Day Traders Diary

7/22/20

The markets rose once again boosted by news of a coronavirus vaccine deal between the U.S. government and Pfizer/BioNTech along with apparent progress on U.S. stimulus negotiations.

The Dow Jones Industrial Average gained 165 points, or 0.6% to close at 27,005. The second close above 27,000 since the beginning of March. The S&P 500 rose 0.6% while the Nasdaq Composite advanced just 0.2%

The U.S. agreed to pay Pfizer and German-partner BioNTech $1.95 billion to produce 100 million coronavirus vaccines if it proves to be safe and effective. The Department of Health and Human Services added the U.S. can acquire an additional 500 million doses of the drug under the agreement. Pfizer rose more than 5%. BioNTech's U.S.-listed shares gained 13.7%.

Stocks got a boost in the final hour after sources told CNBC that Republicans are considering extending current unemployment benefits at $400 per month through December. That would be lower than the current unemployment benefits of $600 per week.

Market sentiment was kept in check earlier in the session after the U.S. State Department abruptly ordered China to close its consulate in Houston. Foreign ministry spokesperson Wang Wenbin condemned the action and warned of firm countermeasures if the U.S. does not reverse its decision. The closure comes as relations between the two largest world economies have deteriorated during the coronavirus pandemic.

Separately, Wynn Resorts fell 3% as they will furlough some of their Las Vegas workers amid disappointing demand.

U.S. Treasuries ended the session slightly higher. The 2-yr yield declined one basis point to 0.13%, and the 10-yr yield declined one basis point to 0.60%. The U.S. Dollar Index declined 0.2% to 94.95. Gold futures increased 1.1% to $1864.30/ozt. WTI crude futures increased 0.3% to $41.88/bbl.