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Futures Reverse Overnight Gains As Amazon Euphoria Fizzles

Futures Reverse Overnight Gains As Amazon Euphoria Fizzles

We warned last night that the surge in futures following the huge bounce in Amazon stock wouldn’t last (simply because a closer read of the company’s earnings left a lot to be desired

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Futures Reverse Overnight Gains As Amazon Euphoria Fizzles

We warned last night that the surge in futures following the huge bounce in Amazon stock wouldn't last (simply because a closer read of the company's earnings left a lot to be desired) and sure enough, in the overnight (extremely illiquid) session, 500 futures erased gains of as much as 1.3% to trade 0.1% lower, or 10 points, to 4,460 as European stocks extend their decline as inflation and monetary tightening outweighed earnings optimism.  Meanwhile, Nasdaq 100 futures pared much of their gains, trading just 0.5% higher after earlier rising more than 2%, one day after the index had the worst day since September 2020. The VIX increased for a third day Friday, hovering just below 26.

The dollar dropped as the EUR surge continued, following yesterday's unexpectedly hawkish comments from Lagarde...

... while oil was on course for a seventh weekly advance with Brent rising

Relief, as brief as it was, was welcome after a 4.2% crash in the Nasdaq 100 Index on Thursday, its biggest since 2020, fueled by a 26% rout in Meta Platforms following disappointing results. The Nasdaq 100 has plunged 11% this year, and the S&P 500 is down 5%, amid normalization of Fed monetary policy and the prospect of rate hikes.

After soaring as much as 18%, Amazon pared its premarket gains to 11%, still implying an increase of $155 billion in its market capitalization if the stock rises by the same extent during regular trading hours. Amazon's jump was driven by its price hike for Prime and buoyant sales over Black Friday-Cyber Monday. Snap soared as much as 57%, and Pinterest also jumped. Here are some of the biggest U.S. movers today:

  • AC Immune (ACIU) shares rose 1% after the company said preclinical data of its amyloid-beta vaccine were published in peer-reviewed journal Brain Communications.
  • Activision Blizzard (ATVI) shares are down 1% after the video-game company, which is being acquired by Microsoft, reported fourth-quarter results that missed expectations.
  • Amazon.com (AMZN) shares are up 8% after the e-commerce company reported fourth-quarter results that sailed past expectations, lifted by strong results for its cloud-computing business.
  • Bill.com (BILL) shares are up more than 8% after the software company reported second-quarter results that beat expectations and raised its full-year outlook. Analysts are extremely positive on the company and its growth potential.
  • Estee Lauder (EL) rises 5% after Citi analyst Wendy Nicholson upgraded the stock to a buy from neutral, citing strong growth with more brands, channels and geographies.
  • Gitlab Inc. (GTLB) gains 4% after RBC Capital Markets analyst Matthew Hedberg raised his recommendation to outperform from sector perform after a pullback in its shares.
  • Hartford Financial (HIG) shares gained about 1% after the insurance firm reported revenue for the fourth quarter that beat the average analyst estimate.
  • Mainz Biomed (MYNZ) gains 9% after announcing that it has started an international clinical study to evaluate the potential to integrate a portfolio of novel mRNA biomarkers into its detection test for colorectal cancer which is being commercialized across Europe.
  • Snap Inc. (SNAP) surged 24% in premarket trading, but even that won’t be enough to recoup the social media stock’s year-to-date losses.
  • Unity Software (U) shares are up 9% after the 3D game-development company reported fourth-quarter results that beat expectations and gave an outlook that is seen as strong.

While the overall earnings picture in the world’s largest economy remains robust, concerns over Federal Reserve tightening lingers. And fears of stubborn inflation increased after data showed U.S. gasoline surged to the highest in more than seven years.

“Overall, the earnings outlook is still solid, with the global tech sector on track for earnings growth of around 15%,” said Mark Haefele, chief investment officer at UBS Global Wealth Management. “In our base case, we expect valuations to stabilize and for strong mid-teens earnings growth to be reflected in share prices over the next 12 months.”

While Meta’s sluggish numbers dominated the headlines on Thursday, the flurry of earnings releases showed they may be an exception rather than the rule. Of the 272 companies in the S&P 500 that have reported results, 82% have met or beaten estimates. Profits are coming in at 8.8% above projected levels. Still, volatility has become the hallmark of global markets this year. Investors are trying to come to grips with less favorable monetary conditions and a moderating global recovery amid stubborn inflation.

