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Tesla jumps 6% in heavy quantity forward of S&P 500 entry, inventory then falls a bit in after hours

People wearing face masks are seen in a Tesla showroom at a mall in Wuhan, Hubei province, the epicenter of the Chinese coronavirus disease (COVID-19) outbreak on March 30, 2020.

Aly Song | Reuters

Tesla’s stock traded more than four times its average 30-day volume on Friday when passive funds bought the stock before Tesla joined the S&P 500. The stock will close before the opening bell on Monday based on Friday’s prices added to the benchmark index.

Amid the increase in volume, Tesla shares rose 5.96% on Friday, hitting a record high of $ 695 after switching between gains and losses in the last hour of trading. During after-hours trading, the stock fell approximately 3%.

The increased activity continued after hours, and by 4:45 p.m. ET, more than 200 million stocks had switched hands. That’s more than four times the average 30-day volume of the stock of 44,946,455, according to FactSet. Friday’s volume puts it in the top 10 most active trading days for the stock.

Based on Tesla’s Friday average price of $ 679.85, more than $ 131 billion of stocks changed hands.

Ahead of Friday’s meeting, S&P Dow Jones Indices estimated index fund managers would need to buy approximately 129.9 million Tesla shares valued at more than $ 85 billion.

However, investors unofficially tracking the S&P 500 also had to buy the stock, which is estimated to result in buying activity 50% to 100% above estimates.

– CNBC’s Robert Hum contributed to the coverage.

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Deal Making in 2020 Was All Concerning the SPAC

“I think the SPAC business has become a large and sustainable ecosystem,” said Michael Klein, the veteran banker who has since launched a number of SPACs that have made multi-billion dollar acquisitions, including the healthcare provider MultiPlan and the analytics software company Clarivate.

Some financiers have since made it their business to increase SPAC after SPAC. Mr. Klein recently raised $ 450 million for his fifth Churchill Capital fund. Venture capitalist Chamath Palihapitiya, who brought Virgin Galactic to the public, has raised a number of funds in search of acquisition targets.

And deal makers expect the SPAC craze, so far largely an American phenomenon, to go global. Earlier this month, French billionaire Xavier Niel raised € 300 million ($ 368 million) for a blank check fund, making it the biggest market debut in France this year.

What could go wrong?

Popular targets of SPAC deals this year have been electric vehicle manufacturers, some of which have stumbled heavily since going public. Goldman Sachs strategists noted earlier this week that many post-merger SPACs had poor returns compared to the S&P 500 this year. “If poor returns persist, investors’ appetite for new SPACs may wane,” they write, suggesting that new funds may become more difficult to attract. The short seller Carson Block has declared SPACs the “big money heist 2020”.

The popularity of SPACs could also reverse itself, advisers warned. Goldman strategists estimate that there are currently 193 blank check funds looking for acquisition targets of $ 63 billion. This implies a potential purchasing power of around 300 billion US dollars, as the typical SPAC, according to LUMA Partners, merges with a company five times its size thanks to external investors participating in the transaction.

SPACs typically have two years to find an acquisition target, or they are contractually required to return their money to investors. This puts them on the clock, potentially pushing each other out of business, or leading to mergers that arise out of urgency rather than cleverness. “A business model that encourages promoters to do something – anything – with other people’s money at times inevitably leads to significant destruction,” Block wrote.

And one of the big drivers of its surge in popularity earlier this year, its disappointing IPO performance, may be fading. The huge surge in Airbnb and DoorDash ratings on their recent IPOs could move some companies back to more traditional IPOs, leaving SPACs with billions of dollars but fewer targets worth buying.

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Pent-up demand will maintain Covid increase in RV gross sales

Michael Happe, Winnebago CEO, told CNBC on Friday that he expected the coronavirus pandemic-inspired surge in recreational vehicle sales to continue into next year.

The comments came after the Forest City, Iowa-based company reported strong quarterly results that exceeded Wall Street’s expectations. Investors enjoyed the quarter on Friday as Winnebago shares rose more than 5%.

Winnebago reported adjusted earnings per share of $ 1.69, beating estimates of $ 1.01, according to FactSet. This corresponds to an increase of 131.5% compared to the same quarter of the previous year. Revenue for the quarter ended November 28th was $ 793.1 million, up 34.8% year over year and beating analysts’ guidance of $ 753 million.

“We were obviously very pleased with the way consumers flocked to the outdoors in 2020 as they tried to manage the impact of the pandemic on their lives and we believe you will see a similar behavioral trend in 2021,” said Happen on “close bell.”

“We believe that consumers who might have been interested in the space and category earlier this year and may not have pulled the trigger but are still very excited to find a way are in great demand for RVing and boating in the Year 2021, “added the executive.

Winnebago Industries RVs on display at Winnebago Motor Homes in Rockford, Illinois.

Daniel Acker | Bloomberg | Getty Images

As the coronavirus pandemic required social distancing, many outdoor recreational activities such as boating, biking, and RV travel have grown in popularity. Happe is not alone in his optimism that America’s newfound interest in nature will carry over into the next year.

David Foulkes, CEO of Brunswick, told CNBC earlier this month: “We have incredible momentum in the [boating] Industry now. We have attracted a new population. … I think that gives us great momentum, not only in the next year but also in the years to come. “

Winnebago, which sells RVs and boats, has seen a similar shift in buyers, according to Happe. “Our consumers are getting younger. They are becoming more diverse in background and profile, and they are using the products in many different ways,” he said. “The trend to work from anywhere is pretty strong right now, and many of our new consumers see these products as an opportunity to work from the street or from a nice campsite here in America.”

Winnebago’s shares are up 18% so far this year and more than 260% since the March 19 low.

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Zoom Government Accused of Disrupting Calls at China’s Behest

In a novel case, federal prosecutors on Friday indicted an executive at Zoom, the video conferencing company, accusing him of conspiracy to disrupt and censor video meetings to commemorate one of the most politically sensitive events in China.

Prosecutors said China-based executive branch Xinjiang Jin invented grounds to suspend accounts of people in New York holding monuments on the anniversary of the Tiananmen Square massacre and coordinating with Chinese officials to identify potentially problematic meetings.

He is accused of working with others to log into video meetings under aliases with profile pictures relating to terrorism or child pornography. Afterward, Mr. Jin would report the sessions for violating the terms of service, prosecutors said.

At least four sessions to commemorate the massacre that year, attended mainly by US users, were canceled due to Jin’s actions, according to prosecutors.

Mr. Jin, also known as Julien Jin, acted as the liaison between Zoom and Chinese government agencies, according to the prosecutor. He is only identified in the criminal complaint as an employee of a US telecommunications company. Zoom confirmed on Friday that it was the company.

Mr. Jin was not arrested and is at large in China, which does not have an extradition treaty with the United States.

The case was an unusually sharp warning from law enforcement officers to American tech companies operating in China, which are often caught between the principles of free speech and the demands of the Chinese censorship machine.

“Americans should understand that the Chinese government will not hesitate to take advantage of companies operating in China to advance its international agenda, including the suppression of free speech,” said Christopher Wray, director of the FBI, in a statement.

A Zoom spokesperson said Friday that Mr. Jin violated his guidelines by attempting to bypass internal controls. Mr. Jin was fired and other Zoom employees were put on administrative leave pending an internal investigation.

In a detailed statement, the company said it has since provided end-to-end encryption for all users and limited access to Zoom’s global network for China-based employees.

The company is headquartered in San Jose, California and employs hundreds of people in China.

The charges against a China-based employee who works for an American company are an aggressive reprimand against China, which requires technology companies operating there to monitor user activity in order to censor politically sensitive issues.

Seth DuCharme, the acting US attorney in Brooklyn whose office brought the case, said the allegations had exposed the security flaws of American tech companies engaging in the “Faustian deal” with operations in China.

Economy & Economy

Updated

Apr. 18, 2020 at 12:25 am ET

The U.S. law firm in Brooklyn has been particularly active in filing cases that have angered the Chinese government, including a criminal case against Huawei, the Chinese telecommunications giant, and charges against eight people accused of plotting on China’s behalf for political purposes Dissidents in the US to harass US return home.

Mr. Jin was charged with conspiracy to interstate harassment and illegal conspiracy to transfer identification means. A lawyer for Mr. Jin could not be identified.

The case is also a black eye for Zoom, raising new questions about business security at a time when software is heavily used for work, school, healthcare, and more.

Mr. Jin asked employees for user data from American servers that he did not have direct access to, the prosecutor said. It was not clear how much access Chinese government officials were given to the account information of Zoom users in the United States.

The Zoom spokesman said the company’s internal investigation revealed that Mr. Jin shared individual user data with Chinese authorities. He shared the data for “fewer than 10 individual users” who were based outside of China.

The criminal complaint showed a relentless effort by Mr. Jin and others to stop video meetings commemorating the anniversary of the June 4th massacre.

In the weeks leading up to the anniversary, Mr. Jin warned a US official that Chinese officials are stalking Zoom users and stressed the need to uphold the Chinese government’s secret demands for censorship, according to criminal charges.

“They are requesting that we not disclose it,” wrote Mr. Jin. “Otherwise it will seriously damage our country’s reputation.”

