“the first stage, when just a few thoughtful investors recognize that, despite the prevailing bullishness, things won’t always be rosy, the second stage, when most investors recognize that things are deteriorating, and the third stage, when everyone’s convinced things can only get worse.”
― Howard Marks

1. States Announce $26 Billion Settlement to Resolve Opioid Lawsuits — the nation’s three largest drug distributors— McKesson Corp. , AmerisourceBergen Corp. , and Cardinal Health Inc.—and drugmaker Johnson & Johnson have been negotiating the deal for more than two years, but recent s announcement signifies an important milestone that could clear the way for money to be received by states as soon as early next year. An opioid crisis that has claimed half a million lives in the U.S. has triggered more than 3,000 lawsuits filed by states, local governments, Native American tribes, hospital groups and others against players in the pharmaceutical industry. The lawsuits allege drugmakers pushed their painkillers for uses far beyond what was medically necessary and that distributors and pharmacies didn’t do enough to halt masses of pills from flowing into communities.
2. Senate Republicans Block Infrastructure Bill but Talks to Continue — Senate Republicans blocked an effort to begin debate on a bipartisan infrastructure deal still under negotiation Wednesday, but lawmakers said they expected to close in on a final agreement by early next week. The infrastructure bill has been mired in disagreements over how to find sources of revenue to offset its cost. The bill is expected to spend roughly $600 billion over projected federal spending on roads, bridges and broadband access, among others. Over the weekend, lawmakers agreed to drop a provision disliked by Republicans to raise money by beefing up the Internal Revenue Service’s collection of unpaid taxes.
3. U.S. Vaccine Panel Signals Preliminary Support for Covid-19 Booster Shots — a work group of the Advisory Committee on Immunization Practices panel also endorsed the continued use of J&J’s vaccine, despite a recent warning about a low risk of a rare neurological disorder among people taking the shot. About 2.7% of adults in the U.S. are considered immunocompromised, according to the CDC, including transplant recipients, some cancer survivors and people living with HIV. That makes them less responsive to vaccines, which require stimulation of the immune system to provide protection.
4. Intel CEO Says Chip Shortage Could Stretch Into 2023 — The world-wide shortage has fueled rising prices for some consumer gadgets. Meanwhile, the auto industry has been particularly hard-hit as the lack of a key component causes production delays. German car maker Volkswagen AG VOW -1.89% this month warned the global shortage could worsen over the next six months. Others have said they were bracing for problems through next year. Supply shortages should start showing signs of easing later this year, Mr. Gelsinger said, echoing comments from Taiwan Semiconductor Manufacturing Co., the world’s largest contract chip maker. TSMC last week said the chip shortage that has hampered car makers could start to ease in the next few months after it ramped up its production of auto chips. TSMC and Intel are adding new chip-production plants, though some of that capacity won’t be ready for about two more years.

The week ahead — Economic data from Econoday.com: