Markets ride the Up-tide as America gets vaccinated
May 10 2021 - Team Stockal
The U.S. feels a ray of hope as Biden’s $4 trillion economic plan(which is now up for deliberations with congressional leaders), along with the vaccination shots revitalizes the country to recover from the novel coronavirus pandemic.
The Biden admin also looks to ease coronavirus guidance restrictions as the CDC announces that people who are fully vaccinated can go mask-less when walking, hiking, biking, running alone or gathering outdoors in small groups of fully vaccinated people. Finally, an opportunity to meet people with the face in full view!
This pump churned a positive week for Wall Street as well. As the S&P 500 (GSPC) and the Dow Jones Industrial Average (DJI) (hitting a record close) gained a whopping 1.23% and a 2.5% for the week, the Nasdaq Composite (IXIC) lost 1.5%, albeit closing on a positive uptick of nearly 0.9% last Friday. The tech heavy Nasdaq is expected to continue making irregular swings as the power dynamics between tech and cyclical stocks will keep shifting.
Unemployment rates made for a disappointment in the month of April as the 266,000 jobs added still amounted to a 6.1% unemployment share in the U.S., way off from the expected 5.8% mark.
Moderna on a Winning Vaccine Run?
Moderna (MRNA) projects a sales of $19.2 billion for it’s 2 m-RNA vaccines, set to shatter the record sales against Pfizer’s (PFE) covid injection. The company has already made steadfast gains in the first 3 months of 2021, making a net income of $1.2 billion in the said period as compared to a loss of $124 million for the same period last year. Now, with the U.S. allowing vaccine patents for companies to distribute inoculations on a wide scale to ensure a larger reach, Moderna has projected an even bigger target market.
As this patent would allow the vaccine to be accessible to developing nations like India, Moderna has increased its projected sales to a range of 800 million to 1 billion doses of vaccinations in 2021, and upto 3 billion doses in 2022. The company made its first ever profitable quarter this year, after 10 years of toiling and several billion dollars of investments in scientific research.
Uber Eats Its Way Up the Market Ladder
Despite making a loss in it’s cab services, Uber (UBER) made a record number of bookings last quarter, worth $19.5 billion (and up 24%). As the company was riding on the back of it’s food app UberEats, which makes for 2/3rds of it’s business presently, the company made a profitable quarter despite making a 38% plunge in its main rides business.
Even though the company’s total bookings grew to beat analyst forecasts, its overall revenue saw a decline as Uber is tied to adjusting to new driver benefits in the U.K. It reported a $2.9 billion revenue after setting aside $600 million for the U.K. charges. Last year, the company had made a revenue of $3.2 billion.
Ford and BMW Infuse Funds into EV Power
Car manufacturing giants Ford (F) and BMW combined $130 million to fund solid-state battery making start up company ‘Solid Power’, with hopes of starting to integrate a new, next generation battery into electric vehicles by the end of this decade. After already having invested in the company in 2019, Ford infused this second round of funds with BMW and venture capital firm Volta Energy Technologies, as announced last Monday.
Solid Power attracts investments as its batteries can be lighter with greater energy density, and give more range at a lower cost in comparison to today’s lithium-ion EV batteries. These solid-state batteries don’t use the liquid electrolyte found in conventional lithium-ion batteries.
The EV industry is also picking up pace as the $4 trillion economic plan initiated by the Biden government has large prospects to increase EV production and scaling as it aims for the United States to be a clean energy, zero net carbon emissions country by 2050. Hence, companies are grabbing the opportunity to propagate EV based production in any measure possible.
To read in detail about the $4 Trillion Eco-Plan initiated by the Biden Government, CLICK HERE