What Happened In the Week Ended October 16, 2020:
The S&P 500 ended the week at 3484 almost exactly where it started, gaining only 0.2%. The market could have easily reacted more negatively in the latter part of the week than it did. There was a spike in Covid-19 cases around the world including the U.S., two Covid-19 trials–one for a vaccine (JNJ) and one for a drug treatment (LLY) were paused for safety reasons, jobless claims unexpectedly rose, consumer sentiment manifested some near-term concerns and industrial production logged a big downside miss in September. For all intents and purposes, equities coasted out of what felt like a frustrating episode. Perhaps the big beat on retail sales and PFE’s public announcement saved the day. PFE said it could be ready to apply for emergency-use authorization of its Covid-19 vaccine by late November, assuming it receives positive efficacy and safety data from late-stage human trials. It was the first leading Western vaccine developer to provide a specific timeline.
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By Hubert Marleau
By Hubert Marleau