Mr. Jin told the colleague that if Tiananmen Square was mistreated, China could block the company’s servers, according to prosecutors.

In another case, Chinese government officials informed Mr. Jin of a planned memorial on Tiananmen Square in America and gave him the session number of the video call, which Mr. Jin was then able to end, prosecutors said. It was not clear how the officers got the session number because the prosecutor said it had not been made public.

After customer demand for Zoom skyrocketed during the coronavirus pandemic, the Chinese government imposed additional controls on the operation of Zoom, even if users outside of China were involved.

In April, Mr. Jin told another Zoom employee that the Chinese government had ordered that Zoom develop the ability to end a meeting within a minute of a violation of Chinese law being discovered.

In June, Zoom was scrutinized by lawmakers after it blocked accounts held by Chinese human rights leaders who used the platform to organize commemorations for the 31st anniversary of the Tiananmen Square Operation in 1989, when army troops saw hundreds of student demonstrators, Workers and ordinary citizens. These accounts were later restored.

The Zoom memorial services also had consequences for people who were supposed to speak to them.

A dissident in the United States, who had not been identified by name, told the FBI that the Chinese authorities had pressured several people in China not to speak at a Zoom event he organized.

On the morning of the event, according to the criminal complaint, Chinese police detained one of the potential speakers for several days and went to another to prevent the person from logging into an electronics.

Katie Benner contributed to the coverage.

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Jay Leno reveals what he thinks is the genius behind Elon Musk, Tesla

Jay Leno said he thinks the genius of Tesla CEO Elon Musk was that “he built the infrastructure while he built the vehicle”.

“Even today, many major manufacturers build an electric car, but where do you charge it?” Leno told The News with Shepard Smith during a Friday night interview. “Elon was smart when he started, he knew this idea would work, so he built charging stations.”

Electric car maker Tesla will be the newest member of the S&P 500 on Monday.

2020 was a monster year for Tesla, the sixth largest company in the world – its inventory has grown by about 700% that year. CNBC’s “Jay Leno’s Garage” host said he was confident Tesla could maintain its dominance in electric vehicles, adding that he had seen European electric cars fall short.

“You don’t have the range of the Tesla,” Leno said. “They’re not doing it because Tesla is leading the field. We seem to have this inferiority complex that things in Europe are somehow better than the things that were built here.”

Leno gave host Shepard Smith examples of superior American innovation, including General Motors’ Corvette, which he believes rivals the Lamborghini and Ferrari and costs just $ 60,000.

He highlighted America’s dominance in private industry and pointed to Musk’s success in the space industry.

“The fact that Elon can send a rocket into space and land it back on earth for a tenth the price of the US government?” Said Leno. “Well, that’s exactly what the private sector should do – cheaper, faster, more efficiently.”

Leno suggested that those who want to feel the “rumble of a car beneath them” should “buy another car.” He admitted that he loves Ferraris, Ford Cobra and Lamborghinis on weekends, but that sitting in traffic and driving on the spot just isn’t practical.

“When you’re in a quiet electric vehicle, you don’t pollute and save,” Leno said. “When I want to have fun, I take out my 1960 Triumph TR3 and bomb around, but in terms of everyday vehicles you can’t beat it.” [the Tesla]. “

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What Is 13-3? Why a Debate Over the Fed Is Holding Up Stimulus Talks

When the markets collapsed in March, the Federal Reserve introduced novel programs to help keep the flow of credit to states, medium-sized businesses, and large corporations alive. Congress presented Treasury Secretary Steven Mnuchin $ 454 billion to support the effort.

Nine months later, Senate Republicans are trying to ensure the same programs cannot be restarted after Mr Mnuchin lets them end on December 31st. Aside from preventing their reincarnation under the Biden administration, Republicans are trying to fit language into a pandemic stimulus package that would limit the Fed’s future powers and potentially prevent it from lending to businesses and local authorities in future crises.

The last-minute move has drawn democratic anger and threatened the fate of relief laws, which economists believe are badly needed as households and businesses stare at a dark winter pandemic. Here’s an overview of how the Fed’s lending powers work, and how the Republicans are trying to change them.

The most important and well-known job of the Fed is to set interest rates as a guide for the economy. However, the central bank was founded in 1913 to avoid banking problems and financial panic – when people get nervous about the future and rush to withdraw their money from bank accounts and sell stocks, bonds, and other investments. Congress dramatically expanded the Fed’s powers to fight panic during the Great Depression, adding Section 13-3 to the Federal Reserve Act.

