared but held a move above the latter would indicate a retest toward $119.50-$120.
Current support is at $116-$115.50 followed by $114.50-$114 and the 50-day moving average.
RSI is back in a slight uptrend with lower resistance at 55-60 holding. A move above the latter would signal additional strength toward 65-70. Key support is at the 50 level.
Check back for the most important news and numbers each day after the closing bell here in the WealthPress stock market update.