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Stock Market Today: Stocks slide on hawkish Fed; Nasdaq slumps as big tech earnings disappoint

Big Tech tumbles, some more jobs data and a key Fed decision will keep markets highly active on the final trading day of a difficult January.

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Check back for updates throughout the trading day

U.S. stocks extended declines Wednesday trading, with tech taking a beating after a trio of earnings highlighted the challenges of AI rollouts last night, and as investors reacted to hawkish language from the Federal Reserve's January rate decision.

Updated at 2:20 PM EST

Fed pushback

The S&P 500 hit session lows following the Fed rate decision, which kept its key policy rate unchanged at between 5.25% and 5.5% but pushed back on the market's forecast for a spring rate cut.

The benchmark was last seen 47 points, or 0.95% lower while the Dow fell 40 points. The rate-sensitive Nasdaq, meanwhile, extended declines to a 225 point slump.

Related: Fed pushes back on spring cuts but holds rates steady at 5.25% to 5.5%

Updated at 12:47 PM EST

Yeezy come, Yeezy stay

Nike  (NKE) - Get Free Report shares turned sharply lower in early afternoon trading, falling 2.5% to change hands at $101.68 each, after its European rival Adidas AG forecast 2024 profits of around €500 million ($542 million) a tally missed analysts estimates by more than €500 million.

The group also decided not to write down the value of its current inventory of Yeezy-branded products, designed by Kanye West, after cutting ties with the entertainer following anti-Semitic comments made through his verified social media accounts in 2022. 

Updated at 12:29 PM EST

Tech weight, Apple awaits

Tech stocks are holding down the market heading into the mid-day session, with the Nasdaq down 210 points, or 1.35%, following last night's softer-than-expected outlooks from Microsoft, AMD and Google.

Beyond today's Fed decision, and prior to the Friday jobs report, markets are likely train their focus on Apple and Amazon earnings, slated for after the close of trading on Thursday, to confirm or challenge the sector's recent sell-off.

Updated at 10:58 AM

Boeing bounce

Boeing  (BA) - Get Free Report shares are a surprise early gainer, rising more than 4% to $208.90 per share even after another quarterly loss and the planemaker's reluctance to provide any 2024 profit outlook amid the ongoing probe into its 737 Max safety issues. 

Related: Boeing delivers tough-luck news to investors after 737 Max debacle

Updated at 10:08 AM 

Fed easing bets 

Stocks are still nursing early-session losses, with the S&P 500 down 33 points, or 0.67%, and the Nasdaq down 182 points, or 1.16%, as big tech weakness continues to offset an important move lower in Treasury bond yields.

Benchmark 10-year note yields fell firmly below the 4% market, to 3.943%, following a softer-than-expected reading of ADP's January jobs report, another leg lower in fourth quarter employment costs and bets on an easing bias later today from the Federal Reserve.

Updated at 9:53 AM EST 

Paramount $30 billion-plus

Paramount PARA shares are a big early mover, rising more than 12% following multiple reports that billionaire media mogul Byron Allen is reading to buy the group for around $30 billion, including debt.

Related: Paramount soars as Hollywood heavyweight eyes $30 billion takeover

Updated at 9:32 AM EST by Todd Campbell

Big pre-market movers today

Here were the big pre-market movers today, courtesy of TheStreet's Doug Kass:

Upside pre-market stock movers:

- (SINT) +55% (subsidiary Technology Assessment & Transfer, Inc. to develop 3D printing and ceramic matrix composites (CMCs) with DEVCOM-Army Research Laboratory)
- (ENSC) +44% (announces positive end of Phase 2 Meeting with FDA for PF614 to Treat Severe Pain)
- (POWL) +15% (earnings)
- (MANH) +13% (earnings, guidance)
- (PARA) +12% (Byron Allen makes $14B offer for all shares in Co, said to offer $21.53 per non-voting share, representing >57% premium versus prior close)
- (EAR) +7.5% (debuts two new devices, expanding portfolio of hearing wellness offerings)
- (SYK) +7.4% (expands Prophecy Surgical Planning System to include the new footprint, offering surgeons a comprehensive view of the foot and ankle)
- (LII) +6.7% (earnings, guidance)
- (NVAX) +6.1% (to cut 12% of global workforce, anticipates charge of $4-7M)
- (SYK) +5.8% (earnings, guidance)
- (SBUX) +3.9% (earnings, guidance)
- (SEE) +3.3% (developed the first biobased, industrial compostable tray for protein packaging)
- (COR) +2.8% (earnings, guidance)
- (SWKS) +2.8% (earnings, guidance)
- (CVRX) +2.1% (appoints new CEO)

Downside pre-market stock movers:

- (NYCB) -21% (earnings, guidance)
- (APDN) -18% (files to sell 5.6M in common stock and prefunded warrants through Maxim Group in $3.4M registered direct offering)
- (EXTR) -17% (earnings, guidance)
- (AMSC) -14% (files to sell common shares of indeterminate amount; files $250M mixed shelf)
- (ROK) -8.5% (earnings, guidance)
- (MOD) -8.4% (earnings, guidance)
- (RHI) -7.7% (earnings, guidance)
- (TER) -7.2% (earnings, guidance)
- (MHO) -6.0% (earnings)
- (GOOGL) -5.3% (earnings; said to split up its internal AI ethics watchdog team)
- (AMD) -4.6% (earnings, guidance)
- (MDLZ) -4.4% (earnings, guidance)
- (AVT) -3.7% (earnings, guidance)
- (LC) -3.7% (earnings, guidance)
- (ROP) -3.2% (earnings, guidance)
- (NAVI) -2.6% (earnings, guidance)
- (TSLA) -2.6% (reportedly Musk's $55B Tesla pay package voided by a DE judge)
- (TMO) -2.1% (earnings, guidance)
- (TEVA) -2.0% (earnings, guidance)

Updated at 8:42 AM EST

Bigger auctions 

The Treasury unveiled plans to boost the size of its regular bond auctions, with plans to issue around $121 billion while raising net cash of around $15.9 billion, following its formal refunding announcement earlier this week.

The new auction sizes will include modest increases in the sale of 2-year, 3-year and 10-year notes, the later of which will increase by $2 billion to a record high $42 billion, and will be reviewed again at the end of the current quarter.

Benchmark 10-year notes, which hit a multi-week high of 4.18% earlier this month, were last marked 2 basis points lower on the session at 4.017%.

Updated at 8:22 AM EST 

Softer jobs?

Payroll processing group ADP said private sector job creation slowed to 107,000 this month, down from its 158,000 December estimate and well shy of the Street's 145,00 estimate.

The report also showed that job changers, who typically switch roles for higher wages, gained the lowest levels of increase since May of 2021, suggesting employers are no longer reaching deep to add new staff.

Stocks were little-changed on the results, with the S&P 500 called 19 points lower and the Nasdaq expected to fall 143 points.

Stock Market Today

A blizzard of Big Tech and blue-chip stock headlines after the close of trading on Tuesday are likely to swamp investors and markets today as Microsoft  (MSFT) - Get Free Report and Alphabet  (GOOGL) - Get Free Report slump following a mixed set of fourth-quarter earnings from the Magnificent 7 peers that underscored the costs tied to advancing AI technologies.

Related: Analysts reveal new Microsoft price targets after AI costs cloud earnings

At the same time, Advanced Micro Devices  (AMD) - Get Free Report also tumbled after it posted a muted near-term revenue forecast after chipmaker noted an uneven demand landscape for its new AI chips, designed to challenge the market dominance of larger rival Nvidia  (NVDA) - Get Free Report.

Tesla  (TSLA) - Get Free Report shares as well are moving lower after a Delaware court ruled in favor of a group of shareholders, who had argued that CEO Elon Musk's $50-billion-plus pay package, agreed in 2018, was unfairly arranged and against the carmaker's broader interests.

Federal Reserve Chairman Jerome Powell will speak to the media after the central bank's first interest rate decision of the year at 2:30 pm Eastern time.

OLIVIER DOULIERY/Getty Images

The collective slide for some of the biggest tech stocks in the market has the Nasdaq looking at a sharp 180 point opening bell decline, based on current futures prices, with AMD leading decliners with a 5% slump.

Related: AMD sees big demand for 'Nvidia killer' chips but issues unexpected forecast

The S&P 500 is also looking at a weaker open, with futures tied to the benchmark indicating a 25-point drop. This reflects Amazon  (AMZN) - Get Free Report, Apple  (AAPL) - Get Free Report and Meta Platforms  (META) - Get Free Report, all of which report earnings after the close of trading Thursday, are being pulled lower by last night's Big Tech tumble.

The Dow, meanwhile, is called around 45 points higher, with Walmart  (WMT) - Get Free Report rising 1.2% after the world's biggest retailer late Tuesday unveiled plans for a 3-for-1 stock split.

Mastercard  (MA) - Get Free Report and Boeing  (BA) - Get Free Report will publish December-quarter earnings prior to the start of trading, and ADP is set to release its January employment report at 8:15 am Eastern. 

Network-chip maker Qualcomm  (QCOM) - Get Free Report will publish December-quarter earnings after the close of trading. 