The section allows the Fed to act as the lender of last resort in “unusual and urgent” circumstances – in short, when markets are not functioning normally because investors are extremely concerned. The central bank used these powers extensively during the 2008 crisis to support politically unpopular bailouts for financial companies. Congress then changed the Fed’s powers to require the blessing of the Treasury Department to introduce new emergency loan programs or to make significant changes to existing programs.

During the 2008 crisis, the Fed served primarily as the true lender of last resort – it mainly assisted the various financial markets by offering to intervene when conditions got really bad.

The emergency loan programs for 2020 were far more extensive. Last time the Fed focused on parts of Wall Street that most Americans know little about, like the commercial paper market and primary dealers. This time these measures were reintroduced, but new programs were also introduced to keep credit available in almost all parts of the economy. It has offered to buy municipal bonds, support bank loans to small and medium-sized businesses, and buy up corporate debt.

The comprehensive package was an answer to a real problem: many markets crashed in March. And the new programs generally worked. Although the terms were not particularly generous and relatively few corporations, as well as state and local borrowers, have taken advantage of these new programs, their existence gave investors confidence that the central bank would prevent a financial collapse.

Most lawmakers agreed that the Fed and the Treasury Department did a good job of reopening credit markets and protecting the economy. But Senator Patrick J. Toomey, a Republican from Pennsylvania, began asking questions this summer about when the programs would end. He said he was concerned that the Fed could push its limits and replace private lenders.

After the election, other Republicans joined Mr Toomey’s push to end the programs. Mr Mnuchin announced on Nov. 19 that he believes that Congress is earmarked for the five programs backed by the $ 454 billion Congress, which has the power to regulate lending and bond purchases on Dec. December to discontinue. and asked the Fed to return the money he had loaned to the central bank.

Economy & Economy

Updated

Apr. 18, 2020 at 12:25 am ET

The Fed made a statement that it was dissatisfied with his election but agreed to return the money.

Democrats criticized the move to limit the possibilities of the new Biden government. They began to discuss whether they could reclaim the funds and restart the programs once Mr Biden took office and his finance minister was confirmed, as Mr Mnuchin’s decision to close them and reclaim the funds was based on dubious legal grounds.

The new Republican move would cut that option off. Legislative language circulated early Friday suggested “any program or facility similar to an established program or facility” be banned with the 2020 funds. While this would allow the Fed to continue providing liquidity to Wall Street during a crisis, it could continue to seriously limit the central bank’s freedom to lend to corporations, states and local governments.

In a statement, Massachusetts Democrat Senator Elizabeth Warren called it an attempt to “sabotage President Biden and our nation’s economy.”

Mr Toomey defended his proposal to protect the Fed from politicization. For example, he said Democrats could try to make the Fed’s programs much more generous to states and local governments.

The Treasury Secretary would need the approval of the Fed to improve conditions and help beneficiary borrowers. The central bank could not readily agree, however, as it has generally approached its powers cautiously to avoid political scrutiny and maintain its status as a bipartisan institution.

Fed officials have avoided incriminating the ongoing showdown in Congress.

“I will have nothing more to say about this than what we have already said – that Secretary Mnuchin, as Treasury Secretary, wants the programs to end by December 31,” and that the Fed will return the money as requested, Richard H. Clarida, who vice chairman of the Fed said Friday on CNBC.

More generally, he added that “we believe the 13-3 facilities” were “very valuable”.

Emily Cochrane contributed to coverage from Washington.

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Covid vaccinations ‘received’t be chaos,’ assures Walgreens govt

Rick Gates, senior vice president of pharmacy and healthcare at Walgreens, told CNBC that getting vaccines to the general public was “not a mess” as the FDA approved Moderna’s Covid-19 vaccine for emergency and plans got under way for the states to reach nearly 6 million doses by early next week.

“What you will see is that we will think very carefully about how we plan appointments, how we work with the communities we are in, in the states we are in, in priority populations to ensure that there won’t be long queues at pharmacy doors and that people will have safe, convenient and efficient ways to get vaccines, “said Gates.

Pfizer’s Covid-19 vaccine was launched in long-term care facilities on Friday, and Walgreens pharmacists gave many of those vaccinations. The federal government has agreements with Walgreens and other pharmacies, including CVS, to vaccinate millions of people across the country. In a Friday night interview with The News with Shepard Smith, Gates described how the organization’s pharmacists are trained to prepare them to effectively administer the Covid-19 vaccine.

“The safety protocol we gave our pharmacists to learn how to look for allergic reactions, how to make sure they monitor patients after vaccination, are all part of the normal process,” said Gates.

