Reopen Trade Stumbles as Lockdown Winners Bounce on Virus Spike

(Bloomberg) -- Investors flocked back to stocks that have surged amid the coronavirus pandemic as fears of a new round of tougher restrictions to contain the disease sent ripples across the market.

Money managers were quick to snap up shares of Zoom Video Communications Inc. and Peloton Interactive Inc., after record declines on Monday due to promising results for Pfizer Inc. and BioNTech SE’s Covid-19 vaccine. Zoom and Peloton jumped more than 5% each today despite a choppy session for the broader market.

The share price rally for lockdown winners today came at the expense of stocks that investors had turned more optimistic earlier this week amid progress on a Covid vaccine -- casino operators, cruise lines, hotel and restaurant operators.

A basket of large-cap hotels, resorts and cruise lines fell as much as 3.6% -- led by a drop in Carnival Corp. Wynn Resorts Ltd., which were among the S&P 500’s worst performers, slipped as much as 5.6% while peers including MGM Resorts International underperformed the broader market.

Airlines, which were among the week’s best performers, were dealt a blow when Southwest Airlines Co. warned that a revenue recovery was slowing. The Bloomberg World Airlines Index peeled back 1.7% with all but a handful of its 27 members trading lower.

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