Dow Jones Today: Stocks Erase Losses, Coronavirus Variant Vaccine Possible; Apple Thinking Of Apple Car

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U.S. stock traded up and down today as traders aren’t sure what to make of the coronavirus variant news. It was always expected that the mutation of Covid-19 would take place, but the enthusiasm about the coronavirus vaccine made traders forget about all other problems. The biggest fear among investors and traders is whether the coronavirus variant is going to be more deadly than the current coronavirus? And if the answer to that question is yes, and the existing vaccines aren’t as effective against the new strain, how long will it take for pharma companies to make a vaccine for this variant?

Variant Vaccine Can Be Done

BioNTech, which is behind the current Covid-19 vaccine in the U.K., believes that the current coronavirus vaccine should protect the public from this coronavirus variant. However, BioNTech’s boss believes that a new vaccine can be re-engineered in a matter of weeks if there is any need for it.

Dow Jones And S&P 500 Price Levels

Another key takeaway from yesterday’s price action is that bargain hunters are standing ready to bag any bargains, as they believe that the worst is behind us. Yesterday, when the S&P 500 and Dow Jones futures came under intense selling pressure and came close to their 50-day simple moving average on the daily time frame, we saw massive buying.

Bargain hunters pushed the Dow Jones and S&P 500 away from yesterday’s low. Having said that, it is imperative to keep in mind that we need the S&P 500 and the Dow Jones to break above the highs of yesterday. If the S&P 500 and the Dow Jones fail to shatter yesterday’s high in the coming days, it is highly likely that we may revisit yesterday’s low or even move lower. Such price action is likely to make investors lose their confidence in a risk-on trade scenario, and the S&P 500 and the Dow Jones both could face intense selling pressure. 

Stock Volatility Fizzles 

As for the Cboe Volatility Index, the VIX, the massive spike that we experienced yesterday has fizzled out today. The index has made a low, which is lower than yesterday, and this confirms that there isn’t much appetite for risk-off trades among traders.

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Airlines, Travel and Leisure Stocks Pop

In terms of stock sectors, travel and leisure sectors are recovering their losses after taking a massive beating yesterday. The Stoxx 500 travel and leisure index has been hit hard this year. In fact, the index is on track to record its worst performance since the financial crisis. If economic recovery picks up the pace and this coronavirus variant doesn’t create further lockdowns, this index may bounce back the most in 2021. 

Apple Thinking of Apple Car

In terms of stock news, Apple, the iPhone giant, is thinking of hitting the road by coming up with an electronic car. The company has $190 billion in cash, and it certainly has the ability to create any product it sets its mind to. But the fact is that Apple doesn’t need to re-invent the wheel. It needs to partner with a company that is already in the electric car sector and add value to their product.

Creating an Apple car from scratch requires overcoming a lot of regulatory hurdles. It is important to keep in mind that a few years back, there were several rumors that Apple was going to make an Apple Television. The company never came up with such a product, and a similar thing can happen here once again. Yes, the electric car industry is going to see a massive boost in the coming years, but the fact is that the average person drives only 30 miles a day.

However, when it comes to phones, on average, we spend more than four hours on the phone. Hence, this is a much bigger market to focus on. Therefore, it will make a lot more sense to just partner with existing carmakers.