Plus, coronavirus cases surpassed 10 million in the U.S., the FDA issued emergency use authorization for Eli Lilly’s coronavirus antibody treatment, and Peloton inked a deal with Beyonce.
Stocks were mixed to start Tuesday with the Dow adding 258 points, or 0.9%. The S&P 500 fell 0.1%, while the Nasdaq slid 1%.
President-elect Joe Biden is moving forward with transition plans even as Senate Majority Leader Mitch McConnell and other senior Republicans give President Donald Trump cover to pursue legal challenges to overturn the results of the election. Biden’s transition team is also pushing the General Services Administration to officially designate the former Vice President the winner of the presidential election so it can begin accessing federal resources needed for a smooth transition to the White House. As Biden’s team moves forward with transition, Trump’s legal team is continuing to pursue legal challenges to revers the outcome of the vote, and Attorney General William Barr has authorized Justice Department officials to investigate claims of vote irregularities, even while acknowledging no conclusive evidence of purported irregularities. Following Barr’s move, Richard Pilger, who led the Justice Department’s Election Crimes branch, resigned from his post, saying that he was stepping down because Barr’s new policy “abrogated the forty-year-old non-interference policy for ballot fraud investigations in the period prior to elections becoming certified and uncontested.”
As U.S. coronavirus cases surpass 10.1 million and the nation reports more than 100,000 new cases seven days in a row, one expert says the U.S. could soon be reporting far more cases per day. “We are watching cases increase substantially in this country far beyond, I think, what most people ever thought could happen,” said Michael Osterholm, director of the Center for Infectious Disease Research ad Policy at the University of Minnesota. “It will not surprise me if in the next weeks we see over 200,000 new cases a day.” Former FDA chief Dr. Scott Gottlieb echoed that, warning on Monday that the coronavirus pandemic is “about to explode” across the U.S. “The challenge is this virus is distributed everywhere across the country right now,” Gottlieb said. “We’re going to have a really significant epidemic wave across the entire nation and, unfortunately, it’s going to cause a lot of death and disease before we’re able to have this therapeutic counterattack, not just with the vaccine, but also with these therapeutic antibodies.”
Amid the record surge in new coronavirus cases, two groundbreaking developments dominated headlines yesterday. Pfizer and BioNTech reported that early data from its COVID vaccine trial showed more than 90% effectiveness in preventing the coronavirus. Following the positive news, experts cautioned that the vaccine still has many hurdles to clear, saying that questions about production, distribution, and the performance and capability of the shot itself still need to be answered. Osterholm said that the two companies’ statement announcing the preliminary results “does not at all tell us about just what they’ve actually accomplished. It’s really too early to put any definition to what this new vaccine research shows us.” Also on Monday, the Food an Drug Administration authorized emergency use for Eli Lilly’s experimental antibody treatment for COVID-19. Eli Lilly Chairman and CEO Dave Ricks said that the company’s antibody treatment will still be needed if a vaccine is approved and brought to market. “Even in well-controlled [other] respiratory illness… we still have vaccination and antibody therapy because some patients escape the vaccine and still get the condition, and they need to be managed with a therapy,” Ricks said. “This will be useful in the long term, hopefully at much lower volumes.”
Ulta Beauty shares are up nearly 7% this morning after news broke that it is teaming up with Target to open makeup and skincare shops inside of hundreds of Target stores across the U.S. Target CEO Brian Cornell said smaller versions of Ulta stores will debut in more than 100 of the big box retailer’s stores and on its website in the second half of next year, occupying around 1,000 square-feed with more than 40 beauty brands in each location. Cornell added that Target’s deal with Ulta will “build on momentum we have in the category and investments we’ve been making for years in beauty.” “This is a very important category,” Cornell added. “We continue to believe it’s going to be a high-growth category.” Ulta CEO Mary Dillon said Target customers will find a “curated assortment of established and emerging prestige beauty brands,” adding that Ulta Beauty’s stores in Target stores will be something that guests will not miss. “It will be showstopping,” Dillon said. “[Shoppers] will see that something new is happening, and I think they’ll want to jump in and participate.”
And Peloton shares have jumped 7% this morning after the high-end exercise bike maker announced that it has inked a multiyear partnership with singer-songwriter Beyonce to produce exclusive content with her music for its streamed workout classes. “Beyonce and Peloton worked closely to create a series of themed workout experiences… across multiple fitness categories, including indoor cycling, running, strength, bootcamp, yoga and medication,” Peloton said in a statement. The company added that Beyonce is the most requested artist by its global community of 3.6 million members. “Peloton and I both believe that the power of music can help uplift, motivate and inspire those on their fitness journeys,” Beyonce said. “I’ve been a Peloton member for several years.”
Stocks We’re Watching
Shockwave Medical Inc (NASDAQ: SWAV): Shockwave Medical shares are up 12% since Friday’s close after it reported third quarter earnings. The company reported revenue in the quarter of $19.6 million, up 73% year-over-year. “The successes we achieved this quarter on the clinical, financial and operational fronts speak volumes in terms of confirming the value of our proprietary IVL technology for both coronary and peripheral indications and how it uniquely addresses the challenges our customers face when treating severely calcified arteries throughout the body,” said Doug Godshall, President and Chief Executive Officer of Shockwave Medical. “Our team has done a remarkable job of maintaining their focus on patients and physicians as we collectively work to navigate the challenges that 2020 has put in front of us all.”