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The "rotation" trade returned once more after the market was greeted with COVID vaccine news for a third consecutive Monday.
The heroes today were AstraZeneca (AZN, -1.1%) and the University of Oxford, whose trial vaccine is far easier to store than other vaccines, which could make it easier to distribute across the globe. Trial data revealed an average efficacy of about 70% against COVID - lower than competitors Pfizer (PFE)/BioNTech (BNTX) and Moderna (MRNA), hence AZN's down day - but adjusting dosages could get efficacy up to 90%.
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The news prompted a massive spike in cyclical sectors such as financial stocks, up 1.9% as a sector, as well as energy plays such as Exxon Mobil (XOM, 6.6%) and Chevron (CVX, 6.1%) as U.S. crude oil futures climbed 1.5% to $43.06 per barrel. Stocks also enjoyed a bump after learning that President-elect Joe Biden may nominate former Fed chair Janet Yellen as his Treasury
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 U.S. stock indexes closed near session highs Monday, following reports that President-elect Biden plans to nominate former Federal Reserve Chairwoman Janet Yellen to become the next Treasury Secretary.
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 Exchange-traded funds with heavy exposure to Tesla Inc. outperformed midday Monday after an analyst upped his price target to $1,000 a share, representing about 93% upside for the stock, which was trading near $517. The ARK Innovation ETF , with 11.4% of its portfolio in Tesla shares, rallied 1.6%, while the iShares U.S. Consumer Goods ETF , with 13.1% invested in Tesla, was up 0.7%. The SPDR NYSE Technology ETF , which has over 12% of its holdings in the stock, also gained 0.7%. Tesla shares surged 5.6% Monday, and all the funds noted above were beating the S&P 500 , which ticked up 0.1%.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
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