Markets Up on COVID Pill News
Markets Up on COVID Pill News
Great news on Friday morning kept markets buoyant to end yet another strong week in the markets: a better-than-expected Employment Situation and Unemployment Rate — not to mention excellent progress on a new Covid pill from Pfizer PFE— helped hoist the Nasdaq +0.20%, the S&P 500 +0.37% and the Dow +0.56% in the last full trading session. This capped off five solid weeks of strong market gains, and it continues into this Monday morning: the Dow is +140 points, the S&P 500 +10 and the Nasdaq +2 points in the pre-market.
The Covid news continues to bring positive surprises today: a new antibody treatment developed by Regeneron REGN has proved nearly 82% effectiveness in reducing the risk of contracting Covid, and for longer periods of time. The trial tested immunocompromised subjects, and zero hospitalization s were recorded among those in the trial administered the drug, called REGEN-COV. The treatment had been authorized for use in the U.S. roughly a year ago to treat patients with advanced cases on Covid-19.
Regeneron, prior to the news, was already considered a Zacks Rank #1 (Strong Buy) ahead of this news, on a +56% positive surprise on Q3 earnings last week. Strength in REGEN-COV usage had provided a big boost to the company’s bottom line even before this new data hit the tape. Shares are up +1.4% in pre-trading this morning, and +26.6% year to date. Early September brought record closing highs to REGN stock before a pullback on softer market conditions later that month. The company is still roughly $60 per share of the record highs.
Later this week, we’ll see new inflation data — specifically, Producer Price Index (PPI) and Consumer Price Index (CPI) prints over the next two days. Steady increases in both metrics have also begun to slow down of late: last month’s PPI report saw +0.5% gains, which were the slowest of the year. Expectations are for +0.6% on PPI and +0.4% on CPI — double the September headline +0.2%. Now that the Fed has announced tapering of asset purchases forthcoming, it hopes to keep inflation reads from becoming unruly.
Q3 earnings continues today, as well. While most of the big marquee names already have calendar Q3 in the books, we expect to hear from companies like PayPal PYPL and meme stock AMC AMC after the bell today.
Bitcoin, Like the Internet Itself, Could Change Everything
Blockchain and cryptocurrency has sparked one of the most exciting discussion topics of a generation. Some call it the “Internet of Money” and predict it could change the way money works forever. If true, it could do to banks what Netflix did to Blockbuster and Amazon did to Sears. Experts agree we’re still in the early stages of this technology, and as it grows, it will create several investing opportunities.
Zacks’ has just revealed 3 companies that can help investors capitalize on the explosive profit potential of Bitcoin and the other cryptocurrencies with significantly less volatility than buying them directly.See 3 crypto-related stocks now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Regeneron Pharmaceuticals, Inc. (REGN): Free Stock Analysis Report
Pfizer Inc. (PFE): Free Stock Analysis Report
AMC Entertainment Holdings, Inc. (AMC): Free Stock Analysis Report
PayPal Holdings, Inc. (PYPL): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research