Soaring today. Meg tirrell with details. The bar was very high for moderna after pfizers efficacy last week. Mad earn moderna met the 94 percent efficacy and will seek the fda emergency authorization in the coming weeks. We just talked to the doctor who has been leading the vaccine and Drug Development as part of operation warp speed about the significance of this moment, really seeing two vaccines in a row at this high level of efficacy heres what he said. Its an extraordinary outcome, frankly, to have two different vaccines tested in different conditions by two Different Companies developed independently yield very similar outcomes this gives a huge confidence into the data obtained and really suggests that the 90 percent and more efficacy is true and real. But of course, melissa, as were getting this extremely good news it comes at a time in the pandemic when weve never been seeing more daily cases, were seeing 140,000 a day on average right now. And were seeing more and more people going to the hospital as well currently 69,000 people hospitalized with covid19 the numbers of deaths in the United States have started to increase, now were at a sevenday average of 1100 deaths per day. And Public Health experts are very worried about next week when folks are set to travel and get together around thanksgiving holiday. So, doctor saying these vaccines are showing Great Results but until we get enough for everybody, which will be early to midnext year we need to show resilience right now. I dont think theres a coincidence seeing the spike couple weeks after halloween, probably the parties and gatherings, et cetera. Between the difference of trials was modernas trial include a broader sample of people, older people, more racially diverse. They made a big effort to include more racially diverse populations. They certainly did and at one point said they were slowing their enrollment in the trial to include people of diverse backgrounds and particularly because of people whose jobs are more at risk of getting the disease. Both Companies Made big effort to enroll diverse and older populations. We havent seen the data on pfizer if yet. Moderna did have some conclusions suggesting with five infections in the entire trial and more people over 65 and had diverse backgrounds were among those who got infected in the trial suggested there are only five on the vaccine that got infected anyway, the split indicates it is probably protective across those groups. And from moderna there were other drugs based on this irma technology, correct . I imagine this gives investors more home that the other parts of the franchise will work. Yeah moderna has been around ten years and theyve been working on many different vaccines and other therapeutic areas but this leap frogged Everything Else and made them a commercial company if they get the fda go ahead, so much sooner than expected. They have vaccine for other diseases theyre starting to work on flu. This is very validating and they see it as a huge day for the company, in addition to the huge day in trying to stop this pandemic. Meg, thank you. Meg terrill keeping on top of all needs developments lets hope its vaccine monday for all of the monday from now on guy i want to talk about the interesting moves in pfizer in particular and also moderna. Its interesting with pfizer, when it spikes up on their news last monday it was north of 42 and traded from 38 close prior friday or there about. Looking at the the stock today its actually lower than that and done it on pretty interesting volume in the last week or so so one of the things weve said for a while, i think, correctly is these are arent the places necessary any hely to go necessarily to go, not the pharmaceutical names you want to the be in its the downstream names like travel stocks, casinos and cruise lines i find it fascinating pfizer is lower. You look at moderna and our big beef five six months ago pricing the secondary around 73 they did it based on the fact they thought theyd be successful and they want to get in front of their logistics and distribution and manufacturing of the drug. My point was if they were to be successful the stock would be closer to 100 and thats what it traded for today. In terms of moderna it traded ten times the normal volume today so enjoy the ride with moderna. Nothing to say they wont have another offering in the future with the stock close to 100 as tim made the point, other vaccines, if you thought betting on mra technology was a binary outcome you just got a little bit more confidence that this could actually work. Yeah. Look two Different Companies, two different sets of data, two different sets after approaches. What moderna has done is extraordinary. What is critical is style points, if the company is as close as it sounds than maybe that was all the right approach. Moder moderna, granted pulled back today here, its clear theyve been the only one to be a proper investment conduit for folks playing vaccines gill iatrcant get out of its way and in the process has made a major acquisition. Anything, yes, the trading the vaccine has been all about trading the downstream look at the stocks today that made highs over their highs of monday thats the interesting story it was energy. It was boeing. It was copper. It was resource stocks it was yields on the bond market moving higher. Thats the big story. Yeah lets discuss some Broader Market moves what did you make of todays action are we getting long in the tooth on this reopening trade after two mondays of positive vaccine news and then seeing the markets go higher . No, not necessarily long in the tooth the market is trading on headlines. As long as we continue to have this robust information coming out out of the Health Care Sector i think thats literally at the forefront of everyones mind and well continue to trade in lockstep with that. The pfizer and moderna news speaks to heightened level of efficacy of these vaccines and the developments around those. I continue to think it will be a choppy market. Vix pulled back some so get some protection there you have to watch the headlines and trade