Dollars, but hes in luck and our traders are here to help him fix his portfolio and we start with the major news on gilead that weighed on the major averages gilead dropping on reports that the companys coronavirus des v remdesivir it is difficult to part through because it was halted from china that didnt have enough to finish the synopsis on these partial results were posted by the World Health Organization on its website immediately taken down, but not before the Financial Times and stat news got a hold of it. What that showed was that 237 patient were enrolled in this trial and 158 of them were on remdesivir and they had planned to enroll 453. One of the gauges they looked for for success was mortality and how many patient surs viefed at 28 days they found 14 of the patients on the drug passed away versus 12 in the control group. In a summary of the screen shot here they said that remdesivir was not associated with clinical or virological benefits. We regret that the w. H. O. Prema
Holding stronach bank of america reports tomorrow one of the biggest shareholders is getting more bullish. Ber shire seeking permission from the fed to boost stake in the bank beyond the 10 threshold. Did jamie and warren give the okay to ride the rally to new record highs why not those are the two. If knows two say its okay, who am i to argue with those two. Back to you. Back to you, mel. The jp morgan was quarter was fine and well talk about banks but put going in perspective and tangible book in jp morgan stock 120. Even i in my lame man can do the math and tell you tangible book its two times tangible book right now. That is a pretty big premium in this environment, i think. In erms it of mr. Buffett, he is actually sitting on a record amount of cash as well maybe thats why he wants to deploy to more banks but the indicator he mass looked at his entire career, the wilshire 5,000 over gdp in the united states. I mean that is flashing as red as maybe it has ever flashed ive been skep
In the United States and the hunt for yields continues. Staples, which hit a fresh high today, but are those socalled safety stocks now the ultimate danger trade . Take a look at that. The pes for the 2016 growth, which is practically anemic. Well, first of all, part of the problem here is were talking about staples. If youre talking about the head wins, if youre staples retarial, you want inflation. Thats going to add to your top line revenue sales. Their core group and the kour households, growth is not there and theres no inflation, so start with that foundation, which is not terribly good. Were in an environment where companies have very solid business models. And they have extraordinary yields. Why shouldnt they trade at a premium. When i look at where we are in the market cycle and if we are late economic cycle, joe yesterday for example, you should own these names and you should own them and you shouldnt be blindly just diving into them. There is relative value in this space. Ew
This is a sign the story implies of mounting counterparty concerns. Now, remember, they have thousand of counterparties out here, so this is a small group. But there you see Deutsche Bank down about 6 . Its had an immediate effect on our market here, perhaps an oversized effect. If you look at the s p 500 because as the story came out, we were tooling along just about in the unchanged level, you can see that it, too, dropped rather noticeably. Theres the dow industrials. Put up the bank index, the kbe and here in the United States, which is a basket of all the large banks here in the United States and that immediately dropped. Take a look at the bank here. This gives you indication of whatever, if any probably have nothing to do with jpmorgan for example. Even its to the downside. Signs this is a bit likely on the excessive side. Hardly likely theres an impact on jpmorgan at all. Rest of the market, there was a general decline overall. Even Consumer Discretionary stocks. No impact from
Earlier this week, everybody was getting on me because i was goldiloc goldilocks, too happy and now all of a sudden im taking a beating. Lets just go through what happened today and why the market rallied. Its because Deutsche Bank possibly got some clarity on a reduction of the 14 billion fine. If it gets down to less than 5 billion, they have some clarity, might be able to raise some capital and you reverse some of the negative feedback loop. This is what i was saying earlier, you dont to be short Deutsche Bank because you know the government it going to try to do something. Thats one you dont want to short. The rest of it, if we can get through this European Bank issue, and there are still some issues out there, European Banks, quarter end, but theyre hoarding a lot of dollars, thats not a great sign. That could go away next week. So we do have some very big concerns out there with the European Banks. Here in the u. S. , i think youre okay. I mean, oil seems to be all right. Youre o