Stocks can’t decide what’s more important, the first vaccinations or impending economic shutdowns in New York City and California

Stocks can’t decide what’s more important, the first vaccinations or impending economic shutdowns in New York City and California

Stocks moved higher in the morning today on optimism that the first coronavirus vaccinations meant a “return to normal” was just around the corner. As of 10:00 a.m. Nw York time the Standard & Poor’ 500 had climbed to 3697. And then in the afternoon markets started to worry about news that New York City and California might be headed to a renewed economic lockdown. As of 2:36 p.m. the S&P 500 was back down to 3658.

Stocks can’t decide what’s more important, the first vaccinations or impending economic shutdowns in New York City and California

As the day wore on, markets began to see near-term economic damage from the coronavirus as out weighing mid-term hope from vaccines

At 1 p.m. today, November 18, the Standard & Poor’s 500 was up 0.05% and the Dow Jones Industrial Average was ahead 0.06%. Supporting even these meagre gains was positive news from Pfizer that it had concluded trials of its coronavirus vaccine and would be submitting an application for an Emergency Use Authorization to the U.S. Food & Drug Administration within a few days. By the close of the day’s session, however, news of a continuing rise tide of infections and announcements of more closings around the country had extinguished most of the earlier upward momentum.

This market is way, way too complacent

This market is way, way too complacent

The VIX, the CBOE S&P 500 Volatility Index, gained 11% today to close at 26.03. But the index, which measures how much investors and traders are wiling to pay in the options market to hedge risk on the Standard & Poor's 500 index of stocks looking out over the...