accordingly. I would eck know that the downstream names are definitely the way to play this i pointed out the range in ibb its tough to pick a winner. Last week it was pfizer. This weeks its moderna i think you want i basket of names with the overall exposure of playing to the overall strategy. Karen you made point it is not the biotech or pharma stock thats are going to be the vaccine plays, at this point for those type of plays, the reopening casinos, air lines, cruise lines, et cetera, do you feel better about possibly poss investing in those sectors given two vaccines with more than 90 percent efficacy well i dont own them to cut to the chase one more thing about moderna, i think they were the only ones who didnt say were going to tries it as cheaply as possible. I think there was a lot of pressure on the work that pfizer did to sort of as a goodwill gesture price it almost at marginal cost. I remember i was talking about this, moderna i think was a little more interested in what is the profit potential. Thats probably why their stock outperformed as well as the unbelievable great data of course so going back to the travel question, heres the thing, these stocks, while theres momentum because of the vaccine and theres a light at the end of the tunnel they are levitatinlevitating their Balance Sheets are exploding. They raised so much debt to get to the other side and hopefully they will. With the enterprise value big as they are i will let that trade go by. Can we fade stimulus away to the background now we have two very positive data points and know by the end of the year 20 million americans be vaccinated with either pfizer or Moderna Vaccine that we can feel better about the economy because we know theres an end point. Yeah, its interesting, the general jeff mill whos is no doubt watching right now he actually pointed out to answer that question now more than ever is when you should need the stimulus because there is a light at the end of the tunnel and youre not chasing. You give people hope and say by the summer well get there in terms of the vaccine but get us from here to there now more than ever stimulus is important. When he tweeted that i nodded my head and harken back to the great robert frost, the woods are lovely, dark and deep, but i have promises to go and miles to keep there are miles to go but if we get the stimulus deal will get us to the other side of the woods. What happen to the stock market and miles to go, the economy could be a disaster and stocks may still go higher thats a sad fact. Well, valuations, as karen is alluding to and i think i missed the english lit class, you have a case where you start to look at 2021 and 22 valuations get very expensive youre seeing the early stage recovery in the form of resources and even in the form of banks which well talk about this mna transaction, i will say to the extent that companies were overly cautious in terms of their outlook, unwinding some of that is appropriate. But were going to find our self in a place, but he dont think its really unless theres a change in fed policy until the middle part of next year yes weve given stocks a mulligan to 2022 i still think theres a vast part of the industrial and call it the transport and even late cyclical part of the investment profile that i think is very investable still i dont think valuation matters. I really dont i think until yields normalize equities may trade above. Our next expert says nows the time to be cautious. Jonathan, great to have you. Dont know if you want to quote frost or emerson or another literary great but why should we be cautious . As tim pointed out investors are willing to give stocks a pass when it comes to earnings so whats it matter at this point we have two great vaccine data points we see the other side now. Well, first of all, the question is timeframe. So am i optimistic yes. Is this great news in terms of these announcements . Yes. Its really more a big zeal in terms deal of getting us through this pandemic but theyre not going to have a major impact on the economy in 2021 those of us who are watching or who are on air were probably not all going to have a vaccine until some time in the middle of next year. So, yeah, we could use some stimulus to get us through june or the summer but in the shortr shortrun, and markets respond to the shortrun were facing rising cases so if you are a hedge fund and have a two or three month windo i think theres risk here. Youre an individual investing or Portfolio Manager with two year or oneyear horizon id be buying this like crazy it really depends on your timeframe. More immediately, jonathan, are you worried about thanksgiving and the two weeks after where we might see cases spike as a result of various gatherings i think im actually scared about christmas. We had 25,000 cases in the zbining of assessment. Over 160,000 cases on saturday we are doubling the number of cases every three and half weeks. We go to a superspreader of thanksgiving the real risk is that government Officials Say were closing it down and you cant afford to have that happen right before the Christmas Shopping season. It would be really devastating for the economy and companies would be beat up if we see shut downs in late november into december its your local retail and restaurant are the guys most under pressure, thats what has me concerned well also see on the political front in the next few weeks more clarity on what bidens cabinet looks like and the market is going to be assessing that i dont think it will be overly concerning, but if its a very progressive looking cabinet some on wall street will be quite uneasy. Jonathan, thanks for your thoughts as always credit suisse. Bon are you worried about the consumer. Sure i do worry about the consumer i want to bring up a point made in terms of the time. If you are thinking of the large market institutional in nature and you have yearend marks, thats certainly something to keep at the forefront of your mind i think the consumer has been stretched for some time. I understand employment rates have been falling and savings ratings have been nudging higher