The Vaccine Isn't Here Yet

By Alex Eule |  Wednesday, November 18

Not Immune, Yet. The most important headlines in recent weeks have come from pharmaceutical companies making tremendous progress on their Covid-19 vaccines. But the news today had a different feel -- a reminder that even with a cure on the way, the virus remains a significant threat to lives and the economy. 

Shortly after 2 p.m. Eastern time, New York City Mayor Bill de Blasio tweeted that New York City schools would be closed tomorrow "out  [of] an abundance of caution." The school system said the closure was until further notice. New York City has been the only major school system to re-open physical classrooms this fall. Now the city's one million-plus students will be remote like much of the rest of the country. 

The move will have far-reaching consequences not just for children's educations but also for their parents' ability to work. That's sure to be felt first hand by Wall Street traders, along with many of my colleagues.

After opening the day higher, stocks moved into negative territory late in the day and fell into the close. The Dow closed at its low for the day, down 345 points, or 1.2%. The S&P was also down 1.2%. 

In another reminder of 2020's strange market dynamics, Zoom Video and Peloton Interactive both jumped on de Blasio's announcement, with traders returning to their favorite quarantine hedges. Zoom finished up 3.3%, while Peloton gained 2%.

New York City's school closure symbolizes the concerns around growing Covid caseloads across the country. "We must fight back the second wave of Covid-19," the mayor said.

There will be strong debate in the days to come about whether schools are the right place to wage the fight. Data shows that classrooms haven't been a source of Covid spread. This evening, de Blasio said on Twitter, "We will likely see additional restrictions across the board in New York City." 

The shutdown talk tempers the latest positive news on the vaccine front. Early this morning, Pfizer and BioNTech announced that it had concluded the Phase 3 study of its Covid-19 vaccine. In announcing the results, Pfizer said the vaccine had proven to be 95% effective, up from the "more than 90%" efficacy rate it reported last week. That's undeniably good news for the future. But, right now, the present is more troubling. And, for once, investors aren't looking ahead.