So far, according to publicly available data from 20 states, the United States has vaccinated at least 66,000 people, and that number is expected to increase dramatically as more states report their numbers. Gates acknowledged that there is a lot of organization involved in the vaccination process, but underlined that “Vaccines are what we do very consistently and that monitoring patients after a vaccine is a very common thing we do through flu shots, Shingrix or other vaccines think out there. “

Host Shepard Smith asked Gates how Walgreens would handle turning away people who come to their pharmacies to get vaccinated but are not part of a priority population. Gates said vaccines are planned in advance and not given a “walk-up” format like the flu shots. He added that Walgreens pharmacies across the country will be working with states and the Centers for Disease Control and Prevention to ensure those in need of vaccines get them. Gates added that there would also be reminders for people to get their second dose.

“For the community. We’ll have all sorts of reminders and phone calls if we have to, to make sure Americans know they need that second dose and the right time for that dose,” Gates said.

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F.D.A. Clears Moderna’s Covid Vaccine

The Food and Drug Administration on Friday authorized the coronavirus vaccine made by Moderna for emergency use, allowing the shipment of millions more doses across the nation and intensifying the debate over who will be next in line to get inoculated.

The move will make Moderna’s vaccine the second to reach the American public, after the one by Pfizer and BioNTech, which was authorized just one week ago.

The F.D.A.’s decision sets the stage for a weekend spectacle of trucks rolling out as expert committees begin a new round of discussions weighing whether the next wave of vaccinations should go to essential workers, or to people 65 and older, and people with conditions that increase their risk of becoming severely ill from Covid-19.

Jockeying for the next shots in January and February has already begun, even though there is still not enough of the two vaccines for all the health care workers and nursing home staff members and residents given first priority. Uber drivers, restaurant employees, morticians and barbers are among those lobbying states to include them in the next round along with those in the more traditional categories of the nation’s 80 million essential workers, like teachers and bus drivers.

The rapid progress from lab to human trials to public inoculation has been almost revolutionary, spurred by the nation’s urgent need to blunt the pandemic that has broken record after record in U.S. deaths, hospitalizations and economic losses. In the last week alone, there has been an average of 213,165 cases per day, an increase of 18 percent from the average two weeks earlier. And the daily death toll in recent days has surpassed 3,200.

Dr. Anthony S. Fauci, the nation’s top infectious disease expert, called the advent of two vaccines “an historic moment.”

“This to me is a triumph of multiyear investment in biomedical research that culminated in something that was not only done in record time, in the sense of never before has anybody even imagined you would get vaccines to people in less than a year from the time that the sequence was made known,” Dr. Fauci said.

“This is an example of government working. It worked really well,” he added.

Moderna, a company based in Cambridge, Mass., worked with Dr. Fauci’s agency at the National Institutes of Health to create a vaccine that, along with Pfizer-BioNTech’s, shepherds in a new technology based on genetic material called messenger RNA or mRNA. In clinical trials in tens of thousands of volunteers, the vaccines proved 94 to 95 percent effective. Each requires two shots.

Both products are reaching an anxious public before vaccines made with traditional approaches, and have become even more critical as other companies’ efforts have faltered in recent months.

The emergency authorization kicks off a swift and complex drive to distribute some 5.9 million doses of the Moderna vaccine around the country, with shipping to begin on Sunday and deliveries starting on Monday. The first Moderna vaccinations could then be given hours later.

Because Moderna’s vaccine, unlike Pfizer-BioNTech’s, does not need extreme-cold storage and is delivered in smaller batches, states are hoping to provide it to less populated areas, reaching rural hospitals, local health departments and community health centers that were not at the top of the distribution list.

Three places that did not receive the Pfizer-BioNTech vaccine — the Marshall Islands, Micronesia and Palau — will receive the Moderna vaccine for that reason, according to a federal health official familiar with the government’s distribution plans.

And in contrast to Pfizer’s rollout last week, the Moderna vaccine deliveries will be managed by the federal government under the funding of Operation Warp Speed, the administration’s program to develop and distribute vaccines as fast as possible.

Supplies of a second vaccine cannot come soon enough. Several governors and state health officials said on Friday that they were dismayed to learn they would be getting less of the Pfizer-BioNTech vaccine next week than the federal government had promised.

Dr. Mark Levine, commissioner of the Vermont Department of Health, said in a Friday briefing: “All my colleagues in the region are reporting a 25 to 35 percent decrease in their allocation for next week. As we were walking in, I learned as many as 975 doses out of an expected 5,850 doses would not be coming in when we expected. That doesn’t mean we won’t be getting all of those doses. It just means they won’t be coming in when we expected.”

He added, “What everyone around the country is upset about, in addition to just the number, is there’s been no communication, so there’s no understanding of what this really means.”

