Moderna Keeps Surging, MGM Stumbles

The stock market was treading water on Friday, with all three major U.S. indices either advancing or declining by less than 0.3%.

That’s not to say certain individual stocks didn’t make big moves on the day, however, with two of the day’s most notable names being biotech Moderna (ticker: MRNA) and MGM Resorts ( MGM) — although they finished the week trending in very different directions.

The Dow Jones Industrial Average lost 62 points, or 0.2%, to finish at 26,671.

[Sign up for stock news with our Invested newsletter.]

Continued euphoria on vaccine hopes. Moderna, which reported impressive developments in the first human trials of a vaccine earlier this week, continued to see its stock rally into the close of trading Friday, as shares picked up another 15.9% on the day.

The company definitely has a rare potential catalyst that shareholders of many rival biotechs would kill for: The fact that Moderna’s nascent treatment produced antibodies in all 45 human participants in initial trials makes it a potential gold mine for investors if MRNA ends up developing the first approved vaccine.

That said, shares hit new 52-week highs on Friday, and the stock is already up more than 700% from 52-week lows.

MGM stumbles. Gambling and resorts giant MGM saw its stock finish as one of the worst performers in the S&P 500 on Friday, as shares fell 4.5%. Obviously, 2020 has been a tough year on Wall Street for companies involved in the virus-sensitive industries of travel, live entertainment and lodging.

The newfound spike in U.S. cases, which logged new all-time highs in new daily cases this week, is bad news for companies like MGM, which depend heavily on tourism and live gambling.

What? Tesla is a risky stock? One of the mainstream analysts covering electric vehicle giant Tesla ( TSLA) is taking the rare step of acknowledging the risk inherent in shares at current levels. CFRA analyst Garrett Nelson lowered his rating on shares of red-hot TSLA to “sell,” maintaining a $1,100 price target.

In one of 2020’s starkest surprises, shares of TSLA have rallied nearly 250% year to date, and Nelson noted the stock, at current levels, might be priced a tad optimistically with shares around $1,500.

More from U.S. News

Artificial Intelligence Stocks: The 10 Best AI Companies

15 of the Best Dividend Stocks to Buy for 2020

The Complete Berkshire Hathaway Portfolio

Moderna Keeps Surging, MGM Stumbles originally appeared on usnews.com

Related Categories:

Latest News

More from WTOP

Log in to your WTOP account for notifications and alerts customized for you.

Sign up