Tag: Stocks 

Travel stocks are ‘very vulnerable to a sell-off’ heading into Thanksgiving, trader warns

The travel trade is in trouble.

Trading Nation: Travel stocks are sinking after CDC’s Thanksgiving warning



Airline, hotel and cruise line stocks slid on Friday ahead of Thanksgiving week after the CDC issued a warning on traveling for the holiday amid climbing Covid case counts.


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Expedia data released before the CDC’s announcement showed 60% of U.S. consumers said they would not be traveling for Thanksgiving. Those who will travel will go an average of 250 miles away from home, down from 450 miles a year ago, the data revealed.

Travel stocks’ road to recovery will likely be a bumpy ride, according o Boris Schlossberg, managing director of FX strategy at BK Asset Management.

“The market is discounting an absolutely perfect scenario that hasn’t even occurred yet, which is the idea that a vaccine is going to immunize everybody and we’re all going to go back to travel,” Schlossberg said Friday on CNBC’s “Trading Nation.”

“Between now and then, all of these companies are going to have a very, very hard time surviving and actually making any profits,” he said. “To me, a lot of these names have been overbought at this point, and I think they’re actually very vulnerable to a sell-off as they see very, very little engagement from the consumer.”

Schlossberg warned that consumer activity risks “retrenching” in the coming weeks amid the nationwide rise in Covid cases.

“At this point, the behavior of the consumer is going to take much longer than the market thinks to come back for these companies to really perform well,” he said.

One travel play seems to have been “vaccinated” before the rest of the industry, Piper Sandler’s Craig Johnson said in the same interview.

“Look at the JETS ETF,” the firm’s senior technical research analyst said. “I think most investors are looking beyond this near-term travel season.”


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“The first chart is I look at the correlation of the JETS ETF to the coronavirus cases,” Johnson said. “Back in the June-July time frame when there was a spike in cases, you actually saw that ETF trade lower. Now, you’ve got the exact opposite happening that there is a vaccine out, and you’re seeing that cases are moving up sharply higher and yet you’re seeing the ETF … move higher, too.”

To Johnson, that meant investors didn’t care much about how long a full-fledged comeback in the travel space might take.

“They’re … focused on that vaccination, and a move above $21 would open up a new leg higher on the JETS ETF, perhaps up to around the $30 range,” he said.

Schlossberg didn’t quite agree.

“To me, the runaway trade in JETS is just going to be a fade at this point,” he said.

JETS closed about 1.5% lower on Friday at $20.76 a share.


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UK shares jump on vaccine optimism; banks, travel stocks shine

(Reuters) – British stocks jumped on Monday as positive vaccine data from drugmaker Moderna bolstered hopes of a swift economic recovery to pre-pandemic levels, offsetting concerns over a post-Brexit trade deal with the European Union.

FILE PHOTO: The London Stock Exchange Group offices are seen in the City of London, Britain, December 29, 2017. REUTERS/Toby Melville

The blue-chip FTSE 100 index .FTSE closed 1.7% higher, after Moderna Inc MRNA.O reported its experimental vaccine is 94.5% effective in preventing COVID-19 based on interim data from a late-stage trial.

Pfizer Inc PFE.N and German drugmker BioNTech SE BNTX.O made a similar announcement on Nov. 9. British drugmaker AstraZeneca Plc AZN.L, which is yet to release results from its late-stage vaccine trials, fell 1%.

The domestically focussed mid-cap FTSE 250 index .FTMC ended 1.8% higher, with cinema operator Cineworld Group Plc CINE.L jumping 13.5% to the top of the index. The wider travel and leisure sub-index .FTNMX5750 gained 3.2%.

“This (vaccine news) is more evidence that an end to the pandemic is on the horizon and that the economy can eventually reopen without fears of further lockdowns,” said David Trainer, CEO of New Constructs, an investment research firm based in Nashville, Tennessee.

