Business

The vaccine news is great for most stocks -- unless you're Zoom

Posted November 9, 2020 9:42 a.m. EST

— Stocks were already set to soar Monday after Joe Biden was elected 46th US president -- but Wall Street's enthusiasm kicked into an even higher gear after Pfizer and BioNTech announced positive clinical data for their Covid-19 vaccine.

Shares of Pfizer and BioNTech skyrocketed about 15% and 25% respectively.

And so did the stocks of other companies working on vaccines, such as Moderna and Johnson & Johnson. Meanwhile, shares of companies that make antibody and antivrial treatments (but not vaccines), including Regeneron, Eli Lilly and Gilead Sciences, were lower.

Drug stocks and biotechs weren't the only companies soaring on the hopeful vaccine news. The prospect of an effective coronavirus vaccine has people dreaming of a return to normalcy.

That's why shares of movie theater chain AMC skyrocketed more than 80% while concert promoter Live Nation was up more than 20%. Retailers surged, too: The SPDR S&P Retail ETF, which holds Gap, Best Buy, Target, Costco and other big chains, was up 4%.

Cruise lines Carnival, Norwegian and Royal Caribbean all soared, as did shares of major airlines Southwest, American, Delta and United.

Other travel and leisure stocks, including Disney, Booking.com, hotel giants Marriott and Hilton, ridesharing firms Uber and Lyft and big restaurant chains McDonald's, Restaurant Brands and Darden, were up solidly too.

End of the work-from-home and stay-at-home stock trade?

But there were also some notable market losers Monday: companies that have benefited from the work-from-home and stay at home trends.

Video conferencing giant Zoom plunged 15%. So did shares of interactive exercise equipment company Peloton.

Amazon, Netflix and Roku were lower too -- a potential bet that consumers may spend less time indoors shopping online and binging on TV shows and movies.

Shares of work collaboration software company Slack fell about 4%. And shares of virtual health company Teladoc sank nearly 7%.

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