POSITIVE VACCINE NEWS PUSHES STOCKS SHARPLY HIGHER -- BOND YIELDS SURGE AS WELL -- GOLD TUMBLES

POSITIVE VACCINE NEWS CAUSES STOCKS TO SOAR...News of a vaccine with a 90% success rate caused stocks to soar today with the Dow and S&P 500 setting new records.   The Nasdaq and so-called "stay at home" stocks are lagging behind or losing ground.   Today's stock buying is concentrated mainly in economically-sensitive value stocks at the expense of growth stocks.   Chart 1 shows the S&P 500 surpassing its September high.  Small caps are also rising to new records.  Airline and travel stocks are also having an especially strong day.   All eleven market sectors are rising with the biggest gains in energy and financials.  Energy stocks are benefiting from an 8% surge in crude oil.    Financials are being lifted by a big jump in bond yields.   Chart 2 shows the 10-Year Treasury yield rising 13 basis points to .95%.  The TNX is testing its June peak.  Money moving out of bonds is going into stocks.    Precious metals are having an especially rough day on the vaccine news, surging stocks, and a firmer dollar.  Chart 3 shows the Gold Shares SPDR (GLD) gapping nearly -5% lower today and threatening its autumn lows.   Silver is also sharply lower.   That drop totally negates last week's more positive price action in precious metal markets.