Daily Outlook

Dow rises more than 200 points as big market rotation continues

The Dow Jones Industrial Average rose on Tuesday, building on its sharp gains from the previous session as a market rotation out of names that thrived during the pandemic and into stocks linked to an economic recovery continued. The 30-stock average jumped 234 points, or 0.8%. However, the S&P 500 and Nasdaq Composite struggled amid a sharp decline in major tech names. The S&P 500 was little changed and the Nasdaq slid 0.8%.

Amazon shares were down 2.9% after falling 5% on Monday. Zoom Video dropped 5.2%, adding to its 17% decline from Monday. Alphabet and Microsoft lost 0.9% and 3%, respectively. Names that would benefit from an economic recovery rose on Tuesday. Chevron and Exxon Mobil were up 2.6% and 1.5%, respectively. Boeing traded 6.6% higher.

Both the Dow and S&P 500 hit intraday record highs on Monday before closing well off those levels as weakness in the tech sector put pressure on the broader market. While cyclical stocks led the market advance on Monday, the tech-heavy Nasdaq Composite fell 1.5% as investors dumped some of the popular stay-at-home plays such as Amazon, Zoom Video and Netflix. The Nasdaq finished Monday’s session near its session low.

Pfizer’s big vaccine news came as the U.S. topped 10 million cases of Covid-19, a bleak milestone just 10 days after reaching the 9 million mark amid a record surge in daily infections. Many on Wall Street believe a viable vaccine would be crucial for the economy on its road to a full recovery.

Dow rises more than 200 points as big market rotation continues, CNBC, Nov 10

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