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* Market cools after huge Monday rally
* Pandemic tech winners retreat
* Investors ditch growth stocks in favor of value
* Dow up 0.26%, S&P falls 0.40%, Nasdaq drops 1.21%
(Updates to market open)
By Medha Singh and Shivani Kumaresan
Nov 10 (Reuters) - The S&P 500 dropped on Tuesday as
excitement over signs of a first successful late-stage COVID-19
vaccine trial faded, while investors continued to pull money out
of the big tech companies that have benefited most from the
pandemic.
Netflix Inc NFLX.O , Amazon.com Inc AMZN.O , Facebook Inc
FB.O and Microsoft Corp MSFT.O , which have flourished from
this year's work-from-home shift and powered Wall Street to new
heights, extended Monday's losses and pulled the tech-heavy
Nasdaq down about 1%.
The tech .SPLRCT , communication services .SPLRCL and
consumer discretionary indexes .SPLRCD dropped 1% each, as
investors moved to sectors expected to benefit from a full
reopening of the economy, such as energy .SPNY and industrials
.SPLRCI .
"The rotation could be different this time because ... it is
predicated on the fact that we have evidence to say things will
get better," said Art Hogan, chief market strategist at National
Securities in New York.
Value-linked stocks .IVX , which tend to outperform coming
out of a recession, added 4%, while growth stocks .RLG fell
0.6%.
The main U.S. indexes hit new peaks on Monday as data from
Pfizer Inc's PFE.N late-stage COVID-19 vaccine trial spurred
bets of a swift economic recovery next year. Democrat Joe
Biden's projected victory in the U.S. presidential election also
added to the market cheer.
Biden hailed the progress on the vaccine, but urged caution
saying it would be "many more months" before widespread
vaccination is available. Meanwhile, daily new U.S. cases topped
100,000 for the sixth straight day. U.S. regulators on Monday also authorized emergency use of
the first experimental antibody drug for COVID-19 developed by
Eli Lilly & Co LLY.N , pushing its shares up by 2.2%.
At 9:54 a.m. ET, the Dow Jones Industrial Average .DJI
was up 76.21 points, or 0.26%, at 29,234.18, the S&P 500 .SPX
was down 14.28 points, or 0.40%, at 3,536.22. The Nasdaq
Composite .IXIC was down 141.57 points, or 1.21%, at
11,572.21.
Amgen Inc AMGN.O gained 2.7% after its asthma drug, being
developed in collaboration with AstraZeneca AZN.L , met the
main goal of a late-stage study.
Ulta Beauty Inc ULTA.O topped gainers on the S&P 500 with
its 9.0% jump after the cosmetics store chain signed a long-term
deal with Target Corp TGT.N to open its own stores at the big
box retailer's locations. Target gained 1.6%. Apple Inc AAPL.O rose about 0.2% ahead of an event later
in the day where it is expected to unveil new Mac computers
using its own in-house processor chips. Advancing issues outnumbered decliners for a 1.57-to-1 ratio
on the NYSE and a 1.12-to-1 ratio on the Nasdaq.
The S&P index recorded two new 52-week highs and no new low,
while the Nasdaq recorded 24 new highs and 12 new lows.
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5-yr performance gap between growth and value stocks https://tmsnrt.rs/3kjdIem
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