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Asia markets combined following massive miss in U.S. jobs knowledge

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US employment data released on Friday fell far short of expectations as the economy added just 235,000 jobs in August. Economists polled by Dow Jones had sought 720,000 new hires.

Meanwhile, in line with estimates, the unemployment rate fell from 5.4% to 5.2%.

“In our view, the setback in the labor market recovery and the rise in serious Covid infections will cause the FOMC to wait before announcing it will reduce its monthly security purchases. We now expect the FOMC to reduce its monthly security purchases by 10 billion at its November 3rd meeting, “Commonwealth Bank of Australia analysts wrote in a Monday note.

US markets are closed on Monday for the Labor Day holiday.

Currencies and oil

The US dollar index, which tracks the greenback versus a basket of its competitors, hit 92.164 after falling over 92.4 recently.

The Japanese yen was trading at 109.81 per dollar, stronger than the 110.1 levels seen against the greenback last week. The Australian dollar changed hands at $ 0.7433 after falling below $ 0.732 last week.

Oil prices were lower on the morning of Asian trading hours, with international benchmark Brent crude oil futures falling 0.91% to $ 71.95 a barrel. The US crude oil futures fell 0.88% to $ 68.68 a barrel.

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World News

Information exhibits China manufacturing unit exercise progress slowed in August

SINGAPORE – Asia Pacific stocks fell mainly in trading on Tuesday as August data showed slower growth in Chinese factory activity.

In mainland China, the Shanghai composite lost 0.75% while the Shenzhen stake lost 1.674%.

China’s factory activity grew more slowly in August compared to the previous month, data released on Tuesday showed. The official purchasing managers’ index for manufacturing was 50.1 in August compared to 50.4 in July.

PMI values ​​above 50 indicate expansion, while those below this value indicate contraction. The PMI readings are sequential and represent a monthly expansion or contraction.

Hong Kong-listed Tencent and Netease stocks fell amid regulatory concerns. They fell 3.18% and 3.46%, respectively, in the city by Tuesday afternoon. It came after new rules released Monday by China’s National Press and Publication Administration showed plans to limit the time people under the age of 18 spend playing video games to just three hours a week.

Hong Kong’s broader Hang Seng index fell 1.43%.

In Japan, the Nikkei 225 was up 0.57% while the Topix index was up 0.32%. South Korea’s Kospi gained 0.61%.

Elsewhere in Australia, the S&P / ASX 200 climbed 0.38%.

MSCI’s broadest index for Asia Pacific stocks outside of Japan fell 0.46%.

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Overnight in the States, the S&P 500 rose 0.43% to 4,528.79 while the tech-heavy Nasdaq Composite rose 0.9% to 15,265.89. The Dow Jones Industrial Average lagged, dropping 55.96 points to 35,399.84 points.

Currencies and oil

The US dollar index, which tracks the greenback versus a basket of its competitors, hit 92.573 after falling above 93.0 last week.

The Japanese yen was trading at 109.86 per dollar, weaker than yesterday against the greenback below 109.8. The Australian dollar was trading at $ 0.7304 and largely held gains after rising below $ 0.72 last week.

Oil prices were lower during Asian trading hours, with international benchmark Brent crude futures falling 0.4% to $ 73.12 a barrel. US crude oil futures declined 0.51% to $ 68.86 a barrel.

– CNBC’s Arjun Kharpal and Lauren Feiner contributed to this report.

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Health

Early information trace at an increase in breakthrough infections within the U.S.

Ever since Americans started rolling up their sleeves on coronavirus vaccines, health officials have said that people who are vaccinated are very unlikely to become infected or suffer from serious illness or death. However, preliminary data from seven states suggest that the arrival of the Delta variant in July may have changed the calculation.

Breakthrough infections in vaccinated individuals accounted for at least one in five newly diagnosed cases in six of these states and higher percentages of total hospital admissions and deaths than previously seen in any of them, according to figures compiled by the New York Times.

However, the absolute numbers remain very low and there is no doubt that the vaccines continue to provide effective protection. This is still “a pandemic of the unvaccinated”, as the federal health authorities have often said.

Still, the trend marks a change in how vaccinated Americans rate their risks.

“Remember when the early vaccine studies came out, it was like no one was hospitalized, no one died,” said Dr. Robert Wachter, chairman of the medical school at the University of California at San Francisco. “That is clearly not true.”