In the bond market, benchmark U.S. Treasury yields were trading firmly lower on the session, with 10-year notes changing hands at 4.025% and 2-year paper pegged at 4.328%, ahead of today's Fed rate decision later in the session.

CME Group's FedWatch suggests traders aren't expecting any changes in the Fed's key policy rate, which stands between 5.25% and 5.5%, when the decision comes down at 2:00 pm Eastern time. But they see a 45% chance that rate cuts will begin in late March.

The U.S. dollar index, which tracks the greenback against a basket of six global currencies, was marked 0.09% higher at 103.488 heading into the decision. The heavily weighted euro fell to 1.0837 following dovish comments Tuesday from European Central Bank President Christine Lagarde.

Related: Veteran fund manager picks favorite stocks for 2024

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Are Voters Recoiling Against Disorder?

Are Voters Recoiling Against Disorder?

Authored by Michael Barone via The Epoch Times (emphasis ours),

The headlines coming out of the Super…

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Are Voters Recoiling Against Disorder?

Authored by Michael Barone via The Epoch Times (emphasis ours),

The headlines coming out of the Super Tuesday primaries have got it right. Barring cataclysmic changes, Donald Trump and Joe Biden will be the Republican and Democratic nominees for president in 2024.

(Left) President Joe Biden delivers remarks on canceling student debt at Culver City Julian Dixon Library in Culver City, Calif., on Feb. 21, 2024. (Right) Republican presidential candidate and former U.S. President Donald Trump stands on stage during a campaign event at Big League Dreams Las Vegas in Las Vegas, Nev., on Jan. 27, 2024. (Mario Tama/Getty Images; David Becker/Getty Images)

With Nikki Haley’s withdrawal, there will be no more significantly contested primaries or caucuses—the earliest both parties’ races have been over since something like the current primary-dominated system was put in place in 1972.

The primary results have spotlighted some of both nominees’ weaknesses.

Donald Trump lost high-income, high-educated constituencies, including the entire metro area—aka the Swamp. Many but by no means all Haley votes there were cast by Biden Democrats. Mr. Trump can’t afford to lose too many of the others in target states like Pennsylvania and Michigan.

Majorities and large minorities of voters in overwhelmingly Latino counties in Texas’s Rio Grande Valley and some in Houston voted against Joe Biden, and even more against Senate nominee Rep. Colin Allred (D-Texas).

Returns from Hispanic precincts in New Hampshire and Massachusetts show the same thing. Mr. Biden can’t afford to lose too many Latino votes in target states like Arizona and Georgia.

When Mr. Trump rode down that escalator in 2015, commentators assumed he’d repel Latinos. Instead, Latino voters nationally, and especially the closest eyewitnesses of Biden’s open-border policy, have been trending heavily Republican.

High-income liberal Democrats may sport lawn signs proclaiming, “In this house, we believe ... no human is illegal.” The logical consequence of that belief is an open border. But modest-income folks in border counties know that flows of illegal immigrants result in disorder, disease, and crime.

There is plenty of impatience with increased disorder in election returns below the presidential level. Consider Los Angeles County, America’s largest county, with nearly 10 million people, more people than 40 of the 50 states. It voted 71 percent for Mr. Biden in 2020.

Current returns show county District Attorney George Gascon winning only 21 percent of the vote in the nonpartisan primary. He’ll apparently face Republican Nathan Hochman, a critic of his liberal policies, in November.

Gascon, elected after the May 2020 death of counterfeit-passing suspect George Floyd in Minneapolis, is one of many county prosecutors supported by billionaire George Soros. His policies include not charging juveniles as adults, not seeking higher penalties for gang membership or use of firearms, and bringing fewer misdemeanor cases.

The predictable result has been increased car thefts, burglaries, and personal robberies. Some 120 assistant district attorneys have left the office, and there’s a backlog of 10,000 unprosecuted cases.

More than a dozen other Soros-backed and similarly liberal prosecutors have faced strong opposition or have left office.

St. Louis prosecutor Kim Gardner resigned last May amid lawsuits seeking her removal, Milwaukee’s John Chisholm retired in January, and Baltimore’s Marilyn Mosby was defeated in July 2022 and convicted of perjury in September 2023. Last November, Loudoun County, Virginia, voters (62 percent Biden) ousted liberal Buta Biberaj, who declined to prosecute a transgender student for assault, and in June 2022 voters in San Francisco (85 percent Biden) recalled famed radical Chesa Boudin.

Similarly, this Tuesday, voters in San Francisco passed ballot measures strengthening police powers and requiring treatment of drug-addicted welfare recipients.

In retrospect, it appears the Floyd video, appearing after three months of COVID-19 confinement, sparked a frenzied, even crazed reaction, especially among the highly educated and articulate. One fatal incident was seen as proof that America’s “systemic racism” was worse than ever and that police forces should be defunded and perhaps abolished.

2020 was “the year America went crazy,” I wrote in January 2021, a year in which police funding was actually cut by Democrats in New York, Los Angeles, San Francisco, Seattle, and Denver. A year in which young New York Times (NYT) staffers claimed they were endangered by the publication of Sen. Tom Cotton’s (R-Ark.) opinion article advocating calling in military forces if necessary to stop rioting, as had been done in Detroit in 1967 and Los Angeles in 1992. A craven NYT publisher even fired the editorial page editor for running the article.

Evidence of visible and tangible discontent with increasing violence and its consequences—barren and locked shelves in Manhattan chain drugstores, skyrocketing carjackings in Washington, D.C.—is as unmistakable in polls and election results as it is in daily life in large metropolitan areas. Maybe 2024 will turn out to be the year even liberal America stopped acting crazy.

Chaos and disorder work against incumbents, as they did in 1968 when Democrats saw their party’s popular vote fall from 61 percent to 43 percent.

Views expressed in this article are opinions of the author and do not necessarily reflect the views of The Epoch Times or ZeroHedge.

Tyler Durden Sat, 03/09/2024 - 23:20

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Veterans Affairs Kept COVID-19 Vaccine Mandate In Place Without Evidence

Veterans Affairs Kept COVID-19 Vaccine Mandate In Place Without Evidence

Authored by Zachary Stieber via The Epoch Times (emphasis ours),

The…

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Veterans Affairs Kept COVID-19 Vaccine Mandate In Place Without Evidence

Authored by Zachary Stieber via The Epoch Times (emphasis ours),

The U.S. Department of Veterans Affairs (VA) reviewed no data when deciding in 2023 to keep its COVID-19 vaccine mandate in place.

Doses of a COVID-19 vaccine in Washington in a file image. (Jacquelyn Martin/Pool/AFP via Getty Images)

VA Secretary Denis McDonough said on May 1, 2023, that the end of many other federal mandates “will not impact current policies at the Department of Veterans Affairs.”

He said the mandate was remaining for VA health care personnel “to ensure the safety of veterans and our colleagues.”

Mr. McDonough did not cite any studies or other data. A VA spokesperson declined to provide any data that was reviewed when deciding not to rescind the mandate. The Epoch Times submitted a Freedom of Information Act for “all documents outlining which data was relied upon when establishing the mandate when deciding to keep the mandate in place.”

The agency searched for such data and did not find any.

The VA does not even attempt to justify its policies with science, because it can’t,” Leslie Manookian, president and founder of the Health Freedom Defense Fund, told The Epoch Times.

“The VA just trusts that the process and cost of challenging its unfounded policies is so onerous, most people are dissuaded from even trying,” she added.

The VA’s mandate remains in place to this day.

The VA’s website claims that vaccines “help protect you from getting severe illness” and “offer good protection against most COVID-19 variants,” pointing in part to observational data from the U.S. Centers for Disease Control and Prevention (CDC) that estimate the vaccines provide poor protection against symptomatic infection and transient shielding against hospitalization.

There have also been increasing concerns among outside scientists about confirmed side effects like heart inflammation—the VA hid a safety signal it detected for the inflammation—and possible side effects such as tinnitus, which shift the benefit-risk calculus.

President Joe Biden imposed a slate of COVID-19 vaccine mandates in 2021. The VA was the first federal agency to implement a mandate.

President Biden rescinded the mandates in May 2023, citing a drop in COVID-19 cases and hospitalizations. His administration maintains the choice to require vaccines was the right one and saved lives.

“Our administration’s vaccination requirements helped ensure the safety of workers in critical workforces including those in the healthcare and education sectors, protecting themselves and the populations they serve, and strengthening their ability to provide services without disruptions to operations,” the White House said.

Some experts said requiring vaccination meant many younger people were forced to get a vaccine despite the risks potentially outweighing the benefits, leaving fewer doses for older adults.

By mandating the vaccines to younger people and those with natural immunity from having had COVID, older people in the U.S. and other countries did not have access to them, and many people might have died because of that,” Martin Kulldorff, a professor of medicine on leave from Harvard Medical School, told The Epoch Times previously.

The VA was one of just a handful of agencies to keep its mandate in place following the removal of many federal mandates.

