Connect with us

Stocks

Top Stock Market News For Today January 10, 2021

Investors err on the side of caution as inflation among other economic data points are on tap this week.
The post Top Stock Market News For Today January 10, 2021 appeared first on Stock Market News, Quotes, Charts and Financial Information | StockMa…

Published

on

Stock Market Futures Moving Sideways Heading Into The Start Of Earnings Season

Stock market futures remain mostly unchanged in early morning trading today. This comes as investors look towards a week filled with inflation data. To begin with, we have the latest Consumer Price Index (CPI) readings from the U.S. Bureau of Labor Statistics due on Wednesday. Secondly, investors will also be eagerly eyeing the Federal Reserve’s Beige Book on the same day as well for information on current economic conditions. Furthermore, big banks are set to kick off the latest earnings season later this week.

Regarding all this, Deutsche Bank (NYSE: DB) economists Henry Allen and Jim Reid provided some insight via a note. They said, “Recent months have seen consistent upside surprises as inflation has increasingly broadened out, and it’s now the case that seven of the last nine CPI releases have seen the monthly headline increase come in above the consensus among economists on Bloomberg, which just demonstrates how this has taken a lot of people by surprise.” They continued, “Our U.S. economists are projecting that year-on-year inflation will move higher once again, with an increase to +7.0%.” As of 7:34 a.m. ET, the Dow, S&P 500, and Nasdaq futures an are trading lower by 0.23%, 0.92% and 2.11%. respectively.

PayPal Considering Launch Of PayPal Coin In Latest Crypto Play

PayPal (NASDAQ: PYPL), a leading name in the fintech space, is reportedly making an aggressive play in the crypto space. Namely, the company is currently “exploring” the possibility of launching its own stablecoin. Over the weekend, PayPal SVP of crypto and digital currencies, Jose Fernandez da Ponte, revealed all of this. He noted, “We are exploring a stablecoin; if and when we seek to move forward, we will, of course, work closely with relevant regulators.” This news comes after recent findings from PayPal’s smartphone app indicated plans for a “PayPal Coin”. Overall, this move would make sense given the broader fintech industry’s growing focus on digital currencies now.

Even so, it is important to note that the current news revolves around a potential PayPal stablecoin. For those uninitiated, a stablecoin is different from conventional cryptos such as Bitcoin (BTC) and Ethereum (ETH). In fact, stablecoins, as the name suggests, are backed and priced by the value of existing currencies or commodities. According to the current data from Bloomberg sources, a potential PayPal Coin would be “backed by the U.S. dollar”. Given all of this, it seems that PayPal is looking to be a first amongst its fintech peers in launching a stablecoin. Moreover, da Ponte also recently said that PayPal has “not yet seen a stablecoin out there that is purpose-built for payments”. As such, I could see investors eyeing PYPL stock at this week’s opening bell.

PYPL stock
Source: TD Ameritrade TOS

[Read More] Best Monthly Dividend Stocks To Buy Now? 5 For Your List

Ocugen Releases Latest Booster Shot Data For Upcoming Covid Vaccine Candidate

Elsewhere, Ocugen (NASDAQ: OCGN) provided a positive update on its ongoing Covid-19 vaccine partnership with India’s Bharat Biotech. In detail, the company announced Phase 2 data regarding Covaxin, the vaccine candidate it plans to commercialize in the U.S. According to the data, a booster shot generates over a 10-fold rise in antibody levels across existing variants. Additionally, Ocugen also highlights that the duo are actively studying the effectiveness of the vaccine against the prominent Omicron variant. As a result, OCGN stock could be worth watching in the stock market now.

Generally, participants aged 12 to 64 years old received the additional dose six months after completing a two-dose course. Subsequently, a significant increase in antibody levels was detectable in more than 75% of all subjects. On top of all that, the current data pool shows no serious adverse events after receiving the booster shot. This would include hospitalization or death, according to the duo. In the larger scheme of things, this would be a plus point for Ocugen following its Emergency Use Listing from the WHO last November. Time will tell if the company can deliver on this or not. For now, such news could put OCGN stock on investors’ radars.

[Read More] Which Stocks To Buy Now? 4 Biotech Stocks To Know

GM Aligns With California Emission Standards

In other news, General Motors (NYSE: GM) seems to be making headway over in California. For the most part, this would be thanks to its recognition of California’s official vehicle emission standards. This, of course, is under the Clean Air Act. According to the Detroit Free Press, the automaker wrote a letter to California Gov. Gavin Newsom over the weekend affirming this. In turn, GM is now eligible to supply the government fleet with its upcoming EVs. Commenting on all this is Governor Newsom himself. He said, “GM is joining California in our fight for clean air and emission reduction as part of the company’s pursuit of a zero-emissions future.

Notably, this marks another solid win for GM as it potentially grows its addressable market. In fact, the automotive titan is already planning to spend $35 billion on developing its EVs through 2025. As it stands, the company is currently aiming to have an all-electric lineup of vehicles by 2035. This latest play would serve to show its commitment towards building a solid customer base for its EVs. All things considered, GM stock could be turning some heads in the stock market today.

GM stock
Source: TD Ameritrade TOS

[Read More] 4 Artificial Intelligence Stocks To Watch Right Now

John Deere Reveals Fully-Autonomous Mobile App-Controlled Tractor

John Deere (NYSE: DE) is among the major companies making headlines at CES 2022 now. To highlight, the company unveiled a new autonomous tractor at the event. Given that John Deere is a global leader in the manufacturing of farming equipment, this is a notable play. According to the company, the farmer-less tractor comes with an attached tillage implement. Explaining the importance of this is Julian Sanchez, director of emerging technologies at John Deere.

All in all, Sanchez notes that tillage is a crucial yet time-consuming process for prepping the soil for next season’s plants. By automating the process, John Deere offers farmers a new level of convenience on this front. Not to mention, the company also announced new additive equipment that complements its 8R 410 tractors. In theory, this add-on brings full autonomy to its existing tractors via a total of 12 stereo cameras attached across two boxes on the front and back of the tractor. All of which employ Nvidia (NASDAQ: NVDA) graphics processing units to do so. To top it all off, farmers can also control the machine from a smartphone app. With such innovations from the company, investors could be considering DE stock now.

DE stock
Source: TD Ameritrade TOS

If you enjoyed this article and you’re interested in learning how to trade so you can have the best chance to profit consistently then you need to checkout this YouTube channel. CLICK HERE RIGHT NOW!


The post Top Stock Market News For Today January 10, 2021 appeared first on Stock Market News, Quotes, Charts and Financial Information | StockMarket.com.

Read More

Continue Reading

Spread & Containment

Monkeypox: demand for vaccines is outstripping supply – this is what’s causing the shortages

Chronic weaknesses in our global vaccine manufacturing and distribution systems may broadly be to blame.

Published

on

The smallpox vaccine is currently being used to protect against monkeypox. PhotobyTawat/ Shutterstock

Over 30,000 cases of monkeypox have been reported in more than 80 countries worldwide in 2022. Most are in countries that have never previously reported monkeypox. While monkeypox is not as transmissible as many respiratory infections (such as COVID-19), it’s still important to curb the spread.

One way to control spread is by vaccinating vulnerable people. Fortunately, we already have vaccines which are very effective at preventing monkeypox. But as case numbers continue to rise, reports are emerging that demand for vaccines is outstripping supply in many parts of the world currently seeing an outbreak, including the US, UK and Europe.

Vaccine supply

There are a number of reasons why we are seeing shortages of the vaccine used to protect against monkeypox. Broadly, it’s due to chronic weaknesses in our global vaccine manufacturing and distribution systems, which make it especially difficult to supply the vaccines needed to protect against new infections and outbreaks.

The vaccine currently being used to protect against monkeypox is the smallpox vaccine, which works because the monkeypox virus is so closely related to smallpox.

Until now, the smallpox vaccine has been a niche product because it’s not been needed since smallpox was eradicated in 1980. Pharmaceutical companies can’t afford to manufacture vast numbers of doses just in case, and few governments can justify buying a vaccine that isn’t used. This means the vaccines currently being administered are from emergency stockpiles that were created to respond to an accidental (or deliberate) release of smallpox.


Read more: Monkeypox Q&A: how do you catch it and what are the risks? An expert explains


As such, there are limited stocks and production capacity globally, so demand is rapidly outstripping supply. Even the US, with one of the largest smallpox vaccine stockpiles, recently ordered 2.5 million additional doses in response to the monkeypox outbreak. But there are reports that the factory in Denmark which makes the world’s only smallpox vaccine approved for monkeypox is temporarily closed, which may further impact the world’s ability to source more vaccine doses. And unfortunately, transferring production to other facilities is not straightforward.

One particular problem for vaccine manufacturers is that it’s hard to predict when or where big outbreaks of infections may happen. Of course, there are some infections that we know consistently require a regular supply of vaccines – such as the influenza virus. But while 1 billion influenza vaccines are produced globally each year, it still takes approximately six months from picking the most important new strains to manufacturing and rolling out jabs.

So even with vaccines in high demand, it isn’t simple to manufacture more doses. This is why we are still striving to innovate ways to rapidly produce new vaccines affordably and at a very large scale.

Vaccines are inherently complicated to make. Because they are made from relatively fragile and complex biological materials (such as a virus), the product has to be exactly right every time. If the formula changes even slightly, it might not work as well – or even increase the risk of side-effects.

Adding to this challenge is the fact that different vaccine products may be manufactured by different methods. For example, the equipment needed to produce a viral vaccine (such as the smallpox vaccine used against monkeypox) will be very different to that used to make COVID-19 RNA vaccines. It’s also slow and expensive to test any necessary modifications or improvements that may be needed to make a vaccine safer and more effective.

Glass vials arranged in a row move through a conveyer belt, where they are filled with the vaccine.
It isn’t just as easy as making more vaccines to meet demand. wacomka/ Shutterstock

Surprisingly, even some simple processes common to all vaccines and other medicines – such as filling doses into vials for distribution to patients – still have a mismatch of capacity. Vaccines are usually manufactured in different locations to packaging facilities, raising logistical hurdles (such as strictly controlled refrigeration requirements) that can further delay distribution. These facilities are used for many different medicines and are usually fully booked years in advance; schedules that are still recovering from COVID-19 disruptions may now be experiencing urgent changes to package the smallpox vaccine from stockpiles.

It also isn’t just a case of developing new monkeypox vaccines that are easier to manufacture. Even with major recent scientific progress, it would take many months to develop a safe and effective new vaccine. For monkeypox, it’s far quicker and simpler to use the existing smallpox vaccine.

What can be done?

Smallpox vaccine production is likely to be increased to meet demand. But until this happens, many countries will have to make best use of what supplies they can access, and rely on other strategies to help curb the virus’s spread.

The most effective way to prevent monkeypox causing further harm is by using an integrated, locally led public health response – vaccines are just one part of this. Testing and contact tracing is vital. If enough infected people in a region can be identified and supported to isolate while they’re infectious, transmission can be blocked.

Given the vaccine shortages, we expect that people don’t need two vaccine doses to be protected against monkeypox. This is why vaccinating the most at-risk groups with one dose now, paired with other public health measures, is the most effective strategy for curbing the spread of monkeypox – especially while vaccine supplies are limited. Second doses can be administered to maximise immunity when supplies do become available.

The current monkeypox outbreak is yet another reminder of the importance of investing in global health, and ensuring there’s more equal access to vaccines and other medical interventions that can help prevent the spread of harmful diseases.

Alexander Edwards does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.

Read More

Continue Reading

Economics

Is housing inventory growth really slowing down?

The problem with new listings declining now is what will happen if mortgage rates make a solid push lower.
The post Is housing inventory growth really…

Published

on

One of the most important housing market stories in recent weeks has been the decline in new listings, which has slowed the growth rate of total inventory. What does this mean? Some have said this is evidence of a soft landing for housing since we are in August and it doesn’t look like we are going to even get to the peak inventory levels we saw in 2019 this year, or even breach the lower levels of 2019 on the national data.

From the National Association of Realtors:

What I want to talk about is the concern I’ve had throughout this post-COVID-19 housing market: When will we get total inventory back into a range of 1.52 million to 1.93 million? Once that happens, I can finally take the savagely unhealthy housing market theme  off my talking points.

First let’s take a look at the data.

Redfin:

Image-from-iOS-2-1

Realtor.com:

Image-from-iOS-2

Altos Research:

Image-from-iOS

Clearly, we are seeing a slowdown in new listings as the data has been negative now for months. One thing that I have stressed is that higher mortgage rates can create a slowdown in demand and thus allow more inventory to accumulate through a weakness in demand. After March of this year when rates were rising, this was the case, especially when rates ranged between 5% to 6%. Inventory growth is happening much like we saw in 2014 — the last time total inventory grew — which was also the last time mortgage purchase application data went negative year over year. 

However, inventory accumulation due to weakness in demand is only one of many ways to see inventory increase. If you really want to see inventory grow to 2019, 2016, 2014 or even 2012 levels, you need a healthy amount of new listing growth each year. We aren’t talking forced sellers, foreclosures or even short sellers. With just traditional new listings and with higher rates and time, we should be able to hit peak 2019 inventory levels. 

The problem with new listings declining now is what will happen if mortgage rates make a solid push lower. At that point housing inventory could slow even more, pause, and in some cases fall again due to demand. If mortgage rates peaked at 6.25% or 6.50%, that means that the next big move should be lower and that is a risk to getting balance back into the system.

How low do rates need to go?

Mortgage rates have made a move of 1.25% in recent week and I have talked about how low they need to go to make a material shift in the markets. Looking at the most recent mortgage purchase application data, I haven’t seen anything yet to show that demand is coming back in the meaningful way. In fact the recent data shows that even though we saw a positive 1% move week to week, the year-over-year data is still down 19%.

Image-from-iOS-2-copy-2


So as of now, the growth rate of inventory slowing down is a supply issue more than demand picking up in a meaningful way. This is why if rates do fall, we will have more supply and more choices for borrowers, who in some areas won’t have to get into a bidding war for a home. This is something I will be keeping an eye on for the rest of the year, since I do have all six of my recession red flags up, which historically means that rates and bond yields fall.

Two things that I believe are key for a soft landing are rates falling to get housing back in line and inflation growth falling so the Fed can stop with the rate hikes and start cutting rates if the economic data gets even worse.

Inflation!

The recent inflation data did surprise the downside a bit, sending the bond market rallying, stocks higher and mortgage rates falling.

Image-from-iOS-2-copy-3

However, we are far from calling it a victory as inflation growth rate is still very high and we do have some variables that can create supply shortages, such as war and aggression by other countries. 

For today, people cheered the growth rate of inflation falling as they know this is the biggest driver of the Federal Reserve’s hawkish tone and more aggressive rate hikes. Also, in general, the mood of Americans is much better when gasoline prices are falling and not rising. However, we need much more aggressive monthly prints heading lower for the Fed to be convinced that inflation is no longer a concern. 

All in all, the decline in new listings does warrant a conversation on how much more growth we will see for the rest of the year. Inventory data is very seasonal and traditionally we see inventory start to fall in October as people start getting ready for the holidays and the New Year, and then in the spring and summer inventory pops up again.

I would remind everyone that the growth rate of inventory, working from all-time lows, was aggressive in the last few months, so some context is needed if we do see some weekly declines in inventory during the summer months. For now, this is due to a lack of new sellers rather than demand picking up. If demand starts to pick up due to falling rates, that is an entirely different conversation we will have, but we haven’t crossed that bridge yet. 

Just remember that American homeowners are just in much better shape these days.

Image-from-iOS-2-copy-4

I know the professional grift online since October of 2021 was that a massive wave of millions of people were going to list their homes to sell at any cost to get out before the housing market crashed. 

However, homeowners don’t operate this way. A traditional home seller is a natural homebuyer, buying another property when they sell. They don’t sell their house to be homeless or purposely sell to rent at a higher cost for no good reason. If we get a job loss recession we can have a further discussion of credit risk profiles, but for now, it shouldn’t be too shocking that new listings are declining, except for the fact it’s happening sooner than later in the year.

The post Is housing inventory growth really slowing down? appeared first on HousingWire.

Read More

Continue Reading

Economics

US CPI eases substantially to 8.5% but the Fed yet to “hit the brakes”

US consumers received a welcome break from the meteoric rise in prices with the July CPI ‘easing’ more than anticipated to 8.5% Y-o-Y. The figure moderated…

Published

on

US consumers received a welcome break from the meteoric rise in prices with the July CPI ‘easing’ more than anticipated to 8.5% Y-o-Y.

The figure moderated from 9.1% in June owing to a fall in surging gasoline prices as the summer driving season came to a close.

Forecasts had suggested that the CPI may only fall to 8.7%.

Prices of key commodities such as corn, wheat and copper also declined by 20.4%, 27.7% and 13.5% compared to 3 months ago at the time of writing.

Buoyed by renewed optimism, the S&P 500 has risen by 2.1% thus far during today’s session.

Yet, the rate of inflation is still far above the Fed’s stated 2% target.

Source: Investing.com

Core CPI which excludes volatile energy and food items from the main basket stayed unchanged at 5.9% Y-o-Y while increasing by 0.3% on a monthly basis, significantly below July expectations of 0.7%.

Pimco economists Tiffany Wilding and Allison Boxer noted that although headline inflation has eased, core CPI has stayed firm, and has even seen an uptick in related data released by the Fed’s regional institutions.

