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Hey there carnivores,

 

Markets were down on Tuesday after bank earnings, more stalled stimulus talks, and a coronavirus vaccine hold up slowed things down.

 

Today we’re talking Johnson & Johnson and Eli Lilly getting put on hold.

 

Keep raging,

Jeff & Jason

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Taking a break

Johnson & Johnson is pumping the brakes on its Phase 3 coronavirus vaccine trials after a participant became “sick”… presumably to their stomach after remembering their compensation is $15 and a J&J drawstring bag.

 

“Serious adverse events” are common during clinical trials, according to J&J. For what it’s worth, they also claimed that their baby powder was “totally safe.” However, J&J can resume if it’s determined that the illness was unrelated to the vaccine (read: not COVID).

 

The news comes as J&J released earnings that normally would have had investors buzzing. Those earnings came in at $3.55B, or $1.33 a share, almost double the $1.75B from a year ago.

 

The pause took precedence, however, and shares fell 2.29% on the day.

 

Join the club

 

Eli Lilly put a pin in its vaccine as well, halting the Phase 3 trial of its leading monoclonal antibody treatment, aka, the same type of drug that DJT was pumped full of at Walter Reed.

 

The difference, though, between J&J and EL is that the US government put the kibosh on Eli. US regulators say the shutdown was due to “potential safety concerns.” Oh, like injecting the blood of someone with a positive test into an otherwise healthy individual?

 

The bottom line…

 

Markets, unsurprisingly, didn’t take too kindly to news that two leading ‘rona inoculations could help eradicate the virus… but potentially kill human beings in other, more inventive ways. All three major indices fell on the day, with the Dow, S&P and Nasdaq dropping 0.55%, 0.63%, and 0.10%, respectively.

 

A rise in ‘rona cases and more stalled stimulus talks probably didn’t help either.



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☑️An apple a day. Apple announced the launch of its new iPhone 12, as expected, yesterday. Well, technically, it announced the launch of four new iPhone 12s, all equipped with 5G compatibility that will allow you to download adult films on your phone at break-neck speeds.

 

The new iPhone 12 Pro Max costs $1,099 but fear not, Tim Cook has something for every tax bracket. The bottom of the barrel “Mini,” which is probably just a refurbished iPhone 5, will start at $699.

 

Apple also announced a $99 HomePod for reasons that aren’t entirely clear.

 

Investors weren’t too impressed. Apple’s stock price dropped 2.65% on the day. Service providers, however, benefited thanks to their 5G capabilities. T-Mobile, specifically, rose 1.25%.

 

☑️All I do is win. The world economy: “There’s no way this year could get any worse…”

 

World Trade Organization: “Challenge accepted.”

 

The EU won the right to place $4B worth of tariffs on US goods thanks to subsidies Uncle Sam gave to Boeing. The move threatens to escalate the trade feud between the US and its frenemies across the Atlantic.

 

The World Trade Organization’s ruling follows a decision it made last year allowing the US to impose $7.5B worth of tariffs on goods from the EU. That ruling was related to state aid provided to Airbus by Britain, France, Germany, and Spain.

 

☑️Stuck on the runway. Delta reported a net loss of $5.4B. For those of your keeping track at home, that brings its total loss this year to $11B.

 

Revenue was $3.06B compared to $12.56B last year… and it gets worse. CEO Ed Bastian doesn’t see the company’s revenues bouncing back for two years.

 

On the plus side, Delta was able to cut its cash burn by 44% from $43M to $24M per day in the third quarter. Not to mention, jet fuel is priced to move.

 

☑️Roll credits. Movie theater owner AMC may be on the outs. The company warned investors yesterday that it could run out of money by early 2021. Naturally, shares tanked 7% on the news, and it didn’t stop there. Shares closed down 13%, and dropped another 5% in after hours trading.

 

It’s been a rough year for AMC as production companies have held back on movie releases and nobody has been going to theaters. The US’ largest movie theater owner was able to open 494 of its 598 theaters, but have only been able to operate at 20% to 40% capacity, so they aren’t exactly raking it in.

 

To make matters worse California, New York, North Carolina, and Maryland have remained closed. Those states made up 25% of the company’s total revenue last year. AMC is in talks to take on more debt.

 

Author:
Jeff Bishop

One of the best traders anywhere, over the past 20 years Jeff’s made multi-millions trading stocks, ETFs, and options. He is renowned as an incredible trader with a deep insight and a sensitive pulse on the markets and the economy. Jeff Bishop is CEO and Co-Founder of RagingBull.com.

Even greater than his prowess as a trader is his skill and passion in teaching others how to trade and rake in profits while managing risk.

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