SP 500, Dow Close at AllTime Highs on Vaccine Hopes

NEW YORK, Nov 16 Reuters The SP 500 and Dow Jones industrial average notched record closing highs on Monday as news of another promising coronavirus vaccine fanned hopes of eradicating COVID19, while spiking infections and new shutdowns threatened to hobble a recovery from the pandemic recession.

All three major U.S. stock indexes advanced and with its new closing record, the bluechip Dow is the last of the three to reclaim levels reached in February, before lockdowns sent the markets into freefall.

The Russell 2000 also hit an alltime closing high.

Value, cyclical and small cap shares outperformed the broader market.

Moderna Inc said its experimental COVID19 vaccine was 94.5 effective in preventing infection based on interim latestate data. It was the second drugmaker in as many weeks, after Pfizer Inc, to announce promising trial data in the development of a vaccine to defeat the pandemic.

Combined, pending further data and regulatory review, the United States could have as many as 60 million emergency doses available this year.

More vaccine news is driving cyclicals, small caps and value, which would be primed if the economy reopens sooner than expected, returning us to some sense of normalcy, said Robert Pavlik, senior portfolio manager at Dakota Wealth in Fairfield, Connecticut.

Travelrelated stocks, which have been clobbered by restrictions to contain the pandemics spread, were in demand.

Shares of United Airlines Holdings Inc, American Airlines Group…

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