- MRNA stock surges over 20% on Friday.
- Moderna bounces on new covid strain possibly evading vaccines.
- The healthcare giant has been struggling due to poor earnings.
Moderna (MRNA) stock roared back into life on Friday as the beaten-up name staged a huge rally of over 20%. The reason is by now fairly well known. The new covid variant identified in South Africa looks like it may require a whole new vaccine in order to combat it. The new variant, given the name Omicron, looks to be able to avoid the current suite of vaccines and is potentially more transmissible than the dominant delta strain. This put vaccine manufacturers in the green on Friday with Pfizer up 6% and BioNTech (BNTX) stock jumping over 14%. Moderna had been one of the worst performers due to poor earnings in early November. The stock had been heavily punished so naturally, the snapback was greater here.
Moderna stock news
Added to the good news for the stock (bad news for the world) was news over Merck's (MRK) antiviral pill for covid. Merck announced on Friday that new data into its antiviral drug was not as hopeful as previously thought. Merck said updated data showed its pill reduced the risk of hospitalization and deaths by 30%, a much lower number than previously thought. Merck's antiviral pill, along with one being developed by Pfizer (PFE), had hit stocks of vaccine manufacturers. Interim data from Pfizers antiviral pill has shown an 89% reduction in hospitalization and deaths. Merck (MRK) shares fell nearly 4% on Friday.
MRNA stock forecast
Friday's strong performance for MRNA stock saw it rally to the 100-day moving average and also a point of high volume resistance. The charts do work! $360 is the last resistance and Moderna (MRNA) is trading here in Monday's premarket so it will be interesting to see if it can hold these gains. We would not be inclined to chase the stock up here and would favour a bearish position with a stop at $380. The bearish traits have not been totally eliminated in our view. The last earnings were a disappointment and markets are rallying as not enough information is known about the new covid variant just yet. Moderna is now overbought on stochastic but no other indicator is confirming this move just yet.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD touches two-week high after RBA meeting minutes
AUD/USD attracts buyers for the fifth straight day on Tuesday and climbs to a nearly two-week low following the release of RBA minutes, which indicated that the May meeting would be an opportune time to reconsider reacting to potential risks. This, along with a positive risk tone, acts as a tailwind for the Aussie.
USD/JPY trades with positive bias above 143.00; upside potential seems limited
USD/JPY gains some positive traction on Tuesday and now seems to have snapped a three day losing streak to a multi-month low touched last week. The upbeat market mood undermines the safe-haven JPY and lends support amid a modest USD uptick.
Gold price holds steady above $3,200; remains close to all-time peak
Gold price trades above the $3,200 mark following the previous day's modest pullback from a fresh record high as the escalating US-China trade war continues to underpin the safe-haven bullion. Moreover, the Fed rate cut bets lend support to the XAU/USD.
US Homeland Security probes Anchorage digital bank amid Blackrock custody expansion
US Homeland Security’s “El Dorado Task Force” is investigating Anchorage Digital Bank for potential financial misconduct. Anchorage previously faced regulatory action for BSA/AML compliance failures.
Is a recession looming?
Wall Street skyrockets after Trump announces tariff delay. But gains remain limited as Trade War with China continues. Recession odds have eased, but investors remain fearful. The worst may not be over, deeper market wounds still possible.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.