Energy .FTNMX0530, bank .FTNMX8350 and mining .FTNMX1770 stocks provided the biggest boost to the FTSE 100, which has already gained more than 15% this month, helped by a slew of local stimulus measures and hopes of a sooner-than-expected economic recovery.

Bank stocks also gained following news that PNC Financial Services Group Inc PNC.N would buy the U.S. business of Spanish lender BBVA BBVA.MC for $11.6 billion in cash.

Vodafone Group Plc VOD.L surged 6.9%, after saying it was increasingly confident about its full-year performance, while tech firm Smiths Group SMIN.L rose 4.8%, after highlighting a 30 million-pound cost-saving target for FY21.

Companies that have benefited from people staying home during the pandemic, such as Rentokil Initial RTO.L, Just Eat Takeaway.com JETJ.L and Ocado Group Plc OCDO.L, tumbled between 3.3% and 4.1%.

Meanwhile on the Brexit front, EU warned Britain on Monday that time was fast running out for a trade deal, as negotiators in Brussels began a last-ditch attempt to avoid a tumultuous exit at the end of December.

Reporting by Devik Jain in Bengaluru; Editing by Uttaresh.V and Matthew Lewis

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Cruise, Travel Stocks Jump as Vaccine News Buoys Reopen Bets

(Bloomberg) — News of a second highly effective vaccine against Covid-19 triggered a sharp rally in reopening beneficiaries as the promising results from Moderna Inc. built on momentum for an answer to the deadly disease.


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Investors piled back into industries like cruiseliners, airlines and casinos after Moderna’s data sparked optimism that more vaccine options can help to quickly reopen the global economy. The second positive update in as many weeks fueled stocks that have been among the market’s worst performers — the trio of big cruise stocks had shed between 47% and 69% of their value this year before Monday’s session.

Moderna jumped 12% to an intraday record as the so-called reopen trade helped lead U.S. stocks higher. Cruise companies including Carnival Corp., Royal Caribbean Cruises Ltd. and Norwegian Cruise Line Holdings Ltd. all jumped in early trading Monday. The S&P 500 rose as much as 0.9%.

Moderna said its Covid-19 vaccine was 94.5% effective in a preliminary analysis of a large late-stage clinical trial. The progress report comes after vaccine results from Pfizer Inc. and BioNTech SE a week ago showed 90% efficacy in stopping SARS-CoV-2 infections. Shares in Pfizer fell 4.1%, while BioNTech ADRs slumped 14%, the most since July.

“The initial market impact might be more cautious than after the Pfizer news given that it’s just ‘more of the same,’” said Stephen Innes, a strategist at Axicorp Ltd. “But the medium-term economic outlook should once again look better now, which in my view should support a sustained macro reassessment.”

Read more: Moderna Vaccine Found Highly Effective at Preventing Covid

Reopen trade roars back led by airlines and cruise operators

© Bloomberg
Reopen trade roars back led by airlines and cruise operators

Cruise, travel, tourism and entertainment shares were hit hard this year and face further losses as Covid-19’s resurgence in parts of the globe forces governments to impose further lockdown measures and travel restrictions. The prospect of effective vaccines is helping offset some of the potential declines, analysts said.

Carnival shares jumped as much as 10%, while Royal Caribbean advanced 8% and Norwegian rallied 9.8%. Airline stocks gained as well, with American Airlines Group Inc. and United Airlines Holdings Inc. jumping at least 5.8%, while Southwest Airlines Co. and Delta Air Lines Inc. eyed similar gains.

Casino operators also rallied, with Wynn Resorts Ltd. jumping 6.7% and MGM Resorts International climbing 5.3%. The benefits also spread to theme-park operators and ride-sharing stocks like Uber Technologies Inc. and Lyft Inc.

McKesson Corp., the central distributor for most Covid-19 vaccines in the U.S., rallied as much as 2.6%. Walgreens Boots Alliance Inc. and CVS Health Inc., which are partnered with the federal government to administer vaccines, climbed as well.