The July reading showed the sharpest Y-o-Y dip since March 2020, when CPI fell from 2.3% in February to 1.5% as the initial lockdowns took effect.

Source: Investing.com

American families continue to battle sky-high prices amid declining real wages. Simon Moore, a contributor at Forbes magazine adds that “price increases for many other areas of the economy still remain concerning for the Fed.”

The broad-based nature of inflation has meant essentials such as food, rent, and health services are continuing to see an uptick despite a lower aggregate number.

For instance, the Bank of America noted that the average monthly rent has risen by 16% for those in the youth demographics.

Source: TradingEconomics.com, US EIA

Jobs market

The substantial dip in the CPI has proved to be a bit of a surprise following the latest jobs report which registered an increase of 528,000 in July, with the unemployment rate falling to a low of 3.5%.

The labour market continues to remain unnaturally tight despite the Fed’s overall hawkishness, two consecutive quarters of GDP contraction, and reports of big-tech lay-offs earlier in the year.

A tighter job market usually implies more competition for talent, higher wages and ultimately more spending. More spending tends to push up consumer inflation necessitating rate hikes.

As of July 2022, the U.S economy has been able to replace the 22 million jobs that were lost amid covid lockdowns, leading to predictions of a “jobful recession.”

Economists argue that this unique situation may be fueled in part by ageing demographics and a sharp decline in immigration during the course of the pandemic.

Productivity data

A key concern for the Federal Reserve is falling labour productivity in the economy. The output per worker reduced for a second consecutive quarter to -4.6% Y-o-Y, having registered a fall of 7.4% in the first three months of the year.

Q1 marked the deepest cut in labour productivity since records began in 1948, 74 years ago. This was reinforced by the weakness in GDP data that contracted in both Q1 and Q2, contrasting with the positive signals from the headline jobs figures.

At the same time, unit labour costs increased 10.8% in Q2, although real wages have contracted 3.5% over the past year.

Can we expect a pause in rate hikes?

Bluford Putnam, Managing Director & Chief Economist, CME Group, wrote “…factors has changed course in the past six to 12 months and is no longer likely to be a source of future inflation”

Elevated goods demand due to the pandemic and ongoing lockdowns have eased markedly; supply chain disruptions will take time to alleviate completely but significant strides have been made in this regard; the gigantic fiscal stimulus injected during the covid crisis has largely run its course; central banks are finally reducing their balance sheets; while policymakers have embarked upon the withdrawal of rock-bottom interest rates.  These are all sources of price rise that have seemingly turned the corner.

In addition, gasoline prices are likely to ease for the foreseeable future, while WTI and Brent have fallen 4.7% and 2.4%, respectively over the past month.

However, Bill Adams of Comerica Bank has been reluctant to call a peak to inflation and expects that the US is at risk of “another energy price shock” over the winter.

The conduct of monetary policy has never been a clear-cut matter. The judgement of monetary authorities is paramount while projecting into the future has always been fraught with known and unknown unknowns. 

The relatively sharp decline in CPI, contracting GDP and tightness in the job market tell a muddled tale.

For the average householder, costs are punitive, and inflation is likely to stay sticky.

However, the New York Fed in its July survey of expectations found that inflation expectations of the ‘general public’ have followed gasoline and broader energy prices lower, with one year ahead expectations falling to 6.2%.

Since inflation expectations are central to the monetary policy equation, once again, we find that supply-side factors not under the control of central banks may have influenced public sentiment and consumer behaviour more so than simply tighter policies.

In light of the likely easing among key inflationary sources, CME’s FedWatch Tool reports that there is a 60.5% probability of a 50 bps hike in September, while there is a 39.5% chance of a third consecutive 75 bps hike.

This is in spite of the fact that Jerome Powell believes that the Fed has been able to achieve the neutral interest rate during its last meeting – a level where the economy is neither constrained into contraction nor incentivized to expand.

Putnam states that “any level of short-term rates that is below a reasonable view of inflation expectations remains accommodative”, resulting in the Fed taking “its foot off the accelerator, but it has not hit the brakes. “  

Moore points out that “Inflation is starting to fall, but still not by as much as the Fed would like and it may be some time before they can declare any sort of victory”

For now, all eyes will be on tomorrow’s Producer Price Index data and the likely passing of the controversial Inflation Reduction Act in the coming days.

The post US CPI eases substantially to 8.5% but the Fed yet to “hit the brakes” appeared first on Invezz.

Read More

Continue Reading

Trending