"The first half this year we are now experiencing a rates shock,” Tracy Chen, portfolio manager at Brandywine Global Investment Management, said on Bloomberg Television. “If the Fed and BOE and other emerging-market central banks are too aggressive in hiking interest rates, potentially we are going to face kind of a recession risk in the second half, or at least more slowdown in the economy."

In Europe, the Stoxx 600 is down 1.2%, its biggest drop in a week; Makers of cars and parts were the worst-performing industry group, while gains for technology shares surrendered gains after a surprising hawkish turn from the European Central Bank. Better-than-expected earnings were not enough to offset reduced risk appetite. Expected data on Wednesday include non-farm payrolls, while Air Products, Bristol-Myers, Regeneron and Royal Caribbean are among companies reporting. Hawkish comments from European Central Bank President Christine Lagarde and a Bank of England interest-rate hike underlined risks from inflation. While a selloff in the region’s bonds eased, the mood in the stock market turned sour.

Earlier, an Asia-Pacific equity gauge pushed higher partly on a 3% jump in Hong Kong, which was catching up with global markets after reopening from a holiday. Asia’s equity benchmark headed for its biggest weekly advance since early September, boosted by a rally in Hong Kong stocks as they resumed trading after the Lunar New Year holiday. The MSCI Asia Pacific Index climbed as much as 1%, helped by consumer discretionary and financial stocks. Alibaba and Meituan were among the biggest contributors to the rise, as the Hang Seng Index surged 3.2% to post its biggest post-holiday jump since 2009. Asia’s tech sub-gauge edged higher following Amazon’s earnings release. The MSCI Asia Pacific Index is on track for a 2.8% climb this week, its first advance in three, as concerns ease over the pace of U.S. monetary policy tightening. The measure is set to outperform the S&P 500, which is contending with a plunge in Meta shares overnight -- the biggest one-day wipeout in history. As the earnings season continues, traders are awaiting the U.S. payrolls report for January due later Friday for more cues on the health of the world’s-largest economy at a time of China’s growth slowdown.  Benchmarks in South Korea, the Philippines and Australia rose, while Japan’s Topix had its best week since October. Markets in mainland China and Taiwan will reopen Monday. “At elevated valuation levels, disappointing earnings growth, higher inflation and interest rates we believe stocks with low valuations, strong balance sheet and safe dividends look more attractive,” Geir Lode, head of global equities at Federated Hermes, wrote in a note. “A larger outbreak of Covid in China would further constrain the global economic growth, limiting the upside in stocks.”

Japanese equities climbed, rebounding from Thursday’s slide to cap their best weekly gain since mid-October. Electronics makers and service providers were the biggest boosts to the Topix, which rose 0.6% for a weekly advance of 2.9%. Fast Retailing and Tokyo Electron were the largest contributors to a 0.7% gain in the Nikkei 225, which increased 2.7% on the week. “The price-to-earnings ratio for local stocks isn’t high when compared with U.S. equities, which makes the case easier for investors to buy here,” said Ayako Sera, a market strategist at Sumitomo Mitsui Trust Bank. “But investors will find it challenging to push equities much higher until there’s more clarity on the pace of U.S. rate hikes.”

India’s benchmark equity index completed its biggest weekly gain since early this year, amid optimism that the government’s plan to ramp up spending will help revive growth in Asia’s third-largest economy.  The benchmark S&P BSE Sensex climbed 2.5% this week, the most since the five days ended Jan. 7. The gauge fell 0.2% on Friday to 58,644.82, while the NSE Nifty 50 Index slipped 0.3%, after swinging between gains and losses several times during the session.    “Global markets, especially the U.S., have turned extremely volatile during the earnings which are impacting sentiment in our markets as well,” Ajit Mishra, vice president research at Religare Broking Ltd. said. “We recommend maintaining a cautious stance and keeping a check on leveraged positions.” Fourteen of the 19 sub-indexes compiled by BSE Ltd. fell on Friday, led by a gauge of realty stocks.  Finance Minister Nirmala Sitharaman earlier this week announced plans to increase capital spending by 35% to 7.5 trillion rupees ($100 billion) in the next financial year, seeking to bolster the economy’s recovery after disruptions from the pandemic. On the earnings front, out of the 34 Nifty 50 companies that have announced results so far, 18 either met or exceeded analyst estimates, 14 missed and two can’t be compared.  

