Travel stocks from Delta Air Lines (DAL) to Airbnb (ABNB) raced higher on Friday, after Pfizer (PFE) said that its Covid antiviral pill lowered the risk of hospitalization or death by 89% based on an interim analysis.
Delta stock gapped higher, jumping 6% and lifting the stock near its 200-day line. Other airline stocks followed. Airbnb gained 13% to 201.62, extending a breakout from a short flat base and advancing toward a 220.04 buy point of a long cup base.
Among other travel stocks, Expedia (EXPE) gapped up 16% to 182.17, breaking out past a buy area around 175. Booking Holdings (BKNG) leapt 7.5% to 2618.97, clearing a flat base buy point of 2540.10, according to MarketSmith chart analysis. Marriott International (MAR) moved 2.15% higher to 167.61. It’s near the top of a buy range that extends to 168.08 above a long consolidation with a 160.08 buy point.
Pfizer made the announcement as travel stocks got a boost from a rebound in demand this year. But that rebound was muddled by the coronavirus’ delta variant over the summer.
Additionally, the U.S. plans to reopen to fully vaccinated international travelers on Nov. 8. But vaccinations in the U.S. have been slow. The CDC this week recommended Pfizer’s Covid vaccine for children ages 5 through 11.
Markets, broadly, rose on Pfizer’s announcement, as well as a solid October jobs report.
Travel Stocks ‘Increasingly Confident’
Expedia, a day earlier, also reported third-quarter results that beat expectations. Airbnb’s results on Thursday also topped estimates.
“With early positive signs in Q4 and many countries announcing new openings to international travelers, we are feeling increasingly confident about a continued recovery,” Expedia CEO Peter Kern said in a statement.
Pfizer says it based its findings on an interim analysis of nonhospitalized adult patients who had Covid-19 and were at risk of becoming severely ill. The drugmaker said it plans to submit the data to the FDA to request emergency authorization.
Meanwhile, the company said it would stop further enrollment in the study due to “overwhelming efficacy demonstrated in these results.” That decision followed the recommendation of an independent data monitoring committee and came in consultation with the FDA.
Less than 1% of patients who received the oral treatment, Paxlovid, within three days of symptoms appearing were hospitalized by day 28. None of the patients tested died.
However, travel stocks have been among the hardest hit by the coronavirus pandemic. Airlines received billions in government aid and steered many employees toward separation packages. But the travel industry has struggled to find workers.
YOU MAY ALSO LIKE:
Here’s How The Flat Base Helped Google Find A 20% Gain
Jamf Stock Breaks Out Amid Apple Laptop, PC Gains In Enterprise Market
Nvidia Just Showed Warren Buffett How It’s Done
Which Stocks Are Breaking Out Or Near A Pivot Point? Check MarketSmith