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After opening relatively flat on Wednesday afternoon, the leading US stock market indices end as follows:
- The industrial key index Dow Jones, with a few dozen selected stocks, ended down 1.16 percent.
- The broad S&P 500 index was down 1.16 percent.
- The technology-heavy Nasdaq index was down 0.82 percent.
There was still optimism about a light in the corona tunnel, where the pharmaceutical giant Pfizer and partner Biontech came up with even more uplifting figures on Wednesday which showed that their vaccine is 95 percent effective – up from the original 90 percent – and thus as effective as competitor Moderan’s vaccine. Pfizer ended up 0.75 percent, Biontech ended up four percent, while Moderna ended up 4.6 percent.
“Removed some of the long-term uncertainty”
“The vaccine news has changed the conversation to” if “we return to normal, to” when “, says investment strategist Bill Callahan, according to CNBC.
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Investors weighed the positive vaccine development against the worsening infection situation, which has led to new restrictions.
– The most important thing is that the vaccine novelty removed some of the long-term uncertainty that has kept investors cautious.
At the same time, infection rates in the US and Europe are dismal, and Governor Jerome Powell stated yesterday that even if effective vaccines are rolled out next year, the country’s economy will be marked by the pandemic for a long time.
On Wednesday night, it was announced that schools in New York will close, and “stay at home shares” such as Zoom Video ended up 3.3 percent.
Tesla stepped forward
Earlier this week, it was announced that the electric car and battery manufacturer Tesla will enter the important S&P 500 index.
Tesla has had an extreme upswing on the stock market this year, and in September, Tesla CEO Elon Musk delivered its fifth consecutive quarter with a profit. Now that Tesla is becoming part of the S&P 500, many of the world’s funds will have to include Tesla shares in their portfolios, and more will have both the opportunity and the desire to do so. It already contributes to buying pressure in the stock.
On Wednesday, it also became known that the brokerage house Morgan Stanley’s car analyst Adam Jonas has upgraded the Tesla share from the neutral “equal-weigh” recommendation, and now recommends investors to keep “overweight” in Tesla shares. At the same time, he raises the price target from $ 360 to $ 540. The new price target represents an increase of 22 percent from Tuesday’s trading close.
Tesla ended the day up 10.2 percent.
Another stock that came into focus among market participants on Wednesday was the aircraft manufacturer Boeing, which rose after the company finally received approval from the US aviation authorities to fly its 737 Max aircraft again, now almost two years after the aircraft were put on the ground after two plane crashes. The Boeing share, on the other hand, fell 3.2 per cent at the close of trading.(Terms)Copyright Dagens Næringsliv AS and / or our suppliers. We would like you to share our cases using a link, which leads directly to our pages. Copying or other form of use of all or part of the content, can only take place with written permission or as permitted by law. For additional terms look here.
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