Month of september, strong Consumer Sentiment numbers to go along with them. And later, gilead pushing back after the World Health Organization says the drug remdesivir does not prevent death in coronavirus patients. Weve got the latest details as power lunch starts right now thank you, ty. The markets are marching back after a few down days. Dom chu has more on whats moving decent sized gains but off the high of the session. We are up 243 points with the dow at the highs of the session, up roughly 348 points. You can see there, yes, still strong gains but not nearly where we were earlier in the day. The s p has reclaimed that 3,500 mark, the nasdaq only up about one third of 1 . The leadership in terms of the s p 500 has been in one week industrials and technology, both up nearly about 1. 5 meanwhile, the biggest laggard off nearly 2 is the real estate sector some of the stocks to watch with regard to covid vaccines and everything else, pfizer shares, possible vaccine for emergency use authorization by later on this fall. Boeing catches a bit on some headline, incrementally positive for its 737 max jet, at least on the european side of things and cat pilllerpillar gets an upgra wells fargo. Because of those Consumer Sentiment and retail sales number, best buy is off. It did hit a record high target hit a record high today and so some mixed trading intra day but still best buy target lows, d. R. Horton, tyler and kelly speaks to that consumer trend. Well see if those continue their positive trend back over to you guys. If we did mention, it is a consumer powering those gains today. A big retail sales jump. Could it be the item that pushes this market higher into the end of the year. Let bring in Brian Jacobsen and our cnbc senior analyst. Ron, you are so senior, i cant stand it, man. That is really something i just crossed 59 1 2 oh, did you you can now start to withdraw from the iras without tax penalty. Congratulations, my friend yeah. Wait till you get your medicare card. It an ambiguous feeling. Getting there brian, i want to drill down on something that dom just mentioned and that is the outperformance in the past week of industrials do you believe given where they are priced and what theyve been doing that thats a sustainable move when were talking about industrials, what companies are in that group. Thank you so much for having me join. Congratulations, ron, for crossing that unfortunate milestone. I get all those aarp offers in the mail and im like its a little early i think but maybe not. My team has been overweight industrials because we do like the pro cyclicality of it and we like prices relative to fundamentals across the board, granted valuations, knowing that and having a nick el really wont buy you even a cup of coffee, especially in the short term. We are optimistic about the Economic Outlook and like the valuation in that space so that is an area that we are overweight it is a grab bag of different exposures now. Im not allowed to talk about individual stocks. Im sure ron is probably in a better position to do that, a the least from a compliance perspective. But we are optimistic about it but it is really a grab bag. We like domestic exposure. You know, going into the election we think that no matter who wins, whatever the composition of congress is, that u. S. Economy itself has a decent amount of momentum and is likely to continue, not just for the balance of the year but even for the next few years i guess what i was driving at there in asking brian about what is an industrial is that theres some ambiguity in my mind. For example, is apple an industry stock or a text stock where would it be categorized . Is pfizer, a manufacturing stocks, which it most certainly is or is it a Health Care Stock . Explain. Listen, i would go with respect to the first, i would suggest its a consumer stock with a platform that involves a great deal of advanced manufacturing. In many ways, pfizer could be characterized the same way when youre talking about core cyclicals or industrials that would benefit from a large infrastructure bill, youre talking about the ingersoll rands, the caterpillars and i think most of the stuff is a relative value trade youve just seen the outperformance in big cap tech i think a lot of us look at the underlof underloved and underowned, theres a lot of stay at home versus recovery trades i think that trade is on have i more concerns about the economy going forward. I think were in a w and a k, as weve discussed. I worry more about main street than anything else ive traveled and weve seen store closings and stores get hurt and without relief in stimulus, it doesnt necessarily show up in the stock market but its going to show up elsewhere. I couldnt agree with you more, ron, on that point as you go around to various towns here in new jersey where i live and where you live as well, you do see an awful lot of for rent signs you do see an awful lot of places that have been stall war stalwarts of their communities it seems were in a environment that has set the election aside but remains very vulnerable to headlines, both on the up side or down side today pfizer saying we might have a sacksine r a vaccine fors available by mid november. Thats a positive for pfizer and a lift for the stocks. What do you say were vulnerable to headlines both sell off and buyin yeah and i think when you look at this algorithmic trading, what cant be determined is whether or not the headlines are good for the long run. And i think relative to my experience, more movement headline to headline than ive ever seen on an intra day basis over 30 years. No one, you know, no computer is sitting back and saying, hey, is that