Raphael Stevens

Mainland China reported 108 new Covid cases with symptoms and 827 without symptoms for Tuesday.
Many of the cases have hit spots in central China, rather than economic centers like Beijing and Shanghai.
The number of infections in the manufacturing hub of Guangdong has risen with no major restrictions on business yet.

The western province of Gansu is one of the hardest hit by China’s summer Covid outbreak. Pictured here is a Red Cross volunteer spraying disinfectant in Dingxi, Gansu.
Vcg | Visual China Group | Getty Images

BEIJING — China’s daily Covid case count has climbed into the hundreds as the summer holidays get underway.
Many of the cases have hit spots in central China, rather than economic centers like Beijing and Shanghai. The number of infections in manufacturing hub Guangdong has risen with no major restrictions on business yet.

However, sudden business closures in a tourist area in the southwestern region of Guangxi left more than 2,000 visitors stranded as of Sunday, state media said. The report said local authorities would help the tourists leave.
On Monday, Chengdu city in southwestern Sichuan province ordered bars, gyms and indoor entertainment venues to close temporarily for a week. While the city — known for its spicy cuisine — did not ban people from dining inside restaurants, authorities said they encouraged people to order delivery or takeout instead.
Mainland China reported 108 new Covid cases with symptoms and 827 without symptoms for Tuesday. The western province of Gansu and Guangxi accounted for the majority, but at least a handful of cases were reported in 12 other province-level regions.
The surge to hundreds of cases a day has only occurred in the last week and a half. The mainland reported no new deaths from Covid during that time.

Starting in late June, the central government began to relax quarantine measures. The capital city of Beijing has eased restrictions for entering the city from other parts of China.

But domestic visitors to the capital or different parts of China may still need to quarantine for a week upon arrival depending on the presence of Covid in their travel history.
During the first half of the year, domestic tourist trips fell by 22.2% from a year ago to 1.46 billion, according to the tourism ministry. A quarterly breakdown wasn’t available, although the report said the second quarter was greatly affected by Covid.

Read more about China from CNBC Pro

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The Centers for Disease Control and Prevention signed off on Novavax’s Covid-19 vaccine on Tuesday.
In a statement, the CDC said the shots will be available in the coming weeks. The U.S. has secured 3.2 million doses so far.
Novavax uses more conventional technology than Pfizer and Moderna, and U.S. health officials hope Novavax’s shots might convince skeptics to get vaccinated.
26 million to 37 million adults are still unvaccinated in the U.S., according to CDC estimates.

The Centers for Disease Control and Prevention on Tuesday signed off on Novavax’s two-dose Covid-19 vaccine as a primary series for adults, offering people who are unvaccinated a choice to receive a shot based on conventional technology in use for more than 30 years.
The CDC’s committee of independent advisors voted unanimously to recommend the vaccine for people ages 18 and older after reviewing the shots’ safety and effectiveness during an hourslong public meeting Tuesday. CDC Director Dr. Rochelle Walensky backed the recommendation later in the evening, the final step in the U.S. authorization process.

The CDC, in a statement, said the vaccine will be available to the public in the coming weeks. The Biden administration has secured 3.2 million doses of Novavax’s vaccine so far, according to the Health and Human Services Department.
The CDC’s approval completes a two-year journey for Novavax, one of the early participants in the U.S. race to produce a vaccine to protect against Covid-19. The small Maryland biotech company received $1.8 billion of taxpayer money from Operation Warp Speed, but struggled to get its manufacturing base in place and ultimately fell behind Pfizer and Moderna.
Novavax’s vaccine will enter the U.S. at a time when more than three-fourths of U.S. adults, 77%, are now fully vaccinated with Pfizer, Moderna and to a much lesser degree Johnson & Johnson’s shots, according to CDC data.
Walensky, in a statement, said the Novavax vaccine will provide another option for people who do not want to take Pfizer’s and Moderna’s shots. Anywhere from 26 million to 37 million adults are still unvaccinated in the U.S., according to CDC data, but it’s unclear how many of those people will opt to take Novavax’s vaccine.
“The primary target population for Novavax will be the 10% to 13% of those that are unvaccinated,” said Dr. Oliver Brooks, a CDC vaccine committee member and chief medical officer at Watts HealthCare Corporation in Los Angeles.

