23 July 20

1) The business community of America is facing a national coin shortage, making it even more difficult for the retail sector to function. Across the country, restaurants, grocery stores, and retail outlets are posting signs near their cash registers and drive thru windows asking people to pay with credit cards or exact change. This shortage is a result of the spreading coronavirus closing businesses that crippled economic activity in the U.S., so the circulation of coins dropped off significantly. Furthermore, the U.S. Mint who manufactures the nation’s coinage supply, has decreased staffing because of the pandemic, thus reducing the availability of coins.

2) New research has directly connected the explosive growth of passive investing to deteriorating corporate performance over the long haul. Companies with higher passive ownership spent more on stock repurchases, but saw worse financial outcomes. Passive investment can allow opportunistic management behavior with negative effects of future company performance. Companies with high passive ownership are less monitored, therefore allowing management to act unhindered in their own best interest. Passive ownership is a result of investing by mutual and ETF funds who track indexes instead of actively manage counterparts.

3) The government has placed orders for up to 600 million doses of Covid vaccine to Pfizer and BioNTech. The U.S. health officials have agreed to pay $1.95 billion dollars for 100 million doses of a vaccine. Nations around the world have begun ordering vaccines that are still being tested in an effort to halt the spread of the virus. To date, the coronavirus has killed 600,000 people around the world. It is planned the vaccine will be free to U.S. citizens.

4) Stock market closings for – 22 JUL 20:

Dow 27,005.84 up 165.44
Nasdaq 10,706.13 up 25.76
S&P 500 3,276.02 up 18.72

10 Year Yield: down at 0.60%

Oil: up at $41.90

25 February 2020

1) The drug maker Moderna Inc. has shipped its first batch of coronavirus vaccine to U.S. government researchers for human testing. The government will test if the experimental shot can help suppress the epidemic that originated in China. Test are expected to start by the end of April on 20 to 25 healthy volunteers to see if two doses are safe and can induce an immune response that protects against infection. Using the virus’ genetic sequence, Moderna was able to make a fast response in developing a vaccine.

2) The United States Supreme Court has ruled on a decade long legal battle against Apple. The decision against Apple leaves the company open to paying $440 million dollars to the technology licensing company VirnetX for violations of its patents. The legal battle has been on going since 2010 for violations of VirnetX four patents. With the ruling against Apple, the case will be sent back to the district court in Texas to enforce the $440 million damages.

3) Canada’s oil sands industry may have built its last big mine. The cancellation of Teck Resources Ltd.’s Frontier project in northen Alberta, which was expected to produce more crude than OPEC member Gabon, has seen most of it’s foreign investors fall out. Other proposed mines may not be able to clear the hurdles that foil the Frontier project, thus ending an era of mega-projects that had made Canada the largest importer of crude to the United States. The dropping of crude oil prices has had a detrimental effect on the industry.

4) Stock market closings for – 24 FEB 20: The Dow closes down 1,000 points wiping out a year’s gains.

Dow 27,960.80 down 1031.61
Nasdaq 9,221.28 down 355.31
S&P 500 3,225.89 down 111.86

10 Year Yield: down at 1.38%

Oil: down at $51.34