credible, is that long term it pops the market for a period of time. So i think that is an issue with respect to the way the game is currently being played and particular with the addition of day traders, who set prices at the margin, youre getting that with whip saw effect the one comment i would make about the election, if you look at the polling data, joe biden is ahead by double digits. And i think what the market is betting on is not necessarily a specific result but clarity. I think the market will be satisfied regardless of who wins because it takes out that kinktkin kink in the vix. The prize would surprise would an early call and no vol im going to work on the kink in my its a pretty bad recession. Its written its difficult to draw a firm conclusion the state of california announced a pause of initial claims to reduce fraud of technology they are working with investigators to root out fraud. But the extent of the problem is unknown either in california or also indeed in other states while the total numbers are certainly bad, they simply may not be as bad as the weekly data sugges suggests its such a tricky issue because we used to look at jobless claims as one of the best indicators for a turn in the economy. Are there any better indicators you would look to right now . I think were looking at some of the High Frequency datdata, home base data unfortunate but all of it is telling us a story along with whats happening in the economy right now. Being in the middle of a pretty bad recession is not as bad as suggested by some of those terrible, terrible claims numbers. We hope we appreciate it Steve Liesman for us all right, kel, coming up, we will have more on the market rally. Right now utilities and health care are leading the way energy sitting out todays Price Movement as you see there. The only red pile on the board right now. Plus pfizer says its Coronavirus Vaccine could be ready as soon as november. Meanwhile, the effectiveness of gileads treatment remdesivir is being put into question. A top analyst will weigh in when power lunch returns next hmms and ahhs heard incall. Welcome back, everybody. Shares of pfizer are higher on vaccine opens while gilead is lower on questions about remdesivir hi, meg. Hey, tyler. Feis a pfizer putting out news today outlining its potential timeline for filing for emergency use authorization for use of its covid19 vaccine safety they wont have they think until the third week of november and manufacturing data, which they expect to get before they get those safety results. So if all of this goes well, they say they will quickly file for emergency use authorization after that safety data at the end of november. That is based on fda guidelines requiring two months of safety follow up after half the people in the trial have received their second shot. Both pfizer and moderna have reached that in late september so theyre potentially both on track. Getting news on remdesivir, that was the first drug showing benefit of treat, covid19 but that now being questioned by the World Health Organization in a trial it ran on multiple drugs, find, little to no data, and gilead saying the emerging data appear inconsistent with more robust evidence from multiple randomized controlled study published in peerreviewed journals validating the clinical benefit of remdesivir. Joining us is the analyst behind this note, raymond james. I think one question that we need to be asking still is does remdesivir work. And its a question that based on the emergency use authorization and the prior studies at gilead conducted, gilead would argue yes and i would argue at a minimum we dont know and the solidarity authors from this new study, which is the largest study to date, pretty forcefully argue that the answer is, no, it not effective for hospitalized patients with covid. So we should be asking that question and the more and more data that accrue, the more and more it looks like the answer is no so, is it possible that this treatment works better for people before theyre hospitalized than it works for people once they are hospitalized its certainly possible one of the things lacking is data that drug accelerates clearing of the virus. That may be because its difficult to measure that in patients in the hospital, but that is an important mechanism of this drug we have data that says you can measure that in outpatients. The mechanism lines up with it potentially working as an earlier treatment. You appear to be able to measure that more readily when used as an early treatment and the last thing i would say, though, however, is that we dont have any data in that setting from remdesivir so its simply way too premature to expect it to work in those cases. Steve, i want to make sure im understanding what is the back and forth between the World Health Organization and gilead on the other the World Health Organization has come out with data that it says calls into question the effectiveness of remdesivir for hospitalized patients. On the other hand, gilead criticizes that finding by saying, as i understand it in effect, we have other data that are Peer Reviewed and thoroughly vetted as opposed to the w. H. O. Data that indicates that it does work am i understanding the fundamental conflict correctly and that it is over whether the w. H. O. s data is as thorough and Peer Reviewed as that which gilead says it has in part i think you are i agree Peer Reviewed data is better than data not Peer Reviewed i will say a couple things here. First the early data on remdesivir came in waves of uncontrolled studies and clinical case reports in studies that in some cases were open label, not blinded and we should be treating all data