THE HAGUE (AP) — The International Criminal Court said Friday it has issued an arrest warrant for Russian President Vladimir Putin for war crimes because of his alleged involvement in abductions of children from Ukraine.
The court said in a statement that Putin “is allegedly responsible for the war crime of unlawful deportation of population (children) and that of unlawful transfer of population (children) from occupied areas of Ukraine to the Russian Federation.”
It also issued a warrant Friday for the arrest of Maria Alekseyevna Lvova-Belova, the Commissioner for Children’s Rights in the Office of the President of the Russian Federation, on similar allegations.
The court’s president, Piotr Hofmanski, said in a video statement that while the ICC’s judges have issued the warrants, it will be up to the international community to enforce them. The court has no police force of its own to enforce warrants.
“The ICC is doing its part of work as a court of law. The judges issued arrest warrants. The execution depends on international cooperation.”
A possible trial of any Russians at the ICC remains a long way off, as Moscow does recognize the court’s jurisdiction — a position reaffirmed earlier this week by Kremlin spokesman Dmitry Peskov — and does not extradite its nationals.
Ukraine also is not a member of the court, but it has granted the ICC jurisdiction over its territory and ICC prosecutor Karim Khan has visited four times since opening an investigation a year ago.
The ICC said that its pretrial chamber found there were “reasonable grounds to believe that each suspect bears responsibility for the war crime of unlawful deportation of population and that of unlawful transfer of population from occupied areas of Ukraine to the Russian Federation, in prejudice of Ukrainian children.”
The court statement said that “there are reasonable grounds to believe that Mr Putin bears individual criminal responsibility” for the child abductions “for having committed the acts directly, jointly with others and/or through others [and] for his failure to exercise control properly over civilian and military subordinates who committed the acts.”
On Thursday, a U.N.-backed inquiry cited Russian attacks against civilians in Ukraine, including systematic torture and killing in occupied regions, among potential issues that amount to war crimes and possibly crimes against humanity.
The sweeping investigation also found crimes committed against Ukrainians on Russian territory, including deported Ukrainian children who were prevented from reuniting with their families, a “filtration” system aimed at singling out Ukrainians for detention, and torture and inhumane detention conditions.
But on Friday, the ICC put the face of Putin on the child abduction allegations.
The Biden administration hopes that Chinese President Xi Jinping will reach out to Ukrainian President Volodymyr Zelensky directly because it’s important that Xi hears Ukraine’s perspective and not just Russia’s, White House spokesman John Kirby told reporters on Friday. Kirby’s remarks come after Beijing and Moscow announced earlier Friday that Xi will visit Russia from Monday to Wednesday, in an apparent show of support for Russian President Vladimir Putin as the Russia-Ukraine war continues. Kirby criticized China’s call for a cease-fire between Ukraine and Moscow, saying while that approach might sound good, it wouldn’t respect Ukrainian sovereignty and instead would recognize Russia’s gains in Ukraine.
Thenumbers: U.S. industrial production was flat in February, the Federal Reserve reported Friday.
The unchanged reading was in line with economists expectations, according to a survey by The Wall Street Journal.
Output rose a revised 0.3% in January, revised up from the initial estimate of a flat reading, but there were deep declines in November and December.
Key details: Manufacturing output downshifted to a slim 0.1% rise in February after a strong 1% gain in the prior month.
Motor vehicles and parts output fell 0.3% after a 0.6% jump in January. Excluding autos, total industrial output was unchanged.
Utilities output rose 0.5% in February. Mining output, which includes oil and natural gas, fell 0.6% after a 2% gain in the prior month.
Big picture: The softness in manufacturing is expected to continue as interest rates have moved higher. Credit conditions are expected to tighten in the wake of the worries surrounding regional banks.
The U.S. European Command said Tuesday that two Russian fighter jets conducted an “unsafe and unprofessional” intercept of an American drone over the Black Sea, striking the unmanned aircraft’s propeller so U.S. forces had to bring the drone down. White House spokesman John Kirby told reporters that it’s not uncommon for there to be intercepts by Russian aircraft of U.S. aircraft over the Black Sea, but Tuesday’s incident is noteworthy because of how unsafe and unprofessional it was.
BEIJING (AP) — Is the United States out to sabotage China? Chinese leaders think so.
President Xi Jinping has accused Washington this week of trying to isolate his country and hold back its development. That reflects the ruling Communist Party’s growing frustration that its pursuit of prosperity and global influence is threatened by U.S. restrictions on access to technology, its support for Taiwan and other moves seen by Beijing as hostile.
Xi, China’s most powerful leader in decades, tries to appear to be above problems and usually makes blandly positive public comments. That made his complaint Monday all the more striking. Xi said a U.S.-led campaign of “containment and suppression” of China has “brought unprecedented, severe challenges.” He called on the public to “dare to fight.”
“ In the five months since U.S. President Joe Biden met with Chinese leader Xi Jinping in Indonesia, Washington has approved more weapons sales to Taiwan, criticized Beijing’s stance on Ukraine and put more Chinese companies on export watchlists. ”
— Shi Yinhong, Renmin University
On Tuesday, Foreign Minister Qin Gang sharpened the warning, saying Washington faces possible “conflict and confrontation” if it fails to change course.
“The foreign minister is speaking on behalf of a widely held view that the United States is coming after China and they have to defend themselves,” said John Delury, an international relations specialist at Yonsei University in Seoul.
China is hardly the only government to fume at Washington’s dominance of global strategic and economic affairs. But Chinese leaders see the United States as making extra effort to thwart Beijing as a challenger for regional and possibly global leadership.
The ruling party wants to restore China’s historic role as a political and cultural leader, raise incomes by transforming the country into an inventor of technology, and unite what it considers the Chinese motherland by taking control of Taiwan, the self-ruled island democracy that Beijing claims as part of its territory.
Beijing sees those as positive goals, but American officials see them as threats. They say Chinese development plans are based at least in part on stealing or pressuring foreign companies to hand over technology. Some warn Chinese competition might erode U.S. industrial dominance and incomes.
Washington has set back Beijing’s plans by putting Chinese companies including its first global tech brand, Huawei, on a blacklist that limits access to processor chips and other technology. That crippled Huawei’s smartphone brand, once one of the world’s biggest. American officials are lobbying European and other allies to avoid Huawei equipment when they upgrade phone networks.
Washington cites security fears, but Beijing says that is an excuse to hurt its fledgling competitors.
The two governments have the world’s biggest trading relationship and common interests in combating climate change and other problems. But relations are strained over Taiwan, Beijing’s treatment of Hong Kong and mostly Muslim ethnic minorities, and its refusal to criticize or isolate Russia for its invasion of Ukraine.
The official Chinese view has soured following an uptick when Xi met U.S. President Joe Biden in November in Indonesia, said Shi Yinhong, an international-relations specialist at Renmin University in Beijing. He noted that in the five months since then, Washington approved more weapons sales to Taiwan, criticized Beijing’s stance on Ukraine and put more Chinese companies on export watchlists, all of which China saw as hostile.
Xi and Qin spoke in a “dramatic way” this week, but “the essence of what they said is China’s long-term stance,” Shi said. The leadership believes “the United States has implemented almost all around, drastic and desperate containment of China in all respects, especially in strategic and military fields.”
“The risk of military conflict between China and the United States is getting bigger,” Shi said.
A State Department spokesperson, Ned Price, said Washington wants to “coexist responsibly” within the global trade and political system and denied the U.S. government wants to suppress China.
“This is not about containing China. This is not about suppressing China. This is not about holding China back,” Price said in Washington. “We want to have that constructive competition that is fair” and “doesn’t veer into that conflict.”
“ ‘This is not about containing China. This is not about suppressing China. This is not about holding China back.’”
— Ned Price, U.S. Department of State
The United States formed a strategic group, the Quad, with Japan, Australia and India in response to concern about China and its claim to vast tracts of sea that are busy shipping lanes. They insist the group doesn’t focus on any one country, but its official statements are about territorial claims and other issues on which they have disputes with Beijing.
The latest change in tone follows acrimonious exchanges over a Chinese balloon that was shot down after passing over North America. Its electronics and other equipment are being examined by the FBI.
Qin, the foreign minister is “trying to position China as a global force for moderation and for peace” in front of foreign audiences and say “it’s the Americans who are blowing things out of proportion,” Delury said.
Xi’s government is especially irritated by displays of support by American and other Western legislators for Taiwan, which split with China in 1949 after a civil war.
Taiwan never has been part of the People’s Republic of China, but the Communist Party says the island of 22 million people must unite with the mainland, by force if necessary.
Washington is obligated by federal law to see that Taiwan has the weapons to defend itself and has sold it fighter jets and missiles. Chinese leaders complain that encourages Taiwanese politicians who might want to resist unification and possibly declare formal independence, a step Beijing says would lead to war.
Premier Li Keqiang, who is due to step down as China’s No. 2 leader this month, called on Sunday for “peaceful reunification.” But Xi’s government also has stepped up efforts to intimidate the island by flying fighter jets and firing missiles into the sea nearby.
The latest downturn is “testament to the real degradation” of U.S.-Chinese relations, which “never had much trust,” said Drew Thompson, a fellow at the Lee Kuan Yew School of Public Policy at the National University of Singapore.
Chinese leaders “consider any sort of discussion on strategic issues as sensitive and out of bounds,” which leads to “heightened risk of miscalculation,” Thompson said.
“They believe the U.S. is a hegemon that seeks to undermine the Communist Party and its legitimacy, and they have ample evidence of that,” he said. “But should perceptions and the balance of interests change, they could just as easily believe the U.S. is a partner for achieving the party’s objectives.”
David Rosenberg, the former chief North American economist at Merrill Lynch, has been saying for almost a year that the Fed means business and investors should take the U.S. central bank’s effort to fight inflation both seriously and literally.
Rosenberg, now president of Toronto-based Rosenberg Research & Associates Inc., expects investors will face more pain in financial markets in the months to come.
“The recession’s just starting,” Rosenberg said in an interview with MarketWatch. “The market bottoms typically in the sixth or seventh inning of the recession, deep into the Fed easing cycle.” Investors can expect to endure more uncertainty leading up to the time — and it will come — when the Fed first pauses its current run of interest rate hikes and then begins to cut.
Fortunately for investors, the Fed’s pause and perhaps even cuts will come in 2023, Rosenberg predicts. Unfortunately, he added, the S&P 500 SPX, -0.61%
could drop 30% from its current level before that happens. Said Rosenberg: “You’re left with the S&P 500 bottoming out somewhere close to 2,900.”
At that point, Rosenberg added, stocks will look attractive again. But that’s a story for 2024.
In this recent interview, which has been edited for length and clarity, Rosenberg offered a playbook for investors to follow this year and to prepare for a more bullish 2024. Meanwhile, he said, as they wait for the much-anticipated Fed pivot, investors should make their own pivot to defensive sectors of the financial markets — including bonds, gold and dividend-paying stocks.
MarketWatch: So many people out there are expecting a recession. But stocks have performed well to start the year. Are investors and Wall Street out of touch?
Rosenberg: Investor sentiment is out of line; the household sector is still enormously overweight equities. There is a disconnect between how investors feel about the outlook and how they’re actually positioned. They feel bearish but they’re still positioned bullishly, and that is a classic case of cognitive dissonance. We also have a situation where there is a lot of talk about recession and about how this is the most widely expected recession of all time, and yet the analyst community is still expecting corporate earnings growth to be positive in 2023.
In a plain-vanilla recession, earnings go down 20%. We’ve never had a recession where earnings were up at all. The consensus is that we are going to see corporate earnings expand in 2023. So there’s another glaring anomaly. We are being told this is a widely expected recession, and yet it’s not reflected in earnings estimates – at least not yet.
There’s nothing right now in my collection of metrics telling me that we’re anywhere close to a bottom. 2022 was the year where the Fed tightened policy aggressively and that showed up in the marketplace in a compression in the price-earnings multiple from roughly 22 to around 17. The story in 2022 was about what the rate hikes did to the market multiple; 2023 will be about what those rate hikes do to corporate earnings.
“ You’re left with the S&P 500 bottoming out somewhere close to 2,900. ”
When you’re attempting to be reasonable and come up with a sensible multiple for this market, given where the risk-free interest rate is now, and we can generously assume a roughly 15 price-earnings multiple. Then you slap that on a recession earning environment, and you’re left with the S&P 500 bottoming out somewhere close to 2900.
This is just pure mathematics. All the stock market is at any point is earnings multiplied by the multiple you want to apply to that earnings stream. That multiple is sensitive to interest rates. All we’ve seen is Act I — multiple compression. We haven’t yet seen the market multiple dip below the long-run mean, which is closer to 16. You’ve never had a bear market bottom with the multiple above the long-run average. That just doesn’t happen.
David Rosenberg: ‘You want to be in defensive areas with strong balance sheets, earnings visibility, solid dividend yields and dividend payout ratios.’
Rosenberg Research
MarketWatch: The market wants a “Powell put” to rescue stocks, but may have to settle for a “Powell pause.” When the Fed finally pauses its rate hikes, is that a signal to turn bullish?
Rosenberg: The stock market bottoms 70% of the way into a recession and 70% of the way into the easing cycle. What’s more important is that the Fed will pause, and then will pivot. That is going to be a 2023 story.
The Fed will shift its views as circumstances change. The S&P 500 low will be south of 3000 and then it’s a matter of time. The Fed will pause, the markets will have a knee-jerk positive reaction you can trade. Then the Fed will start to cut interest rates, and that usually takes place six months after the pause. Then there will be a lot of giddiness in the market for a short time. When the market bottoms, it’s the mirror image of when it peaks. The market peaks when it starts to see the recession coming. The next bull market will start once investors begin to see the recovery.
But the recession’s just starting. The market bottoms typically in the sixth or seventh inning of the recession, deep into the Fed easing cycle when the central bank has cut interest rates enough to push the yield curve back to a positive slope. That is many months away. We have to wait for the pause, the pivot, and for rate cuts to steepen the yield curve. That will be a late 2023, early 2024 story.
MarketWatch: How concerned are you about corporate and household debt? Are there echoes of the 2008-09 Great Recession?
Rosenberg: There’s not going to be a replay of 2008-09. It doesn’t mean there won’t be a major financial spasm. That always happens after a Fed tightening cycle. The excesses are exposed, and expunged. I look at it more as it could be a replay of what happened with nonbank financials in the 1980s, early 1990s, that engulfed the savings and loan industry. I am concerned about the banks in the sense that they have a tremendous amount of commercial real estate exposure on their balance sheets. I do think the banks will be compelled to bolster their loan-loss reserves, and that will come out of their earnings performance. That’s not the same as incurring capitalization problems, so I don’t see any major banks defaulting or being at risk of default.
But I’m concerned about other pockets of the financial sector. The banks are actually less important to the overall credit market than they’ve been in the past. This is not a repeat of 2008-09 but we do have to focus on where the extreme leverage is centered.
It’s not necessarily in the banks this time; it is in other sources such as private equity, private debt, and they have yet to fully mark-to-market their assets. That’s an area of concern. The parts of the market that cater directly to the consumer, like credit cards, we’re already starting to see signs of stress in terms of the rise in 30-day late-payment rates. Early stage arrears are surfacing in credit cards, auto loans and even some elements of the mortgage market. The big risk to me is not so much the banks, but the nonbank financials that cater to credit cards, auto loans, and private equity and private debt.
MarketWatch: Why should individuals care about trouble in private equity and private debt? That’s for the wealthy and the big institutions.
