Jakarta, CNBC Indonesia – The United States (US) stock exchange opened up on trading Tuesday (11/10/2020), following the return of stock hunting activities that are expected to benefit from the discovery of the Covid-19 vaccine.
The Dow Jones Industrial Average rose 356.4 points (+ 1.21%) at 08:30 local time (21:30 WIB) and 35 minutes later was cut to 308.9 points (+ 1.05%) to 29,788.69 . The S&P 500 index grew 24.6 points (+ 0.69%) to 3,609.73 and the Nasdaq rose 57.2 points (+ 0.48%) to 11,886.53.
The positive news for the Covid-19 vaccine is now increasing with Moderna reporting that the effectiveness of its vaccine has reached a level of 94% in the third phase of the trial. This achievement is better than Pfizer whose vaccine has 90% effectiveness. Moderna shares also flew 11%.
Moderna states that the vaccine is still stable at 36-46 degrees Fahrenheit (2-8 degrees Celsius), which is the standard temperature for vaccine storage refrigerators, for up to 30 days. If stored at -20 degrees Celsius, the vaccine can last up to 6 months.
In comparison, the vaccine made by Pfizer should be kept at the level of -70 degrees Celsius. When a vaccine is found, it is hoped that economic activity will reopen so that the company’s performance will rebound, such as United Airlines, whose shares jumped 4% in the early session.
Even so, these positive developments are still overshadowed by the fundamental risks related to the current spread of the virus which continues to increase, considering that a vaccine is not yet available en masse in the near future.
A week ago, the Dow Jones index, which contains 30 leading stocks, shot 4%, becoming the second week to record a rally. The S&P 500 index hit a record high on Friday with a week-long rally of 2.2%. However, the Nasdaq was down 0.6%.
The mutual fund containing cyclical stocks, namely the iShares Russell 1000 Value exchange-traded fund (IWD) rose 5.7% last week, while the mutual fund containing high-growth stocks (majority technology stocks) namely the iShares Russell 1000 Growth ETF (IWF) collapsed 1,2 %.
More than 11 million cases of Covid-19 have been confirmed in the US. Data from the COVID Tracking Project shows that more than 68,500 people have been hospitalized due to the corona virus. The National Cancer Institute (INT) study in Milan Italy shows that the corona virus has spread in Italy since September 2019, as reported Reuters.
However, Dan Russo, Chaikin Analytics Head Market Planner, thinks the market can anticipate the increase. “Investors seem to be more focused on monitoring the news on vaccines and are willing to ignore the increase in cases in the near future,” he was quoted as saying CNBC International.
CNBC INDONESIA RESEARCH TEAM
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