Good monday morning. Im Carl Quintanilla with jon fortt. The dow puts together the first intraday high in nine months, processing the election, putting closure, perhaps, to that but obviously the big news of the day is out of pfizer and this potential covid19 vaccine once again, well start the hour with meg hey, carl this news that pfizer and german partner biontech provided 90 efficacy in the phase three trial providing hope this is the first vaccine we have seen results from the results are limited. They just the independent committee took a look at the trial. They found 94 confirmed cases of the covid19 in the trial and they found a difference in the Placebo Group and the vaccine group. They also said they saw no serious safety concerns in the trial. Theyre going to he mass two months of safety followup which for half the people in the trial getting their second shot which will take them into the third week of november that is next week after which time they will file with the fachlt fda use authorization. A lot of question about the timing as pfizer had been talking about the end of october for knowing whether the vaccine worked and, of course, questions about tieing that announcement to the election we talked with the pfizer ceo about that timing this morning for us, the election was always a physical date we were not working with the election as a time line. We were working to release a letter to our employees some time ago saying that the only pressure we feel it is the pressure of the billions of people that are hopping on our vaccine and were going to follow the signs. So science spoke and i was predicting that this will happen at the end of october. It happened a week later i think the most important thing we have now for everyone is to feel the joy it happened and happened so well the Trump Administrations effort to bring a vaccine to the American People, here are the investments that operation warp speed is making since february you can see all of the funding the research and development into the vaccines. These are the later awards they made pfizer, they made an award on july 22nd for 2 billion that was exclusively a supply deal and pfizer would only get paid by biontech and only get paid if the vaccine succeeded and given fda cleernz. Were going to wait for the process but only then would they get the 2 billion its the different from the rest of operation warp speed. Manufacture the companies were funded along the way by the development process. Guys, the next question is supply there is not going to be enough of this drug this vaccine they say 50 million doses by the end of 2020. 1. 3 billion doses in 20 1. 3 billion doses by 2021. We asked about that situation. Heres what he told us given how effective this vaccine is and we are aware about the demand will be much higher than anything we can produce. We are also looking right now to see if there are other ways thinking out of the box to increase even further the manufacturing capacity now so theres no time to relax here. So theyre not the only companies in this race heres what they said in terms of the production goals. Moderna aiming to have 20 million by 2021. This is a two dose vaccine they should have data any week now. They said november and that works in the same way as pfizers vaccine works. So well see fit works as well now as as stothers expected to data by the end of the year. All hands on deck to get vaccine out to everybody in the world that wants to get vaccinated to get immunity and finally stop this pandemic. Meg, its great news, of course, but were in these unchartered territories where i wonder what happens to these other potential vaccines is it possible that we end up with a case where there are multiple vaccines with varying efficacy and, you know, some are two doses. There are different numbers of doses. And it just depends what can you get and when yeah. It could be very complicated, john we see how the vaccines work in trials its also possible that the vaccines might work better for some populations than others for older people, for example, people with underlying conditions and so people are very curious to see how that worked out in the pfizerbiontech data so as these start to get rolled out, they get the clearance from the fda, they get recommended by a cdc group, the Advisory Committee on immunization practices will say which groups should get which vaccines. That is how this the start to look throughout next year. And think about the flu shot now. There are actually multiple different flu shots on the market right now there are ones that protect against three strains. There are some that protect against four there is a nasal spray there is one that doesnt use eggs we dont realize that unless you have an allergy or you want the nasal spray or over 65 and you want the high dose were not asking what the flu shot is. There is so much attention being paid to this and we know the Companies Involved and seeing the data rollout real time it might be that you say oh, the pfizer looks 90 i want to see if they got it this is tightly controlled at the beginning. There will be certain groups for whom theyre indicated but its going to be very interesting market that perhaps might resemble the flu shot market way down the line were going to have to see how it goes. Right when you think about mass immunizations next year, do you see it more as a hospital, doctor office, you know, urban clinic kind of Delivery System or do you see long lines in the military being involved . In terms of retail participation . The