The major averages are posting solid gains of 2% on the back of news that J&J's one-shot vaccine was approved for emergency use over the weekend. Stability in bonds has calmed a lot of nerves too, adding to the upside. In addition, the $1.9T recovery package was passed by the House, although the Senate still needs to approve a bill and may not go for it at its current size and composition.
ECONOMIC EVENTS: In the U.S., Markit's manufacturing PMI came in at 58.6 in the final February print, versus 58.5 in the preliminary and a 59.2 reading in January. The ISM manufacturing index increased 2.1 points to 60.8 in February, which was better than expected. Construction spending beat estimates with a 1.7% January rise.
Data from the Johns Hopkins Whiting School of Engineering shows there are now 114M confirmed cases of COVID-19 worldwide, including 28.6M in the U.S., and 2.5M deaths due to the disease, including 513,000 in the U.S.
TOP NEWS: Shares of Johnson & Johnson (JNJ) are 1% higher near noon after the Food and Drug Administration issued an emergency use authorization for the third vaccine for the prevention of coronavirus disease. The EUA allows Johnson & Johnson's Janssen COVID-19 vaccine to be distributed in the U.S for use in individuals 18 years of age and older.
Shares of Exxon Mobil (XOM) are up 5% near noon after the company confirmed that investors Jeff Ubben and Mike Angelakis will be joining the energy company's board of directors. Darren Woods, chairman and chief executive officer of Exxon Mobil, said, "Michael and Jeff's expertise in capital allocation and strategy development has helped companies navigate complex transitions for the benefit of shareholders and broader stakeholders. Their contributions will be valued as ExxonMobil advances plans to increase shareholder value by responsibly providing needed energy while playing a leadership role in the energy transition."
MAJOR MOVERS: Among the noteworthy gainers was Morphic (MORF), which has nearly doubled in share price after the company announced "positive interim results" from its Phase 1 clinical trial of MORF-057, which is in development for the treatment of inflammatory bowel disease. Also higher was Groupon (GRPN), which gained 33% after JPMorgan analyst Doug Anmuth upgraded the stock to Neutral from Underweight with a price target of $48, up from $23.
Among the notable losers was Ontrak (OTRK), which dropped 49% after the company pre-announced fourth quarter results and said it was notified that its participation status with its largest customer "will be terminated effective June 26, 2021." Also lower was Athenex (ATNX), which fell 52% following news that the FDA issued a complete response letter for the company's New Drug Application for oral paclitaxel plus encequidar for the treatment of metastatic breast cancer.
INDEXES: Near midday, the Dow was up 623.58, or 2.02%, to 31,555.95, the Nasdaq was up 320.68, or 2.43%, to 13,513.03, and the S&P 500 was up 85.33, or 2.24%, to 3,896.48.