Industrial manufacturers like Carrier Global Corp. and Emerson Electric Co. — which offer refrigeration solutions and temperature management systems — can play a key role in any vaccine distribution effort. Carrier shares were up as much as 2.6% and Emerson rose 2.4%.

Lockdown Shares

Adding to the risk-on momentum was news that two of President-elect Joe Biden’s coronavirus

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Travel stocks rally after Moderna’s vaccine progress lifts hopes for near-term reopening

United Express ERJ145 ExpressJet

Airline, hotel, and cruise stocks surged in early Monday trading as Moderna’s encouraging vaccine trial results spurred fresh optimism for an end to the coronavirus pandemic.

The biotech company announced Monday morning that its experimental coronavirus vaccine was 94.5% effective at preventing COVID-19 in a preliminary analysis. The update comes one week after Pfizer and BioNTech revealed similarly positive results from early trials of their own vaccine. While both candidates still need to receive approval from the US Food and Drug Administration, their supposed effectiveness suggests a nationwide rollout could come in 2021. 

The news boosted shares of companies hit hardest by the virus and stay-at-home restrictions. United Airlines, American Airlines, and Delta jumped more than 5% shortly after the vaccine news.

Read more: GOLDMAN SACHS: Buy these 20 deeply underpriced stocks now before the recovery helps them rebound and crush Wall Street’s low expectations in 2021

Royal Caribbean Cruises, Carnival, and Norwegian Cruise Line Holdings gained more than 7%.

Hotels also rallied on the news. Hilton Hotels, Hyatt Hotels, and Marriott International all posted gained exceeding 5% in early trading.

The moves mimic the dislocations seen after previous encouraging vaccine updates. Stocks that would benefit the most from a full economic recovery bounce higher, while those that thrived through the pandemic slide. Monday was no different, as stay-at-home stocks such as Zoom, Netflix, and Peloton all traded lower.

Both Moderna and Pfizer aim to apply for emergency use authorization later this month. Approval would allow the companies to quickly begin distributing their vaccines to the most vulnerable populations. Even if both candidates are approved by regulators, vaccine supply is set to be very limited.

Read more: Peter Lynch disciple William Danoff manages over $124 billion and has beaten the market for 30 years. He shares the 10 investment rules that ensured his success.

Still, new hopes for a near-term breakthrough lifted the broader stock market. Futures for the Dow Jones industrial average and S&P 500 rose more than 1% on the news. Nasdaq 100 futures erased early gains posted minor losses as major tech names fell.

Oil futures extended gains as traders hoped for a vaccine to revive travel-based consumption. West Texas Intermediate crude contracts gained as much as 4.7%, to $42.02 per barrel.

Now read more markets coverage from Markets Insider and Business Insider:

JPMorgan’s quant chief shares 5 trade recommendations following Pfizer’s vaccine ‘game-changer’

US consumer sentiment falls for the first time in 4 months as spiking COVID-19 cases spur worry

The manager of Rathbones’ $2.4 billion Ethical Bond Fund is beating her benchmark – and 95% of her peers. Here’s how she makes green investing work.

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Trump’s Vaccine Comments Boost Movie-Theater, Travel Stocks

(Bloomberg) — The beaten-down shares of movie-theater companies, cruise operators and airlines got a boost late Friday after President Donald Trump and coronavirus experts expressed optimism that vaccines would soon be granted emergency use authorizations.

a person sitting in a chair: Moviegoers sit inside a United Cinemas International (UCI) movie theater in Rio de Janeiro, Brazil, on Thursday, Oct. 1, 2020. Health experts are sounding the alarms on a sudden rise in coronavirus cases in early Brazilian hotspots like Rio de Janeiro, even as local officials continue to reopen its economy.

© Bloomberg
Moviegoers sit inside a United Cinemas International (UCI) movie theater in Rio de Janeiro, Brazil, on Thursday, Oct. 1, 2020. Health experts are sounding the alarms on a sudden rise in coronavirus cases in early Brazilian hotspots like Rio de Janeiro, even as local officials continue to reopen its economy.