Rosenberg: Unless private investment firms gate their assets, you’re going to end up getting a flood of redemptions and asset sales, and that affects all markets. Markets are intertwined. Redemptions and forced asset sales will affect market valuations in general. We’re seeing deflation in the equity market and now in a much more important market for individuals, which is residential real estate. One of the reasons why so many people have delayed their return to the labor market is they looked at their wealth, principally equities and real estate, and thought they could retire early based on this massive wealth creation that took place through 2020 and 2021.
Now people are having to recalculate their ability to retire early and fund a comfortable retirement lifestyle. They will be forced back into the labor market. And the problem with a recession of course is that there are going to be fewer job openings, which means the unemployment rate is going to rise. The Fed is already telling us we’re going to 4.6%, which itself is a recession call; we’re going to blow through that number. All this plays out in the labor market not necessarily through job loss, but it’s going to force people to go back and look for a job. The unemployment rate goes up — that has a lag impact on nominal wages and that is going to be another factor that will curtail consumer spending, which is 70% of the economy.
“ My strongest conviction is the 30-year Treasury bond. ”
At some point, we’re going to have to have some sort of positive shock that will arrest the decline. The cycle is the cycle and what dominates the cycle are interest rates. At some point we get the recessionary pressures, inflation melts, the Fed will have successfully reset asset values to more normal levels, and we will be in a different monetary policy cycle by the second half of 2024 that will breathe life into the economy and we’ll be off to a recovery phase, which the market will start to discount later in 2023. Nothing here is permanent. It’s about interest rates, liquidity and the yield curve that has played out before.
MarketWatch: Where do you advise investors to put their money now, and why?
Rosenberg: My strongest conviction is the 30-year Treasury bond TMUBMUSD30Y, 3.674%.
The Fed will cut rates and you’ll get the biggest decline in yields at the short end. But in terms of bond prices and the total return potential, it’s at the long end of the curve. Bond yields always go down in a recession. Inflation is going to fall more quickly than is generally anticipated. Recession and disinflation are powerful forces for the long end of the Treasury curve.
As the Fed pauses and then pivots — and this Volcker-like tightening is not permanent — other central banks around the world are going to play catch up, and that is going to undercut the U.S. dollar DXY, +0.70%.
There are few better hedges against a U.S. dollar reversal than gold. On top of that, cryptocurrency has been exposed as being far too volatile to be part of any asset mix. It’s fun to trade, but crypto is not an investment. The crypto craze — fund flows directed to bitcoin BTCUSD, +0.35%
and the like — drained the gold price by more than $200 an ounce.
“ Buy companies that provide the goods and services that people need – not what they want. ”
I’m bullish on gold GC00, +0.22%
– physical gold — bullish on bonds, and within the stock market, under the proviso that we have a recession, you want to ensure you are invested in sectors with the lowest possible correlation to GDP growth.
Invest in 2023 the same way you’re going to be living life — in a period of frugality. Buy companies that provide the goods and services that people need – not what they want. Consumer staples, not consumer cyclicals. Utilities. Health care. I look at Apple as a cyclical consumer products company, but Microsoft is a defensive growth technology company.
You want to be buying essentials, staples, things you need. When I look at Microsoft MSFT, -0.61%,
Alphabet GOOGL, -1.79%,
Amazon AMZN, -1.17%,
they are what I would consider to be defensive growth stocks and at some point this year, they will deserve to be garnering a very strong look for the next cycle.
You also want to invest in areas with a secular growth tailwind. For example, military budgets are rising in every part of the world and that plays right into defense/aerospace stocks. Food security, whether it’s food producers, anything related to agriculture, is an area you ought to be invested in.
You want to be in defensive areas with strong balance sheets, earnings visibility, solid dividend yields and dividend payout ratios. If you follow that you’ll do just fine. I just think you’ll do far better if you have a healthy allocation to long-term bonds and gold. Gold finished 2022 unchanged, in a year when flat was the new up.
In terms of the relative weighting, that’s a personal choice but I would say to focus on defensive sectors with zero or low correlation to GDP, a laddered bond portfolio if you want to play it safe, or just the long bond, and physical gold. Also, the Dogs of the Dow fits the screening for strong balance sheets, strong dividend payout ratios and a nice starting yield. The Dogs outperformed in 2022, and 2023 will be much the same. That’s the strategy for 2023.
President Joe Biden said on Saturday that he ordered U.S. officials to shoot down the suspected Chinese spy balloon earlier this week and that national-security leaders decided the best time for the operation was when the the object was over water.
“They successfully took it down, and I want to compliment our aviators who did it,” Biden said after getting off Air Force One en route to Camp David.
Fighter jets shot down the giant white balloon off the Carolina coast after it apparently traversed sensitive military sites across North America, prompting the postponement of a high-level U.S. diplomatic trip to China and becoming the latest flashpoint in the prevailing tense tone between Washington and Beijing.
“ In preparation for the operation, the Federal Aviation Administration temporarily closed airspace over the Carolina coastline, including the Charleston and Myrtle Beach airports in South Carolina and the Wilmington airport in North Carolina. ”
Defense Secretary Lloyd Austin said in a statement that Biden approved the shoot-down on Wednesday, saying it should be done “as soon as the mission could be accomplished without undue risk to American lives under the balloon’s path.”
Austin said that, due to the size and altitude of the balloon, which was floating at an altitude of about 60,000 feet, the military had determined that taking it down over land would pose an undue risk to people on the ground.
The balloon was observed Saturday morning over the Carolinas as it approached the Atlantic coast.
