Moderna’s Announcement Has Traders Looking to the Future
Moderna’s shares leaped 9.6% during yesterday’s trading following an announcement that their COVID-19 vaccine is 94.5% effective. This number surpassed the FDA’s minimum effective rate of 50%, which would be a condition for them to consider granting expedited approval.
What excited traders is that Moderna’s vaccine can be stored between 2 to 8 degrees celsius. This means that logistically, it will be easier to transport and maintain by using refrigeration devices that are already in use throughout the medical supply chain. With Moderna’s (MRNA) vaccine, existing refrigerated trucks and doctors office’s refrigerators will suffice for proper storage.
In comparison to Pfizer’s announcement from last week that their vaccine is 90% effective, but must be stored at -73.5 degrees celsius to remain effective. This difference saw Pfizer’s (PFE) share price drop 3.3% during yesterday’s trading.
Entertainment & Travel Shares Rise
This much welcoming news might have had traders looking to the future, pushing travel and entertainment stocks higher.
This sentiment saw travel shares climb higher during yesterday’s trading. United Airlines (UAL) jumped 5%, while Delta Airlines (DAL) leaped 4.2%, and travel brands such as Royal Caribbean (RCL), a cruise line operator, reached higher with a 6.9% gain.
In addition, entertainment companies, such as Disney (DIS) recovered slightly with a 4.5% gain. Movie theater operators also saw a boot with AMC (AMCx) notching +7.7% higher and Cineworld (CINE-L) rising 14.6%.
This also had traders wondering about the future of stocks that soared during global lockdown and stay-at-home orders. Since the markets opened last week, following Pfizer’s Coronavirus vaccine announcement, Zoom (ZM) has shed 7.9%, Peloton (PTON) lost 4.5%, and Amazon (AMZN) dropped 3.0%.
Following the announcement of two Coronavirus vaccines and rising of entertainment stocks, there is potential for traders to see beyond the virus and imagine how business will be conducted post-pandemic. However, with infection numbers rising globally, it remains unclear how companies will close out the year.