Covid-19 Vaccines ›

Answers to Your Vaccine Questions

With distribution of a coronavirus vaccine beginning in the U.S., here are answers to some questions you may be wondering about:

    • If I live in the U.S., when can I get the vaccine? While the exact order of vaccine recipients may vary by state, most will likely put medical workers and residents of long-term care facilities first. If you want to understand how this decision is getting made, this article will help.
    • When can I return to normal life after being vaccinated? Life will return to normal only when society as a whole gains enough protection against the coronavirus. Once countries authorize a vaccine, they’ll only be able to vaccinate a few percent of their citizens at most in the first couple months. The unvaccinated majority will still remain vulnerable to getting infected. A growing number of coronavirus vaccines are showing robust protection against becoming sick. But it’s also possible for people to spread the virus without even knowing they’re infected because they experience only mild symptoms or none at all. Scientists don’t yet know if the vaccines also block the transmission of the coronavirus. So for the time being, even vaccinated people will need to wear masks, avoid indoor crowds, and so on. Once enough people get vaccinated, it will become very difficult for the coronavirus to find vulnerable people to infect. Depending on how quickly we as a society achieve that goal, life might start approaching something like normal by the fall 2021.
    • If I’ve been vaccinated, do I still need to wear a mask? Yes, but not forever. Here’s why. The coronavirus vaccines are injected deep into the muscles and stimulate the immune system to produce antibodies. This appears to be enough protection to keep the vaccinated person from getting ill. But what’s not clear is whether it’s possible for the virus to bloom in the nose — and be sneezed or breathed out to infect others — even as antibodies elsewhere in the body have mobilized to prevent the vaccinated person from getting sick. The vaccine clinical trials were designed to determine whether vaccinated people are protected from illness — not to find out whether they could still spread the coronavirus. Based on studies of flu vaccine and even patients infected with Covid-19, researchers have reason to be hopeful that vaccinated people won’t spread the virus, but more research is needed. In the meantime, everyone — even vaccinated people — will need to think of themselves as possible silent spreaders and keep wearing a mask. Read more here.
    • Will it hurt? What are the side effects? The Pfizer and BioNTech vaccine is delivered as a shot in the arm, like other typical vaccines. The injection into your arm won’t feel different than any other vaccine, but the rate of short-lived side effects does appear higher than a flu shot. Tens of thousands of people have already received the vaccines, and none of them have reported any serious health problems. The side effects, which can resemble the symptoms of Covid-19, last about a day and appear more likely after the second dose. Early reports from vaccine trials suggest some people might need to take a day off from work because they feel lousy after receiving the second dose. In the Pfizer study, about half developed fatigue. Other side effects occurred in at least 25 to 33 percent of patients, sometimes more, including headaches, chills and muscle pain. While these experiences aren’t pleasant, they are a good sign that your own immune system is mounting a potent response to the vaccine that will provide long-lasting immunity.
    • Will mRNA vaccines change my genes? No. The vaccines from Moderna and Pfizer use a genetic molecule to prime the immune system. That molecule, known as mRNA, is eventually destroyed by the body. The mRNA is packaged in an oily bubble that can fuse to a cell, allowing the molecule to slip in. The cell uses the mRNA to make proteins from the coronavirus, which can stimulate the immune system. At any moment, each of our cells may contain hundreds of thousands of mRNA molecules, which they produce in order to make proteins of their own. Once those proteins are made, our cells then shred the mRNA with special enzymes. The mRNA molecules our cells make can only survive a matter of minutes. The mRNA in vaccines is engineered to withstand the cell’s enzymes a bit longer, so that the cells can make extra virus proteins and prompt a stronger immune response. But the mRNA can only last for a few days at most before they are destroyed.

Gov. Charlie Baker of Massachusetts said on Friday, “We’re certainly frustrated,” referring to the reduced number of Pfizer-BioNTech doses his state would receive next week — 42,900 instead of 59,000. Demand for the vaccine is high.

“So far, hospitals are reporting overwhelming acceptance from doctors, nurses and other workers who are eligible to be vaccinated,” he said.

Pointing out how hard hit Wisconsin has been, Gov. Tony Evers complained that the state was receiving significantly less of the Pfizer-BioNTech vaccine than it had been promised — 35,100 doses instead of 49,725. In a statement on Friday, he said, “We call on the federal government to send us more vaccine without delay.”

Because Moderna’s vaccine requires two doses, federal officials are holding another 5.9 million doses for shipment four weeks after the first wave, as the doses are spaced a month apart. The federal government also plans to reserve more than 500,000 doses in case of problems with the initial shipment.

Officials expect to inform states next week the number of doses they plan to send in the second wave of shipments.

