CNBC’s Jim Cramer is warning that investors be cautious about how they approach the market next week.
With multiple companies set to go public in the coming days, there could be new reasons for volatile trading.
“When we get a flood of initial public offerings, it’s usually a bad sign for the rest of the market,” the “Mad Money” host said Friday, “because money managers don’t have all this new money coming in, so they’ve got to sell holdings that are like these stocks in order to do some buying.”
After an already packed 2019 for initial public offerings, Wall Street has seen more than 110 companies go public thus far in 2020, up 5% from this point last year, Cramer pointed out.
“Given that September tends to be a bad month for the market,” he said, “I’m urging you to be prepared as these deals start flowing.”
Below is a roundup of Cramer’s reactions to the forthcoming IPOs:
Snowflake: “This thing’s going to be too red hot, unless you can get a piece of the actual deal, which would be fantastic,” he said. “It might be too expensive otherwise.”
Unity Software: “Not yet profitable.”
JFrog: “This is one of the most lucrative corners of the cloud-based software space.”
Sumo Logic: “I’m not familiar with this one, but what matters here is that you’ve got now four cloud deals coming next week, and that causes some portfolio managers to sell current cloud holdings [because] they have to make room for the new ones.”
Amwell: “Given that Teledoc’s merging with Livongo, the digital health coach, Amwell could slot right into the market as the only publicly traded pure play on telemedicine. That said, it’s still far from profitable.”
GoodRx: “At a time when people are paying close attention to their health and their bank accounts, GoodRx seems like a winner. Again, though, it all depends on price — you don’t want to buy something that comes in too hot.”
Palantir (direct listing): “Palantir’s a rapidly growing business, so it just might work, although recent reports suggest that the early interest hasn’t been as strong as the company or anybody else expected, for that matter.”
Asana (direct listing): “Asana’s got a terrific growth rate — 82% in its most recent fiscal year, very few have that — but it’s also a consistent money loser. I think it’ll be a good test case for what this market values.”
Biden surgeon general pick says U.S. racing to adapt against new Covid strains
Vivek Murthy, who has been nominated by President-elect Joe Biden to serve as the US Surgeon General, speaks as Biden announces his team tasked with dealing with the Covid-19 pandemic at The Queen in Wilmington, Delaware on December 8, 2020.
Jim Watson | AFP | Getty Images
WASHINGTON – President Joe Biden’s surgeon general pick said Sunday that the United States is in a race to adapt against the mutating coronavirus which has produced a number of potentially more infectious variants of Covid-19.
“The virus is basically telling us that it’s going to continue to change and we’ve got to be ready for it,” Dr. Vivek Murthy said during an interview with ABC News’ “This Week.”
“We’ve got to number one, do much better genomic surveillance, so we can identify variants when they arise and that means we’ve got to double down on public health measures like masking and avoiding indoor gatherings,” Murthy, Biden’s nominee to be the nation’s next surgeon general, added.
He also called for an emphasis on treatment strategies as well as further investment in testing and contract tracing methods.
“So the bottom line is, we’re in a race against these variants, the virus is going to change and it’s up to us to adapt and to make sure that we’re staying ahead,” Murthy said.
On Friday, British Prime Minister Boris Johnson said the new variant, known as B.1.1.7, was associated with a higher level of mortality. When asked, Murthy said the U.S. still needs more data on the U.K. variant before making the same determination.
Preliminary analysis of the mutated strain, which was first identified in the U.K., suggests it may be the culprit behind Britain’s spike in cases. Johnson has previously said that the new variant could also be as much as 70% more transmissible. The British government has also confirmed that another infectious variant of the coronavirus identified in South Africa has emerged in the United Kingdom.
Last month, Colorado announced the nation’s first case of the new and potentially more infectious strain of Covid-19. The Centers for Disease Control and Prevention warned last week that the U.K. variant, which is already circulating in at least 10 states, could become the dominant variant in the U.S. by March.
Dr. Anthony Fauci, Biden’s top Covid-19 medical adviser, said last week that the Covid-19 vaccines currently on the market may not be as effective against new strains of the coronavirus.
Anthony Fauci, director of the National Institute of Allergy and Infectious Diseases, speaks during a news conference in the White House in Washington, D.C., U.S., on Thursday, Nov. 19, 2020.
Chris Kleponis | Bloomberg | Getty Images
“Bottom line: We’re paying very close attention to it,” Fauci said of the known variants identified in the U.K., South Africa and Brazil.
“There are alternative plans if we ever have to modify the vaccine. That’s not something that is a very onerous thing, we can do that given the platforms we have,” he told reporters during a White House press briefing.
White House says states can’t purchase Covid vaccine directly
Ron Klain, former White House Ebola response coordinator, speaks during a House Homeland Security Subcommittee hearing in Washington, D.C., U.S., on Tuesday, March 10, 2020.
Andrew Harrer | Bloomberg | Getty Images
White House chief of staff Ron Klain said Sunday that it’s not possible for U.S. states to purchase Covid-19 vaccines directly from manufacturers, as some have sought to do, under the emergency use authorization issued by the Food and Drug Administration.
“As a matter of law, this vaccine is under an emergency use authorization,” Klain told NBC’s “Meet the Press,” when asked about the requests. “I don’t think that’s possible.”
The comments come after New York Gov. Andrew Cuomo asked Pfizer CEO Albert Bourla on Monday to allow the state to purchase vaccines directly from the company, citing tightening supply.
Pfizer told Cuomo that it couldn’t do so under the terms of its December emergency use authorization.
The company said it was open to the idea, but “before we can sell directly to State governments, HHS would need to approve that proposal based on the EUA granted to Pfizer by the FDA.”
The Department of Health and Human Services — at that point still under Republican leadership — accused Cuomo, a Democrat, of attempting to “cut to the front of the line at the expense of fellow jurisdictions.”
Klain said that he believed governors were “understandably frustrated” by the slow pace of vaccinations to date.
The number of vaccines administered lags far behind projections that were made under President Donald Trump, though the pace has picked up in recent weeks. President Joe Biden has pledged that the U.S. will administer 100 million doses of vaccine in his first 100 days in office.
“We are going to ramp up production. We are going to ramp up distribution. We are going to work closely with governors. We are going to get this vaccine to the American people,” Klain said.
The Biden administration has pushed to increase the federal government’s role in the production and distribution of Covid-19 vaccines.
T.J. Ducklo, a White House spokesman, earlier rejected state efforts to purchase vaccines directly, saying that “we need to have a national approach to vaccinations, and must ensure states aren’t competing against each other like they did with PPE, ventilators, and tests.”
Ducklo didn’t immediately respond to an email on Sunday. The Department of Health and Human Services also did not immediately respond to a request for comment.
Before Biden took office, other states had asked Trump’s Department of Health and Human Services to allow them to purchase vaccines directly from the manufacturer.
The governors of Michigan, Minnesota and Wisconsin — all Democrats — sent a letter Jan. 15 accusing the Trump administration of botching the initial vaccine roll out.
“If you are unable or unwilling to give us that supply, we urge you to grant permission for us to directly purchase vaccines so we may distribute them,” the governors wrote.
At least one of those states appears to have backtracked on the plan since Biden was inaugurated on Wednesday.
Bobby Leddy, a spokesperson for Michigan Gov. Gretchen Whitmer, said in a statement provided to CBS that “we are confident that President Joe Biden will have a clear national strategy that is based in data and science to help our nation overcome this health crisis.”
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