Author: Dorian Holden

Earlier today, President Trump announced what he referred to as a “historic peace agreement” between Israel and the United Arab Emirates.  

Both, he said, have agreed to “full normalization of relations,” as noted by Fox News.

“HUGE breakthrough today! Historic Peace Agreement between our two GREAT friends, Israel and the United Arab Emirates,” the President tweeted.

Trump, Israeli Prime Minister Benjamin Netanyahu and Crown Prince of Abu Dhabi and Deputy Supreme Commander of the United Arab Emirates Sheikh Mohammed Bin Zayed “agreed to the full normalization of relations between Israel and the United Arab Emirates.” 

The statement also noted the “diplomatic breakthrough” was at “the request of President Trump,” and that Israel will “suspend declaring sovereignty over areas outlined in the President’s Vision for Peace and focus its efforts now on expanding ties with other countries in the Arab and Muslim world.”

Israel and the UAE also said they will continue their efforts to “achieve a just, comprehensive and enduring resolution to the Israeli-Palestinian conflict.”

The full joint statement can be read here: https://twitter.com/realDonaldTrump/status/1293922803419353088/photo/1

“Now that the ice has been broken I expect more Arab and Muslim countries will follow the United Arab Emirates,” added Trump, as quoted by Reuters.

The post Trump: Historic Peace Agreement Reached appeared first on Morningology.

It’s tough to keep Apple down.

Then again, there’s really no reason for it to be down.

For one, it just reported blow out earnings.  EPS of $2.58 was better than estimates for $2.04. Revenue of $59.69 billion beat estimates for $52.25 billion. iPhone revenue soared to $26.42 billion, as compared to estimates for $22.37 billion. Services revenue jumped to $13.16 billion, as compared to expectations for $13.18 billion.

Two, the company just declared a 4:1 stock split and declared a dividend of 82 cents, payable on August 13.  “This is Apple’s fifth stock split since it went public. It also split on a 7-for-1 basis on June 9, 2014; a 2-for-1 basis on February 28, 2005; a 2-for-1 basis on June 21, 2000; and on a 2-for-1 basis on June 16, 1987,” said CNBC.

And, as of this morning, Apple announced that it’s preparing to launch new subscription plans that bundle several of its services together, as noted by Bloomberg.  

“According to the report, Apple plans to package services like Apple TV+, Apple Music, Apple News+, Apple Arcade and iCloud storage into different plans that provide consumers a discount for packaging everything together. Those services typically cost between $4.99 and $9.99 per month. The report said Apple is preparing several different tiers, including one that offers everything and others that bundle some services but not others. One may also offer a new workout class subscription,” as highlighted by CNBC.

Since bottoming out in March 2020, shares of Apple have rocketed from $211.65 to $457.  As we near its 4:1 split later this month, we wouldn’t be shocked to see AAPL nearing $480.

The post The Top 3 Reasons Apple Belongs in All Portfolios appeared first on Morningology.

Russia is claiming to have the first COVID-19 vaccine in the world.

It’s why Dow futures exploded 258 points this morning.  S&P 500 futures were up 18, as the NASDAQ tacked on another 26 points.

“As far as I know, a vaccine against a new coronavirus infection has been registered this morning, for the first time in the world,” said Russian President Vladimir Putin, who also claims one of his daughters has already taken it, as noted by CNBC.

“Although I know that it works quite effectively, it forms a stable immunity and, I repeat, has passed all the necessary checks,” Putin added.

However, despite the news, many are skeptical, sounding the alarm that a rush to use any vaccine before Phase 3 trials could backfire.  At the moment, no data has been published by researchers and long-term effects and safety still remain unclear.

The World Health Organization has also urged Russia to follow all of the guidelines and go through all of the stages necessary to develop its vaccine.  

In short, markets are up on nothing more than hope that we have a vaccine.

Despite that, Russian sovereign wealth fund, the Russian Direct Investment Fund said it will back the full-scale production of the vaccine, expected to begin next month.

“We have received preliminary applications for over 1 billion doses of the vaccine from 20 countries. Along with our foreign partners, we are already prepared to manufacture over 500 million doses of vaccine per year in five countries, and the plan is to ramp-up production capacity even higher,” the wealth fund said in a statement, as also quoted by CNBC.

