Markets are coming under pressure this morning.
The Dow is down 403 points, as the NASDAQ sinks 261. The S&P 500 is down nearly 54 points.
All on news President Trump said he has tested positive for the coronavirus.
It’s already creating more uncertainty ahead of the Nov. 3 elections. In fact, “There’s a spike higher in volatility because I think a lot of people will be saying that they could imagine how this could even increase the uncertainty about the conclusion of the election,” says Kit Juckes, global head of foreign exchange strategy at Societe Generale, as quoted by CNBC.
While most stocks are down on the news, vaccine stocks are pushing higher on the day.
Inovio Pharmaceuticals (INO) is up slightly.
While the US FDA halted its Phase 2/3 trial, it had nothing to do with the vaccine. It had to do with the delivery system INO is using, according to reports. In our opinion, the clinical hold could be lifted by the end of October, clearing the way for potentially explosive upside in INO.
Pfizer (PFE) and BioNTech (BNTX) are Running
Pfizer (PFE) CEO Albert Bourla just said there’s a “good chance” the company will know if its vaccine works by the end of October 2020.
The CEO told Face the Nation, “We started already manufacturing and we have already manufactured hundreds of thousands of doses, so just in case we have a good study readout, conclusive and FDA, plus the advisory committee feels comfortable that we will be ready.”
The company, along with BioNTech (BNTX) has already begun enrolling 30,000 people in its Phase 3 vaccine trial. However, it’s now looking to expand that enrollment to 40,000, as it attempts to expand to far more vulnerable populations.
Eli Lilly (LLY) is Nearing a Potential Treatment
Eli Lilly is confident after its COVID-19 treatment reduced the hospitalization rate.
“The U.S. drug maker said it tested three different doses of LY-CoV555 against a placebo in a trial enrolling roughly 450 patients. The middle dose of 2,800 mg met the trial’s target of significantly reducing the presence of SARS-CoV-2 after 11 days,” said CNBC.