Log in
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Dynamic quotes 

MarketScreener Homepage  >  Indexes  >  USA  >  DJ Industrial    DJI


SummaryMost relevantAll NewsNews of the index componentsMarketScreener Strategies

Wall Street Week Ahead: COVID-19 vaccine adoption rates are 'wildcard' for U.S. stock rally

11/27/2020 | 08:31pm EST
FILE PHOTO: The U.S. flag is seen on a building on Wall St. in the financial district in New York

NEW YORK (Reuters) - News this month of three promising coronavirus vaccines has helped push the Dow Jones Industrial Average over 30,000, but some investors worry that slow vaccination rates may weaken next year's expected economic recovery.

Overall, 58% of Americans said in a Gallup poll https://news.gallup.com/poll/325208/americans-willing-covid-vaccine.aspx that ended Nov. 1 that they would get vaccinated, up from 50% who were willing in a September poll. Forty-two percent said they would be unwilling to get a vaccine, citing reasons such as the rushed development timeline and concerns about safety.

Delays in vaccine distribution or widespread refusal to be vaccinated would allow the virus to continue to circulate longer and delay the development of herd immunity, which occurs when enough people in a population have some form of protection that prevents the easy spread of a disease.

"To be certain that the world will be back to normal by mid-next year because a vaccine is available is an aggressive assumption," said David Albrycht, chief investment officer at Newfleet Asset Management.

"There's a light at the end of the tunnel but we're not sure how long that the tunnel is going to be," he said, citing uncertainties including whether a vaccine will be free or covered by insurance plans, its rollout and its public acceptance rate.

Citi Research wrote in a note on Monday that herd immunity would not form until late 2021, boosting global Gross Domestic Product growth by only 0.7% next year compared with an estimated 3% gain in 2022 as vaccination rates rise.

"The answer is not the vaccine; it's vaccinations. The vaccine needs to be widely adopted and accepted for it to work," said Ernesto Ramos, head of equities at BMO Global Asset Management.

The U.S. Food and Drug Administration will likely grant approval in mid-December for distribution of the vaccine developed by Pfizer Inc and German partner BioNTech and some healthcare workers could start getting shots a day or two later, Dr. Moncef Slaoui, chief scientific adviser for the U.S. government's Operation Warp Speed, said on Sunday.

Some 70% of the U.S. population of 330 million would need to be inoculated to achieve herd immunity, which is possible by May, he said.

Ramos said those estimates may be overly optimistic and the economic benefits of vaccinations will not be apparent until the second half of next year, increasing chances that the recent U.S. economic slowdown could worsen.

Investors will get the latest U.S. economic snapshot with data next week, including the monthly employment report. Economists polled by Reuters expect the Dec. 4 jobs report to show unemployment dipped to 6.8% from 6.9%, still well above the 4.5% rate in March, before much of the U.S. economy went into lockdown.

Targeted vaccinations could revive the economy even with delays in widespread adoption, said Jonathan Golub, chief U.S. equity strategist at Credit Suisse Securities.

"The successful vaccination of seniors and front-line workers could expedite the renormalization process well before herd immunity is achieved," he said. The S&P 500 may reach 4,050 by the end of 2021, up about 13% from its current level, he estimated.

While vaccine adoption rates are a "wildcard," their availability removes the risk of another widespread economic lockdown, said John Buckingham, portfolio manager at Kovitz Investment Group.

He remains bullish on companies that will benefit from an economic recovery, including JPMorgan Chase & Co, Foot Locker Inc and Whirlpool Corp, even if the U.S. economy remains bumpy over the next few months and coronavirus cases keep rising.

The United States recorded its 12 millionth COVID-19 case on Nov. 21, and health experts have warned that Americans traveling for the Thanksgiving holiday will likely push case counts steeply higher.

"If the situation were reversed and you had good data on cases and hospitalizations for COVID but vaccines were flops, the stock market would be cratering," Buckingham said.

(Reporting by David Randall; editing by Lewis Krauskopf and Richard Chang)

By David Randall

© Reuters 2020
Stocks mentioned in the article
ChangeLast1st jan.
BIONTECH SE 3.06% 104.7 Delayed Quote.28.93%
CREDIT SUISSE GROUP AG -1.46% 12.17 Delayed Quote.8.33%
DJ INDUSTRIAL 0.38% 30930.52 Delayed Quote.0.68%
FOOT LOCKER, INC. -1.57% 47.1 Delayed Quote.18.32%
JPMORGAN CHASE & CO. -0.43% 138.04 Delayed Quote.9.11%
NASDAQ 100 1.50% 12996.536673 Delayed Quote.-0.65%
NASDAQ COMP. 1.53% 13197.179496 Delayed Quote.0.86%
PFIZER INC. 0.08% 36.73 Delayed Quote.-0.22%
S&P 500 0.81% 3798.91 Delayed Quote.1.14%
WHIRLPOOL 2.14% 198.71 Delayed Quote.10.09%
WHIRLPOOL S.A. 1.00% 8.12 End-of-day quote.1.25%
All news about DJ INDUSTRIAL
05:45pYellen backs more 'big' stimulus; Netflix soars
05:39pYellen Tells Lawmakers That American Workers Would Be Her Core Focus -- 4th U..
04:56pCLOSE UPDATE : Stocks End Higher on Start of Earnings Season, Investor Optimism ..
04:51pBank of America Quarterly Profit Falls 22% -- 3rd Update
04:49pEquities, oil rally in anticipation of more U.S. stimulus spending
04:47pWALL STREET STOCK EXCHANGE : Stocks Rise on Hopes for More Stimulus
04:39pEquities, oil rally in anticipation of more U.S. stimulus spending
04:36pStocks End Higher as Treasury Secretary-Designate Urges Lawmakers to 'Act Big..
04:33pYellen tells lawmakers to 'act big' on coronavirus relief
04:17pWALL STREET STOCK EXCHANGE : Stocks Rise as Earnings Season Ramps Up -- Update
More news
News of the index components DJ INDUSTRIAL
05:08pCLOUD MAILBOX DEFENSE : End Users Share the Product Highlights Driving Their Suc..
04:40pMICROSOFT : Fast, reliable internet connectivity brings new hope to rural villag..
04:12pSALESFORCE COM : Customer Effort Score Cracks the Top 5 Most-Measured Service Me..
04:10pMicrosoft Bets on Driverless-Car Space With Investment in GM's Cruise -- 2nd ..
03:53pBOEING : Europe, Canada move to put Boeing 737 Max back in air
03:50pCISCO : Supporting “anywhere operations” with Cisco HyperFlex Edge a..
03:32pSHOT ON IPHONE 12 : Portraits, cityscapes, the night sky, and
More news
Duration : Period :
DJ Industrial Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends DJ INDUSTRIAL
Short TermMid-TermLong Term
AMERICAN EXPRESS COMPANY 126.75 Delayed Quote.3.77%
THE BOEING COMPANY 210.71 Delayed Quote.3.13%
CHEVRON CORPORATION 94.51 Delayed Quote.2.63%
3M COMPANY 169.12 Delayed Quote.2.16%
MICROSOFT CORPORATION 216.44 Delayed Quote.1.78%
THE HOME DEPOT, INC. 273.19 Delayed Quote.-0.87%
THE PROCTER & GAMBLE COMPANY 133.6 Delayed Quote.-0.88%
NIKE, INC. 139.27 Delayed Quote.-1.03%
WALGREENS BOOTS ALLIANCE, INC. 48.15 Delayed Quote.-1.57%
THE GOLDMAN SACHS GROUP, INC. 294.2 Delayed Quote.-2.26%
Heatmap :