with the same rigor here, including solidarity with is three quarters of the data of remdesivir now stated by the authors, not me. I think we should take this new data hydroxychloroquine, early on it was as mentioned as remdesivir, turns out it doesnt work. I dont think gilead or others would dispute those findings the study pretty conclusively says theres limited to no effect of remdesivir we need to go back and reassess all the other studies in the context of this new finding. Steve, you conclude your note by suggesting not only that gilead reconsider what it called its kneejerk dismissal of the try but reassess the clinical value of rels vmdesivir were seeing that the price should be lowered by remdesivir or that it should be revoked based on this data revoking emergency use is a precedent we had seen with hydroxychloroquine it wouldnt be nonsenonsennonse. I think we should wait for peerreviewed data i think the outcome of that conversation will certainly put remdesivir in a light where it is viewed less effectively than it has been. Steve, thank you for making something that is immensely complicated very simple to understand we appreciate it meg, thank you as well and still ahead, retail sales in september coming in well above expectations so is this a sign that the Holiday Shopping season may be stronger than we expect . Plus this mystery chart is the best per fortunateforming secto past month and the group is about to do something that could point to more gains ahead. See if you guess the mystery chart. Did have if youre on medicare, remember, the annual Enrollment Period is here. The time to choose your coverage. Ends december 7th. So talk to unitedhealthcare and take advantage of a wide choice of plans. Including an aarp Medicare Advantage plan from unitedhealthcare. It can combine your hospital and doctor coverage with Prescription Drug coverage, and more, all for a low monthly premium or in some areas, no plan premium at all. Take advantage of 0 copays on all primary care doctor visits, all virtual visits, and preventive dental care. Plus 0 copays on hundreds of prescriptions. And with renew active, enjoy a free gym membership. So call unitedhealthcare and take advantage of the range of plans we offer, including ppo plans that let you see any doctor who accepts medicare, without a referral. Enrollment ends december 7th. Call unitedhealthcare or go online today. [sfx mnemonic]. Welcome back time for trading nation. One underdog sector has been leading the market over the past month, on the cusp of an even bigger comeback, so the charts may say. The utility sector, one of 2020s worst performers, is nearing whats called a goldish cross, where the 50day moving average crosses over the 200day moving average and that tend to forecast more up side. There you see it well get one of our guests to explain exactly what youre seeing mark newton, nancy tangler of your trading nation team let me begin by having you go back to that chart and point to which line is which, where is the 200 day moving and which is the 50day moving and what does that typically foretell about a stock or a stock group well, tyler, historically its better to look at this more of a gauge of strength or weakness more than using as a trading signal per se. But it just important to recognize when you start to see this rotation towards defenses, its normally very important to Pay Attention to this kind of thing. It happens near market peaks and stimulus uncertainty and possibility of a contentious election the rotation into utilities has been something thats happened in last month. Weve seen the xlu move up to the highest level weve seen since march. Its set to be up more than 1 just for the week itself this week so in general this is something to Pay Attention to at a time when many people are simply only paying attention to technology and thinking that q4 could be very robust. Norm no so you would argue that on relative strength, utilities would be a target of opportunity right now if im understanding you correctly, but the thing that alarms me a little bit is that you seem to be saying that when utilities do this and start to lead, it often signals that the market is peaking. Do i have you right . Theres more to happen that be that. Its been prevalent in a lot of the market peaks weve seen over the last 10, 20 years. Even though rates have risen also weve seen almost a 20 basis point move up in the tenyear since august from 50 to about 7 basis point and utilities have outperform until this time weve Seen Movement into staples this week, outperformed discretionary and now utilities seeing that good boost i do like this sector. I think its a place to position lets go to nancy utilities to buy or not to buy i love marks analysis, tyler, but thats the question as a fundamental investor, im going to take a pass im willing to miss out on the shortterm trade if you look back historically, this is a group of stocks or a sector that has grown dividends and earnings well below many other parts of the market and the two examples i would use as an alternative are stocks like Texas Instruments or broadcom that have about the same level of yield or higher theyve been growing dividends in the 20 and 50 space respectively and theyve outperformed the market dramatically whereas utilities over the last five years have underperformed almost by half. I stand the sector rotation story, invest in the long term for my clients i would be interested in finding safety and yield in other parts of the market. All right, nancy. Thank you very mark, thank you as well. Have a good weekend to both of you. Thank you for your time. 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