Markets advance after FDA approves Pfizer's Covid anti-viral treatment

Dow rose 261, advancers over decliners better than 2-1 & NAZ climbed 180.  The  MLP index remained in the 171s & the REIT index was higher by 3 to the 494s.  Junk bond funds crawled higher & Treasuries were purchased.  Oil went up 1+ to the high 72s & gold added 15 to 1804 (more on both below).

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The Food and Drug Administration (FDA) authorized the first oral antiviral treatment for COVID-19, Pfizer's (PFE) Paxlovid drug.  Emergency use authorization was granted for Paxlovid – nirmatrelvir tablets and ritonavir tablets, co-packaged for oral use – for the treatment of mild-to-moderate coronavirus disease in adults & children 12 years of age or older weighing at least 40 kilograms or about 88 pounds.  It applies only to those who meet those qualifications, have tested positive for SARS-CoV-2 testing & "who are at high risk for progression to severe COVID-19, including hospitalization or death," the FDA said.  Paxlovid is available by prescription only & should be initiated as soon as possible after diagnosis of COVID-19 & within 5 days of symptom onset.  "Today’s authorization introduces the first treatment for COVID-19 that is in the form of a pill that is taken orally — a major step forward in the fight against this global pandemic," Patrizia Cavazzoni, director of the FDA’s Center for Drug Evaluation & Research, said.  "This authorization provides a new tool to combat COVID-19 at a crucial time in the pandemic as new variants emerge and promises to make antiviral treatment more accessible to patients who are at high risk for progression to severe COVID-19."  Paxlovid is not authorized for the pre-exposure or post-exposure prevention of COVID-19 or for initiation of treatment in those requiring hospitalization due to severe or critical COVID-19.  Paxlovid is not a substitute for vaccination in individuals for whom COVID-19 vaccination & a booster dose are recommended, the FDA said.  The FDA still "urges the public to get vaccinated and receive a booster if eligible."  Treatment involves taking 3 tablets -- 2 tablets of nirmatrelvir & one tablet of ritonavir -- together orally twice daily for 5 days, for a total of 30 tablets. Pax lovid is not authorized for use for longer than 5 consecutive days.  Emergency authorization is different than FDA approval.  At this stage, the agency has determined that the known & potential benefits of Paxlovid, when used consistent with the terms & conditions of the authorization, outweigh the known & potential risks.  The FDA also said that at this time there are no adequate, approved & available alternatives to Paxlovid for the treatment of COVID-19.  In a randomized, double-blind, placebo-controlled clinical trial, Paxlovid significantly reduced the proportion of people with COVID-19 related hospitalization or death from any cause by 88% compared to placebo among patients treated within 5 days of symptom onset & who did not receive COVID-19 therapeutic monoclonal antibody treatment.  The stock went up 58¢.
If you would like to learn more about PFE, click on this link:
club.ino.com/trend/analysis/stock/PFEa_aid=CD3289&a_bid=6ae5b6f

FDA makes announcement on new COVID-19 anti-viral treatment

World Health Organization (WHO) officials criticized blanket Covid-19 vaccine booster programs as poor countries struggle to obtain initial doses, warning that the unequal access to immunizations could lead to more mutated variants that drag out the crisis.  “Blanket booster programs are likely to prolong the pandemic, rather than ending it, by diverting supply to countries that already have high levels of vaccination coverage, giving the virus more opportunity to spread and mutate,” WHO Director-General Tedros Adhanom Ghebreyesus said.  The comments from the WHO come as health officials in the US promote vaccine booster shots for all residents over the age of 16 amid a surge in Covid cases driven by the omicron strain.  Israel announced it would offer a 4th dose of Covid-19 vaccines to people older than 60.  “We want people to be able to gather” over the holidays, CDC Director Dr Rochelle Walensky said.  “And safe gathering includes, of course, being vaccinated, ideally being boosted and making sure that all the people who you gather with are also vaccinated and boosted.”  Currently, the vast majority of Covid hospitalizations & deaths are among unvaccinated people, not vaccinated people without booster shots, according to Tedros.  “No country can boost its way out of the pandemic,” he added.  Global health experts say the emergence of omicron is tied to vaccine inequality. Omicron is thought to have emerged from an HIV patient in South Africa where just 26% of the population is fully vaccinated, scientists have said.  The virus mutates particularly well in people with compromised immune systems where it can live for a long time & figure out how to survive inside its human host.  The WHO estimates just ½ of its member states will have vaccinated at least 40% of their populations by the end of this year “because of distortions in global supply,” Tedros said.

