Market Brief: July 15, 2020

The vaccine “induced anti–SARS-CoV-2 immune responses in all participants, and no trial-limiting safety concerns were identified,” says a New England Journal of Medicine paper published on Tuesday evening. “These findings support further development of this vaccine.”

The brief article, which appeared early Wednesday on the website of the British television network ITV, was by Robert Peston, ITV News’ political editor. Peston writes that The Lancet will publish positive news on the Oxford vaccine, and that the paper will show that the vaccine elicited both antibody and T-cell responses in study participants.

Even though Apple and the Irish government, which had appealed the decision, rejoiced at the ruling, this may not be quite the end of the legal story. The Commission has the right to appeal to the Court of Justice of the European Union—the EU’s highest court—and it may take another few years before a final ruling is issued.

Goldman Sachs saw net revenue of $13.3 billion for the quarter ending June 30, blowing past analysts’ estimates of $9.8 billion and marking the bank’s second-highest quarterly revenue ever. Earnings per share totaled $6.26, again eclipsing Wall Street’s projections of $3.78 a share, as well as the profit of $5.81 a share from the same quarter a year ago. The strong result was largely the result of increased trading activity amid the volatility of the second quarter.

The beige-book report, prepared based on information collected by regional Fed banks on or before July 6, gives investors an anonymized glimpse of the economy from businesses at the ground level. As lockdowns lifted and businesses reopened, many respondents reported that demand picked up and prompted hiring. But as the coronavirus continues to spread and threatens reopenings, businesses remain worried about the magnitude of the pandemic’s economic implications.

Industrial production climbed 5.4% while manufacturing output jumped 7.2% in June from a month earlier, the Federal Reserve said Wednesday. Economists expected increases of 4.3% and 5.5%, respectively, according to FactSet. In May, those rates were 1.4% and 3.9%, respectively.

The Federal Reserve Bank of New York said its Empire State manufacturing index, comprising survey results collected July 2 through July 9, rose for the first time since the pandemic took hold in the U.S. as demand sprang back. It came in at a better-than-expected 17.2 for July, breaking a streak of contracting activity that included record lows in May and April. Economists surveyed by FactSet predicted an improvement to 10 from minus 0.2 in June.

Brent crude, the global benchmark, settled 2.1% higher to $43.79 on Tuesday, as West Texas Intermediate crude prices settled up by 2.3% to $41.20. Oil stocks were rising, with U.S. producer Diamondback Energy up 1.3%.

OPEC and its allies, a group known as OPEC+ that includes Russia, agreed to boost production by 2 million barrels a day in August. That would leave the group’s production of 7.7 million barrels below normal levels, rather than its current 9.7 million barrel cut. The production increase threatens to result in another oil glut, but OPEC ministers have said that the production increase will be buffered by more cuts from countries like Iraq that didn’t comply with the group’s prior deal.

“The Company expects these results will be offset in the quarters ahead by…the resumption of deferred care and future COVID-19 cost and economic impacts,” UnitedHealth Group said. Demand for care had hit relatively normal levels by the end of the second quarter, after falling dramatically from mid-March through April, the company said.

Beyond Meat products will start off in 19 St. Marche locations across São Paulo. St. Marche is owned by private-equity firm L Catterton.