But again, we don’t have Phase 3 data. We don’t know if the vaccine could have side effects, and we don’t know if it’s even safe.  It’s not as if the world can rush a vaccine here.

The post There’s a Major Problem with Russia’s COVID Claims appeared first on Morningology.

Telehealth opportunities have become even more explosive.

For one, according to a an Updox survey of 2,000 patients, 42% said they’ve used telehealth services since the pandemic began. Up to 63% said they like telehealth because it limits potential exposure to other patients. 

Two, President Trump just signed an executive order to expand telehealth in rural areas. 

“Telehealth use has skyrocketed during the pandemic thanks to the President’s actions, and the telehealth revolution is here to stay. The new gold standard for healthcare will be patients and providers deciding on the right blend of in-person and virtual care, when and where it makes sense for them. The President is now directing HHS to keep charging ahead on giving Americans better access to the doctors of their choice, including via telehealth.,” said Health and Human Services Secretary Alex Azar.

Three, we’re seeing more industry consolidation.  Teladoc Health just announced it will acquire Livongo Health in a deal valued at $18.5 billion. The acquisition also builds on Teladoc Health’s virtual mental health offerings.

With the story likely to get even stronger, some of the top telehealth stocks to watch include:

• Teladoc Health (TDOC)
• CVS Health Corp. (CVS)
• Zoom Video Communications (ZM)
• Humana (HUM)
• Anthem (ANTM)

The post The Top 5 Ways to Trade the Telehealth Boom appeared first on Morningology.

Gold isn’t the only metal exploding.

Silver prices just spiked above $28 this morning to $28.53.  Even after doubling from its March 2020 low of $11.64, silver is still considered to be undervalued.  

In fact, it could soon outshine gold.

“Silver is not even halfway to its all-time high,” says Ryan Giannotto, director of research at ETF issuer GraniteShares, as quoted by MarketWatch. While it’s unlikely silver would more than double in the immediate future, it’s “unwise to rule out extreme scenarios.”

All thanks in part to a tensions with China, the latest explosion in Beirut, fears of economic collapse, nearing U.S. elections, and central banks still flooding the world with liquidity to keep economies afloat.  Bank of America just raised its silver price target to $30.49.

“Continued fiscal spending as governments are mending the damage from COVID-19, backstopped by central banks means that interest rates will remain low, at the same time as the economy reflates,” they said, as quoted by Benzinga.

With the silver bull market alive and well, some of the top stocks to watch include:

·      iShares Silver Trust (SLV)

·      Global X Silver Miners ETF (SIL)

·      Hecla Mining (HL)

·      Coeur Mining (CDE)

·      SSR Mining Inc. (SSRM)

The post The Top Ways to Trade the Silver Rally appeared first on Morningology.

We could have a vaccine in hand this year.

Novavax’s vaccine just generated promising immune response in early trials.  

In fact, according to CNBC:

“The vaccine produced neutralizing antibodies, which researchers believe are necessary to build immunity to the virus, and killer T-cells. Additionally, the neutralizing antibodies that were produced were higher than those seen in people who have recovered from COVID-19. The immune response was also stronger for those who had the adjuvant, the company said. Novavax said the vaccine was well tolerated with no serious adverse events reported.”

However, it’s not the only vaccine company making headlines today.

Moderna Inc. (MRNA)

Moderna is in talks with multiple countries to supply them with a potential vaccine.  To date, the company has already received $400 million in deposits for it.  Better, it’s expecting Phase 3 trial results with 30,000 participants as early as October 2020.  

“The second quarter marked a new growth phase for Moderna as we started to build our commercial team, a historic moment for those of us who have worked at the company for many years since it was a breakthrough research enterprise. We would like to thank the entire Moderna team for their commitment to our mission of delivering on a new class of medicines for patients,” said Stéphane Bancel, Moderna’s CEO. 

“In the second quarter, we began discussions with several countries for supply agreements for mRNA-1273 and as of July 31, we have received approximately $400 million of customer deposits for potential supply. As we pivot to a commercial stage company, we recognize the need for responsible pricing in the face of the pandemic. We look forward to continuing our progress as we prepare for the Phase 3 readout and the expected subsequent filing of our BLA.”

