Dow futures are down nearly 300 points this morning after slipping nearly 600 points yesterday. All of the major indexes are set to open lower this morning after suffering steep losses yesterday. There are many factors adding to current uncertainty, but the major force which is driving the markets lower is the spike in Covid-19 cases.
New coronavirus cases in the U.S. reached their highest single-day level yet yesterday. According to Texas Governor, Greg Abbot, there has been a “massive” coronavirus outbreak across the state since reopening began May 1. Case numbers are rising in 29 states with Texas, Florida, Oklahoma and South Carolina all reported their highest single day totals yesterday. Cases numbers continue to rise significantly in Mexico, Brazil, India.
Many feel this uncertainty is here to stay until a solution is found. As pharmaceutical companies gain funding and their trials progress investors follow the news intent on getting in on the winning picks. One company is making big progress on a solution and investors are noticing, but the promising study that they are working on isn’t a vaccine, it’s a unique solution and more news could be coming very soon.
Sorrento Therapeutics Inc. (SRNE) currently has a few important studies in the works. They have gotten attention from investors in the past for their study on antibody effect for cancer treatment. Since the rise or the pandemic worldwide, Sorrento has been studying antibodies that could possibly neutralize the novel Coronavirus.
SRNE gained 10% yesterday and we think there is plenty more room to run with a 52 wk high of $10. Pharmaceutical stocks are extremely volatile and are no stranger to panic dips. If you want to go in on this one, choose your entry and exit points wisely.