photo = REUTERS
The three major indices on the New York Stock Exchange also closed at all-time highs. New hires last month exceeded expectations, and Pfizer announced optimistic clinical results for an oral treatment for the novel coronavirus infection (COVID-19).
At the New York Stock Exchange (NYSE) on the 5th (local time), the Dow Jones Industrial Average recorded 36,327.95, up 203.72 points (0.56%) from the previous field. The Standard & Poor’s (S&P) 500 index rose 17.47 points (0.37%) to 4,697.53, and the Nasdaq index, which focuses on technology stocks, finished the market at 15,971.59, up 31.28 points (0.20%) from the battlefield. As a result, the three major indices once again reached all-time highs.
On this day, the market paid attention to the October employment report and news related to Pfizer’s edible COVID-19 treatment. U.S. employment rose significantly from the previous month and beat market expectations. The unemployment rate was 4.6%, down 0.2 percentage points from the previous record of 4.8%, and below Wall Street’s estimate of 4.7%.
According to the Ministry of Labor, non-farm payroll employment stood at 531,000 in October, beating the consensus estimate of 450,000. In September, employment was revised upward from 194,000 to 312,000. The employment rate for August was also revised upward from 366,000 to an increase of 483,000.
The news that an oral treatment developed by Pfizer could reduce hospitalization rates and death risks by 89% also boosted the stock market. Pfizer said it plans to apply for approval for use with the U.S. Food and Drug Administration (FDA) as soon as possible.
Pfizer’s stock jumped 11%. On the other hand, competitors Merck & Company and Moderna recorded declines of 10% and 16%, respectively. This is the effect announced by Pfizer’s pills to outperform the Merck-developed molupiravir.
The 10-year U.S. Treasury yield fell to 1.451%, the lowest since September 23. It fell sharply after the release of positive employment data.
Travel-related stocks rose all at once as employment data improved and concerns about the pandemic eased. Expedia surged more than 15%, and shares of United Airlines and American Airlines rose more than 7% and 5%, respectively. Shares of cruise companies Carnival, Royal Caribbean, and Norwegian Cruise Line also rose by 7-8%.
However, the share price of exercise equipment maker Peloton, which announced a larger-than-expected loss after the close, fell more than 35%. Because of this, health-related stocks by industry fell, but all other 10 sectors in the S&P 500 rose.
Hana Kim, reporter at Hankyung.com hana@hankyung.com
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