Selloff Deepens as Covid-19 Casts Shadow Over Holidays

Bank and reopening stocks are feeling the heat

Digital Content Manager
Dec 20, 2021 at 12:10 PM
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This morning's selloff has deepened by midday, as investors assess how the rapidly spreading Covid-19 omicron variant could impact the holiday season. The Dow Jones Industrial Average (DJI) was last seen down 685 points, while the S&P 500 Index (SPX) and Nasdaq Composite (IXIC) are pacing for notable losses as well.

Several sectors are feeling the heat, including financial and reopening stocks.  Meanwhile, Goldman Sachs slashed its gross domestic product (GDP) forecast, after West Virginia Senator Joe Manchin said he would not support President Joe Biden's $1.75 trillion "Build Back Better" plan, which could kill the current iteration of the bill. 

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

  • 2 airline stocks trying to shake off omicron anxieties. 
  • Why this analyst is dumping Canopy Growth stock
  • Plus, puts pop on GRAB; SOPA joins Russell 2000 Index; and SMMT gaps lower.

midday stats dec 20

Grab Holdings Ltd (NASDAQ:GRAB) is seeing a surge in bearish options activity today. So far, 9,649 puts have crossed the tape, compared to 3,388 calls. Most popular is the April 6 put, where new positions are currently being opened. GRAB was last seen down 5.3% at $7.17, though a catalyst for this negative price action was not immediately clear. The $7 level has been providing a floor for the security, but year-to-date GRAB still carries a 44.1% deficit.

One of the best performers on the Nasdaq today is Society Pass Inc (NASDAQ:SOPA). The equity was last seen up 270% at $12.25, after it was introduced to the Russell 2000 Index (RUT). The shares were halted earlier today, and briefly toppled the newly formed 20-day moving average. The security is bouncing back from its Dec. 17 all-time low of $3.27, but still sports a 69.4% month-to-date deficit.

sopa dec 20

One of the worst stocks on the Nasdaq is Summit Therapeutics Inc (NASDAQ:SMMT). The security was last seen down 48.4% at $2.57, after the company's C. difficile inflection treatment, ridinilazole, failed to meet its end goal in a Phase 3 Ri-Codify study. The equity gapped to its lowest level since April 2020 right out of the gate, and is now down 44.3% for the year. 

 

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