Pfizer (PFE) and BioNTech (BNTX)

Pfizer and BioNTech just noted they would provide 120 million doses of vaccine from their BNT162 development program, pending approval, to Japan’s Ministry of Health, Labor and Welfare, in the first half of 2021. The two also signed a deal with the U.S. to supply 100 million doses of vaccine for $1.95 billion.

The post The Top 4 COVID-19 Stocks with More Upside appeared first on Morningology.

Gold is about to cross $2,000.

At the moment, it’s up to $1,991.47 – and could cross it as early as today.

All thanks to further fallout from the coronavirus, economic fears, tensions with China, central banks pumping liquidity into markets, and fear ahead of U.S. elections.  Worse, the International Monetary Fund estimates the global economy could shrink by up to 5% this year, prompting central banks to pump billions into the financial markets.

“It’s all monetary policy,” Mathieu Savary, a macroeconomic strategist with BCA Research says, as quoted by The New York Times. “It’s very, very easy monetary policy as far as the eye can see and gold loves it.”

From here, we could see $3,000 gold, as predicted by Bank of America.

We could even see $5,000 gold, as estimated by billionaire Thomas Caplan.  

“I do believe gold embarks on the next leg of its bull market and goes past $1,900 and ultimately $3,000 to $5,000, if not a lot higher, depending on macro circumstances that today seem dim but I can’t really quantify,” he says.

As we noted on July 21, 2020, some of the top ways to trade higher gold is with ETFs.

SPDR Gold Trust (GLD)

Even after running from a March low of $140 to $187.24, there may be much further upside for the GLD ETF, which invests directly in physical gold.  GLD could easily run to new record highs on global uncertainty, global stimulus packages, and economic fear.

Global X Gold Explorers ETF (GOEX)

Since bottoming out at $12.54 in March, the GOEX ETF has exploded to nearly $38.55, and could also see further upside.  Some of its top holdings include Hecla Mining, B2Gold Corporation, Kirkland Lake Gold, and SSR Mining Inc. 

VanEck Vectors Gold Miners ETF (GDX)

The GDX ETF popped from a low of $16.18 to $43.36 in recent months, and could also run higher.  This one seeks to replicate as closely as possible, before fees and expenses, the price and yield performance of the NYSE Arca Gold Miners Index (GDMNTR), as noted by VanEck.  Some of its top holdings include Newmont Corp., Barrick Gold Corp., Franco-Nevada Corp., and Kirkland Lake Gold.

The post 2020 Gold Rush: How to Trade $2,000 Gold appeared first on Morningology.

The U.S. economy just saw the biggest drop in second quarter GDP in history.

Q2 GDP plummeted 32.9%.  Fortunately, it wasn’t as bad as the 34.7% drop economists were expecting.  Still, it was pretty bad with contractions in personal consumption, exports, inventories, investment and spending by governments.  All thanks to the coronavirus.  

According to the Bureau of Economic Analysis:

“The decline in second quarter GDP reflected the response to COVID-19, as “stay-at-home” orders issued in March and April were partially lifted in some areas of the country in May and June, and government pandemic assistance payments were distributed to households and businesses. This led to rapid shifts in activity, as businesses and schools continued remote work and consumers and businesses canceled, restricted, or redirected their spending.”

Not helping, U.S. weekly jobless claims were up.

Roughly in line with estimates, 1.434 million claims were filed in the week ending July 25.  That was slightly better than expectations for 1.45 million.  According to CNBC, “Continuing claims — which are composed of those receiving unemployment benefits for at least two straight weeks — rose by 867,000 to 17.018 million.”

Unfortunately, Congress isn’t close to helping those out of work.

“We’re nowhere close to a deal,” said White House chief of staff Mark Meadows after a meeting with Steven Mnuchin, Nancy Pelosi, and Chuck Schumer.  

“Senate Republicans released a roughly $1 trillion pandemic aid bill this week, a counter to the $3 trillion package House Democrats passed in May. But the proposal has not earned the support of many GOP lawmakers, let alone Democrats,” said CNBC.

The post Q2 GDP Down a Record 32.9%– Worse than Great Depression appeared first on Morningology.

With a good deal of coronavirus relief needed, Senate Majority Leader Mitch McConnnell just unveiled the Republican’s relief plan.  

Some of the top proposals – as highlighted by CNBC – include:

• It would set enhanced federal unemployment insurance at 70% of a worker’s previous wages, replacing the $600 per week which states stopped paying out this week.
• The GOP would set the benefit at a sum of $200 per week on top of what recipients would normally receive from states through September, slashing what they got from April through July. In October, the 70% replacement would take effect up to a maximum of $500 per week.
• The proposal would send direct payments of $1,200 and $2,400 to individuals and couples, respectively. It would set the same qualifications as the checks approved in March: the payments started to phase out at an average of $75,000 in income per person, and individuals or couples making an average of $99,000 or more did not receive one. It would offer an additional $500 per dependent of any age.
   
• It would set aside $190 billion for Paycheck Protection Program loans. The bill would allow small businesses with fewer than 300 employees that have seen revenue fall by more than 50% to apply for a second round of aid. It would also authorize $100 billion for loans to seasonal businesses and companies in low-income Census tracts that can show revenue reduction of more than 50%. 

However, it may be an uphill battle to get such proposals through.

According to Nancy Pelosi, the proposal is “pathetic” and “It isn’t serious.”

The post Here’s What’s in the Senate’s Coronavirus Relief Package appeared first on Morningology.

With the coronavirus still making the rounds, many schools and companies have already announced they’ll go virtual for the Fall season.

Google for example just announced it will extend its “work from home” order through summer 2021.  “To give employees the ability to plan ahead, we are extending our global voluntary work from home option through June 30, 2021 for roles that don’t need to be in the office,” Google CEO Sundar Pichai said, as quoted by CNBC.

Other big tech companies have said employees can work from home until the end of 2020, including Amazon, Apple, Facebook, and Twitter.  We’re likely to see more of this happen as the outbreak continues.  As of Monday, the U.S. has 4.23 million cases with a good deal of infection in California, New York, and Florida.  

That being said, some of the top “stay at home” stocks to keep on radar include:

Slack Technologies (WORK)

One of the best ways to trade the shift to working from home is with Slack Technologies, which has seen impressive growth with the “work at home” trend.

Thanks in part to “work from home” orders:

“Q1 was a phenomenal quarter for Slack, with the addition of 12,000 net new Paid Customers and 50% revenue growth year-over-year,” said Stewart Butterfield, Chief Executive Officer and Co-Founder at Slack. “We believe the long-term impact the three months and counting of working from home will have on the way we work is of generational magnitude. This will continue to catalyze adoption for the new category of channel-based messaging platforms we created and for which we are still the only enterprise-grade offering.”

“Now more than ever our customers depend on Slack to continue to push the envelope of innovation,” said Allen Shim, Chief Financial Officer at Slack. “We plan to continue to invest, as we see the current crisis accelerating digital transformation and the transition from email to channel-based messaging platforms over the medium term to long term. At the same time, we will manage the business prudently and with a goal of showing consistent operating leverage and progression toward being free cash flow positive.”

Zoom Video Communications (ZM)

“Demand for Zoom’s software, which facilitates virtual conferences and web meetings, is exploding as the spreading virus is prompting office closures and meeting cancellations. Business conferences, college courses and even children’s playgroups have all moved online as people worldwide heed calls to stay away from one another,” reports Fortune.

Advanced Micro Devices (AMD)

Advanced Micro Devices is benefiting from cloud-computing service demand.  As companies race to invest in infrastructure to handle the demand from everyone staying at home. 

“If you look at Amazon or Azure and how much infrastructure usage increased over the past two weeks, it would probably blow your mind how much capacity they’ve had to spin up to keep the world operating,” said Dave McJannet, HashiCorp Inc., which provides tools for both cloud and traditional servers. “Moments like this accelerate the move to the cloud.”

The post The Top “Work from Home” Stocks to Keep an Eye On appeared first on Morningology.