Plus, more countries are suspending the use of AstraZeneca’s COVID-19 vaccine on blood clot concerns, Elon Musk has a new title at Tesla, and bitcoin rallied above $61,000 over the weekend.
Stocks were mixed at the open on Monday with the Dow adding 20 points, or less than 0.1%. The S&P 500 opened just below the flatline, while the Nasdaq gained less than 0.1%.
Airline stocks are soaring higher this morning with American Airlines up nearly 9%, Delta up 4%, JetBlue up 5.5%, Southwest up more than 1%, and United Airlines up 9% at the time of writing as air travel hit the highest level in over a year over the weekend. TSA screenings topped 1 million every day since last Thursday, with screenings of 1.357 million on Friday—the highest number of passengers on a single day since March 15, 2020—marking the best stretch in a year as more people are vaccinated and ready to travel. Airlines lost more than $35 billion, combined, in 2020 due to low passenger traffic amid the height of the coronavirus pandemic. Airlines were forced to slash flights, block off seats, and implement safety measures in response to the pandemic.
With stimulus now in the rearview, the Biden administration is shifting its focus to the first major tax hike since 1993 to help fund key initiatives including infrastructure, climate, and expanded help for poorer Americans. Among the proposed changes are raising the corporate tax rate to 28%, increasing income tax on those earning more than $400,000, and a possible hike in the capital-gains tax. Biden’s “whole outlook has always been that Americans believe tax policy needs to be fair, and he has viewed all of his policy options through that lens,” said Sarah Bianchi, head of U.S. public policy at Evercore ISI. “That is why the focus is on addressing the unequal treatment between work and wealth.”
Germany, Ireland, and the Netherlands are the latest countries to join a growing list of nations that have suspended use of AstraZeneca and the University of Oxford’s COVID-19 vaccine over blood clot concerns. Still, the European Medicines Agency said there is no indication that the vaccine is causing blood clots and that inoculations may continue to be administered while an investigation of blood clot cases is ongoing, adding that it believes the vaccine’s benefits “continue to outweigh its risks.” AstraZeneca said in a statement on Sunday, “A careful review of all available safety data of more than 17 million people vaccinated in the European Union (EU) and UK with COVID-19 Vaccine AstraZeneca has shown no evidence of an increased risk of pulmonary embolism, deep vein thrombosis (DVT) or thrombocytopenia, in any defined age group, gender, batch or in any particular country.”
Elon Musk added a new title at Tesla. The company said in a regulatory filing today that Musk is now the “Technoking of Tesla” as well as CEO, while CFO Zach Kirkhorn is now also the “Master of Coin.” The new distraction for a company that already has too many comes as the EV-maker also announced that it has purchased another $1.5 billion worth of bitcoin. In a separate, less frivolous filing, Tesla said Jerome Guillen, who has been president of automotive at the company since September 2018, has transitioned to president of Tesla’s heavy trucking unit, which is expected to begin deliveries of an all-electric semi by the end of this year. “As Tesla prepares to enter the critical heavy-trucks market for the first time, Mr. Guillen will now leverage his extensive background in this industry to focus on and lead all aspects of the Tesla Semi program, including the related charging and servicing networks,” the company said.
And bitcoin has fallen back closer earth after climbing to a fresh record above $61,000 over the weekend. The digital coin is currently trading at $56,129 after surging to $61,742 on Saturday. “This looks like a normal consolidation after a big rally,” said Nick Jones, CEO at crypto wallet and exchange Zumo. “We believe that gains seen by bitcoin and many other cryptocurrencies this year will be sustained although as always with crypto, it won’t be a steady curve.” Pepperstone Group head of research Chris Weston said in a note that cryptocurrencies have seen “some good flow, with traders front running U.S. stimulus checks,” and added that bitcoin could be headed for a “new bull leg,” while Miller Tabak’s Matt Maley says the price of the world’s largest digital coin could rally toward $75,000 “very quickly” given recent chart patterns.
Stocks We’re Watching
Seelos Therapeutics Inc (NASDAQ: SEEL): Seelos Therapeutics shares are up more than 82% over the last week following the company’s announcement that it has completed enrollment of patients in Part 1 of its registational Proof of Concept study of SLS-002 (intranasal racemic ketamine) for Acute Suicidal Ideation and Behavior (ASIB) in patients with Major Depressive Disorder (MDD). “Our first look at the potential efficacy of SLS-002 in depressed and imminently suicidal patients should provide valuable insights in this large unmet need,” said Seelos Chairman and CEO Raj Mehra, Ph.D., in a statement. “We look forward to initiating Part 2 of this study and are continuing to identify more trial sites.”