On The Money: Markets soar on Pfizer vaccine news | EU imposes tariffs on $4B of US goods over Boeing | Business groups applaud Biden's push for masks
Happy Monday and welcome back to On The Money, where we hope you caught up on sleep by now. I’m Sylvan Lane, and here’s your nightly guide to everything affecting your bills, bank account and bottom line.
THE BIG DEAL—Markets soar, breaking records on Pfizer vaccine news: Stocks skyrocketed Monday morning, breaking intraday records on the news from Pfizer that late-stage clinical trial data for its COVID-19 vaccine candidate was over 90 percent effective.
- The Dow Jones Industrial Average shot up over 1,500 points, or 5.5 percent, hovering at 29,887, well above its pre-pandemic peak of 29,569. By close, its gains were nearly cut in half, closing below previous records at 29,158.
- The S&P 500 jumped 129 points, or 3.7 percent, reaching 3,636, well beyond its September record of 3,587. Like the Dow, the S&P pared back gains to close at 3,551, also below its record.
- Industries that have been hardest hit by the pandemic, such as travel and leisure, saw major boosts, shifting investment away from e-commerce businesses that have thrived during the pandemic.
The Hill’s Niv Elis has more here.
Optimistic rally: The news sets up a potential timeline and eventual end game for eradicating the global pandemic, which has caused one of the worst recessions on record.
Differing presidential reactions:
- President TrumpDonald TrumpIran convicts American businessman on spying charge: report DC, state capitals see few issues, heavy security amid protest worries Pardon-seekers have paid Trump allies tens of thousands to lobby president: NYT MORE praised the news, and the stock market reaction, in an all caps Tweet.
- "STOCK MARKET UP BIG, VACCINE COMING SOON. REPORT 90% EFFECTIVE. SUCH GREAT NEWS!" he wrote.
- President-elect Joe BidenJoe BidenFear of insider attack prompts additional FBI screening of National Guard troops: AP Iran convicts American businessman on spying charge: report DC, state capitals see few issues, heavy security amid protest worries MORE welcomed the news, but warned the public that mask-wearing and social distancing would remain crucial for months until a vaccine can be approved, distributed, and given to a substantial proportion of the population.
Read More: 5 things to know about the Pfizer vaccine news
LEADING THE DAY
EU imposes tariffs on $4B of US goods over Boeing: The European Union on Monday announced that it was putting in place tariffs on $4 billion of American products based on a trade dispute over aerospace company Boeing.
The World Trade Organization (WTO) last month sided with Europe in the years-long dispute, faulting the U.S. government for breaking trade law by providing tax breaks and subsidies to Boeing, and opening the door for Monday's decision.
"Regrettably, due to lack of progress with the U.S., we had no other choice but to impose these countermeasures," European Commission Vice President Valdis Dombrovskis said.
- The measures will include a 15 percent tariff on purchasing aircraft and a 25 percent tariff on an array of agricultural and industrial products.
- Europe's tariffs follow the U.S. government's decision last year to impose its own WTO-approved tariffs on $7.5 billion of European products over subsidies to Airbus, Boeing's main European competitor. The tariffs included wine, cheese and whiskey.
Dombrovskis called for the U.S. and EU to strike a deal that would remove the trade barriers.
"Removing these tariffs is a win-win for both sides, especially with the pandemic wreaking havoc on our economies," he said.
Business groups applaud Biden's push for masks: Business groups are commending President-elect Joe Biden for calling on all Americans to wear masks, making the case Monday that the move is part of a shared civic duty.
Since he was declared the winner of last week's vote, Biden has focused on putting together a task force to implement his COVID-19 plan. His message on masks stands in stark contrast to President Trump, who has talked down their importance.
That’s won Biden praise from business groups, even some who’ve traditionally found more allies on the other side of the aisle.
- “President-elect Joe Biden’s message today, which is based on fact and science, is the type of leadership by example that will help us achieve that,” National Association of Manufacturers CEO Jay Timmons said in a statement.
- The U.S. Chamber of Commerce said in a statement that the pro-business lobbying group is encouraged that Biden announced a COVID-19 task force as one of his first actions following the election.
- The National Retail Federation (NRF), which represents retail companies, said that the sector has served as the equivalent of economic first responders while also protecting the health and safety of employees.
The Hill’s Alex Gangitano tells us why here.
GOOD TO KNOW
- A judge on Monday said he would hear arguments regarding the protection of confidential information in the Justice Department’s antitrust lawsuit filed against Google.
- Gary CohnGary David CohnOn The Money: Wall Street zeros in on Georgia runoffs | Seven states sue regulator over 'true lender' rule on interest rates | 2021 deficit on track to reach .3 trillion Former Trump economic aide Gary Cohn joins IBM The Hill's Morning Report - Presented by the UAE Embassy in Washington, DC - Trump OKs transition; Biden taps Treasury, State experience MORE, a former top economic adviser to President Trump, on Sunday congratulated President-elect Joe Biden on winning the 2020 election.
- Uber and Lyft are celebrating a major ballot measure victory in California, and they’re looking to notch similar wins nationwide that could formalize labor classifications for gig workers.
- Lobbying firms are telling their clients that two more years of divided government is the best-case scenario and most likely outcome of the 2020 elections.
- The U.S. Chamber of Commerce, the nation's largest business lobbying group, said it wants Congress to tackle infrastructure after passing a long-anticipated but elusive COVID-19 relief package.