In preparation for the operation, the Federal Aviation Administration temporarily closed airspace over the Carolina coastline, including the Charleston and Myrtle Beach airports in South Carolina and the Wilmington airport in North Carolina. The FAA rerouted air traffic from the area and warned of delays as a result of the flight restrictions.
An operation was underway in U.S. territorial waters in the Atlantic Ocean to recover debris from the balloon, which had been estimated to be about the size of three school buses. CNN reported that, according to a senior military source, Navy divers and unmanned vessels were among the assets deployed for the recovery effort, primarily, according to the source, in 47-foot-deep water.
The balloon was downed by Air Force fighter aircraft, according to two officials who were not authorized to publicly discuss the matter and spoke on condition of anonymity. CNN reported having been informed that a single missile fired by one of the U.S. jets had brought the balloon down.
Television footage showed a small explosion, followed by the balloon descending toward the water. U.S. military jets were seen flying in the vicinity and ships were deployed in the water to mount the recovery operation.
A South Carolina man posted video that appeared to capture the event as it unfolded. He told CNN he was a social-studies teacher and that his fiancée had recommended he point his camera at the object in advance of its downing.
Officials were aiming to time the operation so they could recover as much of the debris as possible before it sinks into the ocean. The Pentagon had previously estimated that any debris field would be substantial.
The balloon was first spotted over Montana, which is home to one of America’s three nuclear-missile silo fields at Malmstrom Air Force Base.
Biden had explored ordering the downing of the balloon over land when he was first briefed on it Tuesday, but Pentagon officials advised against that course of action, warning that the potential risk to people on the ground outweighed an assessment of potential Chinese intelligence gains.
The public disclosure of the balloon’s travels this week prompted the cancellation of a visit by U.S. Secretary of State Antony Blinken to Beijing that had been scheduled for Sunday for talks aimed at reducing U.S.-China tensions.
The Chinese government on Saturday sought to play down that cancellation. “In actuality, the U.S. and China have never announced any visit, the U.S. making any such announcement is their own business, and we respect that,” China’s Ministry of Foreign Affairs said in a statement Saturday morning.
The Pentagon also acknowledged reports of a second balloon flying over Latin America. “We now assess it is another Chinese surveillance balloon,” Brig. Gen. Pat Ryder, Pentagon press secretary, said in a statement. China’s Ministry of Foreign Affairs did not immediately respond to a question about the second balloon.
Blinken, who had been due to depart Washington for Beijing late Friday, said he had told senior Chinese diplomat Wang Yi in a phone call that sending the balloon over the U.S. was “an irresponsible act and that [China’s] decision to take this action on the eve of my visit is detrimental to the substantive discussions that we were prepared to have.”
Uncensored reactions on the Chinese internet mirrored the official government stance that the U.S. was overhyping the situation. Some used it as a chance to poke fun at U.S. defenses, saying it couldn’t even defend against a balloon, and nationalist influencers leapt to use the news to mock the U.S.
Republican politicians in the U.S. sought to characterize Biden’s and the Pentagon’s decision to monitor the balloon until it reached a location where it could be safely targeted militarily as kowtowing to the Chinese.
China has denied any claims of spying and said it was a civilian-use balloon intended for meteorology research. The Ministry of Foreign Affairs emphasized that the balloon’s journey was out of its control and urged the U.S. not to “smear” it based on an isolated balloon incident.
The United States on Saturday downed a suspected Chinese spy balloon off the Carolina coast after it traversed sensitive military sites across North America and became the latest flashpoint in tensions between Washington and Beijing.
An operation was underway in U.S. territorial waters in the Atlantic Ocean to recover debris from the balloon, which had been flying at about 60,000 feet and was estimated to be about the size of three school buses.
President Joe Biden had told reporters earlier Saturday that “we’re going to take care of it,” when asked about the balloon. The Federal Aviation Administration and Coast Guard worked to clear the airspace and water below the balloon as it reached the ocean.
Television footage showed a small explosion, followed by the balloon descending toward the water. U.S. military jets were seen flying in the vicinity and ships were deployed in the water to mount the recovery operation.
Officials were aiming to time the operation so they could recover as much of the debris as possible before it sinks into the ocean. The Pentagon had previously estimated that any debris field would be substantial.
The balloon was spotted Saturday morning over the Carolinas as it approached the coast.
In preparation for the operation, the FAA temporarily closed airspace over the Carolina coastline, including the airports in Charleston and Myrtle Beach, South Carolina, and Wilmington, North Carolina. The FAA rerouted air traffic from the area and warned of delays as a result of the flight restrictions.
The Coast Guard advised mariners to immediately leave the area because of U.S. military operations “that present a significant hazard.”
Biden had been inclined to down the balloon over land when he was first briefed on it on Tuesday, but Pentagon officials advised against it, warning that the potential risk to people on the ground outweighed the assessment of potential Chinese intelligence gains.
The public disclosure of the balloon this week prompted the cancellation of a visit by U.S. Secretary of State Antony Blinken to Beijing scheduled for Sunday for talks aimed at reducing U.S.-China tensions. The Chinese government on Saturday sought to play down the cancellation.
“In actuality, the U.S. and China have never announced any visit, the U.S. making any such announcement is their own business, and we respect that,” China’s Ministry of Foreign Affairs said in a statement Saturday morning.
