Another day, another rush of news in the stock market. As investors prep for the weekend they have a lot on their mind — they are watching FDA decisions, electric vehicle mishaps and crypto trading updates. So with all this in mind, what did the stock market do today?
- The S&P 500 closed down 0.04%
- The Dow Jones Industrial Average closed down 0.62%
- The Nasdaq Composite closed up 0.87%
So what did the stock market do today? Here are some of the top stories.
What Did the Stock Market Do Today? Watch the World Bank.
Cryptocurrency investors have, at least in recent weeks, been solidly focused on El Salvador. That is because the country announced it was embracing Bitcoin (CCC:BTC-USD), making it legal tender. The move drew praise from influencers like Tyler and Cameron Winklevoss, and prompted a wave of other countries to announce similar initiatives.
For President Nayib Bukele, it was also a chance to add laser eyes to his profile picture… and promise to bank the 70% of citizens who do not have access to financial services.
All along, Bukele has had a bold plan. Merchants in the country must now accept Bitcoin as a form of payment. The country is pursuing Bitcoin mining — using renewable energy — as another income source. And perhaps most importantly, lawmakers also said that anyone who invests 3 BTC in the national economy can receive citizenship.
One part of this plan called for help from the World Bank. Essentially, El Salvador wanted help from the World Bank in implementing its Bitcoin plan. But citing transparency and environmental concerns, the lender shot down the request.
The World Bank denied El Salvador’s request for help with its #Bitcoin rollout, citing a lack of transparency and concerns over the potential environmental impact.
— InvestorPlace (@InvestorPlace) June 17, 2021
So where do things go from here? It seems that many crypto bulls are still eager to see El Salvador push ahead with its plans, and other countries are still working on efforts of their own. However, the question around currency volatility and its impact on a national economy is one that cannot yet be solved.
Lordstown Motors Needs to Get It Together
Lordstown Motors (NASDAQ:RIDE) has been on an unfortunate ride in recent weeks, and the story is just getting messier.
At the end of May, the electric vehicle startup faced a painful double-whammy. The company first announced less-than-stellar quarterly figures. Lordstown lost $125 million on no revenue, and projected higher expenses for the next quarter. It also slashed its liquidity expectations, warning that it was quickly burning cash. Just the next day, Lordstown added to the pain, slashing 2021 production targets from 20,000 to just 1,000 vehicles.
Then, RIDE stock found itself in an even more pronounced cash crunch. At the start of June, the company issued a going concern warning, raising the risk of bankruptcy for investors. As InvestorPlace contributor Chris MacDonald highlighted, Lordstown quickly tried to pivot. In a move to assuage investors, the company announced it was already working to seek financing.
But that did not lost for very long. One of the most recent blows came earlier this week.
InvestorPlace contributor William White wrote that Lordstown was facing a major shake-up. The company announced that CEO Steve Burns and CFO Julio Rodriguez were both resigning, allegedly as a natural step on the road to commercialization. Investors were not so sure, selling off RIDE stock again.
Today brought yet another heartbreak for loyal RIDE holders… and some are speculating it could be the last. Lordstown, via a regulatory filing, countered a statement that said its orders for the Endurance were binding. In other words, those preorder figures are non-binding, making the case for the company even more speculative.
The bottom line: Lordstown Motors needs to quickly turn things around.
No Covid-19 Cure for CureVac
One of the biggest movers in the stock market today was CureVac (NASDAQ:CVAC), the German biotech outfit. The company came public less than a year ago, hoping to leverage its vaccine tech in the fight against Covid-19.
At one point, this was a pretty promising investment thesis. Based out of Germany, CureVac had priority access to the European market. Some investors assumed that with this positioning, it would be the company of choice for European Union members to source Covid-19 vaccines. Plus, CureVac entered the race as another startup with a bold focus on mRNA vaccines.
Today, the promise of CVAC stock, at least as a Covid-19 play, disappeared. The company announced that in its Phase 2b/3 study, its first-generation vaccine demonstrated an overall efficacy rate of 47%. This is much lower than efficacy rates of candidates from Pfizer (NYSE:PFE), Moderna (NASDAQ:MRNA) and Johnson & Johnson (NYSE:JNJ). These results also mean that its vaccine candidate fell short of statistical success criteria.
So what is the bottom line? CVAC stock, like other underdog vaccine makers, has been an investment almost solely on its Covid-19 vaccine. This means that right now, CureVac seems like a dud.
But before giving up entirely, it may be worth one more look. CureVac is pushing ahead with its second-generation candidate and its pipeline of products for other diseases.
On the date of publication, Sarah Smith did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Sarah Smith is the Editor of Today’s Market with InvestorPlace.com.