military is going to be involved in the distribution, thats for sure. But in terms of the retail participation, you know, we started hearing about pharmacies, the Trump Administration struck a deal with pharmacies to get people in Nursing Homes vaccinated it is surprising if it was the military in the front thaend consumers are interacting with but theyll be extremely involved in the logistics of making all of this happen. Right were about to learn a lot more about pharmaceutical logistics storage and distribution over the next couple months meg, thank you once again, thank you. Joining us to talk about the market impact, of course, david katz over at Matrix Asset Advisors and tony roth good monday morning, guys. Good to see you. Nice to see you thanks for having us. David, lets talk about where risk is at the moment. We got this blockbuster news we dont know what the president s intentions are on transition Senate Control is not for sure we still got to get through the fall we have a lot more clarity than we did a week ago the president ial election is decided by president lekt biden is the president thats. 1. We hope the the first point. This is the hunl first step. It takes a lot of risk off the table in terms of the economy, were in a recovery mode on the economy front and we think that continues into 2021. So these are all great for humanity and also very good for our financial markets. Tony, i still see notes today that say the market may still have good licks in it before year end you think thats true . Yeah. I mean, i think we start with what david said. I agree with david 100 . A large amount of the large systemic medium to long term risk is taken out of the picture. Having said that, there are definitely some shorter term risks that create volatility a lot of them are on the political side of the equation and ill start with the new administration and with the makeup of the senate so coming into the morning this morning, lets remember that futures were down. Thats been lost in the noise of the vaccine. The reason they were down is because i think the market was reckonning with the fact that there was a not a material chance that the democrats might actually get the senate. Now its a fighting chance its not a great chance. But the chance does exist. With the two seats in georgia. We need to see what cabinet President Biden puts together and how progressive hes going to be in his approach, even apart from legislation j ust jif just in terms of running the major departments. There is also risk around the virus and the increase in cases and whether we overwhelm our hospital system. How people respond to that and lockdowns. Then, of course, risk around the possibility of more fiscal stimulus and, frankly, the vaccine increases that risk. In the shorm tet term, there ar risks. Were on a much better path. David, it seems, following up on that, like first of all were probably a year out from mass numbers of people being vaccinated based on what wear heerg at th were hearing at this point. And the democrats taking the senate and the markets were supposedly booming on the possibilities of a blue wave and more stimulus . Well, last week you had a very significant rally like 6 or 7 on the expectation of a biden win and a split government if the democrats were to take the senate, there is more uncertainty about the economy in terms of the bank group and regulation and taxes netnet, we looked at 1946 to 2019 and overall the market actually does a little bit better under democrats if the democrats control everything, its good. If the democrats can control the presidency and the prrepublican control the senate and house that, is the economic scenario for the stock market regardless of Biden Victory and a sweep, its good for the stock market overall and the conomy. And if there is a split, it is a little better for the stock market and the economy we would not be changing the Asset Allocation based on the Biden Victory. Tony, what are the main most important risks at this point mean, we know that covid19 is still a factor in the near term. A little bit more confidence longer term perhaps. But is the attention now to policy we expect the republicans in the senate to get serious about the budget again well, i think the biggest risk really is ironically when were saying divided government is risk, there is risk around inaction so there is a lot of risk that this administration is locked up with the divide between very, very difficult senate led by mcconnell with a government that really wants to get some legislation accomplished so theyre going to need to come together they need to really use the legacy that they have between biden and mcconnell to get things done in order to move the economy forward in different ways and pursue some agenda that is bipartisan as opposed to not accomplishing anything at all. But i do think that from the Public Health care standpoint, were rounding the corner of getting out of the woods here in term of the longer term tra jekt ric trajectory and its very exciting i saw one reference to reaganoneal as trying to make an an log between bid bidenmcconnell. Thats right. Have a great day. While pfizer and biontech on to dates, cnbc treatment index is in negative territory as other players in the space fall behind youre deeg big declines in names like biogen, lots of them. Well keep an eye on those squawk alley continues on the other sidef isre oth bak upbeat music we did it crowd cheering [narrator] wherever you start, snhu is where you can finish. crowd clapping crowd cheering here