Australian stocks advanced, capping the best weekly gain since August. The S&P/ASX 200 index rose 0.6% to close at 7,120.10 in Sydney, lifted by bank and industrial shares. The benchmark added 1.9% since Monday, for its best week since early August. News Corp was among the top performers Friday after its 2Q earnings exceeded analysts’ expectations. Nufarm was among the worst performers, pulling back from Thursday’s 20% surge. Boral also dropped as it traded ex-dividend. In New Zealand, the S&P/NZX 50 index fell 0.5% to 12,279.56.

In rates, Treasuries gained from belly out to long-end of the curve as S&P 500 futures give back late-Thursday gains driven by Amazon's earnings report. Treasuries richer by ~3bp across long-end of the curve with 2s10s, 5s30s spreads flatter by 2bp-3bp; 10-year ~1.815% tightens more than 4bp vs German 10-year to narrowest spread since September; U.S. 2-year is little changed with German 2- year higher by 5bp on day, 33bp on week. Front-end lags, following short-dated German yields higher as EUR swaps reprice for ~50bp of ECB rate hikes this year. January jobs report at 8:30am ET is focal point of U.S. session.  German 5y yields turn positive for the first time since 2018. Peripheral spreads widen with 5y Italy underperforming. USTs bull-flatten a touch ahead of today’s payrolls release.

In FX, Bloomberg dollar spot index is near flat. Commodity currencies are the weakest in G-10, EUR outperforms, cable stalls near 1.36.

In commodities, West Texas Intermediate hit a fresh seven-year high and touched $92 a barrel while Brent rose above $93 after surging 19% this year and banks including Goldman Sachs Group Inc. forecast it’ll reach $100. Spot gold rises ~$9 near $1,813/oz. Most base metals trade in the green; LME lead rises 1.2%, outperforming peers

Looking at the day ahead now, and the main highlight will be the aforementioned US jobs report for January. And over in Europe releases include Euro Area retail sales, German factory orders and French industrial production for December, the German and UK construction PMIs for January. From central banks, speakers include the BoE’s Broadbent and Pill, and the ECB’s Villeroy. Finally, earnings releases include Bristol Myers Squibb and Aon.

Market Snapshot

  • S&P 500 futures down 0.1% to 4,460
  • STOXX Europe 600 down 0.2% to 467.59
  • MXAP up 0.8% to 188.00
  • MXAPJ up 1.1% to 615.27
  • Nikkei up 0.7% to 27,439.99
  • Topix up 0.6% to 1,930.56
  • Hang Seng Index up 3.2% to 24,573.29
  • Shanghai Composite down 1.0% to 3,361.44
  • Sensex down 0.2% to 58,660.41
  • Australia S&P/ASX 200 up 0.6% to 7,120.21
  • Kospi up 1.6% to 2,750.26
  • Brent Futures up 1.6% to $92.53/bbl
  • Gold spot up 0.3% to $1,809.92
  • U.S. Dollar Index little changed at 95.31
  • German 10Y yield little changed at 0.16%
  • Euro up 0.1% to $1.1457

Top Overnight News from Bloomberg

  • The Bloomberg Dollar Spot Index inched lower and was set for its worst falling streak since April even as the greenback advanced versus most of its Group-of-10 peers
  • The euro led gains among G-10 currencies, rising above $1.1450 with the currency’s volatility skew shifting higher across tenors compared to a week ago as topside demand gets a fresh boost following the latest ECB policy monetary meeting
  • German bonds tumbled on Friday, pushing the yield on five-year notes above zero for the first time in over three years as markets braced for the ECB to scale back its accommodative monetary policy
  • Money markets have priced in around 50 basis points of ECB tightening for December, which would be enough to end seven years of negative deposit rates. The move builds on wagers from Thursday triggered by ECB President Christine Lagarde’s press conference, where she said policy makers are no longer ruling out an interest-rate hike this year
  • The pound fell against both the dollar and euro as the Bank of England’s hike on Thursday failed to quell doubts over the sustainability of a tightening cycle and the possibility of a policy error
  • New Zealand dollar rose over its Australian peer on leveraged demand as New Zealand reported a slowdown in omicron cases. Yields of both nations’ bonds advanced with other risk assets
  • Japan’s benchmark 10-year and five-year yields rose to a six-year high amid speculation the Bank of Japan will end up joining developed-market peers in normalizing monetary policy. The yen steadied