AMC Entertainment Holdings Inc. gained as much as 13% in postmarket trading, while Cinemark Holdings Inc. rose more than 6%. Delta Air Lines Inc., American Airlines Group Inc. and United Airlines Holdings Inc. all added at least 2%, while Carnival Corp., Royal Caribbean Cruises Ltd. and Norwegian Cruise Line Holdings Ltd. increased more than 1%.


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Airlines, cruise operators and theater stocks have been among the worst performers this year after seeing business dry up with more people staying home. Travel-related companies make up a quarter of the 20 worst-performers on the S&P 500 Index.

Emergency use authorizations should be coming soon for vaccines such as the one being developed by Pfizer Inc., Trump and members of a team tasked with accelerating vaccine development said at a White House press conference. Even as daily infections in the U.S. reached another record and with an increasing number of states adopting more clampdown measures, Trump said his administration would not be “going to a lockdown.”

a close up of a busy city street: A bicycle taxi passes in front of an AMC movie theater at night in the Times Square neighborhood of New York, U.S., on Tuesday, Oct. 15, 2020. AMC Entertainment Holdings Inc. is considering a range of options that include a potential bankruptcy to ease its debt load as the pandemic keeps moviegoers from attending and studios from supplying films.

© Bloomberg
A bicycle taxi passes in front of an AMC movie theater at night in the Times Square neighborhood of New York, U.S., on Tuesday, Oct. 15, 2020. AMC Entertainment Holdings Inc. is considering a range of options that include a potential bankruptcy to ease its debt load as the pandemic keeps moviegoers from attending and studios from supplying films.

For more articles like this, please visit us at bloomberg.com

©2020 Bloomberg L.P.

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Vaccine hopes spur major rally in oil and travel stocks

Grounded fleet of Aegean Airlines AEE, the flag carrier of Greece, as seen parked in the apron of Athens ATH LGAV International airport in the Greek Capital on July 7, 2020. A3 operates an all-Airbus fleet with A319, A320 mainly, A321 and new arrivals of modern and advanced Airbus A320NEO. The airplanes are parked with the engines covered as the airline temporarily ceased most of the operations due to the Coronavirus Covid-19 pandemic reduced traffic and travel restriction that the government imposed. Greece is restarting the summer season for tourism, one of the main income sources for the country with tighter safety measures, easing the lockdown measures and COVID Virus checks at the entry points in the country such as the airports. (Photo by Nicolas Economou/NurPhoto via Getty Images)
The airline industry’s fate looked uncertain following months of COVID-19 groundings. Photo: Nicolas Economou/NurPhoto via Getty Images

Travel and oil stocks are leading FTSE (^FTSE) gains on Tuesday as markets continue to rejoice over news of a COVID-19 vaccine.

The moves come after early findings show that a vaccine developed by Pfizer (PFE) and BioNTech SE is 90% effective in protecting people from transmission of the virus in global trials.

“Vaccine means ‘back to normal’ – it’s all about the velocity of people getting back to 2019 levels sooner which means more demand for travel, more demand for oil products (gasoline, jet fuel),” said Neil Wilson, chief markets analyst at Markets.com.

Rolls Royce (RR.L) was among the most dramatic gainers on the London index, up around 19.5% at around 11:30am in the UK. IAG was also up 9.1%.

Rolls Royce's gains remained steady on Tuesday as global markets rallied.
Rolls Royce’s gains remained steady on Tuesday as global markets rallied.

“You have also got to remember just how badly beaten down these sectors were and how they are very cheap relative to the market and relative to growth, so we are seeing a major rotation back into value stocks. In some cases too there are short squeezes going on with lots of hedgies caught the wrong side of this news,” Wilson added.

