Stocks are up sharply Monday morning after positive COVID vaccine data from Pfizer brought the prospects of a broader economic recovery ever closer to reality.
More specifically, interim results from Pfizer's final phase of trials showed that its vaccine was able to prevent a remarkable >90% of symptomatic COVID cases.
By contrast, expectations for effectiveness prior to this announcement were closer to ~60-70%.
To put that number in context, seasonal flu vaccines typically show closer to ~40-60% efficacy rates.
The market's move was largely led by strength in names expected to benefit the most from a return to travel and consumption. In the Flagship portfolio, Booking, Disney, Mastercard, and Transdigm each soared >10%.
We believe this development bodes very well for the economy, and are optimistic that the results may also bear positive implications for Moderna's vaccine candidate, which is also in final trials and employs a similar mechanism of action as Pfizer's.