More Vaccine Shots Equal Less COVID-19 | Daily Market Update

Thursday, March 4, 2021

Top Story

Global Vaccinations: More Shots = Less COVID-19

The global COVID-19 vaccination rollout is happening at varying speeds in different countries but data seems to be showing that the shots in arms are working in the fight against the disease. We take a closer look at some countries ahead of the curve on the vaccine deployment and the reasons that some are still behind in today’s LPL Research blog.

Daily Insights

US stocks little changed after closing near session lows for the second straight day

  • Futures pared earlier losses after better-than-expected jobless claims.
  • European markets are modestly lower in midday trading with the United Kingdom leading to the downside.
  • Asian stocks were weaker overnight as selling pressure on US technology stocks spilled over to Asian markets.

Jobless claims beat estimates

  • The Department of Labor reported 745,000 Americans filed for unemployment insurance last week, below FactSet consensus estimates of 750,000, but slightly higher than the prior week’s 730,000.
  • Continuing claims were also a notch lower than estimates, with 4.295 million Americans remaining on unemployment insurance versus FactSet Consensus of 4.3 million.
  • There has been a modest improvement in the US labor market, and Friday’s nonfarm payrolls release will provide a better picture of current conditions.

Strong global manufacturing trends continue

  • The global manufacturing PMI rose from 53.6 to 53.9 in February, solidly expansionary and at a three-year high.
  • Among the major economies, manufacturing PMIs for the Eurozone, UK, Brazil, Russia, and Japan all rose.
  • China’s PMI remains over 50 after edging lower, suggesting growth may be slowing.
  • The US index fell slightly but remains at a very strong 58.6 level.
  • Lengthening supplier delivery times and supply shortages—including semiconductors—pushed prices higher and will likely prove temporary.

Technical update

  • Large cap technology names dragged major benchmarks lower yesterday. Despite the S&P 500 Index falling 1.3% and the Nasdaq dropping 2.7%, the energy sector gained more than 1.4% and financials and industrials also ended the day in the green.
  • The Nasdaq Composite closed Wednesday near support at 13,000, but a move lower today may set up a test of the 12,050 level.

COVID-19 news

The United States reported 67,000 new COVID-19 cases on Wednesday, down 8.8% week over week (source: COVID Tracking Project).

  • The 7-day average of new cases continues to flirt with crossing below the 60,000 mark.
  • Those currently hospitalized with COVID-19 continues to decline, extending its streak to 51 consecutive daily declines.

Yield spike spooks stock investors

In this week’s Market Signals podcast and video, LPL Research discusses soaring yields last week and examines the recent record breaking earnings season, plus updates from the Federal Reserve.



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