Plus, the Electoral College confirmed President-elect Joe Biden’s win, Spotify inked an exclusive deal with Prince Harry and wife Meghan for podcasts from their new production company, and Apple shares are up on reports of increased production for its latest iPhones.
Stocks were higher to start Tuesday with the Dow gaining 100 points, or 0.3%. The S&P 500 added 0.6%, while the Nasdaq traded 0.7% higher.
Moderna’s vaccine was found to be safe and effective for preventing COVID-19 in people aged 18 and older, FDA staff said in a report released this morning. The staff report is meant to brief the FDA’s Vaccines and Related Biological Products Advisory Committee, which meets on Thursday to review the company’s application for emergency use authorization before the agency’s final decision. The FDA staff found Moderna’s shot was similarly effective across racial and ethnic groups and for those with underlying medical conditions, with the report citing 86.4% effectiveness in people age 65 and over, and 95.6% effective in those 18 to 65. Dr. Paul Offit, a voting member on the committee, said the results are “enormously encouraging,” adding that there are now two highly effective vaccines between Moderna and the Pfizer–BioNTech vaccine approved last week.
It’s official. The Electoral College voted on Monday to cement President-elect Joe Biden’s victory over President Donald Trump in November’s presidential election, with electors in all 50 states and the District of Columbia mirroring their state’s popular vote. Following the confirmation of Biden’s win, some Senate Republicans who had refused to recognize Biden’s victory quickly acknowledged that Trump had lost the election and Biden will be inaugurated on January 20, 2021. “The Electoral College has spoken” said Senate Majority Leader Mitch McConnell. “Today I want to congratulate President-elect Joe Biden.” Biden addressed the nation after electors in Hawaii cast the final Electoral College votes Monday night, saying, “The flame of democracy was lit in this nation a long time ago. And we now know that nothing—not even a pandemic or an abuse of power—can extinguish that flame. And now, it’s time to turn the page as we’ve done throughout our history. To unite. To heal.”
On the stimulus front, lawmakers released the latest proposal for another round of economic relief late Monday, splitting a previous bipartisan proposal into two parts. The new plan calls for $748 billion in spending, including $300 per week in federal unemployment benefits and anther $300 billion for more loans under the Paycheck Protection Program, as well as a second bill for $160 billion that includes aid for state and local governments as well as business liability protections, the two most contentious provisions in negotiations. House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin discussed the stimulus proposal and the broader government funding negotiations Monday evening, with Pelosi spokesman Drew Hammill saying the two “discussed the urgency of the committees finishing their work as soon as possible” on additional funding. “The Speaker believes, at a time when the virus is surging, that the need for state and local funding is even more important, especially given the states’ responsibility for distributing and administering the vaccine,” Hammill added. “Health care workers and first responders are risking their lives to save lives and at the same time, are at the risk of losing their jobs without state and local support.”
Spotify shares are up 3% this morning after the company announced today that it has inked a multiyear deal with Prince Harry and wife Meghan, the Duchess of Sussex, for exclusive rights to podcasts from their Archewell Audio production company, the first of which will debut next year. It’s a huge win for Spotify which has invested heavily in the podcast space over the last two years, including signing on big names such as Joe Rogan, President Barack Obama and Michelle Obama, Kim Kardashian West, and TikTok influencer Addison Rae. The deal with the royal couple comes just months after they signed a multiyear deal with Netflix to make documentaries, docuseries, feature films, scripted shows, and children’s programming.
And Apple shares are up more than 3% today after Japanese news outlet Nikkei said iPhone production is set to rise by 30% in the first half of 2021. According to the report, Apple is planning to build up to 96 million iPhones between January and June 2021, including the new 5G compatible iPhone 12 models, the iPhone 11 and the iPhone SE. That pushes Apple’s total for the whole of 2021 to around 230 million iPhones, a 20% increase from its production for the smart phones for 2020. Wedbush analysts Daniel Ives and Strecker Backe said in a note that the Nikkei article was “another bullish sign of iPhone 12 demand,” and supported the so-called “supercycle thesis” for iPhone upgrades. “Based on lead times on the Apple website as well as our checks, we believe pre-orders tracked more than 2x its predecessor iPhone 11 thus far and is a robust start out of the gates for Cupertino on this flagship supercycle product,” the analysts added.
Stocks We’re Watching
Anchiano Therapeutics (NASDAQ: ANCN): Anchiano Therapeutics shares are up more than 123% this morning after the pre-clinical biotech announced that it has entered into a definitive merger agreement with Chemomab. Stan Polovets, chairman of the board of Anchiano, said in a statement, “Following a comprehensive review of strategic alternatives, Anchiano’s board of directors has concluded that the proposed transaction with Chemomab is in the best interest of our shareholders. Chemomab’s CM-101 has demonstrated positive clinical results, with a novel mechanism of action that has potential to become an important option for patients with debilitating fibrotic diseases. We intend to hold a special meeting of Anchiano’s shareholders in the first quarter of 2021 to vote on this merger.”