Vaccine War 💉
By Wed, Dec 9, 2020
Hey Scoopers,
The S&P 500 index hit a new record high thanks to lawmakers’ plan to put their difference aside. — More on that in the “Overall Market” section.
Beyond the overall market, investors celebrated good guidance by the fashion retailer and sold shares of a beloved analytics software provider after a downgrade by financial analysts. — More on that in the “What’s Up?” and “What’s Down?” sections.
Oh, by the way, the COVID-19 vaccine war is going on. — More on that in the “Water Cooler” section.
But, first, here is a recap of what happened in the market yesterday:
Market Recap
- U.S. markets: The stock market indices finished the day in the green zone. Scroll down to the “Overall Market” section to read more.
- Cryptocurrency: Bitcoin’s price let go of the $19,000 level and ended the day relatively lower near the $18,000 per coin price tag.
The Elephant in the (5G) Room
Now is a time when it pays to heed timeless financial wisdom.
John Templeton, one of the world’s greatest investors, once said, “To buy when others are despondently selling and to sell when others are avidly buying requires the greatest of fortitude and pays the greatest ultimate rewards.”
Put Differences Aside
The stock market indices finished Tuesday in agreement and green. It seems lawmakers are ready to put their differences aside and get the stimulus package signed. The market indices took it as a good sign and surged above the zero line, pushing the S&P 500 index to a new record high.
Good Guidance
So what happened?
From my personal top-movers list, shares of StitchFix (Ticker: SFIX) were up by more than 39% on Tuesday. The company announced its latest quarterly earnings report, and both revenue and the number of users were up by 10%, and the company guided for 25% growth in the upcoming quarter. That was enough to push the stock price high up.
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Downgraded
So what happened?
Shares of MicroStrategy (Ticker: MSTR) were down by more than 13%. This analytics software provider has recently caught my eyes because it took $50 million of its cash and bought Bitcoin as a way to secure its future against any possible global economic downturn. After that, the stock price surged to the moon.
Today’s price drop came after a downgrade by financial analysts at Citigroup, seeing the stock price getting ahead of its potential. While this may seem to be a beaten-down stock, it is still relatively overvalued. I’m not jumping to buy shares just yet, although I like the company’s operational strength.
Vaccine War
So what happened?
There is a vaccine war going on out there. If you are keeping up with the news, last week, Pfizer (Ticker: PFE) said that it has to slash its vaccine production target by ⅕ due to capacity issues. It seems competitors are taking it as their chance to fill the void and run ahead of Pfizer. Moderna (Ticker: MRNA), the second company in the queue to get emergency authorization for its COVID-19 vaccine, wants to be that company that fills the gap in production with its vaccine. At least, that’s what analysts from Morgan Stanley believe.
Whoever comes out with a COVID-19 vaccine is a win for us all, but the stock market vaccine war is fun to watch too.
If you have any questions, or suggestions let us know by emailing us at members@tradestocks.com. We look forward to hearing from you.
About the Author
The authors of this Scoop are the editorial team at Stock Card, led by Hoda Mehr. Hoda Mehr is CEO and Co-founder of Stock Card and the host of Renegade Investors podcast. She runs a community of 40,000 stock market investors and manages Stock Card's successful flagship portfolio, Roll with Our CEO, on Stock Card Portfolio Store. Hoda is an Economist with an MBA from Concordia, John Molson School of Business. She applies behavioral economics, data journalism, and storytelling to all aspects of her work. Before starting Stock Card, Hoda worked as a strategy and insights lead at technology companies including Symantec, Aimia and Sony. Create a free account to do your stock market research easily and mistake-free: Stock Card Stock Card
