Wall Street finished the week on a positive note Friday as technology shares rebounded and investors got some relief from recently volatile oil prices and Treasury yields.
The Dow Jones Industrial Average gained 423 points, or 0.83%, to 51,654.95. The S&P 500 advanced 0.59% to 7,811.54, while the Nasdaq Composite added 0.64% to 27,366.17. All three major averages also finished higher for the week. [cnbc.com], [investopedia.com]
Technology stocks participated in Friday’s rebound, while healthcare also produced several notable gainers. But perhaps the day’s biggest story occurred in telecommunications, where SpaceX created some unexpected turbulence for America’s largest wireless carriers. [cnbc.com]
💎 Diamond of the Day: Moderna (MRNA)
Moderna gets our Diamond designation after shares surged roughly 14% Friday, amid enthusiasm surrounding its mRNA pipeline and cancer-vaccine research. [timothysykes.com], [stockstotrade.com]
Healthcare generally had a good session. Merck and Gilead Sciences each gained more than 2%, while vaccine stocks including Moderna rose amid optimism surrounding reported National Institutes of Health cancer-vaccine efforts. [cnbc.com]
Why It Shined
- Moderna shares gained approximately 14% Friday in the closing market coverage reviewed. [timothysykes.com], [stockstotrade.com]
- Vaccine stocks received attention amid optimism surrounding reported cancer-vaccine efforts. [cnbc.com]
- Moderna’s oncology efforts include an expanded collaboration with Tempus and Merck surrounding its individualized cancer therapy program. [stockstotrade.com]
The potential use of mRNA technology beyond traditional infectious-disease vaccines is certainly an intriguing scientific development. But potential therapies remain subject to the clinical and regulatory process, and today’s stock-price reaction shouldn’t be interpreted as evidence of eventual commercial success.
🐕 Dogs of the Day: T-Mobile US (TMUS), AT&T (T) & Verizon Communications (VZ)
Elon Musk may be reaching for the stars, but Friday he certainly got the attention of America’s wireless companies.
SpaceX announced an agreement to acquire a nationwide portfolio of low-band spectrum licenses, which the company said would help pave the way for Starlink Mobile to become a major U.S. mobile carrier. [investopedia.com]
Investors reacted quickly.
T-Mobile US, AT&T and Verizon Communications fell between approximately 8.5% and 13%, making them the three largest decliners in the S&P 500 Friday. [investopedia.com]
T-Mobile US closed down 13.27%, AT&T declined 10.86%, and Verizon Communications fell 10.14%. [finance.yahoo.com]
Why They Barked
- SpaceX announced a deal involving a nationwide portfolio of low-band spectrum licenses. [investopedia.com]
- The announcement raised investor concerns about potential additional competition in wireless communications. [finance.yahoo.com], [cnbc.com]
- T-Mobile US, AT&T and Verizon Communications all suffered significant declines. [finance.yahoo.com]
- SpaceX itself gained more than 1% Friday. [investopedia.com]
Friday’s market reaction suggests investors took the possibility of additional competition seriously. The longer-term competitive impact remains to be seen. [finance.yahoo.com], [investopedia.com]
Important Disclosure
This communication is provided solely for informational and educational purposes and should not be considered a recommendation or solicitation to buy, sell, or hold any security, sector, or investment strategy. The “Diamond” and “Dog” designations reflect notable market performance and/or publicly reported developments during the period discussed and do not constitute investment recommendations or assessments of future performance. References to investigational therapies, scientific developments and competitive initiatives should not be interpreted as predictions of regulatory approval, commercial success, or future investment results. Past performance does not guarantee future results. Investing involves risk, including possible loss of principal.