China has continued to claim that the balloon was merely a weather research “airship” that had been blown off course. The Pentagon rejected that out of hand — as well as China’s contention that it was not being used for surveillance and had only limited navigational ability.
The balloon was spotted over Montana, which is home to one of America’s three nuclear missile silo fields at Malmstrom Air Force Base.
The Pentagon also acknowledged reports of a second balloon flying over Latin America. “We now assess it is another Chinese surveillance balloon,” Brig. Gen. Pat Ryder, Pentagon press secretary, said in a statement. China’s Ministry of Foreign Affairs did not immediately respond to a question about the second balloon.
Blinken, who had been due to depart Washington for Beijing late Friday, said he had told senior Chinese diplomat Wang Yi in a phone call that sending the balloon over the U.S. was “an irresponsible act and that (China’s) decision to take this action on the eve of my visit is detrimental to the substantive discussions that we were prepared to have.”
Uncensored reactions on the Chinese internet mirrored the official government stance that the U.S. was hyping the situation. Some used it as a chance to poke fun at U.S. defenses, saying it couldn’t even defend against a balloon, and nationalist influencers leapt to use the news to mock the U.S.
China has denied any claims of spying and said it is a civilian-use balloon intended for meteorology research. The Ministry of Foreign Affairs emphasized that the balloon’s journey was out of its control and urged the U.S. not to “smear” it based on the balloon.
The initial version of this story had incorrect price changes for 2023. It is now updated with information as of the market close on Jan. 31.
Investors staged a January rally, with solid gains for the S&P 500 and an even better showing for technology stocks that led the dismal downward action in 2022.
President Joe Biden is considering traveling to Europe next month to mark the one-year anniversary of Russian’s invasion of Ukraine, NBC News and CNN reported Thursday. NBC’s report said multiple locations are under consideration, including Poland, and that administration officials have discussed announcing another major military aid package for Ukraine to coincide with the anniversary. Biden on Wednesday announced the U.S. would send 31 Abrams tanks GD, +0.54%
to Ukraine to help it defend itself against the Russian invasion, but he warned that it would take time to deliver the equipment.
The world is in greater danger in 2023 than it has been at any moment over the past seven decades, warns a leading panel of scientists and security experts.
The illegal Russian-Ukraine conflict and its risk that nuclear weapons could be used was a primary, but not exclusive, catalyst in bumping forward the hands on the symbolic measure known as the “Doomsday Clock.”
BERLIN (AP) — German Defense Minister Christine Lambrecht has resigned following persistent criticism of her handling of military modernization programs and the country’s arms deliveries to Ukraine.
Lambrecht said in a statement Monday that she had submitted her resignation request to Chancellor Olaf Scholz, saying that “months of media focus on my person” had stood in the way of a factual debate about the military and Germany’s security policy.
“The valuable work of the soldiers and many people in my department must stand in the foreground,” she said.
There was no immediate word on a possible replacement.
The 57-year-old has been defense minister since Scholz became chancellor in December 2021. Critics have long portrayed her as out of her depth but Scholz stood by her, describing her last month as “a first-class defense minister.” Pressure on her mounted recently after an ill-judged New Year’s video message.
Lambrecht’s resignation comes at a sensitive moment, as Scholz faces mounting pressure to make another significant step forward in German military aid to Ukraine by agreeing to deliver Leopard 2 battle tanks. Earlier this month, Germany agreed to provide 40 Marder armored personnel carriers and a Patriot air defense missile battery to Kyiv.
Germany has given Ukraine substantial support in recent months, including howitzers, Gepard self-propelled anti-aircraft guns and the first of four IRIS-T surface-to-air missile systems. But critics, some inside Germany’s governing coalition, have long complained of Scholz’s perceived hesitancy to step up aid. Lambrecht was overshadowed on the issue by the chancellor, who made most major announcements.
Lambrecht was then Finance Minister Scholz’s deputy before being appointed justice minister in 2019. She also was minister for families and women in the closing months of then Chancellor Angela Merkel’s government.
She was respected in those roles but was widely viewed as one of the Scholz government’s weakest links at the Defense Ministry.
The notoriously unwieldy department has a history of diminishing ministers’ reputations.
Its importance increased with Russia’s invasion of Ukraine. That prompted Scholz to announce a special 100 billion-euro ($108 billion) fund to upgrade the German military, the Bundeswehr, which has suffered for years from neglect and in particular from aging, poorly functioning equipment.
Last month, Lambrecht dismissed suggestions that the government had been too slow to get going on its spending drive. She said officials have moved fast but that “such projects must be carefully negotiated — this is tax money.”
The minister also drew criticism for hapless communication, starting with a January 2022 announcement that Germany would deliver 5,000 military helmets to Ukraine as “a very clear signal that we stand by your side.”
In April, she took her 21-year-old son along on a military helicopter flight, which became public when he posted a photo to Instagram that it turned out the minister had taken herself. Her ministry said she had applied for permission and paid the costs herself, but critics said it showed poor judgment.
An amateurish New Year’s video message on her own private Instagram account prompted new opposition calls for Lambrecht’s departure and strained political allies’ patience.
It showed a barely audible Lambrecht speaking against a backdrop of loud New Year’s Eve fireworks in a Berlin street.
“A war is raging in the middle of Europe,” she said. “And connected with that for me were a lot of special impressions that I was able to gain — many, many meetings with interesting, great people.”