“I understand we’re really focused on that population with the hope that perhaps this protein subunit vaccine will change them over from being unvaccinated to vaccinated,” Brooks said.

Effectiveness and safety

Novavax’s shots were 90% effective at preventing illness overall and 100% effective at preventing severe disease when the alpha variant of Covid was dominant, according to clinical trial data. The company has not published data on the real-world effectiveness of its shots against omicron and its subvariants.
But Novavax’s vaccine appears to produce a strong immune response against omicron and its subvariants, which would suggest that it is effective against the variant. The company’s immune response data against omicron impressed members of the Food and Drug Administration’s vaccine committee last month.
The FDA in a fact sheet for health-care providers warned that Novavax’s vaccine appears to carry a risk of heart inflammation called myocarditis. FDA officials flagged four cases of myocarditis and pericarditis — swelling in a membrane surrounding the heart — from Novavax’s clinical trial in young men ages 16 to 28.
Pfizer and Moderna’s shots also pose an elevated risk of myocarditis for adolescent boys and young men after the second dose. The CDC has found that Covid infection carries a greater risk of heart inflammation than vaccination with Pfizer or Moderna’s shots. Myocarditis is typically caused by viral infections.

Different technology

Novavax’s vaccine uses a different platform than Pfizer’s and Moderna’s shots. The Novavax vaccine is based on protein subunit technology in use for more than 30 years, starting with the first licensed hepatitis B vaccine, according to the CDC. The technology is also used in vaccines for the flu and whooping cough.
Novavax produces inactive copies of the virus spike protein by inserting genetic code into an insect virus that infects moth cells. The spike copies are harvested and purified from those cells for its vaccine.
The spike protein is the mechanism the virus uses to invade human cells. The spike copies in the vaccine prepare the body’s immune system to produce antibodies that block the virus from invading human cells. Novavax’s vaccine also has an additional ingredient called an adjuvant that is derived from the bark of a South American tree to produce a broader immune response to fight the virus.
Pfizer and Moderna’s vaccine, by contrast, use messenger RNA technology. Their shots deliver messenger RNA to human cells, which then produce inactive copies of the spike protein to generate an immune response to fight the virus. Pfizer and Moderna’s shots are the first mRNA vaccines to receive approval from the FDA.
Novavax’s shots are also stored at normal refrigerator temperatures, while Pfizer’s and Moderna’s shots require subzero cold.
Though the FDA has repeatedly authorized Pfizer’s and Moderna’s shots as safe and effective vaccines for every age group in the U.S., health officials have struggled to convince millions of skeptics to take the shots.

Fall vaccine change

The U.S. is planning to tweak the vaccines to target the more transmissible BA.4 or BA.5 omicron subvariants, which are now dominant, ahead of an expected fall vaccination campaign. The Covid vaccines are less effective at preventing infection from omicron due to the variant’s many mutations, but they are still generally protecting against severe disease.
U.S. health officials believe changing the formula of the vaccines to target omicron variants as well as the original strain that emerged in Wuhan, China, in 2019 will provide more durable protection against the virus this fall.
Novavax’s vaccine, like every currently authorized Covid shot, is based on the original strain of the virus that first emerged in China. Like Pfizer and Moderna, Novavax is developing vaccines that target the omicron variant, but company executives have said it’s not clear that they need to roll out an updated shot because the company’s current vaccine triggers a broad immune response against the variant.
The CDC and the FDA have not approved mixing and matching Novavax’s vaccine with Pfizer’s and Moderna’s shots as a booster. Novavax has said it plans to ask the FDA to authorize a booster shot of its vaccine.

CNBC Health & Science

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CNBC’s Jim Cramer on Tuesday told investors that Tuesday’s market recovery could be the start of a longer rally.
“The charts, as interpreted by the legendary Larry Williams, suggest that Wall Street has finally thrown in the towel,” he said.

CNBC’s Jim Cramer told investors that Tuesday’s market recovery could be the start of a longer rally.
“The charts, as interpreted by the legendary Larry Williams, suggest that Wall Street has finally thrown in the towel and some powerful seasonal patterns are finally on the side of the bulls. I wouldn’t be surprised if he’s right again, meaning perhaps the bottom really is in,” the “Mad Money” host said.

All the major averages closed up for the day on Tuesday as investors bet the market has reached a bottom after its steep losses this year driven by persistent inflation, the Federal Reserve’s interest rate increases, the Russia-Ukraine war and Covid lockdowns in China.
“We got back on track today with that monster … rally. And, as Williams sees it, it might just be at the beginning,” he said.
To explain Williams’ analysis, Cramer first examined the weekly chart of the S&P futures going back to 2018.

Arrows pointing outwards

On the chart is the market technician’s proprietary Williams Panic Indicator, which shows when investors sell off their holdings in droves, according to Cramer. 
“When you get this kind of mass selling, the Williams Panic Indicator will throw off a buy signal, and historically that’s been a very good time to” do some buying, he said.

He added that the indicator flashed a buy signal on June 17, which has happened only 18 times in the last 90 years. “Almost every time, you had to pounce,” he said.
“So we’ve got capitulation. But capitulation alone isn’t enough — you also need something that can turn things around, and right now Williams thinks we’ve got time on our side,” Cramer said.
For more analysis, watch Cramer’s full explanation below.

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Monday – Friday, 6:00 – 7:00 PM ET

It’s that time again! “Mad Money” host Jim Cramer rings the lightning round bell, which means he’s giving his answers to callers’ stock questions at rapid speed.

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Mosaic Co: “If you want to be in that group, you should be in Deere, because that’s been able to come back regardless of the cycle of fertilizer.”

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Novocure Ltd: “It’s still the best thing for experimental and sad brain cancer, and I think it’s going to be the standard for a long time.”

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Archer-Daniels-Midland Co: “I think that the food cycle … is to me, actually, possibly peaking. So I don’t want to be in Archer-Daniels-Midland.”

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MP Materials Corp: “I think it’s definitely a buy right here. I think it makes a lot of sense.”
Disclosure: Cramer’s Charitable Trust owns shares of Halliburton and Wells Fargo.

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CNBC’s Jim Cramer on Tuesday warned investors not to be so set in their ways that they miss the chance to make money.
“Changing your mind is a virtue in this business,” the “Mad Money” host said.

CNBC’s Jim Cramer on Tuesday warned investors not to be so set in their ways that they miss the chance to make money.
“The level of negativity about stocks at this moment is the highest it’s been in years. … There’s a new class of investors who buy stocks not based on fundamentals, but based on anger, like they’re trying to win some sort of argument. That’s the wrong approach,” the “Mad Money” host said.

“Changing your mind is a virtue in this business,” he added.
Stocks rallied on Tuesday, with the benchmark S&P 500, Nasdaq Composite and Dow Jones Industrial Average closing above their 50-day moving averages for the first time since April. 
Investors believe that the market could be bottoming after its deep downturn this year fueled by climbing inflation, the Federal Reserve’s series of interest rate increases, the Russia-Ukraine war and Covid lockdowns in China.
Cramer echoed his reminder from earlier this month not to get too fearful over the market’s declines, and added that pessimism didn’t get him anywhere in past financial and economic crises.
“With the benefit of hindsight, my biggest mistake in each case was that I wasn’t bullish enough,” he said.

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Netflix lost nearly 1 million subscribers in the quarter after forecasting a dip of 2 million.
The company forecast 1 million net adds for the third quarter, below Wall Street estimates of 1.8 million.
Netflix is counting on changes, such as cracking down on password sharing and adding an advertising tier, to start in 2023.

