Friday's Market Recap - New Highs On Pfizer's New Pill And Ending Of Restrictions On European Travel

What is The Premarket Telling Us?

Friday November 5, 2021 8:45 AM.

US stock futures were solidly higher an hour or so before the start of trading. Dow futures were up 133 points, Nasdaq futures up 43 points, and S&P futures up 19 points. Markets are buoyed by news from Pfizer that its Covid-19 pill, cuts rates of severe infections and hospitalizations and deaths by over 90%. Two weeks ago Merck had announced that its Covid-19 pill cuts rates of severe hospitalizations, and death by more than 50%. Shares of Pfizer soared in the premarket, while shares of Merck sank.

On The Bond Desk:

The US 10 Year Bond Yield at 1.535%, up 0.011%.

Currency Desk:

Eurodollar: 1.15

UK Pound: 1.35

Crude Oil:

WTI crude oil futures at $79.74/barrel, up 1.18%.

On the Earnings Calendar:

None to report

In M&A News:

None to report

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What About The Asian And European Markets?

Major Asian markets ended lower on Friday. Japan (Nikkei 225) down 0.61%, Shanghai down 1.0%, Hong Kong (Hang Seng) down 1.45%.

Major European markets ended their session higher. German (DAX) up 0.15 %, France CAC 40 up up 0.76%, London FTSE 100 up 0.33%.

Market And Sector Dynamics

Markets started the day higher. The Dow soared 252 points, Nasdaq up 98 points, and the S&P was up 32 points. WTI crude oil opened at $80.01/barrel, up 1.52%, and the US 10 Year Bond ticked down 0.17 basis points to 1.507%.

Stocks soared even higher half an hour after the open, with the Dow up 313 points, only to lose most of those gain shortly before 2:00 PM when the index was up a mere 67 points. Stocks then turned higher again, and held on to most of the gains into the close.

Markets were driven today by optimism after Pfizer's released data showing that it Covid-19 pill has been 90% effective in preventing hospitalizations and death. Drug company Merck had also release data a few days ago showing that its Covid-19 pill was 50% effective in preventing similar hospitalizations and death. With the arsenal of vaccines, monoclonal antibody treatment, and these new pills coming on board, we could speculate that this could be the end of the Pandemic phase in America.

Another factor adding to optimism in the markets is that as of Monday restrictions on travel from European countries will be lifted, allowing fully vaccinated travelers from those countries to travel to the US. Stock rallied strong across the board, with shares of Boeing, Airlines, Cruise companies, and travel companies leading the charge.

Today's rally was broad-based and very positive, with ten of the eleven S&P sectors closing in positive territory, led by Energy, Industrials, Utilities, Basic Materials, Communication Services, Consumer Discretionary, Consumer Staples, Technology, Real Estate, and Financials. Healthcare was the only sector to end lower.

Factors Influencing Today's Market

• Pfizer Covid-19 pill is reportedly 90% effective against hospitalization and death. Added to the arsenal of vaccines and treatments could mean the end of the Covid-19 as a Pandemic. Could speed up reopening and a return to normal. Markets cheered that new with a strong rally.

• Travel restriction from European countries will be lifted effective on Monday, allowing vaccinated individuals from Europe to travel to the US.

• US 10 Year Bond Yield closed at 1.455%, down 4.90%.

• WTI crude oil closed the day at $81.27/barrel, up 3.12%.

• This week's Baker Hughes US Oil Rig count rose 6 to 450 total.

Market Close Volume Traded And Advance Decline Ratio

Markets staged a broad-based rally in today's trading, that saw all the major indexes soaring to new record highs. The Dow gained 203.72 points, Nasdaq gained 31.28 points, S&P gained 17.57 points, and the Russell 2000, the small cap index, rose 34.65 points. Total NYSE volume traded, a light 4.51 billion shares. Advancing shares outpaced Declining shares by 2:1.

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Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.