Stocks Rise as "Fear Gauge" Cools Off

The World Health Organization calls omicron a "variant of concern"

Assistant Editor
Nov 29, 2021 at 11:54 AM
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The Dow Jones Industrial Average (DJI) and Nasdaq Composite (IXIC) are both up triple digits midday, paring some of their losses from Friday's massive selloff. The S&P 500 Index (SPX) is sitting in the black as well, as the world watches for updates on the Covid-19 omicron variant, which the World Health Organization (WHO) has called a "variant of concern."

Wall Street's "fear gauge," the Cboe Volatility Index (VIX), has cooled off from its Friday spike, last seen down 17%. Elsewhere, retailers are in focus amid "Cyber Monday" sales, while pending home sales rose 7.5% in October -- much higher than Wall Street's anticipated 0.7%. 

Continue reading for more on today's market, including: 

  • Eco-friendly footwear stock sees wave of fresh coverage. 
  • Zoom Video stock slumps despite renewed Covid-19 fears. 
  • Plus, LI options surge; KRYS doubles in value; and FENC plummets on FDA prediction.  

mmc Nov29

China-based electric vehicle name Li Auto Inc (NASDAQ:LI) is seeing a surge in options activity today. The company's upbeat third-quarter revenue comes after vehicle deliveries nearly tripled for the quarter, while Li Auto also raised its fourth-quarter forecast. So far, 35,000 calls and 11,000 puts have crossed the tape, which is five times the intraday average. The weekly 12/3 36-strike call is the most popular, followed by the 35-strike call in the same series, with new positions being opened at both. 

Soaring to the top of the Nasdaq today is Krystal Biotech Inc (NASDAQ:KRYS), up 114.9% at to trade at $85.56, after the company said its experimental topical drug, VYJUVEK, met the primary goal in a late-stage study for patients with dystrophic epidermolysis bullosa. To follow, Evercore ISI raised its price target to $125 from $100. Now trading at record highs, KRYS is up 44.3% year-to-date. 

Meanwhile, Fennec Pharmaceuticals Inc (NASDAQ:FENC) is taking a dive into penny stock territory, down 49.7% to trade at $4.85, after the company noted it doesn't expect the U.S. Food and Drug Administration (FDA) to approve its treatment for preventing chemotherapy-induced hearing loss in pediatric patients. Now at a new annual low, long-term support at the $5 level could prop up today's bear gap. 

FENC Nov29

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