Last Week Recap:
Last week we reached all time highs on the Dow (4.08%), S&P 500 (2.16%), and Russell 2000 (6.08%) after Pfizer reported that it's vaccine results are showing to be 90% effective. This caused a large rally in the more economically sensitive stocks that would benefit the most from a economic return to normal (ex. Carnival, United Airlines) and rotation out of some of the high flying stay at home stocks (ex. Peleton, Zoom). This led to a weekly decline of 0.55% for the NASDAQ. Technology was the only S&P sector to finish in the red. Keep in mind that this all happened despite the highest numbers of new Covid cases we've seen so far. Over the weekend China, Japan, Australia, South Korea, New Zealand and the 10 ASEAN member countries signed the Regional Comprehensive Economic Partnership. Also, SpaceX in partnership with NASA successfully launched four Astronauts to the ISS, Sunday night.
The Week Ahead:
Futures are higher to start the week (Dow 1%, S&P 500 0.9%, NASDAQ 0.6%). We should see a report from Moderna on their vaccine results this weeks with the market expecting it to be similar to Pfizers as it's based on a similar approach. This week we will see retail sales figures as well as earnings from several retail companies. As many states begin placing tighter restrictions on residents in an attempt to prevent a further surge in infections, we will have to see how it impacts the holiday shopping season.
Sources: Seeking Alpha, TD Ameritrade, J.P. Morgan, Stocktwits.