The numbers support the belief, widely held by Biden government officials, that some Americans could benefit from booster vaccinations in the coming months. Federal officials plan to approve additional shots as early as mid-September, though it’s not clear who will receive them.

“If the chances of a breakthrough infection have increased significantly, and I think the evidence is clear and the protection against serious illnesses is no longer as robust as it used to be, I think the case for boosters is rising quite a bit.” Fast, ” said Dr. Guardian.

The seven states – California, Colorado, Massachusetts, Oregon, Utah, Vermont, and Virginia – were examined because they have the most detailed data. It is not certain that the trends in these states apply to the entire United States.

In any case, scientists have always expected that the number of people who have been vaccinated will become more and more represented in the census of the seriously ill and the dead as the population grows.

“We don’t want to water down the message that the vaccine is hugely effective and protective, more than we initially hoped,” said Dr. Scott Dryden-Peterson, an infectious disease physician and epidemiologist at Brigham & Women’s Hospital in Boston.

“The fact that we are seeing groundbreaking cases and groundbreaking hospital admissions and deaths doesn’t detract from the fact that it still saves many people’s lives.”

The CDC declined to comment on the states’ numbers. The agency is expected to hold a press conference on Wednesday to discuss breakthrough infections, hospital admissions and vaccine effectiveness.

Most breakthrough infection analyzes have numbers collected through the end of June. Based on the cumulative numbers, the CDC and public health experts concluded that breakthrough infections are extremely rare and that vaccinated people are most unlikely to get seriously ill.

State data shows that vaccinated people are much less likely to get seriously ill or die of Covid-19.

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Health

WHO says some information suggests elevated danger of hospitalization

Maria Van Kerkhove, Head of the Emerging Diseases and Zoonosis Division of the World Health Organization, speaks during a press conference following a meeting of the Emergency Committee on the new coronavirus in Geneva on January 22, 2020.

Pierre Albouy | AFP | Getty Images

A senior World Health Organization official said Tuesday that data from some countries may suggest that the Delta variant puts those infected at increased risk of hospitalization, but doesn’t necessarily kill more people than other strains.

“In terms of severity, we’ve seen some countries suggest an increased risk of hospitalization for people with a Delta variant. We haven’t seen this lead to an increased death rate, ”said Maria Van Kerkhove, WHO technical director on Covid-19. People infected with the Delta variant “didn’t die more often than the other strains,” she said.

Health officials have been grappling with the question for months, waiting for real data in countries where the delta variant is widespread. Van Kerkhove said WHO officials meet daily to discuss the rapidly spreading variant.

Like other strains, the Delta variant is especially dangerous for people with underlying conditions like obesity, diabetes, or heart disease, say WHO officials. However, it is far more contagious than other varieties, so it infects more people and puts a strain on global health systems.

“The risk factors for serious illness and death are the same,” said Van Kerkhove. “If you have underlying illnesses, regardless of your age, you have an increased risk of hospitalization.”

The Delta variant also quickly overtakes all other variants wherever it is recognized, she said.

“The prevalence of the lambda variant is falling … and the delta variant is increasing,” said Van Kerhove. “The delta variant quickly replaces other variants that are in circulation wherever it is identified.”

It is spreading in Central and South American countries and is quickly overtaking the lambda variant that is currently predominant there.

“We still don’t know exactly what impact the delta will have on Latin American countries,” said Dr. Sylvain Aldighieri, Incident Manager for the Pan American Health Organization, at a briefing last week.

The delta variant, first discovered by scientists in India in October, has so far spread to at least 142 countries. Found only a few months ago in the US, it now accounts for more than 90% of all sequenced cases, according to the CDC.

The most at risk in the US have been fully vaccinated, with booster doses approved on Friday for people with compromised immune systems and available immediately for administration.

There are currently discussions about opening booster doses to the general population, a move that would violate WHO’s strict recommendations to share doses with the rest of the world before booster doses are given to people who have already received their first vaccinations .

More than 200 million people worldwide have contracted Covid since the pandemic began, doubling from 100 million cases in the past six months. With the more transferable Delta variant spreading rapidly, the number could easily hit 300 million early next year, WHO officials said last week.