Good enough.
Netflix didn’t blow the roof off its second-quarter earnings. It announced it lost about 1 million global subscribers in the quarter, marking the second consecutive quarter it has hemorrhaged customers. And it lost 1.3 million subscribers in the U.S. and Canada, marking the third time in the last five quarters it has lost paid users in its most lucrative region based on average revenue per user.

For the third quarter, Netflix forecast it will add just 1 million new subscribers — below the 1.8 million average analyst estimate, according to StreetAccount. If Netflix follows through and adds 1 million customers next quarter, it will still have lost subscribers this year through nine months. Compare that to analyst estimates from earlier this year of nearly 20 million net adds.
Still, Netflix shares soared more than 6% in after hours trading. The company had predicted it would lose 2 million subscribers in the quarter. A decline of 1 million is better than that.

(L-R) Reed Hastings and Ted Sarandos attend the “Marseille” Netflix TV Serie World Premiere At Palais Du Pharo In Marseille, on May 4, 2016 in Marseille, France.
Stephane Cardinale | Corbis | Getty Images

Perhaps investors’ positive sentiment toward the company is being driven by the company’s concrete plans to reinvigorate growth — most of which won’t kick in until 2023.
Netflix announced its advertising-supported product will launch in the early part of 2023. That’s actually a delay from late 2022, when Netflix had hoped to debut the cheaper tier, according to a New York Times report from May.
In its quarterly shareholder letter, Netflix also outlined its plans to crack down on password sharing, noting it has launched two different approaches in Latin America to “find an easy-to-use paid sharing offering that we believe works for our members and our business that we can roll out in 2023.”

Netflix added, “We’re encouraged by our early learnings and ability to convert consumers to paid sharing in Latin America.”
The company closed its shareholder letter with a bit of a pep talk. Investors seem to be listening to head coaches Reed Hastings and Ted Sarandos.
“Reaccelerating our revenue growth is a big challenge,” the company wrote. “But we’ve been through hard times before. We’ve built this company to be flexible and adaptable and this will be a great test for us and our high performance culture. We’re fortunate to be in a position of strength as the leader in streaming entertainment by all metrics (revenue, engagement, subscribers, profit and free cash flow). We’re confident and optimistic about the future.”
WATCH: CNBC full discussion of Netflix earnings

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Cruise stocks jumped today after the CDC ended its Covid-19 program for cruise ships.
Cruise lines are now free to make their own policies regarding vaccination, testing, and quarantine requirements.
The changes are expected to allow for more travelers on ships and lower costs for the industry.

NEW YORK, US – JULY 10: An aerial view of the cruise ship “Norwegian Joy” sails up the Hudson River in front of the skyline of Manhattan as the sun sets in New York City, United States on July 10, 2022.
Lokman Vural Elibol | Anadolu Agency | Getty Images

Shares of cruise lines including Carnival, Royal Caribbean and Norwegian rose Tuesday after the U.S. Center for Disease Control ended its Covid-19 program for cruise ships.
The CDC’s program for cruise ships, which became voluntary earlier this year, required all passengers to be tested, encouraged vaccinations for staff and passengers and outlined specific quarantine procedures in the event of an outbreak.

The CDC said it would still provide guidance for cruise ships handling of Covid-19 cases, but that companies can now use their own strategies to mitigate the spread on the virus. That means cruise lines can make their own policies regarding vaccination, testing, and quarantine requirements.
Carnival shares gained about 7% on Tuesday to close at $10.36, while Royal Caribbean shares gained almost 6% to $36.36 and Norwegian shares rose roughly 3.5% to $12.85.
The CDC’s change is expected to give cruise liners more flexibility, which could allow for more travelers on ships and lower costs for the industry.

“While we fully expect the cruise operators to continue to mandate passengers to be vaccinated before sailing,” wrote Steven M. Wieczynski, a Stifel analyst. “We believe today’s news will give the cruise operators more flexibility around the inclusion of younger individuals.”
A Royal Caribbean representative said the company is awaiting further guidance from the CDC before setting its own policies.
The cruise industry has been reeling since the pandemic began, and has more recently been working to recover business back toward pre-2020 levels.

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