U.S. Stocks Finish Mixed Amid Promising COVID-19 Vaccine News and Strong Private Payrolls

Strategic Insights -

Despite a potentially game-changing COVID-19 vaccine candidate and robust private payroll data, U.S. stocks closed mixed on Wednesday in choppy trading. The Dow Jones Industrial Average dipped 77.91 points to 25,734.97, while the S&P 500 rose 15.57 points to 3,115.86 and the Nasdaq Composite Index climbed 95.86 points to 10,154.63. Markets were volatile, with Wednesday's volume on the New York Stock Exchange totaling 3.77 billion shares. Positive vaccine news from Pfizer and BioNTech, combined with strong private payrolls and a rebound in manufacturing, was tempered by ongoing concerns about the COVID-19 pandemic and its impact on the economy.

Key Takeaways:

  • The Dow Jones Industrial Average fell 77.91 points to 25,734.97 on Wednesday, while the S&P 500 rose 15.57 points to 3,115.86 and the Nasdaq Composite Index climbed 95.86 points to 10,154.63.
  • Positive vaccine news from Pfizer and BioNTech's COVID-19 vaccine candidate, which showed some encouraging initial results, lifted stocks but was offset by concerns about the ongoing pandemic.
  • Private payrolls jumped by 2.369 million in June, said ADP and Moody's Analytics, with May payroll data revised upward to 3.065 million.
  • The Institute for Supply Management said its manufacturing index rose to 52.6% in June from 43.1% in May, indicating a rebound in industries that once experienced significant job losses.
  • Worries persist about the ongoing COVID-19 pandemic, with at least 12 states postponing or scaling back their planned reopenings due to rising infections.
  • Markets are expecting a gradual recovery, but with inconsistent progress, with Keith Lerner, chief market strategist at SunTrust Advisory Services, stating that the recovery will be an "uneven process, albeit with a positive trajectory."

Statistics:

  • 3.77 billion shares traded on the New York Stock Exchange on Wednesday
  • 1,554 issues advanced, while 49 set new highs and 1,433 declined
  • 2.369 million new private payrolls in June, according to ADP and Moody's Analytics
  • 3.065 million revised private payrolls for May, from an initial estimate of 2.244 million
  • 52.6% manufacturing index in June, up from 43.1% in May, according to the Institute for Supply Management
  • $39.69 per barrel for crude oil futures, a 1.07% gain
  • $41.91 per barrel for Brent crude, a 0.29% decline
  • $1.1254 for the euro, a 0.16% rise
  • $1.2477 for the pound sterling, a 0.6% gain
  • 0.682% yield on the 10-year Treasury, a 4.44% rise
  • 1.433% yield on the 30-year Treasury, a 1.7% gain

Sources:

  • Yahoo Finance
  • CNBC
  • Ascent Private Capital Management
  • SunTrust Advisory Services
  • UBS Private Wealth Management in Philadelphia
  • Institute for Supply Management
  • ADP and Moody's Analytics
  • Federal Reserve
  • Commerce Department