Shares of Snap Inc. SNAP, +4.14% on what proved to be an all-around mixed trading session for the stock market, with the NASDAQ Composite Index COMP, rising 0.03% and the Dow Jones Industrial Average DJIA, +1.78% falling 0.46%. Snap Inc. closed $70.17 The stock underperformed when compared to some of its competitors.
Plug Power (PLUG -12.90%) shares have dropped nearly 47% year to date, so a continuation of that trend this week shouldn't be too much of a surprise. What is surprising, though, is that the company came out with some good news for its business this week, and the stock still didn't react well. Senator Joe Manchin will not support spending on climate measures that would benefit companies like Plug Power. Democrats were trying to include that in an economic agenda supported by President Joe Biden.
Plug Power is working to build out a network of green hydrogen production facilities across the U.S. That would have gained support from spending intended to address climate change in President Biden's broad economic agenda. But Manchin told Senate Majority Leader Chuck Schumer that he will only support a bill that's confined to lowering prescription drug costs and other healthcare measures. Manchin has backed away from any support on renewable energy projects due to the current state of the economy.
Novavax's (NVAX 5.44%) long wait is over. After multiple delays, the U.S. Food and Drug Administration (FDA) finally granted Emergency Use Authorization (EUA) to the company's COVID-19 vaccine.
The good news should have caused Novavax's shares to skyrocket. Instead, the vaccine stock sank like a brick . The stock had been sizzling hot in recent weeks, partially due to other positive developments in the EU and other countries. Although there was still some uncertainty about the FDA's EUA decision, most investors were probably expecting a thumbs-up after the FDA's advisory committee unanimously recommended the authorization of Novavax's COVID-19 vaccine.
What Else Happened?
The first half of 2022 is now in the books, and it wasn’t so great. Food and gas prices skyrocketed; inflation rose to 40-year highs. And while the unemployment rate remained low, wage growth failed to keep pace with inflation, meaning many workers fell behind in real terms.
What's more, the stock market rolled over. The S&P 500 fell 20.6% in the first half of 2022, marking its worst start since 1970. The Nasdaq Composite dropped 29.5%; the Dow Jones Industrial Average sank 15.3%.
The last six months were terrible; the next six might be stellar.
When considering 1970, it was another year when the stock market got off to a rough start. The Dow fell 15.3% from January to June. But that same index rose 22% in the second half of 1970. And that was in the middle of a recession.