By Yasin Ebrahim
Investing.com – The Dow cut some losses Wednesday led by a vaccine-fueled rise in value stocks following positive news on Pfizer 's Covid-19 vaccine.
Hopes for a sooner rather later reopening of the economy were given a boost after the UK approved temporary emergency use authorization for Pfizer (NYSE:PFE)'s and development partner BioNTech (NASDAQ:BNTX)'s vaccine.
Approval from the U.S. is not far behind, with many expecting the Pfizer vaccine to get approval before year-end.
Renewed action on the value trade in the wake of positive vaccine news – bullish bets on stocks tied to the progress of the economy– also benefited cruise lines, casinos and airlines.
As well as vaccine optimism, positive comments on a stimulus for the aviation industry lifted sentiment on the sector.
U.S. Treasury Secretary Steven Mnuchin said Wednesday he supported another $20 billion in additional government payroll support for U.S. airlines.
"I think that would be very meaningful in terms of employment and saving the industry," Mnuchin said at a House hearing, according to Reuters.
On the economic front, a weaker-than-expected private sector jobs report for November was largely downplayed by analysts.
"The ADP employment report showed a 307,00 increase in private employment below our forecast of 750,000… but it also showed that the "broad-based job gains across firm size continued," Morgan Stanley (NYSE:MS) said in a note.
In other news, Palantir Technologies (NYSE:PLTR) fell 13% after Morgan Stanley downgraded the stock to underweight from equal weight, citing little change in the fundamental story of the company since its IPO.Leave a comment