Market Briefing For Thursday, August 6
An economic chasm risks occurring right when COVID-19 will collide with seasonal influenza, with complete confusion occurring amidst the public, if nothing is achieved in the very short time-frame that remains. So relax a bit, that's not exactly how this is going to go down (and if it is, we're all in trouble and the Fed and Congress will start rounds 5 or 6 of emergency stimulus).
That doesn't mean the stock market won't have a shakeout; but does suggest that a few wheels are turning to deflect the impact of collision at that intersection of worries and health concerns, and that's precisely where some speculation comes in now.
It also relates (as convoluted and mind-boggling as their 10Q was) to why Sorrento Therapeutics (SRNE) is actually not late, but possibly in a testing sweet-spot with regarding to actually saving the day so to speak, and suggests their CEO might well not have exaggerated claims very much, if at all. I will explore than in a moment.
Now if only LightPath Technologies (LPTH) could figure-out a way to have infrared thermal monitoring detect 'epidermis' top level tissue on our skin that was carrying COVID-19 cells or even infected droplets, it would be a $50 stock in a flash. This sounds crazy; but since COVID-19 settles on the outside of masks or gets inhaled or on skin (hence the command that we wash our hands frequently), why not have a superficial external way to not just scan the body's epidermis, but widely monitor the body or crowds for COVID-19... I wonder if anyone has even considered the possibility of such detection?).
Just for kicks; I looked into this a bit (maybe a hint to those who really know all this), and learned that beyond basic fever detection, far more accurate technique can be done with infrared cameras. For example, there's a line of medical thermal infrared cameras with FDA 510(k) clearance for medical use. These are advanced with two fever detection systems priced at $5,000 and $10,000, and are radiometric imagers.
These devices connect by USB or WiFi connection to provide real time radiometric data streamed directly to a display. I have heard of this being used in Israeli offices, and in major airports like Tokyo's Hanneda. We tend to be laggards in the US and do need to catch-up. Infrared can help. Unlike the hand-held thermometer guns, these advance screening process involves person(s) being screened to stand still, look into the camera and remove distractions such as a cap or glasses. (Not totally stripping but I recall Sony cameras that would do that in black & white years ago.) The display here includes a black-body object for known level of infrared emissions. They provide accurate skin surface temperature readings from the first 1/1000th inch of epidermal layer, so if you could add not just droplet detection but other factors, well, next gen.
Executive summary:
- The President will move to assist the economy if Congress fails to make a deal this week, which they probably will do.
- Biotech plays remain the hot sector, with persistence stirring among stocks and candidates, with possibly lesser-known companies with promising efforts to use the information gleaned from earliest products for better solutions.
- Tonight, CNN's Dr. Gupta, on Anderson Cooper's show, stated in discussing an urgent need for rapid on-site COVID-19 tests, that he expected FDA issuing EUA(s0) for rapid antigen tests almost immediately and to look for news on that (that's exactly what Sorrento is waiting for on the one test in the FDA database).
- Reports suggest the mixed-message from President Trump about the Beirut explosion may have validity, the ammonium nitrate stored from the Russian ship is known, as were the fireworks in an adjacent building that may have ignited it.
- But, while difficult to comprehend why Muslim Hezbollah might attack their own city, though it was mostly downtown Christian areas near the port, there is a bit of possible linkage with an MI5 investigation that recently located a large quantity of ammonium nitrate Hezbollah had hidden in the U.K., and made an arrest.
- In Germany police similarly had intelligence information and also seized a large warehouse packed with ammonium nitrate, and also linked to Hezbollah.
- Meanwhile Tel Aviv City Hall is illuminated in the colors of Lebanon's flag, in a show of solidarity, and Israel (probably with security concerns if the offer were to be accepted) offered to send medical supplies and personnel to help recovery.
- In the U.S. millions remain without power in the NE, as 'Covi-Cane' season rolls on (if I wrote a book about American history, 2020 deserves a couple chapters.
- This year has months to go, inane political fighting, and sadly no expedited cure, but the tests of meaningful antivirals, including pills, is indeed forthcoming.
- No change in the market pattern for now, grinding slightly higher in this range, and assisted by a relatively soft Dollar, which is actually not favorable beyond this degree of recent dip, even though it helps the global super-cap stocks a bit.
"The President will move to assist the economy if Congress fails to make a deal this week, which they probably will do."
Remember Congress attempted to continue stimulus weeks ago and the President and Senate blocked it with no counter proposal for weeks. What do you suggest the President to do now? It seems like it is a crisis of their own making and there doesn't seem to be an answer. The President can't even convince his own party to all support him on this after doing nothing until the last moment. Remember the budget remains in control of Congress not the President.