Moderna Briefly Loses Top Spot on S&P 500 After Vaccine View


Moderna Inc’s U.S. shares were down as much as 3.6% on Monday as investors have booked profits after the biotech company’s COVID-19 vaccine was short of its initial launch target and reported an unexpectedly bad safety trial data.

At 11:35 a.m. ET, Moderna shares were up 3.3% at $203.03. The new shares were down more than 8% from their issuance price of $197.29 on Dec. 2.

The New York Stock Exchange on Sunday “moved the candlestick to reorder order without review,” analysts at CFRA Research told clients, estimating the extraordinary situation to be worth a 10 to 15-point fall in Moderna’s share price.

“In addition, there is ample liquidity and capital, which prevents a desire to liquidate in extreme selling levels at the black swan event of the sale.”

According to data provider Refinitiv, other biotech companies were on track to close Monday’s session either flat or up by a percentage point, indicating the steady ascent of the Nasdaq Biotechnology Index.

The S&P 500 closed Monday’s session just 1.7 points higher but the Dow Jones Industrial Average finished 0.3% higher at 30,306.76.

“It’s a nice thing to see almost 400 ETFs in the red. It’s a good indication that perhaps the vaccine concerns of last week weren’t quite that big of a factor as perhaps they were feared,” said Raina Wong, managing director at ETF Sage.

Exchange-traded funds that track the Nasdaq Biotechnology Index, including those tracks Pfizer Inc and Moderna, fared far better.

“So if investors are just rebalancing their holdings, quite a few of them were just buying, because of these negative start to the week,” Wong said.

Barracuda Networks Inc, a cybersecurity company focused on cloud security, rose after it won contracts worth about $290 million from six financial services firms.

Zillow Group Inc’s shares rose 7.7% after TikTok parent ByteDance Inc offered a blockbuster deal that offered a 63% premium over Zillow shares.

Microsoft Corp climbed more than 2% after it was ordered to improve its security practices by the European Union’s antitrust watchdog.

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