Stocks bounced on Monday, rising for a second session to close a rough January, as investors bought the dip in tech shares in late-afternoon trade. All three market benchmarks rose higher, with the Dow Jones Industrial Average climbing over 400 points, while the S&P 500 rose 1.9%. The tech-heavy Nasdaq outperformed the broader market, soaring over 3.4% higher.
Despite the rally, the S&P 500 and Nasdaq posted their worst monthly performances since the start of the coronavirus pandemic; the S&P 500 closed down 5.3% and the Nasdaq finished 8.9% lower. The Dow also closed out the month lower, falling over 3%.
Here's how the market settled on Monday:
S&P 500 Index (NYSE: SPY): +1.89% or +83.70 points to 4,515.55
Dow Jones Industrial Average (NYSE: DIA): +1.17% or +406.39 points to 35,131.86
Nasdaq Composite Index (NASDAQ: QQQ): +3.41% or +469.31 points to 14,239.88
Moderna COVID-19 vaccine receives full FDA approval:
Moderna (NASDAQ: MRNA) shares rose on Monday after the company received full approval for its COVID-19 vaccine, named Spikevax, from the U.S. Food and Drug Administration (FDA).
The mRNA-based vaccine was previously available in the U.S. under Emergency Use Authorization since Dec. 2020. Moderna now joins Pfizer (NYSE: PFE)-BioNTech's (NASDAQ: BNTX) COVID vaccine which received full FDA approval back in August.
"This is a momentous milestone in Moderna's history as it is our first product to achieve licensure in the U.S.," said Moderna CEO Stephane Bancel in a press statement. "We are grateful to the U.S. FDA for their through review of our application. We are humbled by the role that Spikevax is playing to help end this pandemic."
Tesla set to "Outperform" according to Credit Suisse upgrade:
Credit Suisse (NYSE: CS) sees Tesla's (NASDAQ: TLSA) recent slump as the perfect buying opportunity, upgrading the stock to "outperform" and setting a new price target of $1,025.
Analyst Dan Levy wrote in a note on Monday: "Tesla has surprised to the upside on margins, in large part driven by cost reductions; we believe the strong margins are sustainable," and that the firm believes, "legacy OEMs are taking clear steps to transitioning to an EV world, yet we expect Tesla to maintain a lead for the foreseeable future."
"Up until now Tesla margins have largely been a function of auto hardware sales, with some modest benefits of software," Levy added. "However, as Tesla releases more FSD (Full Self-Drive) features and unlocks more deferred revenue (which likely flows through at 100% contribution margin), Tesla should see incremental margin benefit."
Sony to acquire videogame developer Bungie for $3.6 billion:
Sony Interactive Entertainment, a subsidiary of Sony Group Corporation (NYSE: SONY), announced Monday it has agreed to acquire privately-held video game developer Bungie for $3.6 billion. Bungie is the firm behind the popular multiplayer games 'Destiny' and 'Halo'.
Bunge was acquired by Microsoft in 2000 before splitting from the tech giant in 2007. Bungie will continue to operate independently within Sony, according to a statement.
"Bungie has created and continues to evolve some of the world's most beloved video games franchises and, by aligning its values with people's desire to share gameplay experiences, they bring together millions of people around the world," said Kenichiro Yoshida, Chairman, President and CEO of Sony Group, in a press statement.
Here's how market benchmarks started trading after open:
S&P 500 Index: -0.17% or -7.57 points to 4,424.28
Dow Jones Industrial Average: -0.53% or -182.62 points to 34,542.85
Nasdaq Composite Index: +0.13% or +17.74 points to 13,782.92