READ MORE: European markets find calm after frantic rally on COVID-19 vaccine news

In September, International Airlines Group (IAG.L) announced more cuts to flights as it adjusted to the collapse in demand for air travel. It dropped its capacity by 60% below of its 2019 levels, adding that it didn’t see a return to 2019 levels until 2023. It was also aiming to cut up to 13,000 jobs amid a bitter dispute with its union Unite over redundancies and pay cuts for cabin crews.

According to a recent Morgan Stanley note, Lufthansa (LHA.DE), IAG, and EasyJet (EZJ.L) still face a strong cash burn rate and will be close to their minimum cash levels by 2Q20, which suggests they may need to access more liquidity resources by 2021.

“With the elastic band stretched so far to the downside it makes sense that these stocks (also heavily shorted) will be big winners on the way up,” said Chris Beauchamp, chief market analyst at IG.

“Of course there’s a long way to go, but the change in sentiment should spark a more extended move to the upside as investors keep piling in in the hope of picking up some bargains, just as holidaymakers try to get some winter sun bargains for 2021. Oil [is] a similar story, hope of a return to stronger demand earlier than expected, which would help support cash flow and reduce the risk of further dividend cuts.”

The oil rally mirrored the wider stock market rally, underscoring gains for BP (BP), which was up 7.6% at around 11:50 am in London, and Royal Dutch Shell (RDSB.L) which was up 4.4%.

Both firms have been hard hit by COVID-19, with Shell planning to cut up

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Australia shares rise as vaccine hopes lift energy, travel stocks

By Deepali Saxena

graphical user interface: FILE PHOTO: A board displaying stock prices is seen at the Australian Securities Exchange in Sydney

© Reuters/DAVID GRAY
FILE PHOTO: A board displaying stock prices is seen at the Australian Securities Exchange in Sydney

(Reuters) – Australian shares closed higher for a fourth straight session on Tuesday as progress in the development of a COVID-19 vaccine raised hopes of a swifter recovery in the global economy and bolstered hard-hit travel, tourism and energy stocks.

The S&P/ASX 200 index <.axjo>, however, ended 0.7% higher after jumping 2.2% to a more than eight-month high in early session as a slump in overnight bullion prices weighed on gold stocks <.axgd>.

Risk appetite got a boost globally after U.S. drugmaker Pfizer and German partner BioNTech said a large-scale trial of their vaccine showed it was more than 90% effective in preventing COVID-19.

“Investors appeared to have switched out from big tech into the long-underperformed traditional industries last night, kicking off a new chapter of sectoral rotation,” Margaret Yang, a strategist with news and research website DailyFX, wrote in a note.

“How to strike a balance between an escalating pandemic wave against vaccine hopes will likely be a main theme for trading till year end.”

Video: RBA says 0.1% cash rate to stay for three years (ABC NEWS)

RBA says 0.1% cash rate to stay for three years



Tourism and travel-related stocks such as Flight Centre Travel Group , Sydney Airport Holdings and Qantas Airways rose more than 8% each on the news.

Energy stocks <.axej>, which have been among the worst hit by the pandemic due to a plunge in fuel demand, surged as much as 8.9% to record their best session since early April.

Nearly all stocks on the sub-index were higher, with Oil Search and Beach Energy climbing more than 14% each.

Heavyweight financial stocks <.axfj> rose to their highest levels since June 10, with the “Big Four” banks adding between 3% and 7.6%.

National Australia Bank ended 7.6% higher, overtaking Sydney-based rival Westpac Banking Corp as the country’s second-largest lender based on market value.

However, tech <.axij> and consumer <.axsj> stocks, which have so far benefited from an online shopping boom and panic buying triggered by the pandemic, dropped more than 3%.

Across the Tasman Sea, New Zealand’s benchmark S&P/NZX 50 index <.nz50> hit a record high before closing marginally higher at 12,612.39.

Investor attention will turn to country’s central bank meeting on Wednesday, where it is expected to unveil a new monetary policy tool to drive borrowing costs for lenders lower and maintain the official rate at 0.25%.