WHO says Covid vaccine booster programs will prolong pandemic

Home prices are on the rise at the close of the year.  The average purchase loan increased for the 2nd straight week to $416K.  That happens to be the 2nd-highest amount ever.  "The elevated loan size is an indication that activity is more on the higher end of the market," said Joel Kan, MBA's Associate VP of Economic & Industry Forecasting.  "Home-price appreciation growth remains faster than historical averages and inventory, particularly for starter homes, continues to trail strong demand."  Those higher prices could be slowing the overall market as demand for mortgage applications declined 0.6% in the past week, according to the weekly survey from the Mortgage Banker's Association.  The decline was led by purchase applications which were down by 3%.  The refinancing index jumped 2% as homeowners took advantage of lower interest rates.  "The 30-year fixed rate decreased to 3.27 percent – its lowest level in four weeks – and helped spur an increase in refinances across all loan types. FHA and VA refinances jumped 4 percent and 12 percent, respectively," added Kan.  The refinance share of mortgage activity increased to 65.2% of total applications.  The survey covers over 75% of all US retail residential mortgage applications & has been conducted weekly since 1990.

Home loan prices hit second-highest level ever

Gold futures closed higher, driving the precious metal back above $1800 in the penultimate session before a holiday break.  Many global markets will be closed Fri in observance of Christmas.  The advance for the precious metal helped it retake a precarious perch above $1800 that it recently has failed to sustain for an extended period.  But by midweek, a weaker $ & subdued Treasury yields aided the yellow metal’s advance.  Bullion lost its grip on $1800 over the past few sessions, amid choppy, low-liquidity trade leading up to the final trading days of 2021, which have been marked by concerns about the spread of the omicron variant of the coronavirus that causes COVID-19 & the reaction of global central banks to evidence of surging inflation.  After hitting a mid-Nov, near-term peak, gold futures mostly traded sideways, navigating the terrain between around $1760 & slightly above $1800 an ounce.  Feb gold traded $13 (0.8%) higher to settle at $1802 an ounce, after settling 0.3% lower in the session before.  The $ was down 0.4% at 96.117, as gauged by the ICE US Dollar Index & yields on the benchmark 10-year Treasury note yield were down to 1.46%. A stronger $ & higher rates on risk-free Treasuries can lower the opportunity costs of owning precious metals that don't offer a coupon

Gold snaps 2-day skid to end above $1,800 as dollar weakens

Oil futures rose, with the US benchmark finishing at a nearly one-month high after data showed a larger-than-expected drop in US crude inventories & traders weighed the effect of the coronavirus omicron variant on demand.  Crude built on a rebound yesterday, fully erasing the ground lost seen in a 2-day selloff attributed to fears the spread of omicron would take a toll on travel & other activities over the holidays as countries impose restrictions & individuals curtail movement on their own.  West Texas Intermediate crude for Feb rose $1.64 (2.3%) to close at $72.76 a barrel, the highest close for a most actively traded contract since Nov 24.  Feb Brent, the global benchmark, gained $1.31 (1.8%) to settle at $75.29 a barrel, its highest close since Dec 8.  Oil initially pared gains, then pushed to a new session high after the Energy Information Administration said US crude inventories fell by 4.7M barrels last week.  The forecast dcalled for a decline of 3.9M barrels, while sources said the American Petroleum Institute had reported a fall of 3.7M barrels.

Oil extends rebound to end at nearly 1-month high, lifted by unexpectedly large drop in crude inventories

Today's news was modestly good.  Q3 GDP was revised up a little, consumer confidence rose last month & the pill from PFE looks promising in the war against the virus.  Tomorrow will be the last day of trading this week & next week should feature light trading again.

Dow Jones Industrials