Though the U.S. stock indices closed on the plus side, it was not what investors expected at the start of the trading week. Economic news from the Celestial Empire regarding the removal of social restrictions and relaxations in the technology sector in China could not keep investors from selling amid concerns about the economic situation in the United States.
Dow Jones lost ideas for growth. Traders at the NYSE are already walking around in proper caps. Photo:
Dow Jones added a token 0.05% thanks to shares of The Travelers (TRV) +1.6% and International Business Machine (IBM) +1.2%. Amgen (AMGN) -1.2% and Salesforce (CRM) -1.1% were the worst performers in the major stock index. Meanwhile, the S&P 500 and Nasdaq broad market index were up 0.31% and 0.4%, respectively.
Amazon splits shares
up 2% as e-commerce leader Amazon (AMZN) announced a $10 billion buyback and a 20-to-1 split (split) of its securities. Since Monday’s trading session, AMZN has been trading in a new price range of $125.
Novavax awaits FDA decision
It is worth noting the emerging activity in shares of once-active stock performer Novavax (NVAX). The Maryland-based biotech gained 6.21%. It’s worth noting, though, that they did so after Friday’s 20% plunge.
At the beginning of last year, NVAX’s price tag was as high as $330, but the stock was only $47.54 at the close today. The company was one of the leaders in the coronavirus vaccine race, but failed to meet its production goals, so it ended up paying for its capitalization.
Tomorrow, June 7, independent FDA (Food and Drug Administration) experts will review the safety and effectiveness of its vaccine, CNBC reports.
In clinical trials in the U.S. and Mexico, the Novavax vaccine for adults 18 years and older was 90% effective in preventing Covid, and 100% effective in preventing the severe form. These data are quite comparable to the results of the Pfizer (PFE) and Moderna (MRNA) trials shown in 2020.
There is every reason to expect expert panel approval to give the FDA the green light for this product. It’s not entirely clear how many doses of Novavax will be available in America if the FDA approves the vaccine this week, but that’s beside the point.
The fact is that not only the pandemic, but the public health situation on this issue is already in a very different dimension than in 2020, when it was arch-active. And this poses new challenges for biotech leadership. In addition, there is no data to evaluate the effectiveness of the drug against the now current omicron strain.
Nevertheless, it is unlikely that the potential for Novavax (NVAX) stock will hurt your investment portfolio. Things are looking up for the company coming off a losing streak. The consensus forecast from the seven analysts covering these securities says the company will make almost $2 billion as early as 2022
We were paying attention to Novavax (NVAX) stock on March 3, 2020, when it was worth $12. In February 2021, they were worth more than $300 apiece. Now do it again. With a favorable outcome, Biotech securities could brighten the loneliness of your long positions at a time of weakness in the Dow Jones and S&P 500.
A five-year chart of Novavax (NVAX) stock. Source: Nasdaq