The U.S. stock market surged with the S&P 500 hitting a 10-week high as investors were hopeful of a coronavirus vaccine and the potential for additional stimulus to cushion the economic blow from the pandemic, plus more in today’s Closing Bell on Money & Markets.

The Top Story

Drugmaker Moderna Inc. (Nasdaq: MRNA) said its experimental coronavirus vaccine showed promising results in a small early stage trial, boosting futures in premarket trading. Its shares jumped almost 20% by the closing bell.

After surging about 34% from a multi-year low hit in March, the S&P 500 has traded in a tight range this month as investors weighed hopes of an economic recovery against fears of another wave of infections as states lifted virus-led restrictions.

“If there really is a workable vaccine that can be mass-produced, it really is a game-changer for so many industries about which we weren’t so sure if the reopenings would solve their problems,” Cherry Lane Investments partner Rick Meckler said.

The benchmark S&P 500 had its biggest one-day percentage gain in five weeks, with all 11 major S&P sector indexes trading higher.

Battered travel-related stocks such as cruise line operators Carnival Corp. (NYSE: CCL), Royal Caribbean Cruises Ltd. (NYSE: RCL) and Norwegian Cruise Line Holdings Ltd. (NYSE: NCLH) jumped 16% to 18.4%.

Markets also took heart from Federal Reserve Chair Jerome Powell’s remarks over the weekend on a gradual economic recovery and his affirmation that more monetary stimulus was on the way if required.

The Dow Jones rose 3.85%. The S&P 500 was 3.15% higher and the Nasdaq moved up 2.44%.

Stock Market Update: Closing Bell*

S&P 500: 2,953 (+3.15%)
DOW: 24,597 (+3.85%)
NASDAQ: 9,234 (+2.44%)
GOLD: $1,734.40 (-1.24%)
BITCOIN: $9,682.02 (-0.62%)
U.S. 10-YEAR YIELD: 0.72% (+0.082%)

*- as of 4:10 p.m.

A Big Win

In this morning’s Opening Bell, we told you to be on the lookout for Moderna Inc. (Nasdaq: MRNA) after it reported success in its human COVID-19 vaccine trial. Shares of Moderna jumped almost 20% and sparked Monday’s massive rally.

Shares of Apple Inc. (Nasdaq: AAPL) jumped 2.4% after the company unveiled its plan to reopen stores including 25 U.S. locations this week.

International Game Technology PLC (NYSE: IGT) beat analyst expectations for earnings and said its liquidity was enough to weather the coronavirus pandemic. Shares of International Game Technology rose 7.6%.

Golden Nuggets

Most precious metal prices spiked despite a jump in equities, but gold took a tumble.

After hitting a five-week high in overnight trading, gold fell as global markets firmed up. Stocks moved largely higher as more and more national economies eased coronavirus restrictions.

Gold futures moved 1.2% lower to trade at $1,734.40 an ounce. Silver futures were 1.4% higher at $17.30 an ounce. While silver was higher, it was below the 11-week high the metal reached in overnight trading.

Platinum jumped 5.5% to $861.90 an ounce, while palladium was 9.1% higher to trade at $2,026.60 an ounce.

Cannabis Corner

The Louisiana House of Representatives passed a bill giving the green light to expand the state’s medical cannabis program.

One bill, according to Marijuana Moment, allows doctors to prescribe medical cannabis to patients with any debilitating condition. Another bill will allow cannabis dispensaries to deliver marijuana products directly to a patient’s house.

Both bills head to the Louisiana Senate. The legislative session is scheduled to conclude June 1.

Uber Cuts 3K Jobs, Shutters 45 Offices

In an email to employees obtained by The Wall Street Journal, Uber Technologies Inc. (NYSE: UBER) CEO Dara Khosrowshahi said the company is cutting more jobs.

Just two weeks after announcing plans to trim 3,700 jobs, Khosrowshahi said Uber is cutting 3,000 more and closing 45 offices in an effort to save on fixed costs.

Drivers are not classified as employees, so they are not included in the cuts.

Uber is also scaling back on other ventures like its product incubator and its development of a site to pair companies with gig economy workers.

Today’s Big Winners:

(as of 3:15 p.m. EDT)

S&P 500: United Airlines Holdings Inc. (Nasdaq: UAL) +19.2%

Nasdaq: Marriott International Inc. (Nasdaq: MAR) +16.8%

Dow: Boeing Co. (NYSE: BA) +12.5%

Today’s Big Losers:

(as of 3:15 p.m. EDT)

S&P 500: Citrix Systems Inc. (Nasdaq: CTXS) -4.2%

Nasdaq: Zoom Video Communications Inc. (Nasdaq: ZM) -4.8%

Dow: n/a


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