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NEW YORK, November 13 (Reuters) – Wall Street closed on Friday with higher earnings, with hopes of a successful COVID-19 vaccine helping to fuel optimism about the economy as investors across the country lent the virus Cases and sanctions monitored.
After a volatile trading week where the market was whispered amid hopes and fears around the virus, Cisco Systems Inc. saw a boom in work due to increased demand following its quarterly report, giving the S&P 500 its biggest boost. .
The Walt Disney Company also grew as a rapidly growing streaming video business, and a partial recovery in its theme parks reduced its quarterly losses.
Michael Aron, Chief Investment Strategist at State Street Global Advisors, said, “At least for today, this is the same perception as the possibility of vaccinations with the announcement of earnings from several companies. Many investors expect the economy to recover.
Informally, the Dow Jones Industrial Average rose 378.85 points or 1.3% to 29,459.02, the S&P 500 rose 46.99 points or 1.33% to 3,584 and the Nasdaq Composite rose 113.97 points or 0.97% to 11,823.55.
Tom Martin, senior portfolio manager at Global Investment in Atlanta, said Friday that there was a clear indication of “hope for optimism to come back around the economy” in the development of industry from growth sectors such as energy, and technology to more economic sectors.
Three major US stock indexes fell on Thursday as more than a dozen US states reported double the number of new COVID-19 cases in the past two weeks, with the Mayor of Chicago staying home for a month Advice was issued.
But Joe Biden, a senior president-elect adviser, said there were no plans for a nationwide lockout next year and instead talked about restrictions for specific areas when the virus spreads.
Aaron of State Street said some investors were happy because of the possibility of a complete lockdown. But he was worried that investor optimism could be high, especially as Fed officials warned of the potential damage that rising economic affairs could cause to the economy without a fresh economic stimulus package.
“The market is mitigating some of the effects that growing cases and any incentives will not have on the economy and income, and they are anticipating the potential time and breadth of vaccine delivery,” Aron said.
“People were not prepared for the worst and the worst in the spring. Now they are expecting the best and they can be a little too juicy.”
Positive data from Pfizer’s vaccine study earlier this week prompted a rotation in cyclic regions, promoting the S&P 500 and the Dow.
However, tech-heavy Nasdaq investors reported gains in technology stocks, which have benefited from the in-home living environment.
Morden Inc. said earlier this week that there was enough data for the first interim analysis of its late-stage trial.
With the third quarter report released by about 90% of the S&P 500 companies, Refinitive IBES estimates that profit is now falling for the 21.4% downturn compared to 1% expected for October 1 last year.
Meanwhile, Biden’s victory in Arizona on the battlefield expanded his electoral vote margin, but President Donald Trump’s refusal to maintain the official transition continues.
Price stocks, consisting mostly of cyclical sectors such as banks and energy, outperform the growth index, which includes large-scale tech companies. (Additional reporting by Stephen Kalp in New York, Medha Singh and Shivani Kumaresan in Bengaluru; Editing by Saumyadev Chakraborty, Shaunak Dasgupta and Tom Brown)