“Whether we reach 300 million and how quickly we get there depends on all of us,” WHO Director General Tedros Adhanom Ghebreyesus said last week.

– CNBC’s Robert Towey contributed to this report.

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Health

NIH director says new Israel information is constructing case within the U.S.

New data from Israel on the effectiveness of Covid-19 vaccines over time is causing U.S. health leaders to rethink their position on vaccine booster shots in the U.S., National Institutes of Health Director Dr. Francis Collins said Tuesday.

“The people who got immunized in January are the ones that are now having more breakthrough cases,” Collins said during an interview on “The Hugh Hewitt Show,” referring to Covid infections in fully vaccinated individuals. Israel released new data Monday showing a reduction in the effectiveness of Pfizer’s Covid vaccine against severe illness among people 65 and older who were fully vaccinated in January or February.

NIH Director Fr. Francis Collins holds up a model of the coronavirus as he testifies before a hearing looking into the budget estimates for National Institute of Health (NIH) and the state of medical research on Capitol Hill in Washington, DC on May 26, 2021.

Sarah Silbiger | AFP | Getty Images

Collins said the rise in so-called breakthrough cases in Israel is likely due to a combination of the highly contagious delta variant and Covid vaccine protection waning over time.

“Mostly, of course, these are symptomatic, but not serious,” he said. “But you’re starting to see a little bit of a trend toward some of those requiring hospitalization.”

Collins’ comments come as federal health officials are expected to recommend that most people in the U.S. who are eligible for Covid vaccinations should get booster shots eight months after their second doses.

The federal guidance, which would apply only to the two-shot Pfizer and Moderna vaccines, could go into effect as early as mid-September, pending FDA authorization, a person familiar with the discussions told CNBC.

The New York Times reported Monday that federal health officials are particularly concerned about data from Israel, where Covid vaccinations began ahead of many other countries. The data reportedly showed that for people vaccinated in January who are age 65 and older, the Pfizer vaccine was less than 55% effective against severe disease and hospitalization.

Collins said Tuesday that federal officials are starting to see the same thing in U.S. data.

“Although right now, it still as if our vaccine protection is working really well,” he said. “But we don’t want to wait until it’s like oh, too late. So that’s why we’re looking at the data.”

Up until now, federal officials haven’t recommended booster doses for the general public. On Friday, they approved administering Covid booster shots of Pfizer’s and Moderna’s vaccines to Americans with weakened immune systems, which includes cancer and HIV patients and people who have had organ transplants.

Covid vaccine makers, including Pfizer and Moderna, have repeatedly contended that everyone will eventually need a booster shot and potentially extra doses every year, just like for the seasonal flu.

The NIH, Food and Drug Administration and the Centers for Disease Control and Prevention released a joint statement Tuesday saying they have a “rigorous process” to determine when boosters would be necessary.

“This process takes into account laboratory data, clinical trial data, and cohort data – which can include data from specific pharmaceutical companies, but does not rely on those data exclusively,” the agencies said. “We continue to review any new data as it becomes available and will keep the public informed.”

On Monday, Pfizer and BioNTech said they have submitted early stage clinical trial data to the FDA as part of their U.S. application seeking authorization of a Covid vaccine booster for everyone 16 and older. The companies said they would seek approval for a booster dose via a supplement to their application once the agency grants the vaccine full approval.

If the booster shots are approved, the U.S. would likely vaccinate nursing homes, health-care providers and the elderly first, Collins said Tuesday. He said “ideally” people should stick with the same manufacturer they got their first two doses from.

“But if for some reason you don’t have access to it, well, then get the other one,” he said. “Again, I’d feel more comfortable as a scientist fixing our plans on real data, and that means sticking to the same kind of vaccine that you got to begin with.”

–CNBC’s Tom Franck contributed to this report.

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Health

Pfizer submits information to FDA for approval

Walgreens health professional Luis S. Solano prepares a dose of Pfizer BioNTec’s vaccine against coronavirus disease (COVID-19) on February 22, 2021 at the Victor Walchirk Apartments in Evanston, Illinois.

Kamil Krzaczynski | Reuters

Pfizer and BioNTech announced on Monday that they had submitted clinical trial data to the Food and Drug Administration as part of their U.S. application for approval of a Covid vaccine booster for all 16 and older – not just people with weak immune systems Have submitted early stage.