we go. [narrator] and its it. [group] yay [narrator] you did it, high five Southern New Hampshire university. [man] that gets a hug. laughing look at that masters degree, i did it i did this for my children. I am very proud of myself. [narrator] finish your degree at snhu. Edu. Lets turn back to the mornings big news out of pfizer cnbc contributor Walter Isaacson joins us now he was a part of the trial as well as dr. Peric from nyus Infectious Disease unit. Welcome to both of you walter, quite a moment here. I take it you still dont know, of course, whether you have the placebo or the actual vaccine. But tell us whats exciting about this type of vaccine and where you think things head from here when i was First Reading about this vaccine, ive been writing a book about the use of rna in order to edit genes i really lot of notion of what rna can do and this vaccine is an rna vaccine. It takes a rna and goes into the cell and tells the cells protein making section to start making this protein and thats what happens here this mrna in the pfizerbiontech vaccine and also in the Moderna Vaccine which will be come ago long soon is instructed to make this protein of the coronavirus. So i live in new orleans i just went down to oxnard hospital in new orleans. Louisiana, there is a lot of trials going on. And i volunteered for the trial and as they said, they put a big needle in my arm the doctor said, look me in the eyes he was standing on the other side to make sure i didnt even see the needle, didnt see the vaccine. I said would i be able to tell the placebo from the real thing . He said, you probably couldnt but we dont take any chances. Right doctor, i dont know that we have seen anything like this where theres a vaccine that the people who want vaccines are certainly going to want this one or one of the competitors on the market whats your sense of the best possibilities organizationally for getting this out to people at the rate necessary . And making sure that people get the right follow up doses to make sure it completes right you know, the logistics are going to be very important because pfizer as well as moderna and some of the others may have two doses which are about four weeks apart. So we have to make sure people get both doses also pfizer has to be stored at a very, very cold temperature. So that is even colder than the on average freezer. Not every Doctors Office or facility is equipped for that yet. We need to make sure all of that in place before we have a wide scale rollout so theres no slowdown or bottle necking walter, what would you say right now about overall Vaccine Acceptance in this country if its not good enough, do you think it improves by the time this is readily available. I think people are so eager to get back out there and get back doing things that people will want this vaccine they may not do it in the first few weeks. But theyll be these two and within the next six months probably be four, five other vaccines i think once people taking them, theyll be safe. When i went through this clinical trial, i had zero worry that it would be unsafe. Nobody sticking some live coronavirus into your veins. So it wasnt clear whether it would be effective we know the things are sachfe it didnt even hurt. I just tell everybody, make sure you get the vaccine. Its not you know, i didnt i was wondering would i grow an extra finger or something . No no i think people are start accepting. This man, we cant continue to accept what we have now which is not being able to go out, not being able to hug your kids. Doctor, two concerns i have i wonder if you could address. One is the one that you just brought up about what its going to take to store this vaccine effectively. How big a logistical challenge is that . And then second, something ive seen around testing is that Companies Often have the resources to make sure their employees get tested more often, depending on, you know, the resources of the company what are the mechanisms in place to make sure its the most vulnerable populations that get this vaccine first not just those with resources so already weve put out the indication and so has the fda that as soon as its approved, the high risk groups will have First Priority so that includes Health Care Workers, elderly, those with diabetes, heart disease, obesity and in those High Risk Health disparity groups now the logistical problems are definitely going to be a challenge. The first time in history for a long time where everybodys clambering for the same vaccine. And the storage of it is crucial. If we dont have enough places that have these subzero freezers, it may be very difficult to store vaccine and deploy the vaccine in a timely manner so luckily there is multiple vaccine candidates and not all of them have to be at the subzero temperatures so well have options. All right well, i hope there is plenty of transparency around this doctor and walter, i appreciate it, thank you. Thanks. Nice being with you, carl. And walter, thanks for taking part on behalf of all of us. By the way, keep an eye on the retailers today. Were seeing a lot of underperformance in the names that have done well and benefited through this initial wave of coronavirus. Take a look at walmart, costco, kroger Home Improvement names selling off. Home depot for a while there the lone dow kpoen necomponent n negative territory stay with us keeping your oysters growing while keeping your business growing has you swamped. you need to hire i need indeed indeed you do. 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