Top House Republican Kevin McCarthy succeeded early Saturday in his push to become his chamber’s next speaker, claiming the job after first falling short in well over a dozen rounds of voting.
McCarthy could handle only a few GOP defections given his party’s narrow majority in the House of Representatives, but in ballots this week he repeatedly saw around 20 Republicans vote against him before finally prevailing.
On Friday, McCarthy began to pick up some support from those Republican holdouts in a 12th round of voting, though it wasn’t sufficient to give him the job, so 13th and 14th ballots were held, followed by the 15th and final ballot.
Ahead of Friday’s voting, there were signs of a deal that could help McCarthy take the gavel. One of McCarthy’s critics, GOP Rep. Scott Perry of Pennsylvania, tweeted that he had switched to supporting the top Republican due to that deal.
“The framework for an agreement is in place, so in a good-faith effort, I voted to restore the People’s House by voting for @gopleader McCarthy,” Perry said.
There hadn’t been a need for multiple votes for a speaker election since 1923, and it’s the most ballots required since1860, just before the Civil War, when 44 ballots were needed.
Analysts have warned that the tensions over what’s typically a ceremonial election could signal that the GOP-run House will be dysfunctional throughout 2023 and 2024.
“In our view, the challenge to McCarthy underscores the difficulty that a narrow and fractured GOP majority will have in working with Democrats in the Senate on key issues such as the debt limit, government funding, and Ukraine in 2023,” said Benjamin Salisbury, director of research at Height Capital Markets, in a research note ahead of McCarthy’s election.
Republicans have taken control of the House thanks to wins in November’s midterm elections, returning to power in that chamber after four years in the minority.
But the GOP’s hopes for a strong red wave two years into President Joe Biden’s term were dashed, as the party has claimed just a small House majority and Democrats have maintained their grip on the Senate.
DJIA, +2.13%
closed sharply higher Friday as a monthly employment report showed that wage growth had slowed even as the unemployment rate fell to 3.5%, fueling hopes that the Federal Reserve’s interest-rate hikes aimed at taming inflation are starting to have the desired effect.
GRAND RAPIDS, Mich. (AP) — The co-leader of a plot to kidnap Michigan Gov. Gretchen Whitmer was sentenced Wednesday to 16 years in prison for conspiring to abduct the Democrat and blow up a bridge to ease an escape.
Adam Fox returned to federal court Tuesday, four months after he and Barry Croft Jr. were convicted of conspiracy charges at a second trial in Grand Rapids, Mich.
They were accused of being at the helm of a wild plot to whip up anti-government extremists just before the 2020 presidential election. Their arrest, as well as the capture of 12 others, was a stunning coda to a tumultuous year of racial strife and political turmoil in the U.S.
The government had pushed for a life sentence, saying Croft offered bomb-making skills and ideology while Fox was the “driving force urging their recruits to take up arms, kidnap the governor and kill those who stood in their way.”
But Judge Robert J. Jonker said that while Fox’s sentence was needed as a punishment and deterrent to future similar acts, the government’s request for life in prison is “not necessary to achieve those purposes.”
“It’s too much. Something less than life gets the job done in this case,” Jonker said, later adding that 16 years in prison “is still in my mind a very long time.”
In addition to the 16-year prison sentence, Fox will have to serve five years of supervised release.
Fox and Croft were convicted at a second trial in August, months after a different jury in Grand Rapids couldn’t reach a verdict but acquitted two other men. Croft, a trucker from Bear, Del., will be sentenced Wednesday.
Fox and Croft in 2020 met with like-minded provocateurs at a summit in Ohio, trained with weapons in Michigan and Wisconsin and took a ride to “put eyes” on Whitmer’s vacation home with night-vision goggles, according to evidence.
“People need to stop with the misplaced anger and place the anger where it should go, and that’s against our tyrannical … government,” Fox declared that spring, boiling over COVID-19 restrictions and perceived threats to gun ownership.
Whitmer wasn’t physically harmed. The FBI, which was secretly embedded in the group, broke things up by fall.
“They had no real plan for what to do with the governor if they actually seized her. Paradoxically, this made them more dangerous, not less,” Assistant U.S. Attorney Nils Kessler said in a court filing ahead of the hearing.
In 2020, Fox, 39, was living in the basement of a Grand Rapids–area vacuum shop, the site of clandestine meetings with members of a paramilitary group and an undercover FBI agent. His lawyer said he was depressed, anxious and smoking marijuana daily.
Christopher Gibbons said a life sentence would be extreme.
Fox was regularly exposed to “inflammatory rhetoric” by FBI informants, especially Army veteran Dan Chappel, who “manipulated not only Fox’s sense of ‘patriotism’ but also his need for friendship, acceptance and male approval,” Gibbons said in a court filing.
He said prosecutors had exaggerated Fox’s capabilities, saying he was poor and lacked the capability to obtain a bomb and carry out the plan.
Two men who pleaded guilty to conspiracy and testified against Fox and Croft received substantial breaks: Ty Garbin already is free after a 2½-year prison term, while Kaleb Franks was given a four-year sentence.
Michigan Gov. Gretchen Whitmer addresses the media after signing a state budget bill in July.
AP/Carlos Osorio/File
In state court, three men recently were given lengthy sentences for assisting Fox earlier in the summer of 2020. Five more are awaiting trial in Antrim County, where Whitmer’s vacation home is located.
