Monday buying and selling is over and traders are gearing up for an additional busy week. On the agenda? Extra brief squeezes, meme token audits and particular occasions for high-profile SPAC shares. So with that each one in thoughts, what did the inventory market do at the moment?
- The S&P 500 closed up by 0.35%
- The Dow Jones Industrial Common closed up by 0.36%
- The Nasdaq Composite closed up by 0.21%
So what else did the inventory market do at the moment? Listed below are a number of the prime tales.
What Did the Inventory Market Do At this time? Promote SPCE Inventory.
What goes up should come down, and at the moment the inventory market proved that outdated saying true.
As we wrote this morning, Virgin Galactic (NYSE:SPCE) was an early winner. Buyers had been bidding up shares after Richard Branson joined his firm in suborbital house for the primary time — setting a milestone when it comes to crewed take a look at flights. Not solely did Branson beat rival Jeff Bezos on this battle, he additionally moved Virgin nearer to industrial launch. The corporate has two totally crewed take a look at flights remaining, and hopes to take paying passengers to house within the subsequent 12 months.
For traders, this take a look at flight was greater than excellent news. It was a cause to consider in house shares usually. When Virgin first got here public by a blank-check firm, traders purchased in on the idea of economic house flight. Since then, we now have seen a wave of different house startups select to return public by the identical path.
Importantly then, we additionally noticed these house shares achieve this morning. Different early winners included AST SpaceMobile (NASDAQ:ASTS) and Astra House (NASDAQ:ASTR).
Nonetheless, these beneficial properties had been short-lived. Virgin Galactic closed decrease at the moment by 17.3% after saying its plans to supply one other $500 million in inventory. Whereas an unsurprising mover to leverage sky-high investor curiosity, the information shortly sparked fears of shareholder dilution.
So what’s the backside line? In accordance with InvestorPlace analyst Luke Lango, the dilution issues will not be insignificant. Nonetheless, for believers in house flight, there’s a silver lining. As Lango places it, this inventory sale will give Virgin Galactic the firepower it wants to essentially ship.
Vaccine Information Isn’t Over
Johnson & Johnson (NYSE:JNJ) inventory closed down barely decrease on Friday following information that the U.S. Meals and Drug Administration will add a brand new warning to its Covid-19 vaccine. This warning will state that there’s a hyperlink to a uncommon autoimmune illness referred to as Guillain-Barré syndrome. Importantly, the FDA can even emphasize that the rewards outweigh the doable dangers.
Analyzing accessible information, well being officers have tracked 100 preliminary studies of Guillain-Barré syndrome. These instances observe the administration of greater than 12.8 million doses of the single-shot vaccine, prompting the FDA to name this hyperlink “severe however uncommon.” Thus far, these preliminary instances have principally been in males aged 50 years or older.
So what does this imply for traders?
To begin, the Washington Put up studies that that is yet one more stroke of unhealthy luck for the vaccine maker. Johnson & Johnson beforehand confronted a brief pause in its rollout following studies of a uncommon blood-clotting dysfunction in recipients. Its U.S. manufacturing accomplice, Emergent BioSolutions, noticed its Baltimore plant shut down in April because of dose contamination. This comes as an actual blow for the corporate, particularly because it markets its vaccine as essentially the most accessible. Its enchantment is in its single-shot nature, and its lesser logistics necessities for transportation and storage.
Nonetheless, in keeping with the identical Washington Put up report, information from Pfizer (NYSE:PFE) and Moderna (NASDAQ:MRNA) don’t but present a hyperlink between their vaccines and Guillain-Barré syndrome.
The second takeaway is that it is a difficult time to be a vaccine maker. As InvestorPlace Assistant Information Author Brenden Rearick wrote final week, Pfizer needs to maneuver forward with booster pictures and a vaccine particular to the delta variant. Nonetheless, well being officers are assembly Pfizer and its friends with pushback.
These three firms turned family names for his or her position in creating Covid-19 vaccines, and unsurprisingly, they are going to need to capitalize on that. Nonetheless, security scares like this and a altering relationship with regulators will cloud that narrative.
What Else We’re Watching
- Consultants suppose this week — and weeks forward — will probably be massive for stablecoins. These cryptocurrencies are pegged to different cryptos, a fiat forex or an exchange-traded commodity. Importantly, they’ve additionally made the information fairly a bit in current days. That’s as a result of Circle has introduced its SPAC merger with Harmony Acquisition (NYSE:CND). Visa (NYSE:V) can also be placing its weight behind stablecoins as a part of its future.
- This week Nifty’s additionally launched the primary NFT-focused social media platform.
- Outdoors of the crypto world, traders are busy cheering on Churchill Capital (NYSE:CCIV). That’s as a result of merger goal Lucid Motors will host its personal shareholder name tomorrow. There, traders anticipate optimistic updates from Lucid forward of a merger vote.
- Buyers additionally spent Monday rooting for AMC Leisure (NYSE:AMC) regardless of a selloff. #AMCUndefeated took over Twitter as traders drew consideration to the field workplace success of Black Widow.
On the date of publication, Sarah Smith didn’t have (both immediately or not directly) any positions within the securities talked about on this article. The opinions expressed on this article are these of the author, topic to the InvestorPlace.com Publishing Pointers.
Sarah Smith is the Editor of At this time’s Market with InvestorPlace.com.