A more detailed look at global markets courtesy of Newsquawk

Asian stocks eventually traded mostly positive with early indecision seen after the tech-related turbulence in US. ASX 200 (+0.6%) lacked direction for most the session before a late surge lifted the index above 7,100. Nikkei 225 (+0.7) was initially contained by a pullback in USD/JPY, although earnings continued to drive price action. Hang Seng (+3.2%) outperformed on return from a three-day closure with autos underpinned by a jump in deliveries and sports brands bid heading into the official start of the Beijing 2022 Winter Olympics.

Top Asian News

  • Lavrov Denies U.S. Video Claims; Putin, Xi Meet: Ukraine Update
  • Hong Kong Security Police Arrest 75-Year-Old Democracy Activist
  • Carlsberg CEO Downplays Risk of Russia, Ukraine on Business
  • Tesla’s Call for Tax Breaks Rejected by India in Fresh Blow

European equities have drifted lower from the mildly positive cash open despite a lack of news flow. European sectors have tilted to a more defensive bias, but Energy outpaces as crude prices remain firm.

Top European News

  • Saras Rises; Barclays Double Upgrades on Refining Margins
  • Boris Johnson’s Key Aides Quit, Leaving Premier on the Brink
  • Ousted Orpea CEO Got 2020 Bonus Even After Missing Growth Target
  • Holcim Cut to Sell on Change in Future Strategy: Berenberg

In Fixed Income, core EGB benchmarks came under further pressure in early-European hours on further hawkish repricing. Action that sent the German 5yr yield positive and the 10yr to a test of 0.20%. The Periphery remains hampered with spreads widening further and focus turning to potential looming 30yr syndication via Spain.

In FX, DXY is contained with a negative-bias in pre-NFP trade, while EUR continues to outpace but GBP pullsback on EUR/GBP action. Antipodeans lag following a dovish RBA SOMP, but NZD is somewhat cushioned by AUD/NZD. JPY remains resilient with USD/JPY holding below 115.00. NATO Chief Stoltenberg will be appointed as Governor of the Norges Bank, via Daily VG; Deputy Governor. Bache will be the acting Norges Bank Governor from March 1st until Stoltenberg takes over.

In commodities, WTI and Brent continue to grind higher in a continuation of yesterday's upward momentum, focus remains very much on geopolitics this morning. Brent-WTI arb continues to contract amid China-Russian deals and the ongoing Texas freeze. Citi recommended selling December 2022 Brent crude futures on expected inventory builds this year and it targets up to 20% downside in Brent December 2022 prices during H2. Spot gold and silver are modestly firmer but remain in recent ranges and near multiple DMAs

US Event Calendar

  • 8:30am: Jan. Change in Nonfarm Payrolls, est. 125,000, prior 199,000
    • 8:30am: Jan. Change in Private Payrolls, est. 32,000, prior 211,000
    • 8:30am: Jan. Change in Manufact. Payrolls, est. 20,000, prior 26,000
  • 8:30am: Jan. Average Weekly Hours All Emplo, est. 34.7, prior 34.7
  • 8:30am: Jan. Unemployment Rate, est. 3.9%, prior 3.9%
    • 8:30am: Jan. Underemployment Rate, prior 7.3%
  • 8:30am: Jan. Labor Force Participation Rate, est. 61.9%, prior 61.9%
  • 8:30am: Jan. Average Hourly Earnings MoM, est. 0.5%, prior 0.6%; YoY, est. 5.2%, prior 4.7%

DB's Jim Reid concludes the overnight wrap

 

 

 

Tyler Durden Fri, 02/04/2022 - 08:05

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Spread & Containment

Chinese migration to US is nothing new – but the reasons for recent surge at Southern border are

A gloomier economic outlook in China and tightening state control have combined with the influence of social media in encouraging migration.

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Chinese migrants wait for a boat after having walked across the Darien Gap from Colombia to Panama. AP Photo/Natacha Pisarenko

The brief closure of the Darien Gap – a perilous 66-mile jungle journey linking South American and Central America – in February 2024 temporarily halted one of the Western Hemisphere’s busiest migration routes. It also highlighted its importance to a small but growing group of people that depend on that pass to make it to the U.S.: Chinese migrants.

While a record 2.5 million migrants were detained at the United States’ southwestern land border in 2023, only about 37,000 were from China.

I’m a scholar of migration and China. What I find most remarkable in these figures is the speed with which the number of Chinese migrants is growing. Nearly 10 times as many Chinese migrants crossed the southern border in 2023 as in 2022. In December 2023 alone, U.S. Border Patrol officials reported encounters with about 6,000 Chinese migrants, in contrast to the 900 they reported a year earlier in December 2022.

The dramatic uptick is the result of a confluence of factors that range from a slowing Chinese economy and tightening political control by President Xi Jinping to the easy access to online information on Chinese social media about how to make the trip.

Middle-class migrants

Journalists reporting from the border have generalized that Chinese migrants come largely from the self-employed middle class. They are not rich enough to use education or work opportunities as a means of entry, but they can afford to fly across the world.

According to a report from Reuters, in many cases those attempting to make the crossing are small-business owners who saw irreparable damage to their primary or sole source of income due to China’s “zero COVID” policies. The migrants are women, men and, in some cases, children accompanying parents from all over China.

Chinese nationals have long made the journey to the United States seeking economic opportunity or political freedom. Based on recent media interviews with migrants coming by way of South America and the U.S.’s southern border, the increase in numbers seems driven by two factors.

First, the most common path for immigration for Chinese nationals is through a student visa or H1-B visa for skilled workers. But travel restrictions during the early months of the pandemic temporarily stalled migration from China. Immigrant visas are out of reach for many Chinese nationals without family or vocation-based preferences, and tourist visas require a personal interview with a U.S. consulate to gauge the likelihood of the traveler returning to China.

Social media tutorials

Second, with the legal routes for immigration difficult to follow, social media accounts have outlined alternatives for Chinese who feel an urgent need to emigrate. Accounts on Douyin, the TikTok clone available in mainland China, document locations open for visa-free travel by Chinese passport holders. On TikTok itself, migrants could find information on where to cross the border, as well as information about transportation and smugglers, commonly known as “snakeheads,” who are experienced with bringing migrants on the journey north.

With virtual private networks, immigrants can also gather information from U.S. apps such as X, YouTube, Facebook and other sites that are otherwise blocked by Chinese censors.

Inspired by social media posts that both offer practical guides and celebrate the journey, thousands of Chinese migrants have been flying to Ecuador, which allows visa-free travel for Chinese citizens, and then making their way over land to the U.S.-Mexican border.

This journey involves trekking through the Darien Gap, which despite its notoriety as a dangerous crossing has become an increasingly common route for migrants from Venezuela, Colombia and all over the world.

In addition to information about crossing the Darien Gap, these social media posts highlight the best places to cross the border. This has led to a large share of Chinese asylum seekers following the same path to Mexico’s Baja California to cross the border near San Diego.

Chinese migration to US is nothing new

The rapid increase in numbers and the ease of accessing information via social media on their smartphones are new innovations. But there is a longer history of Chinese migration to the U.S. over the southern border – and at the hands of smugglers.

From 1882 to 1943, the United States banned all immigration by male Chinese laborers and most Chinese women. A combination of economic competition and racist concerns about Chinese culture and assimilability ensured that the Chinese would be the first ethnic group to enter the United States illegally.

With legal options for arrival eliminated, some Chinese migrants took advantage of the relative ease of movement between the U.S. and Mexico during those years. While some migrants adopted Mexican names and spoke enough Spanish to pass as migrant workers, others used borrowed identities or paperwork from Chinese people with a right of entry, like U.S.-born citizens. Similarly to what we are seeing today, it was middle- and working-class Chinese who more frequently turned to illegal means. Those with money and education were able to circumvent the law by arriving as students or members of the merchant class, both exceptions to the exclusion law.

Though these Chinese exclusion laws officially ended in 1943, restrictions on migration from Asia continued until Congress revised U.S. immigration law in the Hart-Celler Act in 1965. New priorities for immigrant visas that stressed vocational skills as well as family reunification, alongside then Chinese leader Deng Xiaoping’s policies of “reform and opening,” helped many Chinese migrants make their way legally to the U.S. in the 1980s and 1990s.

Even after the restrictive immigration laws ended, Chinese migrants without the education or family connections often needed for U.S. visas continued to take dangerous routes with the help of “snakeheads.”

