Market Update (10/26)
Stocks moved decisively lower on Monday to start what could be a volatile week. With the U.S. elections looming and with a resurgence of the coronavirus around the globe, including the United States, investors took risk off the table. Shares in companies that were expecting to soon benefit from a broad scale economic reopening were hit the hardest. Most hard hit were airlines like American Airlines (AAL), cruise lines including Norwegian Cruise Line Holdings (NCLH) and hotels like Wynn Resorts (WYNN), which all sank. AstraZeneca (AZN), was a bright spot in the markets, though, outperforming after a report that its COVID-19 vaccine candidate developed with the University of Oxford produced a robust immune response in elderly individuals.
At the close, the $DJI lost 2.29% to 27,686.04. The NASDAQ Composite skidded to 11,359.94, down 1.64%. The S&P 500 dropped 1.86% to 3401.05. The Russell 2000 joined the bearish mood to close lower by 2.50% to 1599.47.
The InvestorsPrism family of indexes followed the broader markets bearish direction. The PRISM Emerging Gene Therapy index closed lower by 3.0%, with Dicerna Pharmaceuticals (DRNA, +4.8%) bucking the bearish trend to close nicely higher. The PRISM Emerging MedCannabis index closed lower by 5.6% on the day. The PRISM Emerging MedDevices index traded lower by 2.5%. Medigus Ltd. (MDGS, -12.55%) led the index losers, giving back most of Friday’s percentage gain.
Other PRISM indexes also closed lower. The PRISM Emerging MedDiagnostics index moved lower by 2.3%. The PRISM Emerging New Economy index closed lower by 3.2%, and the PRISM Emerging Pet Care & AgriBiz index closed lower by 4.1% on the day. The biotech heavy PRISM Emerging Vaccines & Cell Therapy index closed lower by 4.2%. BiondVax Pharmaceuticals again pulled the index down, (BVXV, -25.01%) after dropping 86% on Friday after missing a critical endpoint in its universal vaccine trials.
The weakness in equities flowed into the top commodities at 4:00pm ET. Crude Oil is trading lower by roughly 3.34% to $38.52. Gold is lower by less than one-percent to $1904.90 per oz., and Silver is also trading lower at $24.41 oz. Bitcoin ($BTC) is holding last weeks massive gain above $13,000, trading down by roughly 1% at $12,986.91.
*data as of market close at 4pm est on 10/26/20