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

27 January 2020

1) Bayer AG is facing a fourth jury trial over its Roundup weed killer causing cancer. Plaintiff’s claim glyphosate, the active ingredient in Roundup, is a carcinogen. In the three previous trials, Bayer was found liable for causing cancer resulting in damages of tens of millions of dollars, which are being appealed. The number of claimants are more than 75,000 although so far less than 50,000 claims have been formally filed.

2) Banks are raising the limit on people’s credit cards, even when they don’t ask for the raise. This is at a time when Americans are drowning in debt, in a effort to further boost their profits. For years Capital One financial Corp. resisted increasing limits of customers who looked vulnerable to getting over their heads in debt, but now have reversed their policy actively seeking more debt from customers.

3) A second coronavirus case has been confirmed in the U.S., a Chicago resident who had traveled to Wuhan in December. Wuhan is the center of virus outbreak in China, having already killed a couple of dozen or more people. China is now shutting down several very large cities in an attempt to stop the spread of the disease. Fears over the economic damage to the American economy has cause a sharp drop in the U.S. markets from news of a second coronavirus case. Presently, the U.S. government is monitoring passengers flying in from China for early signs of the illness hoping to quarantine the sick and prevent spreading of the virus.

4) Stock market closings for – 24 JAN 20:

Dow               28,989.73    down    170.36
Nasdaq            9,314.91    down      87.57
S&P 500           3,295.47    down       30.07

10 Year Yield:    down   at    1.68%

Oil:    down   at    $54.20