(Reporting by Deepali Saxena; Editing by Anil D’Silva)

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Energy, travel stocks surge on Pfizer vaccine hopes

NEW YORK (Reuters) – Shares of stocks that have been demolished as the coronavirus and related lockdowns have crippled the global economy surged on Monday following positive news from Pfizer PFE.N and its German partner BioNTech 22UAy.DE about is experimental COVID-19 vaccine.

FILE PHOTO: A logo for Pfizer is displayed on a monitor on the floor at the New York Stock Exchange (NYSE) in New York, U.S., July 29, 2019. REUTERS/Brendan McDermid

Pfizer shares jumped 10.16%, although they were off earlier highs, after the company said the vaccine was more than 90% effective in a large-scale clinical trial for which it will now seek a U.S. emergency use authorization. U.S.-listed shares of BioNTech were up 9.89%.

While Pfizer shares were higher on the news, the overall healthcare sector .SPXHC was underperforming the broader S&P 500, in large part due to a sharp decline in Biogen BIIB.O after a U.S. Food and Drug Administration panel voted against its Alzheimer’s treatment.

The energy sector .SPNY, down more than 50% through Friday’s close as reduced travel sapped demand for oil and gas, shot up 14.82% and was on track for its biggest daily percentage gain since March 24. Exxon Mobil XOM.N gained 13.39% and Valero Energy VLO.N soared 29.81%.

Banks .SPXBK, down more than 34% through Friday, climbed 12.66% and were also on track for their biggest one-day percentage gain since March 24 as bond yields soared and the U.S. yield curve steepened. A similar reaction was seen in Europe, with French banks Societe Generale SOGN.PA and BNP Paribas BNPP.PA, closing up 18%.

“It’s all about the vaccine. If Pfizer’s vaccine is as good as people are saying it is that’s a game changer for consumer behavior and a lot of the trends we’ve seen of the cyclical sectors being depressed are going to reverse on that hope that this is the beginning of the end of our dealing with COVID-19,” said Chris Zaccarelli, Chief Investment Officer, Independent Advisor Alliance, Charlotte, North Carolina.

(GRAPHIC: S&P 500 sectors gain amid vaccine hopes – )

Airlines .SPLRCALI, down more than 45% through Friday, jumped 15.22%, led by gains in Delta Air Lines DAL.N, up 15.07% and Southwest Airlines LUV.N as a vaccine would reduce the fear of traveling in an enclosed space.

Other travel-related stocks also moved higher. Disney DIS.N rose 11.29% while fellow theme-park operator Six Flags SIX.N advanced 17.07%.

The S&P hotels, restaurants & leisure index .SPLRCHRL shot up 5.43% with cruise lines Carnival Corp CCL.N and Royal Caribbean RCL.N each surging more than 30% higher. Casino operator Wynn Resorts WYNN.O rose 26.26% while hotel operators Marriott International MAR.O and Hilton Worldwide HLT.N each gained more than 10%.

Paul Nolte, portfolio manager at Kingsview Investment Management in Chicago, said the news was particularly good for companies in services industries. “The services part of the economy can recover strongly,” he said.

“It’s affecting services across the board,” he said, noting strong gains in Disney, Expedia EXPE.O and other travel-related

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Why Hotel and Vacation Stocks Popped on Monday

What happened 

Shares of hotel and vacation stocks soared on Monday after Pfizer announced positive data from its COVID-19 study. Shares of Hyatt Hotels (NYSE:H) jumped as much as 26.8% and are up 20.7% at 3:30 p.m. EDT. Shares of competitor Hilton Worldwide Holdings (NYSE:HLT) were up 24.9% at their peak and are now up 12.7%. 

Vail Resorts (NYSE:MTN) and Las Vegas Sands (NYSE:LVS) own hotels, as well, but they’re much more concerned with overall travel spending recovering at their resorts. Investors pushed their shares higher by 23.5% and 14.8%, respectively, at their peaks. As of this writing, Vail is still up 11.3%, while Las Vegas Sands is up 9.7%. 

