Template for Sector Performance
August 25, 2020
Yesterday’s emergency use authorization for convalescent plasma won’t slow the course of transmissions, but the rally in cyclical/value sectors that followed could be template for increased vaccine optimism. Of course, the known vaccine catalysts will be the Phase 3 data from AZN/Oxford, PFE and MRNA trials. Markets won’t wait for the formal publishing of data in ~November/December, but will go off of progress reports/leaked results as early as September. Also, monoclonal antibody treatment data from LLY and REGN could be released within weeks. A vaccine is more important, but expect it to be priced-into markets soon.