The emergency authorization Friday was the product of an F.D.A. review process that compressed an extraordinary amount of work into weeks, and occurred at the same time regulators were poring over materials for the Pfizer-BioNTech vaccine.

The overlap led to a grueling schedule for the reviewers. Large teams organized into specialties — epidemiology, statistics and manufacturing among them — and reviewed Moderna’s application day and night once the company submitted its data in late November.

Among the review’s components were teams that examined company production facilities and clinical trial sites to affirm that records corresponded to the materials Moderna had submitted to federal regulators.

The F.D.A.’s advisory panel also had to consider new information — reports of severe allergic reactions, two in Britain and two in the United States, in people who received the Pfizer-BioNTech vaccine after it was authorized. Although that vaccine is not identical to Moderna’s, they are similar. The agency and the Centers for Disease Control and Prevention are investigating the cases, but say the vaccines can be safely administered to most people who have allergies, with careful monitoring.

The F.D.A.’s authorization also represented a capstone to a sprawling government-led effort that began in January, when scientists at the National Institutes of Health and Moderna designed the vaccine within two days of China’s releasing the genetic sequence of the new virus.

The company had never brought a product to market, giving it an underdog status as its vaccine was tested on the same timetable as Pfizer-BioNTech’s. Moderna enjoyed an unusually intimate relationship with Operation Warp Speed, which has monitored its supply on an almost hourly basis this year. The company benefited from nearly $2.5 billion in federal funds used to buy raw materials, expand its factory and enlarge its work force by 50 percent.

Public health experts and federal officials still estimate that it will be at least six months, if not longer, before most Americans can be vaccinated. And that depends on whether other vaccines in trials are successful and receive emergency approval.

The federal government is counting on building supplies from vaccines under development by several others — one from Johnson & Johnson, one from Sanofi of France and GlaxoSmithKline of Britain, and another from the British-Swedish drug maker AstraZeneca and the University of Oxford.

On Saturday and Sunday, experts advising the C.D.C. will take up Moderna’s vaccine and ultimately vote on the next tiers of people who should get the vaccines. The committee vote on Sunday will most likely set off a frenzy of difficult decision-making at the state level that could be further complicated by bumps in the vaccine production process.

Behind the scenes is McKesson, based in Irving, Texas, one of the country’s largest distributors of drugs and medical supplies. The company has a long history of distributing vaccines and is the largest distributor of the seasonal flu vaccine in the United States.

McKesson also played a central role in the opioid epidemic and is part of a group of companies closing in on a potential $26 billion settlement with state and local governments.

The company will be the main distributor of the Moderna vaccine. Pfizer-BioNTech itself is distributing its vaccine, which needs to be kept at minus 94 degrees Fahrenheit.

McKesson is also producing kits that include the supplies needed to administer both vaccines.

McKesson is assembling the kits at two of its distribution centers, one near Louisville, Ky., a major hub for UPS, and another near Memphis, where FedEx is based.

While McKesson has its own fleet of trucks, it is largely relying on FedEx and UPS to ship the kits and vaccines.

Each kit includes needles, syringes, alcohol prep pads, face shields and surgical masks, administration sheets for health care providers, and vaccination record and reminder cards for patients.

McKesson has outfitted at least two of its distribution centers with specially designed, 10,000-square-foot freezers designed to store millions of doses of the Moderna vaccine. Altogether, McKesson has added more than 3.3 million square feet of space to manage the project.

When the time comes to send the Moderna doses out, McKesson will pack the doses into coolers it sourced from Cold Chain Technologies, a company in Franklin, Mass. Those coolers will be packed with coolant packs, and then sent to administration sites via FedEx and UPS. The coolers also contain monitoring devices that indicate whether the vaccines ever got too warm.

McKesson has hired more than 1,000 people to help with the effort, and expects to hire up more than 2,500 more in the months ahead.

David Gelles, Katherine J. Wu, Sharon LaFraniere and Reed Epstein contributed reporting.

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Nike (NKE) stories Q2 fiscal 2021 earnings, gross sales beat

Nike reported quarterly sales and earnings on Friday that exceeded analyst estimates. This is due to triple-digit online growth in North America and strong Chinese consumer demand for sneakers and workout clothing.

Due to the pandemic, costs could be reduced as less marketing spending was made at sporting events. The lower costs increased profitability. Strong sales during Alibaba’s Single’s Day in China and Black Friday in the US helped it kick off the holiday season with stock shortages, reducing the need for discounts.

“These are the times when strong brands are getting stronger,” said CEO John Donahoe during a conference call on the results. “Constant changes in the direction of digital, sporty clothing as well as health and wellness continue to offer us incredible opportunities.”

Its stocks jumped more than 4% in trade outside of business hours.

