V is for Vaccine, not Value – US equities have shrugged off a lower than expected ADP number and indexes are trading near their highs (albeit still in the red). The UK’s approval for the Pfizer/ BioNTech vaccine for distribution starting next week) should eb the driver for the Value names (which are outperforming again), but the sectors that are associated as value have their own reasons for their outperformance. Energy (XOP +4.3%) is getting a lift from Oil’s +2% move ahead of the OPEC meeting tomorrow (another push out of output hikes?), and Banks (KBE +1%) is moving as the 10-Treasury is trading at 0.95%. The vaccine news IS helping the Transportation sector, with airlines and cruises up about 2%. While banks are benefitting from the higher rates, Homebuilders (ITB -2.1%) are getting hurt, and that sector is now testing its 100 day moving average (54.72) on the downside.
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