With news of the first reported case of Ebola on U.S. shores, there is expected to be a general feeling of panic, and that anxiety will likely be played out on the stock market. The panel of CNBC’s Fast Money discussed which stocks and sectors would be the most affected by Ebola fears.
Guy Adami noted Tekmira (TKMR) jumped 16% on the news of Ebola in the U.S., and he believes the headlines will get worse before they get better. Sentiment and momentum is likely to drive the stock, even though it is not primarily focused on Ebola treatments, but on medicine for muscular dystrophy. In this case, however, the emotions matter more than the pipeline or the strength of the drugs.
Brian Kelley thinks the market in general is due for a pullback, and the 200 day moving average is likely to be tested, not just because of Ebola, but other factors.
Karen Finerman thinks that, since more people will be afraid to travel, teleconferencing companies will get a boost. She also said airline stocks are likely to dive but this headwind might be countered by the tailwind of lower oil prices, which are benefiting airlines.