Bell at a hotel reception desk.

Image source: Getty Images.

So what 

The travel industry has been absolutely hammered by COVID-19 because of local shutdowns, as well as the general reduction in travel. Consumers aren’t flying as they did a year ago, and most companies have severely restricted travel. So it’s no surprise that any hope about a vaccine for COVID-19 will send the market higher and consumer discretionary stocks like these will be some of the biggest beneficiaries. 

Below is a chart that shows just how devastating COVID-19 has been for these companies. Revenue dropped over 90% versus a year ago at Las Vegas Sands, and Vail and was down over 75% — the worst for all four companies. There’s been some recovery in the second half of 2020, but they’re all far from “normal” operating revenues. 

IMAX Revenue (Quarterly) Chart

IMAX Revenue (Quarterly) data by YCharts.

The exact timing and magnitude of the impact of the vaccine on travel and hotel stocks aren’t known, but having some prospects for the end of the pandemic is certainly welcome news for investors. As I mentioned, revenue was already starting to pick up over the last few months, so if the risk of COVID-19 declines as the vaccine is distributed, it could accelerate the recovery. That’s the bullish case that investors are betting on today. 

Now what 

Is now the time to dive back into travel and hotel stocks? The vaccine may be good news, but we don’t know much more about how quickly it will be administered or when the business will get back to “normal” than we did last week. And if any bad news comes out, we could see stocks reverse today’s gains overnight. 

I don’t think this is a fundamental reason to change your investment thesis on these stocks because nothing has really changed today — except for the market’s sentiment. Bullish investors can breathe a little easier knowing that a vaccine appears to be on the way and enjoy the day’s gains. But this pandemic is far from over, so don’t get too excited just yet.

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Travel service stocks get a big boost from good news on potential COVID-19 vaccine

Expedia Group Inc.’s stock (EXPE) was the biggest gainer of the group within the S&P 500 index (SPX) as it shot up 21.9% in active morning trading to surpass this year’s pre-COVID-19 peak. The stock was headed for the highest close since November 2019.


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Trading volume swelled to more than 6.4 million shares, already more than double the full-day average of about 2.3 million shares.

Also in the S&P 500, shares of Booking Holdings Inc. (BKNG) shot up 16.4% toward the highest close since June 2018.

Meanwhile, the S&P 500 climbed 2.8%, with 425 of 505 components gaining ground.

The gains come after BioNTech S.E. (BNTX) and Pfizer Inc. (PFE) revealed data showing that their COVID-19 vaccine candidate was 90% effective in preventing COVID-19 in trial participants without previous evidence of SARS-CoV-2 infection.

“Stocks, including beleaguered travel sector stocks amongst others, are soaring on the back of the news,” said Nigel Green, chief executive of independent financial advisory firm deVere Group. “But I would urge investors to remain optimistically cautious and above the ‘buy everything’ mindset.”

Elsewhere, shares of TripAdvisor Inc. (TRIP) jumped 19.4% toward a two-month high, Trivago NV (TRVG) hiked up 26.2% toward a seven-week high, Trip.com Ltd. (TCOM) ran up 12.3% toward a 10-month high and Despegar.com Corp. (DESP) advanced 18.1% toward an eight-month high.

The rally in travel booker stocks coincided with big gains in travel providers, with shares of airlines and cruise operators also soaring.

DeVere’s Green said he believes that while the vaccine news is “obviously, an important step in the right direction,” stocks are being “premature in their buoyancy.”

Travel stocks have been among the hardest hit by the COVID-19 pandemic, given some government-mandated restrictions put in place in attempt to stem the outbreak. Although many of the restrictions had been lifted since the worst of the pandemic, a surge in new cases globally worried investors that further shutdowns may occur.

With Monday’s rally, Expedia’s stock has gained 16.3% year to date and Booking shares have edged up 0.9%, while the S&P 500 has tacked on 11.7%.

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