The View from 5th Avenue

The View at Two – 16 November 2020

I’ll See Your 90%... – And raise you to 94.5%. Keep giving us Mondays like this and the Sunday scaries will be a thing of the past! We felt the Moderna news might be imminent and indeed it was, following up Pfizer’s announcement 7 days ago with a trial result that has even greater efficacy. (The timing was good too as further vaccine/treatments may be on hold for awhile and COVID figures are going the wrong way in the short-term and foreseeable future.) The reaction was as predictable as it was familiar, although last week’s bookend performances were so robust for the value/rotation trade that it’s stunted some of today’s still impressive move. The stay at home names that got hammered on Pfizer’s announcement weathered today’s news quite well; the when/if we’ve got a handle on this virus will not result in a binary work outcome. But travel and leisure will be and airliners took flight on vaccine part two. Those jets are going to need some fuel and crude/energy names followed suit. Banks, already buoyed by the morning news, got another boost when PNC paid $11.6bn for BBVa’s US unit, increasing hopes for further consolidation in the space.

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