Virgin Galactic’s Branson flew to space, but the stock of Virgin Galactic (SPCE) dropped. Why?
TESLA, PFIZER, APPLE: updates of the stock market
Pharma: the three in the race
This summer saw Moderna’s stock price go from $55 in June up to $95 in July just to come back to the same $55. In the meantime, Pfizer failed to break the resistance of $39 that has been capping its moves since the virus crisis has started. Currently, it trades below $36. The third in the competition for the vaccine is Novavax – fell from $187 in August to below $87 currently.
As you can see, all three experienced a similar surge in the middle of summer and then dropped to where they currently are. Why? Unclear sales projections. As the vaccines are coming closer to their completion stages with Moderna, Pfizer, and Novavax, these companies realize that not only they will be competing against each other but smaller contractors as well. In addition to that, none of them is sure that the political pressure will be taken out of the game to push one vaccine against the other to the public. Hence, although the first company to have an approved vaccine will see its stock price surge, bulls’ advances may be limited by alternative candidates. But who will it be? Follow the news with us.
Electric vehicles: more in the game
Tesla split the stock recently, so we no longer see prices like $1 500 – so far… In addition to that, the recent plunge of the tech sector of the S&P made it fall from $500 to the current ranges of $330-340. While the famous creation of Elon Musk is pressing on the sales of its Cybertruck, its competitors seem to be grouping up to give it a fight back.
General Motors recently announced that it was taking a chunky $2mln share in an electric car startup Nicola (exactly, Nicola Tesla it was - unsurprisingly). That made its stock surge from the depths of $20 range to the current $33 – full restoration to the pre-virus levels, in other words. That’s a very handy move for this stock as it has been far from a stable growth trajectory during the recent years. Will Tesla withstand the approaching competition? We will see it very soon.
Devices: the Apple of your eye
As the S&P’s tech sector plunged recently, Apple dropped from $138 to almost $112. Quite an unseen fall but pretty much within the industry. In fact, it looks more like a due correction from an unreasonable hype at the heights of above $130 into the normal uptrend established since March.
In fact, September 15 will see another yearly presentation by Apple. If the announcement of new products goes beyond what the market expected, the stock may surge again. For this reason, let the price calm down for a while and let’s see what Apple has to present – very likely, we will see $138 crossed quite soon.
Your plan now: learn, try, trade
In line with these observations, we are trying to keep you updated with the latest analytics, as well as give you the fundamentals of trading stocks and short-cuts of different trade strategies. Also, pay attention to the specifics of different stocks – you will find them all in specifications.
The overall market sentiment is risk-on. The S&P 500 index (US 500) is getting close to the all-time high. Oil is recovering quickly from its recent losses.
What will happen? The FOMC statement will be published at 21:00 MT (GMT+3) on Wednesday, July 28…
PMI reports from the EU, the UK, and the USA will be released during the day!