What We Know About the Race for a Vaccine
Dear Eagle Wealth Community,
It was a busy news weekend and we know how overwhelming it can be sort through the headlines. The political climate has dominated the media focus, almost overshadowing talk of the coronavirus. A U.S. drug company recently said that it’s in late-stage trials for its coronavirus vaccine and reported that it could be given to Americans as early as the end of the year.[i]
Great news — but it seems like every few days there’s a new update on a clinical trial for COVID-19. So, we took the opportunity to check out the overall status of the development of a vaccine.
We were surprised to learn that more than 150 vaccines are in development across the world. There are high hopes that at least one of these vaccines can be brought to market in record time to help manage the global crisis.[ii] Historically, it’s taken 10 to 15 years to develop a vaccine that’s ready for the market. For example, the vaccine for the mumps took four years in the 1960s.2
Along with the speedy development, there has been some fear that the process may be moving along too quickly without the proper checks and balances. On September 8, nine drug companies tried to ease those concerns, they sent out a letter saying they would prioritize safety and uphold “the integrity of the scientific process” in their efforts to develop coronavirus vaccines.[iii]
We expect that news about potential vaccines may continue to influence the financial markets. Keep in mind that progress on vaccines could also affect the outlook for industries like travel and leisure. At least one airline company believes that a vaccine may be critical to the ongoing recovery of the aviation industry.[iv]
We’re watching the developments right along with you and hoping for amazing news that may help bring an end to the coronavirus. If you’re concerned about the coronavirus, or how it may impact your financial plan, please give us a call.
Your Eagle Wealth Team
In our latest Invested in Community story, one client remembered the importance of having a little fun during these uncertain times. They selected local business Tumalo Creek Kayak and Canoe, because of their outstanding customer experience and responsible response to the need for social distancing in Central Oregon.
“I chose a previous co-worker to receive the gift certificate from Tumalo Creek Kayak and Canoe. We worked together for several years at a rehabilitation facility in Bend. She is passionate about her work and I have witnessed the benefits of her therapeutic approach many times. She is also a single mom of a teenager who loves outdoor adventures. With Covid-19 and Zoom-schooling, she came to mind as someone who could use a special treat to enjoy with her son!”
We’ve talked a lot about basic needs during this program but one element we’ve barely touched on is joy. This gift of experience reminded us how healing a little fresh air and fun can be.
We’ve loved sharing these stories over the past few months and can’t wait for the next round of the Invested in Community program starting winter 2020.
Tech Sector Slip Continues
Weekly Update – September 21, 2020
The Week on Wall Street
Stocks slipped as the technology sector remained under pressure and a mid-week announcement by the Federal Reserve failed to inspire investors.
The Dow Jones Industrial Average declined 0.03%, while the Standard & Poor’s 500 fell 0.64%. The Nasdaq Composite index dropped 0.56% for the week. The MSCI EAFE index, which tracks developed overseas stock markets, rose 0.75%.[i],[ii],[iii]
Technology Pulls Stocks Lower
As has been the case in recent weeks, technology stocks led the market higher, then lower in an otherwise turbulent week of trading.
Merger and acquisition activity announced at the start of the week generated a rush back into technology stocks, sparking a rebound from the previous week’s drop. Stocks continued to advance until Wednesday, when investors began to digest comments from the Fed’s Federal Open Market Committee meeting. The Fed delivered a message that coupled assurances of continued low rates with concerns about the health of the economic recovery.[iv]
The Fed Stays the Course
In the last Federal Open Market Committee (FOMC) meeting before the November election, the Fed signaled that interest rates would not be increased “until labor market conditions have reached levels consistent with the committee's assessments of maximum employment and inflation has risen to 2% and is on track to moderately exceed 2% for some time.”[v]
Most Fed officials do not see this happening until 2023.
While the Fed maintained its view on the importance of fiscal stimulus to help American workers and businesses, it did improve its outlook for unemployment in its latest economic outlook. The Fed now expects unemployment would average around 7-8% in the final three months of the year, down from its June prediction of around 9-10%.[vi]
THIS WEEK: KEY ECONOMIC DATA
Tuesday: Existing Home Sales.
Thursday: Jobless Claims. New Home Sales.
Friday: Durable Goods Orders.
Source: Econoday, September 18, 2020
The Econoday economic calendar lists upcoming U.S. economic data releases (including key economic indicators), Federal Reserve policy meetings, and speaking engagements of Federal Reserve officials. The content is developed from sources believed to be providing accurate information. The forecasts or forward-looking statements are based on assumptions and may not materialize. The forecasts also are subject to revision.
THIS WEEK: COMPANIES REPORTING EARNINGS
Tuesday: Nike (NKE), Autozone (AZO), Fedex (FDX)
Wednesday: General Mills (GIS)
Thursday: Costco Wholesale (COST), Darden Restaurants (DRI), Carnival Corp. (CCL)
Companies mentioned are for informational purposes only. It should not be considered a solicitation for the purchase or sale of the securities. Investing involves risks, and investment decisions should be based on your own goals, time horizon, and tolerance for risk. The return and principal value of investments will fluctuate as market conditions change. When sold, investments may be worth more or less than their original cost. Companies may reschedule when they report earnings without notice.
Footnotes, disclosures, and sources:
The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG Suite, LLC, is not affiliated with the named representative, broker-dealer, state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information and should not be considered a solicitation for the purchase or sale of any security.
[i] The Wall Street Journal, September 18, 2020
[ii] The Wall Street Journal, September 18, 2020
[iii] The Wall Street Journal, September 18, 2020
[iv] The Wall Street Journal, September 16, 2020
[v] The Wall Street Journal, September 16, 2020
[vi] The Wall Street Journal, September 16, 2020
[i] FoxBusiness.com, September 13, 2020
[ii] NationalGeographic.com, September 9, 2020
[iii] USNews.com, September 8, 2020
[iv] CNBC.com, September 13, 2020