Core Viewpoint - The pharmaceutical sector, particularly companies involved in COVID-19 vaccines, is facing significant stock declines following reports linking vaccines to the deaths of 25 minors, which has raised concerns about vaccine safety and regulatory scrutiny [2][3][5]. Group 1: Stock Performance - Moderna shares dropped 7.4% to their lowest level since March 2020, marking a year-to-date decline of over 44% [3]. - Pfizer's shares fell by 3.9%, while BioNTech and Novavax experienced declines of 7.3% and 3.6%, respectively [3]. - This downturn in pharmaceutical stocks contrasts with the broader market, where the S&P 500 has risen more than 12% this year [4]. Group 2: Regulatory Developments - The FDA is expected to present data regarding the vaccine-related deaths at an upcoming advisory panel meeting, which influences vaccine schedules and insurance coverage [5][6]. - The Vaccine Adverse Event Reporting System (VAERS) data, which is self-reported and unverified, is the basis for the FDA's concerns, although it does not establish causation between the vaccine and deaths [6]. Group 3: Changes in Vaccine Policy - The new administration has made significant changes to the vaccine advisory panel, with Secretary Robert F. Kennedy Jr. replacing all members with individuals who have previously criticized vaccines [9]. - The Advisory Committee on Immunization Practices (ACIP) is scheduled to meet on September 18 and 19 to discuss COVID-19 vaccines and other immunizations [10]. Group 4: Company Responses - Moderna's CEO criticized the recent changes in U.S. vaccine policy as a "step backward," emphasizing the rigorous safety monitoring of their vaccine [11]. - Pfizer highlighted extensive data supporting the safety and effectiveness of its vaccine, noting its administration to over one billion individuals [12].

Economic Data - The University of Michigan's preliminary U.S. consumer sentiment index fell to a 4-month low of 55.4 in September, below expectations of 58.2 [1] - Year-ahead inflation expectations remained unchanged at 4.8%, while 5-year implied inflation expectations increased to 3.9%, exceeding expectations of 3.4% [1] Stock Market Performance - Wall Street's major equity averages ended mixed, with Arista Networks (ANET) dropping over 8% due to unimpressive long-term projections [2] - Vaccine makers, including Moderna (MRNA) and BioNTech SE (BNTX), saw shares slide more than 7% following reports linking Covid shots to child deaths [2] - Warner Bros. Discovery (WBD) surged over 16% after news of a potential cash bid from Paramount Skydance [2] Upcoming Economic Reports - Investors are awaiting a retail sales report, which will provide insights into consumer spending [3][9] - Other significant data releases include U.S. Industrial Production, Manufacturing Production, and Initial Jobless Claims [9] Federal Reserve Actions - The Federal Reserve is expected to cut the Fed funds rate by 25 basis points to a range of 4.00% to 4.25% [7] - There is a possibility of a larger 50 basis point cut, with investors closely monitoring Chair Jerome Powell's remarks for future rate cut indications [7][8] Corporate Earnings - Notable companies such as FedEx (FDX), Lennar (LEN), and General Mills (GIS) are scheduled to release quarterly results this week [10] Trade Talks - U.S.-China trade talks began, focusing on trade, the economy, and TikTok's status, with expectations of nearing a deal [11] Bond Market - The yield on the benchmark 10-year U.S. Treasury note is at 4.064%, reflecting a 0.12% increase [12] European Market Insights - The Euro Stoxx 50 Index rose by 0.67%, with defense stocks outperforming amid ongoing geopolitical tensions [13] - Fitch Ratings downgraded France's sovereign credit rating to A+ from AA- due to political turmoil [13] Chinese Economic Data - China's August Industrial Production rose by 5.2% year-on-year, below expectations of 5.7% [16] - Retail Sales increased by 3.4% year-on-year, weaker than the expected 3.8% [16] - Fixed Asset Investment growth slowed to 0.5% year-on-year, below expectations of 1.5% [16]

Core Viewpoint - The Trump administration's health officials plan to present claims linking COVID-19 vaccines to 25 child deaths to a key vaccine advisory committee, impacting biotech stocks negatively [1] Group 1: Impact on Biotech Stocks - Following the news, U.S. biotech stocks experienced significant declines, with BioNTech down 7.26%, Pfizer down 3.98%, Moderna down 7.40%, and Novavax down 3.62% [1] - Citigroup highlighted the volatility risk for biotech companies due to the news, emphasizing the robust research supporting COVID-19 vaccines and billions of doses administered [1] Group 2: Company Ratings by Citigroup - **BioNTech**: Rated "Buy" with a target price of $140, but considered "high risk" due to typical volatility in biotech stocks and uncertainties in clinical trials [3] - **Moderna**: Rated "Neutral" with a target price of $30, also deemed "high risk" with potential down risks related to market stability and product effectiveness [4] - **Novavax**: Rated "Sell" with a target price of $6, facing risks but with potential upside if the COVID-19 vaccine market recovers unexpectedly [5] - **Pfizer**: Target price set at $26, with both upside and downside risks related to new drug sales and competitive pressures [6]