“At this time, the vaccine requirement will remain in effect for VA health care personnel, including VA psychologists, pharmacists, social workers, nursing assistants, physical therapists, respiratory therapists, peer specialists, medical support assistants, engineers, housekeepers, and other clinical, administrative, and infrastructure support employees,” Mr. McDonough wrote to VA employees at the time.

This also includes VA volunteers and contractors. Effectively, this means that any Veterans Health Administration (VHA) employee, volunteer, or contractor who works in VHA facilities, visits VHA facilities, or provides direct care to those we serve will still be subject to the vaccine requirement at this time,” he said. “We continue to monitor and discuss this requirement, and we will provide more information about the vaccination requirements for VA health care employees soon. As always, we will process requests for vaccination exceptions in accordance with applicable laws, regulations, and policies.”

The version of the shots cleared in the fall of 2022, and available through the fall of 2023, did not have any clinical trial data supporting them.

A new version was approved in the fall of 2023 because there were indications that the shots not only offered temporary protection but also that the level of protection was lower than what was observed during earlier stages of the pandemic.

Ms. Manookian, whose group has challenged several of the federal mandates, said that the mandate “illustrates the dangers of the administrative state and how these federal agencies have become a law unto themselves.”

Tyler Durden Sat, 03/09/2024 - 22:10

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Low Iron Levels In Blood Could Trigger Long COVID: Study

Low Iron Levels In Blood Could Trigger Long COVID: Study

Authored by Amie Dahnke via The Epoch Times (emphasis ours),

People with inadequate…

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Low Iron Levels In Blood Could Trigger Long COVID: Study

Authored by Amie Dahnke via The Epoch Times (emphasis ours),

People with inadequate iron levels in their blood due to a COVID-19 infection could be at greater risk of long COVID.

(Shutterstock)

A new study indicates that problems with iron levels in the bloodstream likely trigger chronic inflammation and other conditions associated with the post-COVID phenomenon. The findings, published on March 1 in Nature Immunology, could offer new ways to treat or prevent the condition.

Long COVID Patients Have Low Iron Levels

Researchers at the University of Cambridge pinpointed low iron as a potential link to long-COVID symptoms thanks to a study they initiated shortly after the start of the pandemic. They recruited people who tested positive for the virus to provide blood samples for analysis over a year, which allowed the researchers to look for post-infection changes in the blood. The researchers looked at 214 samples and found that 45 percent of patients reported symptoms of long COVID that lasted between three and 10 months.

In analyzing the blood samples, the research team noticed that people experiencing long COVID had low iron levels, contributing to anemia and low red blood cell production, just two weeks after they were diagnosed with COVID-19. This was true for patients regardless of age, sex, or the initial severity of their infection.

According to one of the study co-authors, the removal of iron from the bloodstream is a natural process and defense mechanism of the body.

But it can jeopardize a person’s recovery.

When the body has an infection, it responds by removing iron from the bloodstream. This protects us from potentially lethal bacteria that capture the iron in the bloodstream and grow rapidly. It’s an evolutionary response that redistributes iron in the body, and the blood plasma becomes an iron desert,” University of Oxford professor Hal Drakesmith said in a press release. “However, if this goes on for a long time, there is less iron for red blood cells, so oxygen is transported less efficiently affecting metabolism and energy production, and for white blood cells, which need iron to work properly. The protective mechanism ends up becoming a problem.”

The research team believes that consistently low iron levels could explain why individuals with long COVID continue to experience fatigue and difficulty exercising. As such, the researchers suggested iron supplementation to help regulate and prevent the often debilitating symptoms associated with long COVID.

It isn’t necessarily the case that individuals don’t have enough iron in their body, it’s just that it’s trapped in the wrong place,” Aimee Hanson, a postdoctoral researcher at the University of Cambridge who worked on the study, said in the press release. “What we need is a way to remobilize the iron and pull it back into the bloodstream, where it becomes more useful to the red blood cells.”

The research team pointed out that iron supplementation isn’t always straightforward. Achieving the right level of iron varies from person to person. Too much iron can cause stomach issues, ranging from constipation, nausea, and abdominal pain to gastritis and gastric lesions.

1 in 5 Still Affected by Long COVID

COVID-19 has affected nearly 40 percent of Americans, with one in five of those still suffering from symptoms of long COVID, according to the U.S. Centers for Disease Control and Prevention (CDC). Long COVID is marked by health issues that continue at least four weeks after an individual was initially diagnosed with COVID-19. Symptoms can last for days, weeks, months, or years and may include fatigue, cough or chest pain, headache, brain fog, depression or anxiety, digestive issues, and joint or muscle pain.

Tyler Durden Sat, 03/09/2024 - 12:50

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