- The looming prospect of renewed COVID restrictions became a central topic of Wall Street discussion on Tuesday. Worries about a new wave of shutdowns in response to the Delta variant drove down leisure and restaurant stocks, including slides in BJ's Restaurants (NASDAQ:BJRI), Cheesecake Factory (NASDAQ:CAKE) and SeaWorld Entertainment (NYSE:SEAS).
- The lingering concerns about COVID gave a boost to other areas of the market. Moderna, Inc. (NASDAQ:MRNA), for instance, rode the likely necessity for further vaccinations to a new 52-week high. Shares were further supported by a positive ruling from U.S. regulators for another product.
- On the other end of the spectrum, Dun & Bradstreet (NYSE:DNB) hit a fresh 52-week low. Disappointing quarterly results sparked a sharp decline.
- Robinhood (NASDAQ:HOOD) returned to the spotlight on Tuesday. After a choppy start to its public career last week, the recent IPO spiked during the day to close above its offering price for the first time.
- Another recent IPO generated headlines for the opposite reason. China's E-Home Household Service (NASDAQ:EJH) continued a volatile trading history since coming public, dropping by more than 60% on Tuesday.
Sector In Focus
- Data has rolled in over the last few days pointing to a sudden resurgence in COVID. This has mostly come as a result of the easily spread Delta variant.
- The persistence of the COVID threat has raised concerns about a renewal of pandemic restrictions, like wearing masks and potential shutdowns.
- These worries were exacerbated on Tuesday by news out of New York City. Democratic Mayor Bill de Blasio said the city would require proof of vaccination to go into restaurants, gyms and performance spaces.
- With these headwinds starting to pick up, leisure and restaurant stocks lost ground on Tuesday. BJRI declined by nearly 6%. CAKE slipped by 3.5% and SEAS fell by about 2.8%.
Notable New High
- Restaurants and theme parks suffered the brunt of the COVID worries. At the same time, increased pandemic chatter gave a lift to shares of Moderna, Inc. (MRNA).
- The maker of a widely distributed COVID vaccine climbed more than 11% on Tuesday. Along with the NYC news, there were additional reports of potential booster shots being offered in Britain and Germany.
- Interest in the stock was also stimulated by a separate piece of news. Moderna announced that the FDA had given Fast Track status to its experimental respiratory syncytial virus vaccine.
- Taken together, all this news allowed MRNA to finish higher by $39.90 to close at $386.51. It also set a 52-week high of $386.98.
- Shares have now advanced more than 65% in the past month and have more than doubled in the past six months. Compared with last year, MRNA is up nearly 400%.
Notable New Low
- On the surface, Dun & Bradstreet (DNB) announced better-than-expected financial figures. Its non-GAAP EPS of $0.25 topped projections by a penny. Meanwhile, revenue growth came in slightly above estimates at 24%.
- Still, shares of the analytics company fell on Tuesday. DNB dropped by 8% to close at $18.97. The slide took shares below a recent trading range and to a new 52-week low of $18.92.
Standout Gainer
- Robinhood (HOOD) had a rough start to its tenure as a publicly traded company.
- Last week, the high-profile financial trading platform priced its IPO at $38 a share. However, it fell in its first session, closing at $34.82.
- The early action in the stock also took it to a low of $33.25.
- Going into Tuesday's trading, the stock remained below its IPO price, closing Monday's session at $37.68.
- Buyers poured in on Tuesday, however, sparking a rally of more than 34%.
- With the advance, HOOD finished at $46.80 -- the first time it has closed above its IPO price. The gain now has it sitting 23% above that original $38 level.
Standout Loser
- Chinese home-services platform E-Home Household Service Holdings (EJH) came public in May in an IPO priced at $4.50.
- It immediately saw a spectacular advance, finishing its first session at $54 -- a gain of more than 1,000% in its first trading session. EJH also set a 52-week high of $80.93.
- Since then, the stock has felt significant selling pressure, in part spurred by growing concerns about the viability of Chinese stocks amid that government's aggressive regulatory environment.
- The retreat accelerated on Tuesday. EJH had one of the biggest losses on the session, ending the day lower by 61%.
- The stock finished at $7.92, still above its IPO price but less than 10% of its 52-week high.
- Searching for more information about Tuesday's action on Wall Street? Check out SA's comprehensive stock commentary.