NEW YORK (BRAIN) — Major stock indexes soared Monday, apparently on Pfizer's announcement before markets opened in New York that its COVID-19 vaccine candidate was achieving 90% effectiveness in trials.
However, some bike-related stocks that have been booming during the pandemic were trading down on the news. Peloton, Fox Factory, Dorel, GoPro, Vista Outdoor and Garmin — all of which have released strong quarterly earnings results as recently as Friday — were all trading down as of Monday noon Eastern time.
Investors apparently were betting that recreational activities that have taken off during the pandemic would become less popular after a vaccine becomes available. Besides the bike-related stocks, Netflix's stock price took a hit Monday.
At the same time, the stock prices for airlines, and companies in the cruise ship, commercial property, and concert promotion businesses were trading sharply up.
Some resolution to the U.S. presidential race over the weekend, as news organizations called the win for Joe Biden Saturday, also contributed to generally higher stock prices. The S&P 500 was up 3% in early trading Monday. European and Asian stock market indexes were also up.
The Pfizer news came at 6:30 a.m. Eastern, after Asian stock exchanges had closed. So bike-related stocks traded on Asian exchanges, such as Shimano, Merida, and Giant, did not immediately show a response to the news.
But in the U.S., Peloton was trading down nearly 16% at noon EDT Monday. The market had responded positively to Peloton's quarterly results released last Thursday, but on Monday, the stock quickly plunged 21% on the Phizer news, to a low of $99.15 at 10 a.m. before rebounding slightly to $104 at noon.
At noon, compared to Friday's closing price, Fox Factory was down 7%, Dorel was down 4%, GoPro down 3%, and Vista Outdoor down 12%.
Garmin's stock price was somewhat volatile Monday, briefly trading about 5% above Friday's close before returning to $117 per share at noon, up less than 2% from Friday's close.
In Europe, Thule's stock price fell 26.2% Monday on the Stockholm exchange; MIPS fell 21% on the same exchange. Accel Group's stock closed down 1.2% on the Amsterdam exchange.
