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* Moderna jumps after COVID-19 vaccine update
* Value, cyclical stocks outperform
* S&P, Dow, Russell 2000 on course for record closing highs
* Indexes up: Dow 1.1%, S&P 0.7%, Nasdaq 0.4%
NEW YORK, Nov 16 (Reuters) - Wall Street stocks advanced on
Monday, setting the S&P 500 and the Dow on course for all-time
closing highs as news of another promising coronavirus vaccine
bolstered hopes of eradicating the disease, while spiking
infections and new shutdowns threaten to hobble a recovery from
the pandemic recession.
The blue-chip Dow Jones industrial average hit an
intraday high and flirted with the 30,000 mark while the Russell
2000 was also on track for record close.
Value, cyclical and small cap shares, which stand to benefit
most from an economic rebound, outperformed the broader market.
Moderna Inc said its experimental COVID-19 vaccine
was 94.5% effective in preventing infection based on interim
late-state data. It was the second drugmaker in as my weeks,
after Pfizer Inc, to announce promising trial data in
the development of a vaccine to defeat the pandemic.
Combined, pending further data and regulatory review, the
United States could have as many as 60 million emergency doses
available this year.
"It's good news along the lines of Pfizer's news a week
ago," said Peter Tuz, president of Chase Investment Counsel in
Charlottesville, Virginia. "We have another vaccine that down
the road that will enable us to get back to life as we used to
"We're seeing the end of the tunnel getting closer."
Travel-related stocks, which were clobbered by restrictions
enacted to contain the pandemic's spread, were in demand.
Shares of United Airlines Holdings Inc, American
Airlines Group Inc, Carnival Corp and Norwegian
Cruise Line Holdings Ltd jumped between 3.4% and 8.3%.
But COVID-19 continued its U.S. rampage, with cases surging
past 11 millions and record infections in 40 states, prompting
states to tighten social distancing mandates.
"It's the great conundrum," Tuz added. "Do you invest for
the next three months that are likely to be pretty bleak, or do
you invest for the period after that that's likely to be much
"It is a battle between short term bad news and longer term
great news regarding the vaccine," Tuz said.
The Dow Jones Industrial Average rose 337.29 points,
or 1.14%, to 29,817.1, the S&P 500 gained 26.18 points,
or 0.73%, at 3,611.33 and the Nasdaq Composite added
48.65 points, or 0.41%, at 11,877.94.
Of the 11 major sectors of the S&P 500, energy stocks
were enjoying the largest percentage gain.
Earnings from high-profile retailers are expected this week,
with Walmart Inc and Home Depot Inc expected to
report on Tuesday and Lowe's Companies Inc and Target
Corp on Wednesday.
This, together with the Commerce Department's October retail
sales data, expected on Tuesday, should provide evidence as to
how consumers are weathering a languid economic recovery as
stimulus runs dry.
Simon Property Group Inc jumped 6.0% after the
biggest U.S. mall operator cut its purchase price for an 80%
stake of rival Taubman Centers Inc, as the pandemic
pressures the retailers.
Advancing issues outnumbered decliners on the NYSE by a
3.97-to-1 ratio. On Nasdaq, a 2.02-to-1 ratio favored advancers.
The S&P 500 posted 40 new 52-week highs and no new lows. The
Nasdaq Composite recorded 154 new highs and 12 new lows.
(Reporting by Stephen Culp; Editing by Richard Chang)