All clear for reopening rally? | Value vs. growth tug-of-war | Cramer's outlook
| EDITOR'S NOTE
Value stocks and their growth counterparts jostled for market leadership throughout the week as traders weighed positive coronavirus vaccine news and a rising number of Covid-19 infections.
The iShares Russell 1000 Value exchange-traded fund (IWD) jumped 4.2% on Monday and 1.2% on Tuesday after Pfizer and BioNTech announced their coronavirus vaccine candidate was more than 90% effective at preventing Covid-19.
Those gains early in the week for value stocks came at the expense of growth names, which have outperformed for most of 2020. The iShares Russell 1000 Growth ETF (IWF) fell more than 1% on Monday and Tuesday. On Wednesday, however, the IWF jumped 1.9%, while the IWD slid 0.3% as traders began to fret over the recent increase in U.S. coronavirus cases. That case uptick also sparked a broader market sell-off on Thursday, pressuring both ETFs that day.
Value stocks outperformed relative to growth names once again on Friday, lifting the S&P 500 and Russell 2000 to record closing highs. This back and forth between value and growth is expected to continue in the week ahead as more vaccine and infection-related news comes out, writes CNBC's Patti Domm.
"I think it's just a constant tug of war...based on what we see with the virus headlines and such. I think that's driving a lot," said Paul Hickey, co-founder of Bespoke Investment Group. "When you get the bad headlines, you start seeing the growth stocks do well. When you get the good headlines, you start seeing the value stocks doing better."
Subscribe to CNBC PRO for exclusive insights and analysis, and live business day programming from around the world.
MICHAEL SANTOLI'S MARKET COLUMN
THE WEEK AHEAD
ACTIVIST SPOTLIGHT
YOUR WEEKEND BRIEFING
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Post a Comment