The road to long-term investment success runs through risk control more than through aggressiveness. — Howard Marks

1. Apple Seeing Strong iPhone 12 Pro Orders in All Markets — prominent analyst reported that wait times are longer for the iPhone 12 Pro than the flagship iPhone 12 in all markets, “fitting the pattern of higher-end users more likely to buy early in the launch cycle,” Cabral says. IPhone 12 Pro demand appears highest in Asia, he notes, where wait times exceed three weeks on most models in both Japan and Hong Kong, with waits of two to three weeks in China, one to three weeks in Europe, and less than two weeks in the U.S.
2. Intel’s (INTC) Sells Nand Memory-Chip Unit to South Korea’s SK Hynix — SK Hynix will pay $9 billion for Intel’s Nand memory and storage business. The purchase includes Intel’s Nand solid-state drive business, Nand component and wafer business, and memory-chip manufacturing facility in Dalian, China. Intel will retain its Optane business and invest proceeds from the transaction to grow that business. The Optane division develops next-generation, nonvolatile memory chips with data speeds faster than Nand.The combination of SK Hynix and the Intel Nand unit will create the second largest Nand memory-chip producer behind industry leader Samsung. After the transaction, SK Hynix will have nearly 20% market share in Nand chips, vs. 35% for Samsung.
3. Hospitals Across the U.S. Are Crammed With Covid-19 Patients — U.S. hospitalizations for Covid-19 hit the highest point since Aug. 22, with New York doubling its count from early September and at least 10 other states reporting records. The U.S. on Tuesday had 39,230 people in hospitals, according to the Covid Tracking Project. Of those, 8,178 were in intensive-care units; it’s been two months since the U.S. had more under such care. The number on ventilators, 1,889, reached its highest since Sept. 10. Across the country, 37 states are reporting increased hospitalizations, including 21 states that have recently reported new records or are approaching previous highs, according to Johns Hopkins University data. While the trend is national, the hardest-hit region is the Midwest, according to the university.
4. Judge Amy Coney Barrett One Step Closer to Supreme Court — the Senate Judiciary Committee voted 12-0 Thursday to recommend Judge Amy Coney Barrett for a full Senate vote on her nomination. The vote paves the way for Barrett to be confirmed in the Senate where Republicans hold a 53-47 majority.
If confirmed, Barrett would shift the balance of the Supreme Court to a solid conservative majority. As the fifth woman ever to join the high court, she would also become the sixth Catholic currently on the bench.
5. Remdesivir Gets FDA Approval — the antiviral drug remdesivir received marketing approval from the U.S. Food and Drug Administration as a Covid-19 treatment. The FDA gave Veklury a broad approval, allowing its use in patients over the age of 12 who are hospitalized with Covid-19. A study published in October in The New England Journal of Medicine found that the drug reduced recovery times for hospitalized patients from an average of 15 days to 10.

The week ahead — Economic data from Econoday.com:

There will not be any re-cap for the week of October 16 2020 for some needed R&R.
Have a good week.

The week ahead — Economic data from Econoday.com:

The degree of risk present in a market derives from the behavior of the participants, not from securities, strategies, and institutions. — Howard Marks

1. Trump Returns to White House — President Donald Trump left Walter Reed Medical Center early last week and returned to the White House, where he will continue to be attended by physicians around the clock. The president continues to receive dexamethasone, the steroid that has shown to provide significant benefit to patients with severe cases of Covid-19. Trump received his fourth dose of the antiviral remdesivir before leaving and will receive his fifth and final dose outside the hospital.
2. Schools in New York City Hot Spots Will Close — with Covid-19 infections rising in some New York City neighborhoods, Gov. Andrew Cuomo said Monday that schools in several parts of Brooklyn and Queens would shutter in-person classes on Tuesday and move to fully remote instruction. The governor’s decision applies to nine of the city’s 146 ZIP Codes in parts of Far Rockaway and Kew Gardens in Queens, and Borough Park, Midwood, Gravesend, Bensonhurst, and Sheepshead Bay in Brooklyn. Gov. Cuomo also said that the state would start enforcing mask orders with fines, one of a number of items where he and the mayor appear to disagree.
3. Apple Expected to Unveil 5G Phones Next Week — Apple said that it would host a virtual event live from its Cupertino, Calif., headquarters on Tuesday, Oct. 12. The company didn’t say what precisely the event would focus on, but it is widely expected to roll out new 5G phones. Some analysts are calling the soon-to-be unveiled generation of Apple phones the iPhone 12, but the company might not stick with its numbering system. The new iPhone lineup is expected to include a 5.4-inch iPhone, a 6.1-inch iPhone Max, a 6.1-inch iPhone Pro, and a 6.7-inch iPhone Pro Max.
4. Judges Rule That Manhattan D.A. Can Obtain Trump Tax Records — Manhattan District Attorney Cyrus Vance can enforce a subpoena for President Donald Trump’s personal and business tax returns, according to a unanimous ruling from a three-judge appeal panel. The district attorney’s subpoena covers not just Trump’s personal and corporate tax records, but also communication he had with his accounting firm, Mazars. Early this summer, the Supreme Court rejected the president’s claim that he should have immunity from criminal investigation but left the door open for him to continue his fight against the wide scope and possible relevance of the documents covered by the subpoena.
5. Trump Raises Coronavirus Stimulus Offer to $1.8 Trillion — the White House will increase its coronavirus stimulus offer to $1.8 trillion, about $400 billion less than the $2.2 trillion bill Democrats previously passed. The plan would mark an increase from the $1.6 trillion the Trump administration previously proposed. House Democrats passed a $2.2 trillion bill earlier this month, and the sides have struggled to find a consensus in between those figures.

The week ahead — Economic data from Econoday.com:

In dealing with the future, we must think about two things: (a) what might happen and (b) the probability that it will happen. — Howard Mark

1. Disney Will Lay Off 28,000 Staff at Theme Parks — Walt Disney Co. said it would lay off about 28,000 employees at its domestic theme parks, making the announcement shortly after the state of California signaled that Disneyland Resort would likely have to remain closed for the foreseeable future due to Covid-19 concerns. Disneyland and California Adventure in Anaheim, Calif., remain shuttered while theme parks in Florida, Paris, Shanghai, Japan, and Hong Kong have reopened to limited capacity. The California Department of Public Health moved some counties to new “tiers” Tuesday allowing some businesses to reopen, but Disneyland’s home of Orange County did not make the cut due to a late spike in cases.
2. Boeing Readies to Consolidate Dreamliner Production to South Carolina — Boeing Co. will set plans this week to consolidate 787 Dreamliner assembly in South Carolina, people familiar with the matter said, ending production of that jetliner in Washington state as the coronavirus pandemic saps demand for aircraft. The decision carries significant implications for the Seattle-area economy and Boeing’s unionized workforce around Puget Sound. It wasn’t clear over what period of time the consolidation would play out, or how many employees might be affected by the move. Boeing could announce the plans. Furthermore, Boeing opted for a more muted come-back approach after a public scolding by the U.S. Federal Aviation Administration and private criticism from airlines over its handling of the Max crisis, the people said. With its reputation in tatters, Boeing is leaning on the FAA, pilots and airlines to assure travelers that the revamped Max is safe to fly. FAA Administrator Steve Dickson, a licensed 737 pilot, plans to flying a Max himself.
3. U.S. Airlines Started to Furloughing Employees — United Airlines, which is set to furlough about 16,000 employees, announced the move in mid-September, while urging Congress to extend the payroll support program for an additional six months. American Airlines is set to furlough about 19,000 workers. Delta and Southwest haven’t disclosed plans Relief payments from the federal government, doled out in April, were conditioned on the airlines refraining from conducting involuntary layoffs until the end of September. Delta, for instance, received more than $5 billion.
4. President Trump Tests Positive for Coronavirus — the president tweeted that he and first lady Melania Trump tested positive for the virus, a development that will upend the final month of the 2020 campaign. They plan to remain at the White House while they recover, and Mr. Trump will need to cancel in-person events in the coming weeks, possibly including the next debate against Joe Biden on Oct. 15 in Miami. Furthermore, Vice President Pence and his wife Karen both tested negative for coronavirus on Friday morning, according to a statement from Devin O’Malley, the vice president’s secretary. Pence is scheduled to have a debate with Democratic VP candidate Sen. Kamala Harris in Salt Lake City on Oct. 7.

The week ahead — Economic data from Econoday.com: