Monday, November 9, 2020

Markets skyrocket to new records after election results are announced

Dow zoomed up 1066 to a new record (but 500 below the opening highs), there were only 170 decliners on the NYSE & NAZ went up a relatively modest 91 (just under a new record).  The MLP index shot up 7 to the 117s & the REIT index surged 18+ to the 368.  Junk bond funds jumped up in price  & Treasuries were sold, raising the yield on the 10 year Treasury 12 basis points to 0.94%.  Oil jumped 3+ to go over 40 & gold plunged a whopping 98 to 1853,  

AMJ (Alerian MLP index tracking fund)

CL=FCrude Oil40.94
 +3.80+10.2%






GC=FGold   1,866.30
-85.40   -4.4%





 




3 Stocks You Should Own Right Now - Click Here!

A vaccine developed by Pfizer (PFE) & partner BioNTech proved better than expected at protecting people from Covid-19 in a pivotal study, a milestone in the hunt for shots that can stop the global pandemic.  The vaccine proved to be more than 90% effective in the first 94 subjects who were infected by the new coronavirus & developed at least one symptom, the companies said.  The positive, though incomplete, results bring the vaccine a big step closer to getting cleared for widespread use.  PFE said it is on track to ask health regulators for permission to sell the shot before the end of this month, if pending data indicate the vaccine is safe.  The timetable suggests the vaccine could go into distribution this month or next, though US health regulators have indicated they will take some time to conduct their review.  “Hopefully now we can move on and get this vaccine out there and make sure it’s doing what it’s supposed to do and stop” the virus, said Kathrin Jansen, PFE's head of vaccine research & development.  The findings came too early for researchers to assess the safety of the vaccine, which the Food & Drug Administration says must include 2 months of monitoring at least half the study's subjects for side effects.  PFE remains on track to collect at least 2 months of safety data during the 3rd week of Nov & could file for an emergency authorization shortly thereafter.  So far, no serious safety issues have arisen in the study, the companies said.  The study has enrolled nearly 44K subjects in the US & other countries.  It is unclear how long the protection the vaccine appears to provide lasts, since researchers haven’t been studying volunteers for very long.  The stock rose 3.42 (9%).
If you would like to learn more about PFE, click on this link:
club.ino.com/trend/analysis/stock/PFE?a_aid=CD3289&a_bid=6ae5b6f7  

Pfizer's COVID vaccine proves 90% effective in trials: What you need to know

Chinese state media struck an optimistic tone in editorials reacting to Dem Joe Biden's win of the. presidential election, saying relations could be restored to a state of greater predictability & could start with trade.  While acknowledging the US was unlikely ease pressure on China on issues such as Xinjiang & Hong Kong, state-backed newspaper Global Times said Beijing should work to communicate with the Biden team as thoroughly as it can.  The Trump administration had deliberately created tensions in China-US relations, especially after adopting a campaign strategy of pressuring China, which led to “bubbles” occurring in US-China policy, it said.  “We believe it is possible to pop those bubbles,” it added.  “It’s in the common interests of people from both countries and of international community that China-U.S. relations become eased and controllable.”  The Global Times is a tabloid published by the People's Daily, the official newspaper of China's ruling Communist Party, but does not speak on behalf of the party & gov.  The China Daily newspaper said in a separate editorial it was “obvious” improving ties with China could start from trade, & reviving trade talks was critical to restore some understanding and trust in China-US relations.  “It is one of the last threads linking the two sides. It is notable that neither Beijing nor Washington has ventured to scrap the hard-earned so-called phase one deal they negotiated,” said the China Daily, the country's official English language newspaper.

Chinese state media strikes optimistic tone Monday about Biden win

Dr Scott Gottlieb said the US will still have to experience “the hardest stretch” of the coronavirus pandemic without the benefits of a vaccine, despite news from PFE that its candidate is more than 90% effective.  “The vaccine is really a 2021 event in terms of when it’s going to provide protective immunity to that initial tranche” of recipients, he added shortly after the PFE announcement.  “Then in terms of when it would be widely available, I think the hope still is ... you could have a vaccine broadly maybe the end of the second quarter, maybe into the third quarter. You’re looking at having the vaccine available in time for the fall 2021 Covid season.”  With the US setting daily all-time highs for new daily Covid cases, Gottlieb said:  “I think we need to remember that we have perhaps a brief, but very hard stretch, ahead of us.”  On Fri, the Pfizer board member & former Food & Drug Administration commissioner he believes infections may “explode in several weeks.”  Today, he said: “We ought to take this positive news and recognize there may be a much better future ahead of us. ...  “We may be available to have a vaccine broadly available at some point in 2021 and do everything we can to continue to protect people who are vulnerable to this virus over this period of time, recognizing it may be a brief of time.”  PFE & BioNTech expect to have up to 50M doses of their vaccine produced this year & up to 1.3B doses in 2021.  It requires 2 doses per person.

Dr. Scott Gottlieb, a Pfizer director, warns Covid vaccine won’t help right away

This is one of the most exciting days in stock market history.  However, major problems will take time to solve.  Another stimulus bill is not even ready for presentation.  The promising work on vaccines is moving along, but more work is needed.  Meanwhile new virus cases are growing around the world.  Complex trade issues will take time to solve.  The rest of today' session could be dominated by profit taking.

Dow Jones Industrials

 






No comments: