There will not be any re-cap for the week of Nov 27th 2020 due to Holiday shorten week.
Have a good week.

The week ahead — Economic data from Econoday.com:

“How? Try to travel into the future and look back. In 2023, do you think you’re more likely to say, “Back in 2018, I wish I’d been more aggressive” or “Back in 2018, I wish I’d been more defensive”? And is there anything today about which you’d be likely to say, “In 2018, I missed the chance of a lifetime to buy xyz”? What you think you might say a few years down the road can help you figure out what you should do today.”
― Howard Marks

1. Amazon Expands Push Into Health Care With Online Pharmacy — the e-commerce giant on Tuesday unveiled Amazon Pharmacy, a section of its retail website and mobile application that lets people order medication. Shoppers can pay using their health insurance. Prime members who don’t use their insurance are eligible for discounts on generic and brand-name drugs on Amazon’s site or at about 50,000 participating pharmacies. Amazon’s new offering comes more than two years after its $753 million acquisition of PillPack, an online pharmacy known for organizing prescriptions into packets. This expansion puts the Seattle-based e-commerce company into more direct competition with pharmacy giants CVS Health Corp. and Walgreens Boots Alliance Inc., the two largest chains in the U.S.
2. Tesla Was Finally Added to the S&P 500 — S&P Dow Jones said the 17-year-old company would be added to the gauge in December. The committee is seeking feedback from investors on whether to add it in two separate pieces, an unprecedented step. At almost $390 billion in value and growing, Elon Musk’s company would be the biggest ever added to the benchmark. Given its heft, Tesla would likely be among the top 10 largest stocks in the S&P 500, falling somewhere between Johnson & Johnson and Procter & Gamble Co., with a weighting of more than 1%. That would equal the combined value of the 60 smallest stocks in the benchmark.
3. The Boeing 737 MAX Jet Is Back — the FAA rescinded its temporary grounding of the plane, an order that had been in place for 616 days, or almost 20 months, beginning on March 13, 2019. The FAA officially directed at aircraft safety inspectors, investigators, and flight standards personnel responsible for aircraft oversight. They need to make sure all the MAX jets have updated sensors and software and that pilots have received the appropriate training.
4. US Covid Death Toll Passes 250,000 — The US, which has now registered 250,029 fatalities, has by far the highest national death toll, ahead of Brazil with 166,699 deaths, India with 130,993 deaths and Mexico with 99,026. Two trial vaccines have recently performed well in tests, offering hope for the US and world. The novel coronavirus has killed more than 1,343,000 people since the outbreak emerged in China last December.

The week ahead — Economic data from Econoday.com:

“the three stages of a bull market”: the first stage, when only a few unusually perceptive people believe things will get better, the second stage, when most investors realize that improvement is actually taking place, and the third stage, when everyone concludes things will get better forever.” ― Howard Marks

1. Pfizer’s Announces Covid-19 Vaccine — Pfizer and partner BioNTech announced early and not yet complete data from their Phase three Covid-19 vaccine trial. It is “more than 90% effective in preventing Covid-19” in trial participants, according to the release. The companies are gathering additional safety and efficacy data and preparing to submit them to global regulatory authorities for approval. Regulatory filings are expected later this month. The Phase three trial enrolled more than 43,000 participants. Phase three trials are typically the final phase before the FDA considers a drug or vaccine for approval. Pfizer plans to produce 50 million doses in 2020 and 1.3 billion doses in 2021.
2. Supreme Court Hears Arguments Against Affordable Care Act –tThe Supreme Court heard arguments in a case some fear could end the Affordable Care Act. At least two justices seemed open to keeping the majority of the bill. The case centers on the Affordable Care Act’s individual mandate. Originally deemed constitutional because the penalty was ruled a tax by a majority of the Supreme Court, Republican attorneys general from 18 states argue the 2017 removal of the penalty makes it no longer a tax.
If the Supreme Court agrees, the bigger question would be whether or not the individual mandate could be severable from the rest of the bill. Republicans argue it can’t, while Democrats disagree and warn millions of Americans would lose health care and pre-existing condition protections amid a pandemic.
3. Covid Hot Spots Show Signs Europe’s New Wave May Be Cresting — With France, Spain, the U.K. and Italy — alongside Russia, all recording more than 1 million cases, the headlines remain grim. As the U.S. surpasses 10 million infections, Europe has been another epicenter of the pandemic’s autumn surge. Over the past week, however, the number of new cases has plateaued or begun to ease in the U.K., Germany and France. Harder-hit small countries such as Belgium, the Netherlands, and the Czech Republic have posted big declines in daily infection rates. Belgium’s seven-day average of about 5,200 new cases, for example, was down from peak levels of more than 20,000 a day less than two weeks ago.
4. Cases Surge While Stimulus Talks Stall and Targeted Lockdowns Continue — as the Midwest deals with a surge of Covid-19 infections cases, more states and cities are bringing back restrictions. Chicago Mayor Lori Lightfoot issued a 30-day stay-at-home advisory for the city, beginning on Monday. The Chicago mayor pointed to an “alarming and ongoing surge” in cases. Illinois saw 12,000 new cases Thursday, according to the Covid Tracking Project, the most of any state. Ohio’s Republican Gov. Mike DeWine on brought back a mask mandate for going out in public. This time, businesses must also have signs at the entrance stating masks are required. They must also make sure employees and customers wear masks. The state had 7,000 cases Thursday. In addition to Illinois and Ohio, California, Texas, Wisconsin, Minnesota, Michigan, Indiana, Pennsylvania, and Florida all saw more than 5,000 new cases late last week. Bloomberg reported that the White House is yielding stimulus negotiations to Senate Majority Leader Mitch McConnell. Though talks between House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin sparked some optimism for investors in October, hopes for a deal before next year have stalled.
5. Moderna Vaccine Found Highly Effective at Preventing Covid — Moderna Inc. said its Covid-19 vaccine was 94.5% effective in a preliminary analysis of a large late-stage clinical trial. The highly positive readout comes just a week after a similar shot developed by Pfizer Inc. and BioNTech SE was found to be more than 90% effective in an interim analysis. Both shots rely on a technology called messenger RNA that has never been used to build an approved vaccine. Moderna said that new stability data showed its vaccine is stable at refrigerator temperatures for 30 days, much longer than a previously estimated seven days. For longer-term storage, it can be kept in freezers, though it doesn’t need the special facilities required for the Pfizer vaccine. Both the Moderna vaccine and Pfizer’s are based on mRNA technology designed to transform the body’s own cells into vaccine making factories. Once injected, the vaccines instruct cells to make copies of the coronavirus’s spike protein, stimulating the creation of protective antibodies.

The week ahead — Economic data from Econoday.com:

“Investing is a popularity contest, and the most dangerous thing is to buy something at the peak of its popularity. At that point, all favorable facts and opinions are already factored into its price, and no new buyers are left to emerge.”
― Howard Marks

1. Biden Wins U.S. Presidential Election — America has chosen Democrat Joe Biden as its 46th president with 290 electoral votes versus Trump at 214. However, Republicans escalated their efforts to overturn Joe Biden’s victory in the 2020 election, refusing to acknowledge Donald Trump’s defeat, as the president-elect moved more forcefully to make the transition to the White House.The most significant move came from Attorney General William Barr, who on Monday authorized Justice Department officials to open inquiries into potential irregularities in the presidential election, though he acknowledged there’s no conclusive evidence.
2. The Travel Industry Is Still in Serious Trouble — Norwegian Cruise Line Holdings extended its suspension of cruise voyages on Monday through Dec. 31 despite the Centers for Disease Control and Prevention saying on Friday that its no-sail order was being lifted as of Oct. 31. Meanwhile, Royal Caribbean Group said Friday that it too has “a lot of work to do between now and then,” referring to when its ships will return to service. It did not provide a date for when it might begin voyages again. The CDC move came with stringent requirements. Before sailing again, cruise lines would have to ensure testing for crew members, simulate voyages to test response and mitigation practices, and receive certification by the CDC that passengers are allowed to return. Airlines stocks have also been under pressure as Covid-19 cases continue to rise and prospects fade for another stimulus bill soon. New aid is unlikely to be approved at least until the next Congress begins in late January.
3. McConnell Says Senate Will Start Working on a New Stimulus Bill — Majority Leader Mitch McConnell said that the upper chamber will start work on another round of stimulus when it returns. McConnell added that “it’s a possibility we will do more for state and local governments,” a key stumbling block in pre-election talks.
Tossing out the possibility of additional state and local aid could be McConnell’s way of showing he’s open to a deal—if House Speaker Nancy Pelosi goes along with one of his asks, such as a liability shield for employers. Such liability shield language has been anathema to Democrats, but Pelosi might be willing to concede it given that the GOP currently appears on track to hold a slightly slimmed-down Senate majority.
4. Qualcomm Jumps on Outlook for Booming 5G Chip Demand — the company said it was going to sell millions of chips for 5G mobile devices as people upgrade their phones. The chip maker, known for its wireless communication chips for smartphones, reported fiscal fourth-quarter net income of $2.96 billion, which amounts to $2.58 a share, compared with a net profit of $506 million. CEO Mollenkopf was keen to highlight the progress he has made diversifying Qualcomm beyond the phone market. Revenue from chips sold to makers of vehicles and internet-connected gadgets totaled $3.67 billion in fiscal 2020, Qualcomm reported.
Last month, a U.S. appeals court said it won’t reconsider an earlier decision that threw out antitrust claims against Qualcomm in a case brought by U.S. Federal Trade Commission. That decision ends years of major legal fights and regulatory actions against the company.Apple Inc. and China’s Huawei Technologies Co. became the last major handset suppliers to sign new licensing agreements with Qualcomm. Apple has also returned to using Qualcomm silicon in the iPhone.
5. Control of Senate Hinges on Georgia Runoffs — two January runoff races in Georgia could determine which party controls the Senate if Biden wins the White House. Democrats have picked up just one Senate seat overall. With the chamber split 53 to 47 in favor of the GOP, they need two more seats to split the Senate 50-50. If Biden wins the White House, then-Vice President Kamala Harris would break the tie. As votes continue to be counted in Georgia, the state’s two Senate contests are headed to runoffs. Candidates there must get more than 50% to be declared the winner. If Biden wins, a GOP-controlled Senate would almost certainly take progressive policies like a Green New Deal, increased taxes on high-earners and corporations, or a public health insurance option off the table.

The week ahead — Economic data from Econoday.com:

“Every once in a while, an up-or-down-leg goes on for a long time and/or to a great extreme and people start to say “this time it’s different.” They cite the changes in geopolitics, institutions, technology or behaviour that have rendered the “old rules” obsolete. They make investment decisions that extrapolate the recent trend. And then it turns out that the old rules still apply and the cycle resumes. In the end, trees don’t grow to the sky, and few things go to zero.”
― Howard Marks

1. Barrett Confirmed to Supreme Court — Amy Coney Barrett’s confirmation by the Senate was a touchstone accomplishment for President Donald Trump and congressional Republicans that solidifies a 6-3 conservative majority on the Supreme Court just eight days before the U.S. election. The Senate confirmed Barrett on a partisan 52-48 vote, and Justice Clarence Thomas administered the first of two required oaths to Barrett on the South Lawn of the White House a short time later with Trump looking on. Chief Justice John Roberts will administer the second oath in a private ceremony at the Supreme Court. Barrett may be asked to weigh in on cases that would determine the outcome of a close election, and is expected to vote on whether the Affordable Care Act is constitutional soon after she joins the court.
2. U.S. Infections Continue to Climb — Covid-19 cases in the U.S. have hit new highs, with the seven-day average of additional daily infections hitting 68,767 , according to data compiled by Johns Hopkins University. This surge has hit Midwest and Rocky Mountain states the worst and comes at a particularly worrying time for public health officials as temperatures fall and people are more likely to congregate indoors, where Covid-19 is spread more easily. During the summer surge in the U.S., which hit Sun Belt states the hardest, the seven-day average peaked at just under 67,000 in late July. One potential vector for infections has, so far, not materialized. Outbreaks related to primary schools appear to be extremely limited, and the partial reopening of the biggest school district in the country in New York City has resulted in just 28 positive tests for Covid-19 out of 16,298 randomized tests.
3. Germany, France Impose Strict Month-Long Curbs to Rein in Virus — Germany and France will clamp down on movement for at least a month, coming close to the stringent lockdowns in the spring as Europe seeks to regain control of the rapid spread of the coronavirus. The European Union’s two biggest economies will shutter bars, restaurants and non-essential services, while allowing schools and most businesses to operate. The approach by French President Emmanuel Macron and German Chancellor Angela Merkel seeks to strike a balance between protecting public health and avoiding another debilitating blow to the economy.
4. Covid-19 Vaccine Won’t Be Available Until January — Anthony Fauci, the nation’s top infectious-disease doctor, said a vaccine to help control the coronavirus outbreak isn’t likely to be available in the U.S. until January. The trials are designed to run until a predetermined number of people who are enrolled get sick. The studies currently underway are unlikely to hit those benchmarks until sometime in December. Once the data are available, the companies must analyze the findings, file with the U.S. Food and Drug Administration for emergency use and participate in an advisory committee hearing. There are five companies in the final stages of study for a coronavirus vaccine, with Pfizer Inc. and Moderna Inc. having fully enrolled their trials, Fauci said. At least one and maybe two of the companies will have enough safety data and perhaps even sufficient prolonged efficacy findings to apply for emergency use of their vaccines by December.

The week ahead — Economic data from Econoday.com: