Friends and Clients,
Positive News on Vaccine Candidates and a Re-Opening of the U.S. Economy Excites the Bulls
Another crazy week for the United States financial markets as investors absorbed more news related to movement on a vaccine to treat the COVID-19 virus. The Dow Jones Industrial average rallied over 900 points on Monday, after news from Moderna that their Phase I COVID-19 vaccine candidate showed positive results. See more about Moderna below and one analyst’s opinion on Moderna’s vaccine technology. Full disclosure, HighTower Bellevue and or its clients own shares in Moderna. https://clicktime.cloud.postoffice.net/clicktime.php?U=https%3A%2F%2Fwww.barrons.com%2Farticles%2Fa-coronavirus-vaccine-is-just-the-tip-of-the-iceberg-for-moderna-one-analyst-says-heres-why-51590072412&E=ncary%40hightoweradvisors.com&X=XID596yeVRn78670Xd1&T=HTAD&HV=U,E,X,T&H=aeaa45afdbc449bf9f615aedaf2c5ebc2f3131b7
According to an article in Barron’s on May 18th, 2020 https://clicktime.cloud.postoffice.net/clicktime.php?U=https%3A%2F%2Fwww.barrons.com%2Farticles%2Fhow-the-race-for-a-covid-19-vaccine-affects-investors-51589574899%3Fmod%3Dpast_editions&E=ncary%40hightoweradvisors.com&X=XID596yeVRn78670Xd1&T=HTAD&HV=U,E,X,T&H=44d0c571f3d8ef685317c5a9051dc6ef9fe7a4f6 over 100 different programs are under way attempting to develop a COVID-19 vaccine. Moderna wasn’t the only company to release positive news on the vaccine front this week. Johnson & Johnson provided an update on their progress, and I listened to the entire interview on CNBC Thursday morning. https://www.jnj.com/johnson-johnson-announces-a-lead-vaccine-candidate-for-covid-19-landmark-new-partnership-with-u-s-department-of-health-human-services-and-commitment-to-supply-one-billion-vaccines-worldwide-for-emergency-pandemic-use Full disclosure HighTower Bellevue and or its clients own shares in J&J. J&J said it plans to release more details on Monday, but indicated their goal is to have a Phase I study fully enrolled by the end of summer. While that sounds like a long time from now, taking the time with the study design may in fact increase J&J’s chances for success. In addition, J&J indicated that their initial tests in monkeys were positive.
Even though the market breadth and volatility has improved, and the bond market is trading better, I do think the United States equity markets likely will take a pause to digest some of the recent gains from the last several weeks. I do think stocks will eventually head higher over the coming weeks or months as the investors see light at the end of the tunnel and watch the economy open-up and see hopeful developments on the vaccine front. If the spread of the virus were to ramp up quickly, I do think stocks would take another big hit, but I think that is unlikely as Americans and people around the world figure out how to maneuver around the virus and its ultimate spread. We all know the enemy and we all know how to best keep it at bay, we just cant see it, which makes it that much more challenging. Stay safe and keep your family and loved ones close during this unprecedented times.
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Stay safe and keep your family close during these difficult economic times.
More next week.
Partner Hightower Bellevue Advisors
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