One notorious incident occurred in 1993, when a ship called the Golden Venture ran aground near New York, resulting in the drowning deaths of 10 Chinese migrants and the arrest and conviction of the snakeheads attempting to smuggle hundreds of Chinese migrants into the United States.

Existing tensions

Though there is plenty of precedent for Chinese migrants arriving without documentation, Chinese asylum seekers have better odds of success than many of the other migrants making the dangerous journey north.

An estimated 55% of Chinese asylum seekers are successful in making their claims, often citing political oppression and lack of religious freedom in China as motivations. By contrast, only 29% of Venezuelans seeking asylum in the U.S. have their claim granted, and the number is even lower for Colombians, at 19%.

The new halt on the migratory highway from the south has affected thousands of new migrants seeking refuge in the U.S. But the mix of push factors from their home country and encouragement on social media means that Chinese migrants will continue to seek routes to America.

And with both migration and the perceived threat from China likely to be features of the upcoming U.S. election, there is a risk that increased Chinese migration could become politicized, leaning further into existing tensions between Washington and Beijing.

Meredith Oyen does not work for, consult, own shares in or receive funding from any company or organization that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.

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Vaccine-skeptical mothers say bad health care experiences made them distrust the medical system

Vaccine skepticism, and the broader medical mistrust and far-reaching anxieties it reflects, is not just a fringe position in the 21st century.

Women's own negative medical experiences influence their vaccine decisions for their kids. AP Photo/Ted S. Warren

Why would a mother reject safe, potentially lifesaving vaccines for her child?

Popular writing on vaccine skepticism often denigrates white and middle-class mothers who reject some or all recommended vaccines as hysterical, misinformed, zealous or ignorant. Mainstream media and medical providers increasingly dismiss vaccine refusal as a hallmark of American fringe ideology, far-right radicalization or anti-intellectualism.

But vaccine skepticism, and the broader medical mistrust and far-reaching anxieties it reflects, is not just a fringe position.

Pediatric vaccination rates had already fallen sharply before the COVID-19 pandemic, ushering in the return of measles, mumps and chickenpox to the U.S. in 2019. Four years after the pandemic’s onset, a growing number of Americans doubt the safety, efficacy and necessity of routine vaccines. Childhood vaccination rates have declined substantially across the U.S., which public health officials attribute to a “spillover” effect from pandemic-related vaccine skepticism and blame for the recent measles outbreak. Almost half of American mothers rated the risk of side effects from the MMR vaccine as medium or high in a 2023 survey by Pew Research.

Recommended vaccines go through rigorous testing and evaluation, and the most infamous charges of vaccine-induced injury have been thoroughly debunked. How do so many mothers – primary caregivers and health care decision-makers for their families – become wary of U.S. health care and one of its most proven preventive technologies?

I’m a cultural anthropologist who studies the ways feelings and beliefs circulate in American society. To investigate what’s behind mothers’ vaccine skepticism, I interviewed vaccine-skeptical mothers about their perceptions of existing and novel vaccines. What they told me complicates sweeping and overly simplified portrayals of their misgivings by pointing to the U.S. health care system itself. The medical system’s failures and harms against women gave rise to their pervasive vaccine skepticism and generalized medical mistrust.

The seeds of women’s skepticism

I conducted this ethnographic research in Oregon from 2020 to 2021 with predominantly white mothers between the ages of 25 and 60. My findings reveal new insights about the origins of vaccine skepticism among this demographic. These women traced their distrust of vaccines, and of U.S. health care more generally, to ongoing and repeated instances of medical harm they experienced from childhood through childbirth.

girl sitting on exam table faces a doctor viewer can see from behind
A woman’s own childhood mistreatment by a doctor can shape her health care decisions for the next generation. FatCamera/E+ via Getty Images

As young girls in medical offices, they were touched without consent, yelled at, disbelieved or threatened. One mother, Susan, recalled her pediatrician abruptly lying her down and performing a rectal exam without her consent at the age of 12. Another mother, Luna, shared how a pediatrician once threatened to have her institutionalized when she voiced anxiety at a routine physical.

As women giving birth, they often felt managed, pressured or discounted. One mother, Meryl, told me, “I felt like I was coerced under distress into Pitocin and induction” during labor. Another mother, Hallie, shared, “I really battled with my provider” throughout the childbirth experience.

Together with the convoluted bureaucracy of for-profit health care, experiences of medical harm contributed to “one million little touch points of information,” in one mother’s phrase, that underscored the untrustworthiness and harmful effects of U.S. health care writ large.

A system that doesn’t serve them

Many mothers I interviewed rejected the premise that public health entities such as the Centers for Disease Control and Prevention and the Food and Drug Administration had their children’s best interests at heart. Instead, they tied childhood vaccination and the more recent development of COVID-19 vaccines to a bloated pharmaceutical industry and for-profit health care model. As one mother explained, “The FDA is not looking out for our health. They’re looking out for their wealth.”

After ongoing negative medical encounters, the women I interviewed lost trust not only in providers but the medical system. Frustrating experiences prompted them to “do their own research” in the name of bodily autonomy. Such research often included books, articles and podcasts deeply critical of vaccines, public health care and drug companies.

These materials, which have proliferated since 2020, cast light on past vaccine trials gone awry, broader histories of medical harm and abuse, the rapid growth of the recommended vaccine schedule in the late 20th century and the massive profits reaped from drug development and for-profit health care. They confirmed and hardened women’s suspicions about U.S. health care.

hands point to a handwritten vaccination record
The number of recommended childhood vaccines has increased over time. Mike Adaskaveg/MediaNews Group/Boston Herald via Getty Images

The stories these women told me add nuance to existing academic research into vaccine skepticism. Most studies have considered vaccine skepticism among primarily white and middle-class parents to be an outgrowth of today’s neoliberal parenting and intensive mothering. Researchers have theorized vaccine skepticism among white and well-off mothers to be an outcome of consumer health care and its emphasis on individual choice and risk reduction. Other researchers highlight vaccine skepticism as a collective identity that can provide mothers with a sense of belonging.

Seeing medical care as a threat to health

The perceptions mothers shared are far from isolated or fringe, and they are not unreasonable. Rather, they represent a growing population of Americans who hold the pervasive belief that U.S. health care harms more than it helps.

Data suggests that the number of Americans harmed in the course of treatment remains high, with incidents of medical error in the U.S. outnumbering those in peer countries, despite more money being spent per capita on health care. One 2023 study found that diagnostic error, one kind of medical error, accounted for 371,000 deaths and 424,000 permanent disabilities among Americans every year.

Studies reveal particularly high rates of medical error in the treatment of vulnerable communities, including women, people of color, disabled, poor, LGBTQ+ and gender-nonconforming individuals and the elderly. The number of U.S. women who have died because of pregnancy-related causes has increased substantially in recent years, with maternal death rates doubling between 1999 and 2019.

The prevalence of medical harm points to the relevance of philosopher Ivan Illich’s manifesto against the “disease of medical progress.” In his 1982 book “Medical Nemesis,” he insisted that rather than being incidental, harm flows inevitably from the structure of institutionalized and for-profit health care itself. Illich wrote, “The medical establishment has become a major threat to health,” and has created its own “epidemic” of iatrogenic illness – that is, illness caused by a physician or the health care system itself.

Four decades later, medical mistrust among Americans remains alarmingly high. Only 23% of Americans express high confidence in the medical system. The United States ranks 24th out of 29 peer high-income countries for the level of public trust in medical providers.

For people like the mothers I interviewed, who have experienced real or perceived harm at the hands of medical providers; have felt belittled, dismissed or disbelieved in a doctor’s office; or spent countless hours fighting to pay for, understand or use health benefits, skepticism and distrust are rational responses to lived experience. These attitudes do not emerge solely from ignorance, conspiracy thinking, far-right extremism or hysteria, but rather the historical and ongoing harms endemic to the U.S. health care system itself.

Johanna Richlin does not work for, consult, own shares in or receive funding from any company or organization that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.

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Government

Is the National Guard a solution to school violence?

School board members in one Massachusetts district have called for the National Guard to address student misbehavior. Does their request have merit? A…

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Every now and then, an elected official will suggest bringing in the National Guard to deal with violence that seems out of control.

A city council member in Washington suggested doing so in 2023 to combat the city’s rising violence. So did a Pennsylvania representative concerned about violence in Philadelphia in 2022.

In February 2024, officials in Massachusetts requested the National Guard be deployed to a more unexpected location – to a high school.

Brockton High School has been struggling with student fights, drug use and disrespect toward staff. One school staffer said she was trampled by a crowd rushing to see a fight. Many teachers call in sick to work each day, leaving the school understaffed.

