We are sure you have all read about the big news. Pfizer, in conjunction with BionNTech announced that a vaccine candidate achieved 90% efficacy in Phase 3 study. There is more to do but this is the news everyone has been waiting for. It is going to change a lot of things in the market.
As we write this, DOW futures are up almost 1600 points, over 5%. But the NDX 100 futures are hardly up, a little over 1%. There is a simple reason. Most all the names that have benefited so much from the pandemic are being blasted this morning while everything that has been dead money are now gapping up strongly. As we write this:
ZOOM down 15%.
PELOTON down 15%.
NETFLIX down 5%.
AMAZON down 4%.
ETSY down 12%.
ROKU down 5%.
We also suspect any other drug and especially any other biotech company that was trying for a vaccine will be hit also. Those are just a few. You can add all the tech/software names that enable all of this to also be soft in here. As we scan, we are seeing a lot of 5%+ to the downside.
On the other end:
AIRLINES are gapping up 10-20%.
CRUISE LINES are gapping up 15-20%.
HOTELS are gapping up 10%+.
CASINOS are gapping up 10%+.
FINANCIALS are soaring.
RESTAURANTS are soaring.
ECONOMICALLY SENSITIVE names are soaring.
ENERGY is soaring.
It is early. The news will be fluid. While the vaccine news is fabulous, it is not done yet…but we are thrilled. Business should be thrilled. Life should be thrilled.