Fox News contributor John Layfield and Kaltbaum Capital Management owner Gary Kaltbaum argue if stimulus continues and a COVID-19 vaccine is distributed in the very near future, markets will experience a stunning rally in 2021.
U.S. equity markets slipped Tuesday as the first doses of the Pfizer/BioNTech COVID-19 vaccine were administered in the U.K. and the U.S. Food and Drug Administration delivered some encouraging news about the inoculation.
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The Dow Jones Industrial Average fell 90 points, or 0.3%, in the opening minutes of trading while the S&P 500 and the Nasdaq Composite were weaker by 0.28% and 0.12%, respectively.
A staff report issued by the FDA on Tuesday said the Pfizer/BioNTech vaccine is both safe and effective. The vaccine could receive emergency use authorization in the U.S. as soon as Thursday – two days after the first shots were given in Britain.
Elsewhere, Tesla Inc. plans to issue $5 billion of new common stock, capitalizing on a 667% year-to-date surge in its share price. Proceeds from the offering, which is Tesla’s third this year, will be used to shore up the company’s balance sheet.
Uber Technologies Inc. will sell its self-driving car unit to rival Aurora Innovation Inc. for $4 billion and invest $400 million in the company. The deal will give Uber a 26% stake in Aurora.
U.S. Steel Corp. will pay $774 cash to buy the remaining 50.1% stake in steel product manufacturer Big River Steel. The deal is expected to close in the first quarter of 2021.
Meanwhile, Palantir Technologies Inc. shares were higher for a second day after the U.S. Food and Drug Administration awarded the company a $44 million contract that focuses on powering drug reviews and inspections.
Looking at earnings, Stitch Fix Inc. reported a surprise profit as its active user base rose 10% from a year ago to almost 3.8 million clients. The online personal styling platform expects revenue to grow 20% to 25% during fiscal year 2021.
In commodities, West Texas Intermediate crude oil fell 35 cents to $45.41 per barrel and gold ticked up $8.20 to $1,874.20 per ounce.
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European markets were moderately lower after the U.K. government announced it has reached a deal in principle with the European Union on Brexit. Britain’s FTSE 100 traded lower by 0.55% while France’s CAC 40 and Germany’s DAX 30 were weaker by 0.69% and 0.27%, respectively.
In Asia, Hong Kong’s Hang Seng index paced the decline, down 0.76%, while Japan’s Nikkei 225 fell 0.3% and China’s Shanghai Composite index lost 0.19%.
