• Joe Biden wins presidency
• Pfizer/BioNTech (PFE.US/BNTX.US) announced its Covid-19 vaccine is 90% effective
• US total coronavirus cases surpass 10 million
US indices continue to rally following declarations of a Presidential victory for Joe Biden, however the incumbent President Donald Trump vows to challenge those results, while repeating his unsubstantiated claims of voter fraud. Republicans are likely to keep the control of the Senate, making the passage of a big stimulus package more difficult. On the other side, the current division of political forces will also make it difficult for the new administration to raise taxes and expand corporate regulations. Also market sentiment was lifted after results from Pfizer/BioNTech showed its COVID-19 vaccine is 90% effective in preventing infection among people without evidence of prior disease. Meanwhile total number of COVID-19 infections in the US surpassed 10 million, with new cases rising by 100,000 per day, as the third wave of the pandemic accelerates in major economies around the world.
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US30 hit new all-time high during today’s session, however index pulled back slightly after the US open and is currently testing major support at 29 557 pts. Should sellers manage to break below it, then downward move into 29 177 pts is possible. The nearest resistance is located at the level of 30 000 pts. Source: xStation5
Pfizer (PFE.US) stock launched today’s session with a massive bullish price gap, however buyers failed to uphold the momentum and price bounced off the $42.00 resistance level. Currently stock is testing major support at $39.50. Should a break below occur, then next resistance at $34.81 may be at risk. Source: xStation5
Several travel stocks including Royal Caribbean (RCL.US), Carnival, Norwegian (CCL.US), American Airlines (AAL.US), Delta Air Lines (DAL.US), Southwest Airlines (LUV.US) jumped even 20% after the news regarding Pfizer/BioNTech vaccine candidate. On the other hand, stocks that performed best during the pandemic, primarily from the technology and biotechnology sector are trading under pressure today.
Canopy Growth (CGC.US) posted a smaller-than-expected quarterly loss, while revenue beat market expectations. The cannabis producer lowered its costs and recorded higher number of customers which purchased its products during the pandemic.
Berkshire Hathaway's (BRKB.US) operating profit in the third quarter dropped compared to a previous year, as the insurance underwriting operation lost money, but the company reported an overall profit thanks to the rising value of its equity investments.