Group 1 - Pfizer (PFE.US) and Moderna (MRNA.US) stocks fell sharply following reports that Trump administration health officials plan to present claims linking COVID-19 vaccines to 25 child deaths to a key vaccine advisory committee next week [1][2] - The Advisory Committee on Immunization Practices (ACIP) is responsible for reviewing vaccination data and making recommendations that significantly influence vaccine policy [1][2] - Following the news, Pfizer's stock dropped by 3.98%, Moderna's stock fell by 7.4%, and Novavax (NVAX.US) also saw a decline of 3.62% [1] Group 2 - The U.S. Department of Health and Human Services (HHS) stated that the FDA and CDC regularly analyze vaccine safety data and share results through established ACIP processes, emphasizing that any unverified claims should be considered speculation [1][2] - Moderna highlighted that the safety of its vaccine is being closely monitored by the company, FDA, and regulatory agencies in over 90 countries, with no new safety concerns reported in systems monitoring across various regions [2] - Research indicates that mRNA vaccines produced by Pfizer and Moderna are safe and effective, with severe adverse reactions being extremely rare, although there is a slight increase in myocarditis risk among young males [2][3] Group 3 - FDA Director Marty Makary acknowledged that there have been self-reported cases of child deaths following COVID-19 vaccination, but did not provide specific data, stating that a report will be released in the coming weeks [3] - The claims made by the Trump administration appear to be based on data from the Vaccine Adverse Event Reporting System (VAERS), which collects self-reported data that requires thorough investigation to determine causality [2]

Market Overview - The S&P 500 Index closed down -0.05%, the Dow Jones Industrials Index down -0.59%, while the Nasdaq 100 Index closed up +0.42% [1] - Stock indexes settled mixed as higher bond yields led to long liquidation in equities, with the 10-year T-note yield rising +5 basis points to 4.06% [2] - The University of Michigan US September consumer sentiment index fell -2.8 to a 4-month low of 55.4, which weighed on stock prices [5] Economic Indicators - The US consumer sentiment report for September was weaker than expected, contributing to a Fed-friendly outlook for interest rate cuts [3][9] - Markets are pricing in a 100% chance of a -25 basis point rate cut at the upcoming FOMC meeting, with an overall expectation of -70 basis points by year-end [6][9] Company Movements - Warner Bros Discovery (WBD) surged over +16% following reports of a potential acquisition bid from Paramount Skydance [13] - Tesla (TSLA) rose more than +7% after receiving approval for testing autonomous vehicles in Nevada [13] - Micron Technology (MU) increased over +4% on speculation of accelerated growth due to strong demand for AI chips [14] - Oracle (ORCL) fell more than -5% amid reports of insider backing for a competing acquisition bid [17] Sector Performance - Covid vaccine makers, including Moderna (MRNA) and BioNTech SE (BNTX), retreated over -7% following reports linking child deaths to Covid shots [16] - Home builders and suppliers faced declines due to rising T-note yields, with Builders FirstSource (BLDR) and Toll Brothers (TOL) down more than -2% [16]

Company Performance - Moderna's stock closed at $23.51, reflecting a decline of 7.4% from the previous day, underperforming the S&P 500 which fell by 0.05% [1] - Over the past month, Moderna's shares decreased by 4.87%, lagging behind the Medical sector's gain of 7.77% and the S&P 500's increase of 3.44% [1] Upcoming Financial Results - The upcoming earnings report for Moderna is expected to show an EPS of -$1.94, representing a significant decline of 6566.67% compared to the same quarter last year [2] - Quarterly revenue is anticipated to be $962.38 million, down 48.31% from the previous year [2] Full Year Projections - For the full year, earnings are projected at -$9.7 per share and revenue at $1.92 billion, indicating changes of -9.36% and -40.61% respectively from the prior year [3] Analyst Estimates and Market Sentiment - Recent modifications to analyst estimates for Moderna reflect current business trends, with upward revisions indicating positive sentiment towards the company's operations [4] - Changes in estimates are linked to stock price performance, and investors can utilize the Zacks Rank for actionable insights [5] Zacks Rank and Industry Performance - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), has shown that 1 stocks have an average annual return of +25% since 1988 [6] - Currently, Moderna holds a Zacks Rank of 3 (Hold), with a recent 0.5% rise in the Zacks Consensus EPS estimate [6] - The Medical - Biomedical and Genetics industry, which includes Moderna, has a Zacks Industry Rank of 97, placing it in the top 40% of over 250 industries [7]

Group 1: Market Movements - Shares of Warner Bros. Discovery (WBD) surged 16.7%, marking the best performance in the S&P 500 for the second consecutive day, driven by speculation of a cash takeover bid from Paramount Skydance (PSKY) [4][8] - Paramount Skydance shares increased by 7.6% following the takeover bid reports [4][8] - Major U.S. equity indexes showed mixed results, with the S&P 500 ending with a loss of less than 0.1%, the Dow dropping 0.6%, and the Nasdaq gaining 0.4% to achieve its fifth straight record closing high [3] Group 2: Sector Performance - Vaccine makers, including Moderna and Pfizer, faced declines, with Moderna shares dropping 7.4% and Pfizer down 4%, following reports linking COVID-19 vaccines to child deaths [10][8] - Tesla (TSLA) shares rose 7.4%, bolstered by expectations of a Federal Reserve rate cut and positive developments in its humanoid robot business [5] - Micron Technology (MU) shares gained 4.4%, reaching an all-time closing high, supported by strong demand for its memory chips and a price target increase from Citi analysts [6] Group 3: Company-Specific Developments - Arista Networks (ANET) shares fell 8.9% despite guiding for 20% revenue growth in fiscal 2026, as concerns arose regarding long-term operating margins being projected below fiscal 2025 levels [9] - Oracle (ORCL) shares retreated 5.1% after a strong post-earnings rally, with analysts expressing concerns about the company's growth being heavily reliant on a small number of clients [11]

Core Viewpoint - Shares of Pfizer and Moderna experienced declines of 3.9% and 7.4%, respectively, following reports that the Trump administration intends to link the deaths of 25 children to COVID vaccines, which may influence vaccine access and costs [1][8]. Group 1: Impact on Vaccine Companies - The planned presentation by Trump health officials could affect the perception and market performance of Pfizer and Moderna, as it may lead to changes in vaccine recommendations and insurance coverage [1][8]. - The report indicates that the deaths were sourced from the Vaccine Adverse Event Reporting System (VAERS), which is known for containing unverified reports of vaccine side effects [2][3]. Group 2: Regulatory and Advisory Context - The upcoming meeting of the vaccine advisory panel is critical, as it will determine whether insurers are required to cover the vaccines and the willingness of pharmacies and doctors to administer them [8]. - Health and Human Services Secretary Robert F. Kennedy Jr. has made significant changes to the vaccine panel, replacing its members with his own selections, which may influence future vaccine policy [8][13]. Group 3: Public Health Recommendations - The American Academy of Pediatrics continues to recommend annual COVID vaccinations for children aged 6 to 23 months and asserts that the vaccines are safe and effective [14]. - In contrast, Kennedy has directed health officials to cease recommending vaccinations for healthy children, suggesting that only high-risk individuals or those over 65 should receive them [9][13].

Companies that manufacture authorized COVID-19 shots are down significantly following word that a closely watched CDC vaccines advisory committee meeting next week will receive a presentation tying the vaccines to the deaths of 25 children. Moderna (NASDAQ:MRNA), Pfizer ( ...

Core Viewpoint - Shares of Pfizer and Moderna declined following a report linking COVID-19 vaccines to the deaths of 25 children, which is set to be presented to a key vaccine advisory panel [1][2][3] Group 1: Stock Performance - Pfizer's stock fell more than 3% and Moderna's shares dropped over 7% after the report [3] - Novavax, another company involved in COVID-19 vaccine development, saw its stock slide more than 4% [3] Group 2: Regulatory Context - The report is part of a presentation to a vaccine panel that advises the Centers for Disease Control and Prevention (CDC), which plays a crucial role in vaccine access and recommendations [2] - Health and Human Services Secretary Robert F. Kennedy Jr. is moving to change U.S. vaccine policy, including dropping recommendations for healthy children and pregnant women [4] Group 3: Safety Monitoring - Moderna stated that the safety of its vaccine is rigorously monitored by the company, the FDA, and regulators in over 90 countries, with no new safety concerns identified in children or pregnant women [5] - The claim linking vaccines to deaths is based on unverified reports submitted to the federal Vaccine Adverse Event Reporting System [6] Group 4: Scientific Perspective - The CDC emphasizes that only thorough investigations by scientists and public health officials can determine if a vaccine caused or contributed to reported side effects [7] - During a recent Senate hearing, Kennedy supported claims that mRNA vaccines pose a dangerous risk [7]