By Yasin Ebrahim
The Dow eased from session highs on Wednesday, but investor sentiment remained supported amid positive vaccine news cooled and mostly bullish earnings from banks.
Drugmaker Moderna (NASDAQ:MRNA) jumped 6% after reporting that its coronavirus vaccine candidate, mRNA-127, produced antibodies in patients aged 18 to 55, suggesting the treatment could protect against infection by the virus.
Some on Wall Street said, however, it was too early to draw a conclusion from the early-stage clinical data.
"Many open questions obviously remain, including on immune response durability, and what the profile might look like in older adults, but we believe the data represent a good start," Chardan analysts said in a note.
The update on a vaccine helped eased worries over rising Covid-19 cases and steady the reopening trade - bullish bets on stocks tied to the progress of the economic reopening – supporting shares of travel and tourism companies.
American Airlines (NASDAQ:AAL) jumped 10%, Marriott International (NASDAQ:MAR) added 6.6%, Wynn Resorts (NASDAQ:WYNN) was up 6.2%, and Carnival (NYSE:CCL) surged 12%,
Financials, meanwhile, eased from session highs as Goldman Sachs pared some gains following a blowout quarterly report.
Goldman Sachs Group (NYSE:GS) rose 1.1% after reporting second-quarter earnings of $6.26, above consensus estimates of $3.90, led by strong performance in its trading division.
US Bancorp (NYSE:USB) also beat forecasts, while PNC Financial Services Group (NYSE:PNC) swung to an expected loss. Yet, the shares of both regional banks were up more than 2%.
In tech, FAANG stocks traded mix as the intraday bid in megacap tech faded.
Apple (NASDAQ:AAPL) gave up some gains after rising more than 2% following an upgrade from Needham and reports that the tech giant had won a legal dispute over a $14.8 billion tax battle with the European Union.
Needham upgraded its rating on the stock to $450 from $350, citing the value of its ecosystem.
Energy continued its strong start to the week boosted by rising oil prices as data showing a larger-than-expected draw U.S. crude supplies offset worries over waning demand amid reports that some major oil producing nations are set to rein in production cuts.
