The Johnson & Johnson (JNJ) stock was hammered.
All after the US FDA asked states to temporarily stop using its vaccine “out of an abundance of caution,” says CNBC. This follows news six women in the U.S. developed a rare blood clotting disorder. One died. Another is in critical condition.
While that’s terrible news, “These adverse events appear to be extremely rare,” the FDA said in a joint statement with the Centers for Disease Control and Prevention, as quoted by CNBC. “Vaccine safety is a top priority for the federal government, and we take all reports of health problems following vaccination very seriously.”
In addition, Johnson & Johnson did say, “At present, no clear causal relationship has been established between these rare events and its vaccine,” as quoted by Reuters. Still, at the moment, it’s abiding by the US FDA ruling, and delayed its rollout for Europe, as well.
If an investigation into the issue produces no evidence of a causal relationship, the US FDA could again deem it to be safe. We saw something similar with AstraZeneca in Europe not long ago. Shortly after, officials declared it to be safe and effective.
Perhaps the same will happen with JNJ, too.
At the moment, shares of JNJ are down $3.88 a share to $157.76. From here, we could see a near-term test of double bottom support around $152.50. Also, keep an eye on RSI, MACD, and Williams’ %R. They’ll also tell us when the stock has slipped too much.
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