In a phase 1 study, a booster dose of the vaccine produced “significantly higher neutralizing antibodies” against the original coronavirus strain and the beta and delta variants, the companies said in a press release. Study participants received a third shot of the two-dose vaccine around eight to nine months after the second shot, they said.

“The data we’ve seen so far suggest that a third dose of our vaccine elicits antibody levels well in excess of those on the primary two-dose schedule,” said Albert Bourla, Pfizer CEO. “We are excited to provide this data to the FDA as we continue to work together to address the evolving challenges of this pandemic.”

The companies said the results of the late-stage trial evaluating the third dose are expected shortly and will also be presented to the FDA and other regulatory agencies worldwide.

The drug makers’ announcement comes after federal health officials on Friday approved the administration of Covid booster shots of Pfizer and Moderna vaccines to Americans with compromised immune systems, including cancer and HIV patients and people with organ transplants.

New data from the US suggests that immunocompromised individuals do not generate adequate immune responses after receiving two doses of a Covid vaccine.

The latest data from Pfizer investigates the booster’s safety and immune response in people with otherwise healthy immune systems.

Federal health officials are not currently recommending booster doses for the general public, but White House senior medical adviser Dr. Anthony Fauci, has said that everyone is “likely” to need a booster at some point.

Covid vaccine makers, including Pfizer and Moderna, have repeatedly claimed that everyone will need a booster dose at some point and possibly additional doses each year, just like they did with seasonal flu.

Pfizer cited data from Israel, where state officials last month said the two-dose vaccine was only 39% effective against the disease, attributing the drop in performance to the highly contagious Delta variant. When Pfizer submitted its original application to the FDA in December, it said its vaccinations were about 95% effective at preventing Covid infections.

The vaccine is still considered highly effective against serious illness, hospital admissions and deaths, according to Israeli health officials.

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World News

Traders await Chinese language financial information for July

SINGAPORE — Asia-Pacific stocks looked poised for a lower start on Monday as investors await the release of Chinese economic data for July.

Futures pointed to a lower open for Japanese stocks. The Nikkei futures contract in Chicago was at 27,860 while its counterpart in Osaka was at 27,830. That compared against the Nikkei 225’s last close at 27,977.15. Japan’s GDP data for the second quarter is set to be released at 7:50 a.m. HK/SIN on Monday.

Shares in Australia also looked set to decline, with the SPI futures contract at 7,536.0, against the S&P/ASX 200’s last close at 7,628.90.

South Korea’s markets are closed on Monday for a holiday.

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Investor focus on Monday will likely be on the release of a slew of Chinese economic data at 10 a.m. HK/SIN. That includes China’s industrial production and retail sales print for July.

Currencies

The U.S. dollar index, which tracks the greenback against a basket of its peers, was at 92.522 following a recent decline from around the 93 level.

The Japanese yen traded at 109.62 per dollar, following a strengthening late last week from above 110 against the greenback. The Australian dollar changed hands at $0.7365, above levels below $0.735 seen last week.

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Inventory futures rebound as buyers await extra jobs knowledge

Futures contracts tied to the major U.S. equity indexes were mildly higher Thursday morning as Wall Street looked to improve upon a mixed week.

Dow futures rose 49 points, or 0.1%. S&P 500 futures and Nasdaq 100 futures also added about 0.2%.

The moves in the futures markets came after a mostly lower regular session on Wednesday.

The Dow Jones Industrial Average shed 323.73 points, or 0.9%, and closed near its session low at 34,792.67. The S&P 500 slipped about 0.5% to finish at 4,402.66, while the Nasdaq Composite ticked up 0.1% to 14,780.53.

On Thursday investors will receive yet another update on the U.S. employment situation with the Labor Department’s latest weekly update to initial jobless claims. Recent earnings and economic data have been strong overall, but some economists worry economic growth and employment gains will taper from here.

“Many factors are likely driving worker shortages; concerns about catching the virus, childcare responsibilities, skills mismatches, and generous unemployment insurance benefits,” PNC Senior Economist Abbey Omodunbi said in an email. In the second half of the year, “more competition for workers, particularly in the leisure and hospitality sector, will support acceleration in wage growth, boosting household incomes and consumer spending.”

