“Skepticism and pessimism aren’t synonymous. Skepticism calls for pessimism when optimism is excessive. But it also calls for optimism when pessimism is excessive.”
― Howard Marks

1. Costly New Alzheimer’s Drug Could Force Medicare to Restrict Access — Biogen Inc. priced the drug Aduhelm at $56,000 a year. Wall Street analysts estimate it could eventually surpass $5 billion in yearly sales, mostly paid by Medicare, while some health economists warn the bill would be multiples higher.
Medicare normally pays unconditionally for approved medicines. To limit the financial hit from Aduhelm, however, Medicare could restrict access, former U.S. health officials and health-policy experts said. Aside from the medicine itself, there is the cost of infusing the drug, brain-imaging tests and doctor visits, said Scott A. Small, director of Columbia University’s Alzheimer’s Disease Research Center. The total cost will approximate $100,000 annually per patient, he said. Paying for the treatment will largely fall on Medicare, which provides health insurance to people 65 years and older and covers most of the six million Americans with Alzheimer’s.
2. United Airlines Bets on Post-Pandemic Growth With Its Biggest Ever Jet Order — the Chicago-based airline said last week that it will purchase 200 of Boeing Co. BA +0.40% ’s 737 MAX jets and 70 larger Airbus EADSY -1.53% SE A321neos, a deal valued at more than $30 billion at list prices before customary discounts. United is looking to replace most of its 50-seat jets and other smaller, older aircraft with these larger planes that can carry more passengers and allow it to sell more premium seats. United’s move follows recent jet orders from carriers including Southwest Airlines Co. and Alaska Air Group Inc. The recovery has helped Boeing clear most of its inventory of unclaimed MAX jets. United had previously unveiled plans to buy an additional 25 MAX jets and to accelerate delivery of dozens more to meet near-term demand, but the carrier said the orders unveiled Tuesday are part of a more detailed post-pandemic strategy. United said the new planes would help it add almost 30% more seats per domestic flight and 75% more premium seats in first class or with extra legroom.
3. Robinhood’s Luster Stained Again With a Record $70 Million Fine — Financial Industry Regulatory Authority fines almost $70 million from the brokerage in a record settlement Wednesday, including a $57 million fine and about $12.6 million in payments to aggrieved customers. It follows Robinhood’s meteoric rise against the backdrop of the Covid-19 pandemic and the frenzy over hot stocks such as GameStop Corp. that warped the realm of retail trading. The agency accused Robinhood of misleading customers, having weak technology oversight and allowing thousands of users to trade options even though they may not have been suitable candidates, among other infractions.
4. Fed’s Harker Supports Start of Bond Buying Pullback Later This Year — Federal Reserve Bank of Philadelphia President Patrick Harker said Thursday that while an interest rate rise lies some ways in the distance, he is ready for the U.S. central bank to begin slowing the pace of its asset buying stimulus this year. Officials have been focused on what to do with their $80 billion a month in Treasury bond buying and $40 billion a month in mortgage bond purchases. At the FOMC meeting last month, Fed Chairman Jerome Powell acknowledged officials are discussing pulling back on the support but offered no details for when, or how, that might play out.

The week ahead — Economic data from Econoday.com: