President Trump, Doug Prisoner David, Bloomberg discussed on Balance of Power
President and a new vaccine Whatmore could markets asked for we talk with Mark Hamrick of bank rate, but first we get a market check from Doug Prisoner David. I want to touch on this headline from the Bloomberg terminal before we look in on some of the price action in markets today. Two days after losing reelection, President Trump announced on Twitter he has fire Defense Secretary Mark Esper. Esper will be replaced by Christopher Miller. He will service acting Secretary of defense immediately. We've gotta rally underway in the equity space with record highs for both the Dow industrial average in the S and P 500 essentially two prongs at work here. The first presidential election results have been called for the Biden Harris tickets and Republicans appear to be likely to maintain control of the Senate. So it looks as though we're gonna have divided government. But secondarily and perhaps more powerfully, the influence of a large scale covert 19 vaccine study, it delivered the most promising results. It's AH shot being developed by Pfizer in joint cooperation with Germany's bio and tech. It was found to have prevented more than 90% of infections. Right now, The industrial average is up 4.9%, the S and P 500 better by three and a quarter percent. Energy shares leading this advanced. There's also strength among industrial And realestate along with financial shares. We have a move up in long term interest rates. That's giving the financials a lift. Long term or the 10 Year. Treasury I should say is up nearly 14 basis points. Now we're 95 basis points. Crude oil up 9% in New York trading the active contract at 40 50. We've got a stronger dollar with the Bloomberg dollar spot Index rising 4/10 of 1% and the end weakening by 2% against the greenback at 105 52. I'm Doug Prisoner. That's your Bloomberg Business Flesh. David. Thank you so much. Doug, as that just took us through. The markets are off to a brisk start on this first trading day of Joe Biden as president elect. Help along the way with visors encouraging announcement about its vaccine, Although President Biden warned us about an hour and a half ago, right now that we still have a way to go before we put this pandemic behind us. It's clear that this vaccine even if approved, will not be widely available for many months yet to come. Challenge before us right now. Is still immense and growing. To take us through the market reaction. We welcome now. Mark Hamrick, He's Washington bureau chief for bank rate. So, Mark thank you so much for being with us. And I guess the question a lot of us have in our minds is is the market getting ahead of itself because it is pretty dramatic What we're watching right now. Well, we won't know the answer that for quite some time, David, but it is quite stunning to see this reaction. And I think fact that we see that there's ah, reasonable chance, if not better, that there's a scientific solution to the pandemic is certainly very hardening, and that's why you see The likes of Disney Up on Collison moving lower today. Finally, it's interesting, but the market's pricing that far for the future because we just heard from the president elect, and I think most to public health officials say. Even if we get one, it's going to be at least the middle of next year before it really is effective. Well, let's be honest. I think this is a time for humility and admitting, but there's a lot we don't know, but in Buster's obviously don't wanna wait until that day, because that's going to be very late to get in on. Stock purchases that benefit from an economy that is Healing and the end is closer to something like we knew before the pandemic, and ultimately we don't know what the right prices for all these stocks. But if we're going to move to an environment where Americans have safe and effective vaccines available, that means they're closer to resuming some of the Consumer behaviors that they would have in the past on DH. That means that we're getting closer to the worst obeying behind us, but obviously it's a journey, but the stock market doesn't wait around for something. Literally occur because obviously, and investors are trying to anticipate that discount, and by most accounts, it looks like this is a step in the right direction and maybe even a large step. Not there yet, but a large deep in the right direction. That would benefit just about everybody. But who would benefit Maura? Unless I mean when you talk about stocks, particularly Corporations which sectors would stand to benefit the most from arable ability, go back out and be with one another. Well, I mean, I think you go back to the factors that work and artists of the very beginning that sort of a well known lots of these days way. Look at that again when we're looking at the October employment report. When we see the leisure and hospitality we're covered more jobs but still have a long way to go the same with retail the same with business and professional services that same what energy The same with construction and manufacturing. So you know, I think that obviously, you know, we've we've been seeing this remarkable environment over the past six months. Where investors have been bidding up essentially the work from home or stay at home stocks on DH. We know what all those are. Then that's everything from Politan Tio Netflix on DH. Clearly, you know the prospects. Companies like that are not going to be hobbled per se just because people are able to safely emerge from their homes and even go back to an office. But, you know, I think there there has been a legend. A question all along. It is there. Is it possible to have a vaccine for this and and and cannot be effective? And how effective Willoughby and today.