As a researcher who studies school discipline, I know Brockton’s situation is part of a national trend of principals and teachers who have been struggling to deal with perceived increases in student misbehavior since the pandemic.

A review of how the National Guard has been deployed to schools in the past shows the guard can provide service to schools in cases of exceptional need. Yet, doing so does not always end well.

How have schools used the National Guard before?

In 1957, the National Guard blocked nine Black students’ attempts to desegregate Central High School in Little Rock, Arkansas. While the governor claimed this was for safety, the National Guard effectively delayed desegregation of the school – as did the mobs of white individuals outside. Ironically, weeks later, the National Guard and the U.S. Army would enforce integration and the safety of the “Little Rock Nine” on orders from President Dwight Eisenhower.

Three men from the mob around Little Rock’s Central High School are driven from the area at bayonet-point by soldiers of the 101st Airborne Division on Sept. 25, 1957. The presence of the troops permitted the nine Black students to enter the school with only minor background incidents. Bettmann via Getty Images

One of the most tragic cases of the National Guard in an educational setting came in 1970 at Kent State University. The National Guard was brought to campus to respond to protests over American involvement in the Vietnam War. The guardsmen fatally shot four students.

In 2012, then-Sen. Barbara Boxer, a Democrat from California, proposed funding to use the National Guard to provide school security in the wake of the Sandy Hook school shooting. The bill was not passed.

More recently, the National Guard filled teacher shortages in New Mexico’s K-12 schools during the quarantines and sickness of the pandemic. While the idea did not catch on nationally, teachers and school personnel in New Mexico generally reported positive experiences.

Can the National Guard address school discipline?

The National Guard’s mission includes responding to domestic emergencies. Members of the guard are part-time service members who maintain civilian lives. Some are students themselves in colleges and universities. Does this mission and training position the National Guard to respond to incidents of student misbehavior and school violence?

On the one hand, New Mexico’s pandemic experience shows the National Guard could be a stopgap to staffing shortages in unusual circumstances. Similarly, the guards’ eventual role in ensuring student safety during school desegregation in Arkansas demonstrates their potential to address exceptional cases in schools, such as racially motivated mob violence. And, of course, many schools have had military personnel teaching and mentoring through Junior ROTC programs for years.

Those seeking to bring the National Guard to Brockton High School have made similar arguments. They note that staffing shortages have contributed to behavior problems.

One school board member stated: “I know that the first thought that comes to mind when you hear ‘National Guard’ is uniform and arms, and that’s not the case. They’re people like us. They’re educated. They’re trained, and we just need their assistance right now. … We need more staff to support our staff and help the students learn (and) have a safe environment.”

Yet, there are reasons to question whether calls for the National Guard are the best way to address school misconduct and behavior. First, the National Guard is a temporary measure that does little to address the underlying causes of student misbehavior and school violence.

Research has shown that students benefit from effective teaching, meaningful and sustained relationships with school personnel and positive school environments. Such educative and supportive environments have been linked to safer schools. National Guard members are not trained as educators or counselors and, as a temporary measure, would not remain in the school to establish durable relationships with students.

What is more, a military presence – particularly if uniformed or armed – may make students feel less welcome at school or escalate situations.

Schools have already seen an increase in militarization. For example, school police departments have gone so far as to acquire grenade launchers and mine-resistant armored vehicles.

Research has found that school police make students more likely to be suspended and to be arrested. Similarly, while a National Guard presence may address misbehavior temporarily, their presence could similarly result in students experiencing punitive or exclusionary responses to behavior.

Students deserve a solution other than the guard

School violence and disruptions are serious problems that can harm students. Unfortunately, schools and educators have increasingly viewed student misbehavior as a problem to be dealt with through suspensions and police involvement.

A number of people – from the NAACP to the local mayor and other members of the school board – have criticized Brockton’s request for the National Guard. Governor Maura Healey has said she will not deploy the guard to the school.

However, the case of Brockton High School points to real needs. Educators there, like in other schools nationally, are facing a tough situation and perceive a lack of support and resources.

Many schools need more teachers and staff. Students need access to mentors and counselors. With these resources, schools can better ensure educators are able to do their jobs without military intervention.

F. Chris Curran has received funding from the US Department of Justice, the Bureau of Justice Assistance, and the American Civil Liberties Union for work on school safety and discipline.

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