Here’s how the company performed in the second quarter of the fiscal year compared to analyst expectations based on refinitive data:

  • Earnings per share: 78 cents versus 62 cents, expected
  • Revenue: $ 11.24 billion versus $ 10.56 billion expected

For the three-month period ended November 30, Nike reported net income of $ 1.25 billion, or 78 cents per share, compared to $ 1.12 billion, or 70 cents per share, last year. Analysts had demanded a profit of 68 cents per share.

Revenue increased 9% year over year to $ 11.24 billion from $ 10.33 billion last year. That was better than what analysts had expected to be $ 10.56 billion.

According to Nike, digital sales for its eponymous brand rose 84% in the quarter as more shoppers visited the site to purchase sportswear and shoes to help maintain their fitness routines and personal health during the pandemic. This has helped to compensate for declines in wholesale partners and in the company’s own brick and mortar stores, as the global health crisis made fewer people feel good when they left their homes to shop.

Sales for the Converse brand, owned by Nike, declined 1% in the second quarter. According to Nike, thanks to the introduction of yoga and plus sizes, the women’s category has grown faster than business as a whole.

In Greater China, Nike sales grew 24%, compared to just 1% year-over-year growth in North America.

With domestic turf sales stagnating, Nike has doubled in the Chinese market, viewing the region as a key growth opportunity for the brand. Over the summer, a new type of store called Nike Rise opened in a mall in Guangzhou, hosting local meetups for mobile app users.

According to Nike, more than 4 million new customers bought their products during Singles Day, a shopping event hosted by Chinese e-commerce giant Alibaba. Overall, Nike achieved online sales of over half a billion dollars on Singles Day on November 11th.

The retailer also said it had “record” sales online during the week of Black Friday in the US but did not disclose the amount.

Nike stands alongside Lululemon, Dick’s Sporting Goods, and other retailers selling exercise gear and exercise equipment that have recovered faster this year. Other clothing retailers, especially those that deal with workwear and dresses, have problems.

Still, pedestrian traffic in stores in North America, Europe, and Latin America is down year-over-year due to social distancing measures. However, customers who venture into stores are more likely to buy, which increases conversion rates. Ninety percent of the stores are open, but some have reduced hours.

At the close of the market on Friday, Nike shares were up more than 37% this year. The company has a market capitalization of $ 215.5 billion.

The full press release on Nike’s earnings can be found here.

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Business

Main Arts Group Chief Steps Apart Amid Office Complaints

Robert Lynch, executive director of Americans for the Arts, the powerful national advocacy group, has resigned following complaints and investigations into the organization’s equity and diversity practices and workplace management.

Mr Lynch, who has held a leadership role there for more than three decades, will take paid leave, the group’s board of directors said in a statement on Wednesday. “It has been shown that despite our best efforts, we have not achieved our goals of leading, serving, and promoting the various networks of businesses and individuals who practice the arts in America,” the statement said.

Mr. Lynch, 71, was a prominent advocate of resources for nonprofit arts organizations. He was also a member of the Biden-Harris Transition Team for Arts and Humanities. His departure from his position at AFTA, where his annual compensation package was reported to be over $ 900,000 in tax returns, was voluntary and effective immediately, the statement said. (Mr Lynch’s work with the Biden-Harris transition team is complete, a spokesman said.)

His absence should enable a thorough review of AFTA, which has over $ 100 million in foundation assets. “It is Bob’s firm belief – one regrettably shared by the Board of Directors – that the most appropriate course of action at this time is to proceed with the investigation without the distraction and in the best interests of the mission of the organization and the field.” Statement said.

The move comes after a growing chorus of criticism from current and former AFTA staff and advisory board members who said the organization has failed to fulfill its mission regarding diversity, equity and inclusion. There were also complaints about sexual harassment and a management culture based on intimidation rather than transparency. Critics had asked Mr. Lynch to resign because he had not responded to the problems they listed for a long time. The excitement was also the subject of a report in the Washington Post earlier this week that detailed the issues, including reports of widespread reprisals among senior executives.

In recent months, as calls for diversification of AFTA’s leadership and better service to creative communities and paint artists increased, the group publicly defended its actions and promised to do better. It is one of several arts organizations, large and small, that have recently been forced to reckon with a history of inequality in their ranks and programs.

In its statement, AFTA said it will now be the subject of two independent investigations, one by law firm Proskauer Rose regarding the work environment and one by consulting firm Hewlin Group, which focus on AFTA’s policies and procedures regarding diversity will, equity and inclusion.

A retired former board member, U.S. Army Brig. General Nolen Bivens will lead the group as interim president and managing director, the board said.