Stocks of out-of-home entertainment companies got a boost from biotech company Moderna’s announcement on Tuesday.
As markets reacted enthusiastically to a promising coronavirus vaccine trial, shares of concert promoter Live Nation leaped 12.2% to $52.09 on Wednesday (July 15) before closing at $51.84, up 11.7%.
On Tuesday, biotech company Moderna published the results of an initial study for a coronavirus vaccine called mRNA-1273. The vaccine “elicits a robust immune response” in all trial participants, said chief medical officer Tal Zaks in a statement, and will enter the next phase — with approximately 30,000 participants — later this month.
Jumps in other entertainment companies’ stocks reflect how desperate investors were for good news about markets brought to a dead stop by the coronavirus. Shares of cruise companies jumped on Wednesday as well: Carnival Corporation +16.22%; Norwegian Cruise Line +20.7%; and Royal Caribbean Cruises +21.2%. Theme park company Six Flags Entertainment Corporation rose 13.6%.
Although some states could follow California governor Gavin Newsom’s lead from Monday and order movie theaters closed, Wall Street nonetheless seemed optimistic. Movie theater operator AMC Entertainment Holdings, which plans on reopening theaters July 30, rose 6.6%. Another movie theater chain, Cinemark Holdings, climbed 15.6%; it plans on reopening most locations on July 24.
Travel companies’ stocks surged as well: American Airlines +16.2%; Delta Air Lines +9.5%; Expedia Group +9.4%; Hilton Worldwide Holdings +10%; and Hyatt Hotels +9.8%.
Live music has been hit especially hard since the coronavirus pandemic hit the U.S. in March: concert venues widely remain closed and tourist artists are stuck at home, meaning downstream professionals — managers, agents, business managers — aren’t getting paid either. Some promoters are experimenting with alternative concerts such as drive-ins but no major tours or festivals are currently planned for 2020.