Investors had plenty to chew on Tuesday, and it showed in a down day for stocks.
The big headline out of the gate was Johnson & Johnson (JNJ, -2.3%) pausing late-stage trials for its promising COVID-19 vaccine due to an "unexplained illness," which, as we explained when AstraZeneca (AZN) was forced to do the same, isn't uncommon and doesn't necessarily spell doom for the treatment.
"JNJ decided to temporarily halt all dosing of the Covid-19 vaccine candidate due to an unexplained illness in a volunteer in the study," writes CFRA's Sel Hardy, who nonetheless maintained a Strong Buy rating on JNJ and upgraded earnings estimates after the company's strong third-quarter earnings results. "We welcome JNJ's transparency and expect to see further clarity as the issue is examined by an independent board."
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Meanwhile, stimulus talks remained muddy; Senate Majority Leader Mitch McConnell said his chamber would vote on a bill centered around the Paycheck Protection Program (PPP) sometime this month, though it's uncertain whether it would get past the House.
Apple (AAPL, -2.7%) gave up a little of its recent gains after it unveiled a suite of four new iPhones, including an iPhone 12 Mini with a 5.4-inch screen. And JPMorgan Chase (JPM, -1.6%), which kicked off the Q3 earnings calendar by beating expectations, still slumped as CEO Jamie Dimon warned more stimulus is needed to help the economy.
The Dow Jones Industrial Average slipped 0.6% to 28,679.
Other action in the stock market today:
- The Nasdaq Composite managed a mere 0.1% decline to 11,863.
- The S&P 500 fell 0.6% to 3,511.
- The small-cap Russell 2000 lost 0.7% to 1,636.
COVID Treatments' Push and Pull on Wall Street
The broader market results don't indicate much fallout from today's disappointing COVID-19 news, which also included a halt to Eli Lilly's (LLY, -2.9%) antibody treatment.
But take a closer look: Industrials, real estate, banks and energy, which rely heavily on robust economic activity, were solidly lower today. However, technology and communications once again showed relative strength as they have all year, bolstering the fortunes of technology funds such as these 15 products, and that should continue to be the case as long as effective treatments and vaccines remain elusive.
The same goes for the Invesco QQQ Trust (QQQ), which invests in the index composed of the Nasdaq's 100 largest financials and has raked in billions in assets this year, prompting Invesco to launch even more funds tied to the index. (You can read about a host of Nasdaq-100 products here.)
At some point, however, a vaccine or treatment will finally get the green light, and while it might take months to reach most of America's population, most experts expect that to "flip the switch" for a host of battered industries. Here, we look at 11 stocks to buy that are in rough shape right now, but that could pivot in a heartbeat when a game-changing medical breakthrough is announced.
Kyle Woodley was long AAPL and QQQ as of this writing.
-
Snowbirds: Avoid These 3 Sneaky Insurance IssuesBefore snowbirds depart for their winter retreat, they should check their insurance coverage for surprises that might arise, or else be on the hook for repairs.
-
Hang in There With This Value FundPatience is required for investors in the Dodge & Cox Stock Fund, but its long-term outperformance proves it's worth the wait.
-
Dow Adds 314 Points to Thanksgiving Rally: Stock Market TodayInvestors, traders and speculators enjoy the best Thanksgiving Week gains for the major stock market indexes in more than a decade.
-
Dow Falls 557 Points to Start NVDA Week: Stock Market TodayThe Oracle of Omaha saw growth and value in certain corners of the stock market during the third quarter.
-
Dow Dives 797 Points as Government Opens: Stock Market TodayThe process of pricing and re-pricing realities old and new never stops, and next week promises to be at least as exciting as this week.
-
Dow Climbs 327 Points, Crosses 48,000: Stock Market TodayMarkets are pricing the end of the longest government shutdown in history – and another solid set of quarterly earnings.
-
Risk Is Off Again, Dow Falls 397 Points: Stock Market TodayMarket participants are weighing still-solid earnings against both expectations and an increasingly opaque economic picture.
-
If You'd Put $1,000 Into Home Depot Stock 20 Years Ago, Here's What You'd Have TodayHome Depot stock has been a buy-and-hold banger for truly long-term investors.
-
Stocks Close Out Strong Month With Solid Amazon Earnings: Stock Market TodayAmazon lifted its spending forecast as its artificial intelligence (AI) initiatives create "a massive opportunity."
-
Stocks Hit Fresh Highs Ahead of the Fed As Earnings Pump Optimism: Stock Market TodaySHW and UNH were two of the best Dow Jones stocks Tuesday, thanks to solid earnings reports, and MSFT closed with a $4 trillion market cap.