The results of an ADP private payroll survey released Wednesday showed a gain of 330,000 jobs for July, well short of the consensus estimate of 653,000. The Labor Department’s official jobs report, which typically has more impact on investors, will be released on Friday. Economists expect the report will show the U.S. added 845,000 in non-farm payrolls in July, about even with the previous month, according to Dow Jones estimates.

The 10-year Treasury yield was trading flat near 1.18% on Thursday after briefly dipping below 1.13% on Wednesday.

Shares of Roku and Uber dropped after each issued quarterly earnings results. Etsy fell 12% in premarket trading after the company gave guidance for the current quarter that indicated the pandemic-fueled commerce boom may be coming to an end. Uber was off by 3% in premarket trading.

During regular trading Wednesday, shares of Robinhood surged 50%, continuing a volatile jump after last week’s soft initial public offering. Semiconductor stocks were another bright spot, with Nvidia and Advanced Micro Devices rising.

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Asia-Pacific shares set to drop; Japan’s retail gross sales information forward

SINGAPORE – Asia Pacific markets were mostly lower in early Friday trading. Meanwhile, US stocks rebounded, despite data showing that gross domestic product grew less-than-expected in the second quarter.

The Japanese Nikkei 225 lost 0.8% in early trading while the Topix lost 0.46%.

Reuters reported that the country’s industrial production rose 6.2% in June, up sharply after falling 6.5% in May. Retail sales in June were up 0.1% yoy, less than forecast for a 0.2% increase.

South Korea’s Kospi lost 0.55%.

The S & P / ASX 200 in Australia traded just above the flatline. Markets will be tracking the Covid situation in Sydney, which reported a record daily surge in Covid cases despite an extended lockdown on Thursday. Reuters reported that authorities have asked the military for help enforcing the lockdown.

MSCI’s broadest index for Asia Pacific stocks outside of Japan was unchanged.

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Shares rebounded during Thursday’s regular session in the US, although data showed US GDP rose 6.5% on an annualized basis in the second quarter, well below the 8.4% Dow Jones estimate.

The Dow Jones Industrial Average gained around 150 points on Thursday after hitting a new intraday high. The S&P 500, which also briefly hit an all-time high, ended the day up 0.4% at 4,419.15.

“Yesterday’s rebound in Chinese equities after the recent regulatory-induced sell-off resulted in solid performance overnight in risk assets,” said Rodrigo Catril, senior FX strategist at National Australia Bank.

Investors will watch as Chinese stocks end a week of volatile trading. Hong Kong’s Hang Seng index fell more than 8% in two days and rebounded 3% in Thursday’s session.

Currencies and oil

The US dollar index, which tracks the greenback versus a basket of its competitors, stood at 91.880, falling from a level above 92 the previous day.

The Japanese yen was trading at 109.40 per dollar, up slightly from above 109.9 at the beginning of the week. The Australian dollar changed hands at $ 0.7394 after falling to around $ 0.735 earlier in the week.

Oil prices fell on the morning of Asian trading hours, with Brent crude oil futures falling 0.34% to $ 75.79 a barrel. US crude oil futures are down 0.42% to $ 73.33 a barrel.

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Citing New Knowledge, Pfizer Outlines Case for Booster Photographs

Pfizer reported on Wednesday that the power of its two-dose Covid vaccine wanes slightly over time, but nonetheless offers lasting and robust protection against serious disease. The company suggested that a third shot could improve immunity, but whether boosters will be widely needed is far from settled, the subject of heated debate among scientists.

So far, federal health officials have said boosters for the general population are unnecessary. And experts questioned whether vaccinated people should get more doses when so many people have yet to be immunized at all.

“There’s not enough evidence right now to support that that is somehow the best use of resources,” said Natalie Dean, a biostatistician at Emory University in Atlanta.

Still, the findings raise questions about how well the Pfizer vaccine will prevent infection in the months to come. And with coronavirus cases surging again in many states, the data may influence the Biden administration’s deliberations about delivering boosters for older people.

If third shots are cleared for the general population, the boosters would likely represent a multi-billion-dollar business for Pfizer.

In a study posted online but not yet peer-reviewed or published in a scientific journal, Pfizer and BioNTech scientists reported that the vaccine had a sky-high efficacy rate of about 96 percent against symptomatic Covid-19 for the first two months following the second dose. But the figure declined by about 6 percent every two months after that, falling to 83.7 percent after about four to six months.

