US STOCKS-S&P 500, Dow close at all-time highs on reignited vaccine hopes

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(Updates to market close)
By Stephen Culp
NEW YORK, Nov 16 (Reuters) - The S&P 500 and Dow Jones
industrial average notched record closing highs on Monday as
news of another promising coronavirus vaccine fanned hopes of
eradicating COVID-19, while spiking infections and new shutdowns
threatened to hobble a recovery from the pandemic recession.
All three major U.S. stock indexes advanced and with its new
closing record, the blue-chip Dow is the last of the three to
reclaim levels reached in February, before lockdowns sent the
markets into free-fall.
The Russell 2000 .RUT also hit an all-time closing high.
Value, cyclical and small cap shares outperformed the
broader market.
Moderna Inc MRNA.O said its experimental COVID-19 vaccine
was 94.5% effective in preventing infection based on interim
late-state data. It was the second drugmaker in as many weeks,
after Pfizer Inc PFE.N , to announce promising trial data in
the development of a vaccine to defeat the pandemic.
Combined, pending further data and regulatory review, the
United States could have as many as 60 million emergency doses
available this year.
"More vaccine news is driving cyclicals, small caps and
value, which would be primed if the economy reopens sooner than
expected, returning us to some sense of normalcy," said Robert
Pavlik, senior portfolio manager at Dakota Wealth in Fairfield,
Connecticut.
Travel-related stocks, which have been clobbered by
restrictions to contain the pandemic's spread, were in demand.
Shares of United Airlines Holdings Inc UAL.O , American
Airlines Group Inc AAL.O , Carnival Corp CCL.N and Norwegian
Cruise Line Holdings Ltd NCLH.N all ended sharply higher.
But COVID-19 continued its U.S. rampage, with cases surging
past 11 million and record infections in 40 states, prompting
states to tighten social distancing mandates. "Wall Street is looking out six to 12 months down the road,"
Pavlik added. "There is a question about ... what kind of damage
will be inflicted on the economy between now and then."
Unofficially, the Dow Jones Industrial Average .DJI rose
478.72 points, or 1.62%, to 29,958.53, the S&P 500 .SPX gained
42.17 points, or 1.18%, to 3,627.32 and the Nasdaq Composite
.IXIC added 94.84 points, or 0.8%, to 11,924.13.
Earnings from high-profile retailers are expected this week,
with Walmart Inc WMT.N and Home Depot Inc HD.N expected to
report on Tuesday and Lowe's Companies Inc LOW.N and Target
Corp TGT.N on Wednesday.
This, together with the Commerce Department's October retail
sales data, expected on Tuesday, should provide evidence of how
consumers are weathering a languid economic recovery as stimulus
runs dry.
Simon Property Group Inc SPG.N shares jumped after the
biggest U.S. mall operator cut its purchase price for an 80%
stake of rival Taubman Centers Inc TCO.N , as the pandemic
pressures the retailers.