Stocks Rise Modestly Amid FDA Approval and Expectations

Strategic Insights -

Stocks rose modestly on Tuesday after the Food and Drug Administration gave full approval for Pfizer (PFE) and BioNTech's (BNTX) COVID-19 vaccine, with investors awaiting the Jackson Hole symposium later in the week for hints on future Federal Reserve policy. A rebound in Chinese technology stocks also boosted sentiment. The Dow Jones Industrial Average rose 54 points, or 0.15%, to 35,390, the S&P 500 gained 0.12%, and the Nasdaq edged higher by 0.26%.

Key Takeaways:

  • The FDA's full approval of the Pfizer-BioNTech COVID-19 vaccine led to a modest stock market rally, with investors expecting more formal vaccine mandates from companies and organizations.
  • The market has been "hungry for good news," according to Jim Cramer, with even obvious news sending stocks higher.
  • Cramer's Mad Money Recap highlighted Pfizer, Chipotle, and Southwest as notable stock performers.
  • The boost from the FDA's full approval spilled over into the commodities markets, with oil prices rising solidly for a second day.
  • The Federal Reserve's Jackson Hole symposium will take place virtually beginning Thursday, with no expectations for significant policy changes.
  • Shares of Best Buy (BBY) rose after the electronics retailer posted stronger-than-expected second-quarter earnings and boosted its full-year sales forecast.
  • Major U.S. retailers, including Best Buy, continue to show impressive same-store traffic growth.

Statistics:

  • The Dow Jones Industrial Average rose 54 points, or 0.15%, to 35,390.
  • The S&P 500 gained 0.12%.
  • The Nasdaq edged higher by 0.26%.
  • The yield on the benchmark 10-year Treasury rose to 1.275%.
  • Pfizer (PFE) and Best Buy (BBY) shares rose significantly on the day.

Sources:

  • "Jim Cramer: Why Hasn't the Government Pushed for Mass Vaccination?" (https://realmoney.thestreet.com/jim-cramer/jim-cramer-why-hasn-t-the-government-pushed-for-mass-vaccination--15748811)
  • "Stocks finished higher Monday" (https://www.thestreet.com/markets/stock-market-today-dow-jones-federal-reserve-bitcoin-082321)
  • "Equities rose with investors believing the FDA approval could lead to more formal vaccine mandates" (https://www.thestreet.com/investing/pfizer-gets-full-fda-approval-for-comirnaty-coronavirus-vaccine)
  • "Cramer's Mad Money Recap: Pfizer, Chipotle, Southwest" (https://www.thestreet.com/jim-cramer/cramers-mad-money-recap-aug-23-2021)
  • "Jefferies managing director David Zervos told Yahoo Finance" (no direct source, but mentioned in the article)