and higher, however, this economy is one that is leveraged to the consumer that is typically spending with debt thats definitely something im looking at with concern. Berkshire hathaway making pretty interesting moving in its portfolio. Leslie with the details. Hey, melissa. Interesting indeed, rotating out of bank stocks into pharma lets start with new positions in the pharma sector, taking new stakes in abbvie, merck, and bristol myers, each worth 2 billion by the end of september and Warren Buffett in pfizer 136 million at quarter end and maintaining ninedigit holdings in biogen and firm almost selling out of j. P. Morgan pairing back its stake by 96 percent to hold just under 100 million worth of stock. And sizable reductions in m t and pnc as well. Filing on wells fargo in august showing slight decrease since then interestingly no change in the firms nearly 5 billion stake in u. S. Bank corp. Speaking of multibillion dollar stakes, sold 4 billion of apple stake, pairing back of less than 4 percent. Still a sizable position. Leslie thank you karen, what stood out to you the move in banks seems pretty notable, especially considering the run in banks since the end of the Third Quarter when the filing was effective right so we dont know at what time during the Third Quarter they did that but the bank run since september 30 has been enormous so they missed that. Although it seems over the last few quarters that they have made a strategic choice to severely curtail their bank exposure. So i dont know that it was so pricegenerated as much as, all right, were going to be out of the banks. We saw it with wells fargo i love j. P. Morgan, im not selling on that news at all. Well see. Might trade down a little bit. But i think that sort of people are not looking at Warren Buffett as the bank oracle any more because of that decision to sell out all right coming up air bnb taking a big step on its road to going public will the stock see first day pom so many of the years other ipo. And later, more bank deals ahead, were joined by one Bank Analysts to tell you what to expect, hes naming names in the financial space. Fast money back in two for over 30 years, lexus has been celebrating driveway moments. Heres to one more, the lexus december to remember sales event. Lease the 2021 nx 300 for 349 a month for 36 months and well make your first months payment. Experience amazing at your lexus dealer. And well make your first months payment. Its time you make the rules. So join the 2 Million People who have switched to xfinity mobile. You can choose from the latest phones or bring your own device and choose the amount of data thats right for you to save even more. And youll get 5g at no extra cost. All on the most reliable network. So choose a data option thats right for you. Get 5g included and save up to 400 dollars a year on the network rated 1 in customer satisfaction. Its your wireless. Your rules. Only with xfinity mobile. Breaking news on tesla, now with the details. The s p 500 is going to be adding tesla to the index. This is a move that many expected after the Company Posted a profit in the Second Quarter but now theyre doing it following a tesla reporting a profit in the Third Quarter. So now you have tesla joining the s p 500, a move that many expected about three months ago but now theyre going to be included and this is why you have a stock up 7 percent after hours. Not an unexpected inclusion, but one people were expecting a while ago. Now that its happening youre starting to see a little bit of that pay back in terms of the shares moving higher after hours. Melissa. Wow finally the wait is over, thank you phil this is one reason why the stock ramped up over the summer we should note 11. 2 billion was index for benchmark to the s p 500 of that total less than half 4. 6 trillion is actually index funds so they will have to buy tesla shares so thats fuelling the after hour session although the stock is short of the alltime high around 500. Guy, what do you make of this . This was so long expected and finally its here yeah, i feel like we were talking about this in the spring. Yeah. Listen, great for tesla, company that two years ago i think was, within a week or so of maybe going an entirely different direction. We talked about it then as well. One thing i said and want to emphasize this, im not a raging tesla bull, ive been wrong as many times as ive been right, but theres a number of things made me stay with the stock, in may was trading alltime high around 700 presplit at the time and elon musk said the stock was too expensive and the sell off lasted for a day. You see things like that many times over the last five or six months every time the stock goes down theres reason to buy it and my sense is we take that 502 level we made alltime few months ago rather quickly. Stock is up more than ten percent right now. Bono, do you think this dampens volatility with being included in the s p 500. Should be a slight dampening effect particularly with indexing and balancing and expect the options to trade more, liquidity. In terms of the risk up or down side, i think a lot of this has been price in despite the ten percent move here. Weve had a massive run up if youve been long take some chips off the table, thats my disposition on anything thats run up the way tesla or like names have yeah. Karen, your thoughts what did you say the math was again on how many trillions in index . 1. 2 trillion index or benchmarked. But of that total 4. 6 trillion is indexed, implying that those funds would have to buy. Uhhuh. I dont know how much that would be of tesla shares but i understand of course why its up but i wouldnt i would neither buy it or sell it on its inclusion or not inclusion in the s p you know, i think this will this to me is not a catalyst their earnings, their products, thats a catalyst. Think of how far the conversation has come when it comes to this company, tim i mean, from disastrous Conference Calls to elon musk smoking a blunt on the joe roggin podcast and crazy tweets and now in the Big Boys Club sms here we are 455 a share in s p 500 club and elon musk weeks a