Against severe disease, however, the vaccine’s efficacy held steady at about 97 percent.

“This drop is very slight — I wouldn’t say it’s waning,” said Akiko Iwasaki, an immunologist at Yale University. She did not see in the new study any evidence that boosters should go into use for the general population. “These data don’t support a need for that right now,” she said.

The findings fit with what scientists have learned about how the immune system fends off viruses. Antibodies are the only defense to prevent an infection, but their levels typically drop in the months after vaccination or recovery from the disease. If the coronavirus takes hold, immune cells can swoop in to destroy infected cells and make new antibodies.

That enduring defense produced by the vaccine may explain how the virus can sometimes breed in the nose — producing a cold or sore throat — but fail to reach the lung where it can cause serious disease.

“Everything that’s engaged by the vaccine is able to fight off that spread that ultimately leads to severe disease,” Dr. Iwasaki said. “That’s probably not declining at all.”

The study period ended before the rise of the Delta variant, the highly contagious version of the virus that now dominates in the United States and makes vaccines somewhat less effective against infection.

The findings come from 42,000 volunteers in six countries who participated in a clinical trial that Pfizer and BioNTech began last July. Half of the volunteers got the vaccine, while the other half received a placebo. Both groups received two shots spaced three weeks apart.

The researchers compared the number of people in each group who developed symptoms of Covid-19, which was then confirmed by a P.C.R. virus test. When the companies announced their first batch of results, the vaccine showed an efficacy against symptomatic Covid-19 of 95 percent.

Updated 

July 28, 2021, 8:48 p.m. ET

In other words, the risk of getting sick was reduced by 95 percent in the group that got the vaccine, compared with the group that got the placebo. That result — the first for any Covid-19 vaccine — brought an exhilarating dose of hope to the world in December when it was riding what had been the biggest wave of the pandemic.

Since then, the Pfizer-BioNTech vaccine has made up the majority of shots that Americans have received, with more than 191 million doses given so far, according to the Centers for Disease Control.

In the new study, the researchers followed the volunteers for six months after vaccination, up to March 13. Over the entire period, the researchers estimated, the vaccine’s efficacy was 91.5 percent against symptomatic Covid-19. (The study did not measure the rate of asymptomatic virus infections.)

But within that period, efficacy did gradually drop. Between one week and two months after the second dose, the figure was 96.2 percent. In the period from two to four months following vaccination, efficacy fell to 90.1 percent. From four months after vaccination to the March cutoff, the figure was 83.7 percent.

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Those figures still describe a remarkably effective vaccine, however, and may not convince critics that booster shots are widely needed.

The study comes on the heels of data from Israel suggesting that the Pfizer-BioNTech vaccine’s protection may be waning there. But experts have pushed back against a rush to approving a booster there. The data have too many sources of uncertainty, they say, to make a precise estimate of how much effectiveness has waned. For example, the Delta-driven outbreak hit parts of the country with high vaccination rates first and has been hitting other regions later.

“Such an analysis is still highly uncertain,” said Doron Gazit, a physicist at Hebrew University who analyzes Covid-19 trends for the Israeli government.

Earlier on Wednesday, Pfizer reported that a third dose of its vaccine significantly increases blood levels of antibodies against several versions of the virus, including the Delta variant.

Results were similar for antibodies produced against the original virus and the Beta variant, which was first identified in South Africa. Pfizer and BioNTech expect to publish more definitive research in the coming weeks.

The announcement was a preliminary snapshot of data contained in an earnings statement. And although antibody levels are an important measure of immunity, they are not the only metric. The body has other defenses that turn back infection.

Pfizer also said in its statement that vaccines for children ages 5 through 11 years could be available as early as the end of September. The vaccine is already authorized in the United States for everyone ages 12 and up.

Pfizer’s vaccine brought in $7.8 billion in revenue in the last three months, the company said, and is on track to generate more than $33.5 billion this year.

The vaccine is poised to generate more sales in a single year than any previous medical product, and by a wide margin. Pfizer did not disclose its exact profits on the vaccine, but reiterated its previous estimate that its profit margins on the vaccine would be in the high 20 percent range. Even if the drugmaker’s profits fall on the lower end of that range, that would work out to about $3 billion in profit so far this year.

Rebecca Robbins contributed reporting.