Stocks are rising Wednesday, July 15, after Moderna announced phase 1 results for the coronavirus showed an immune response. It is basically the same information and the reason we rallied about a month ago. The data is updated, and expands beyond the eight initial patients, to all 45.

S&P 500 (SPY)

So at this point, the futures are pointing higher, and are now challenging the highs of July 13 and June 8. So, it is simple if the market breaks out, it can rise to around 3312 on the ES. 

Ten-Year

The bond market is not nearly as excited on the Moderna news, with yields that are stuck around 63 bps. 

Copper

Copper is not that excited either.

I guess what I am saying is don’t be surprised if some of the enthusiasm wears off. 

Zoom (ZM)

With a vaccine, we certainly won’t need to be using zoom so much anymore, so why isn’t this stock down even more? Perhaps a pullback to $227?

Amazon (AMZN)

We certainly won’t need to order as much from Amazon because we will all be able to go out again. Why shouldn’t it fall back to $2,460?

Netflix (NFLX) 

We certainly won’t be binge-watching anymore, and that means Netflix could quickly go back to $450. 

Nvidia (NVDA) 

Companies probably can pare back on their data center spending too, and that wouldn’t be so good for Nvidia. Maybe shares could fall back to $345.

Microsoft (MSFT)

It probably wouldn’t be good for Microsoft either, with the potential to go back to $187.

Anyway, the point is that a vaccine would very much be welcomed, trust me. Living in NY over the past five months, which has felt like 50 years, has been brutal. But just remember, many of the high flying stocks that have gone up due to the virus will need to be adjusted lower, and if all of these stocks are the largest among the market, what does that do to the broader indexes? Think about it.