When the plot was extinguished, Whitmer, a Democrat, blamed then-President Donald Trump, saying he had given “comfort to those who spread fear and hatred and division.” In August, 19 months after leaving office, Trump said the kidnapping plan was a “fake deal.”
WASHINGTON (AP) — The House Jan. 6 committee is wrapping up its investigation of the violent 2021 U.S. Capitol insurrection, with lawmakers expected to cap one of the most exhaustive and aggressive congressional probes in memory with an extraordinary recommendation: The Justice Department should consider criminal charges against former President Donald Trump.
At a final meeting on Monday, the panel’s seven Democrats and two Republicans are poised to recommend criminal charges against Trump and potentially against associates and staff who helped him launch a multifaceted pressure campaign to try to overturn the 2020 election.
While a criminal referral is mostly symbolic, with the Justice Department ultimately deciding whether to prosecute Trump or others, it is a decisive end to a probe that had an almost singular focus from the start.
“I think the president has violated multiple criminal laws and I think you have to be treated like any other American who breaks the law, and that is you have to be prosecuted,” Rep. Adam Schiff, a Democrat from Southern California and a member of the panel, said Sunday on CNN’s “State of the Union.”
The panel, set to dissolve on Jan. 3 with the advent of a Republican-led House, has conducted more than 1,000 interviews, held 10 well-watched public hearings and collected more than a million documents since it launched in July 2021. As it has gathered the massive trove of evidence, the members have become emboldened in declaring that Trump is to blame for the violent attack on the Capitol by his supporters almost two years ago.
After beating their way past police, injuring many of them, the Jan. 6 rioters stormed the Capitol and interrupted the certification of President Joe Biden’s win, echoing Trump’s lies about widespread election fraud and sending lawmakers and others running for their lives.
The attack came after weeks of Trump’s efforts to overturn his defeat — a campaign that was extensively detailed by the committee in its multiple public hearings. Many of Trump’s former aides testified about his unprecedented pressure on states, federal officials and on Vice President Mike Pence to find a way to thwart the popular will.
“This is someone who in multiple ways tried to pressure state officials to find votes that didn’t exist, this is someone who tried to interfere with a joint session, even inciting a mob to attack the Capitol,” Schiff said. “If that’s not criminal, then I don’t know what it is.”
Members of the committee have said that the referrals for other individuals may also include ethics violations, legal misconduct and campaign finance violations. Lawmakers have suggested in particular that their recommended charges against Trump could include conspiracy to defraud the United States, obstruction of an official proceeding of Congress and insurrection.
On insurrection, Schiff said Sunday that “if you look at Donald Trump’s acts and you match them up against the statute, it’s a pretty good match.” He said that the committee will focus on those individuals — presumably Trump — for whom they believe there is the strongest evidence.
While a so-called criminal referral has no real legal standing, it is a forceful statement by the committee and adds to political pressure already on Attorney General Merrick Garland and special counsel Jack Smith, who is conducting an investigation into Jan. 6 and Trump’s actions.
The committee is also expected at the hearing to preview its massive final report, which will include findings, interview transcripts and legislative recommendations. Lawmaker have said a portion of that report will be released Monday.
“We obviously want to complete the story for the American people,” said Rep. Jamie Raskin, a Maryland Democrat and constitutional scholar who serves on the select committee. “Everybody has come on a journey with us and we want a satisfactory conclusion, such that people feel that Congress has done its job.”
The panel was formed in the summer of 2021 after Senate Republicans blocked the formation of what would have been a bipartisan, independent commission to investigate the insurrection. That opposition spurred the Democratic-controlled House to form a committee of its own. House Republican leader Kevin McCarthy of California, a Trump ally, decided not to participate after House Speaker Nancy Pelosi rejected some of his appointments. That left an opening for two anti-Trump Republicans in the House — Reps. Liz Cheney of Wyoming and Adam Kinzinger of Illinois — to join the seven Democrats serving on the committee.
While the committee’s mission was to take a comprehensive accounting of the insurrection and educate the public about what happened, they’ve also aimed their work at an audience of one: the attorney general. Lawmakers on the panel have openly pressured Garland to investigate Trump’s actions, and last month he appointed a special counsel, Smith, to oversee several probes related to Trump, including those related to the insurrection.
In court documents earlier this year, the committee suggested criminal charges against Trump could include conspiracy to defraud the United States and obstruction of an official proceeding of Congress.
In a “conspiracy to defraud the United States,” the committee argues that evidence supports an inference that Trump and his allies “entered into an agreement to defraud the United States” when they disseminated misinformation about election fraud and pressured state and federal officials to assist in that effort. Trump still says he won the election to this day.
The panel also asserts that Trump obstructed an official proceeding, the joint session of Congress in which the Electoral College votes are certified. The committee said Trump either attempted or succeeded at obstructing, influencing or impeding the ceremonial process on Jan. 6 and “did so corruptly” by pressuring Pence to try to overturn the results as he presided over the session. Pence declined to do so.
The committee may make ethics referrals for five House Republicans — including McCarthy — who ignored congressional subpoenas from the panel. Those referrals are unlikely to result in punishment since Republicans are set to take over the House majority in January.
Following a sharp and sustained rise in interest rates, U.S. stocks have taken a broad beating this year.
But 2023 may bring very different circumstances.
Below are lists of analysts’ favorite stocks among the benchmark S&P 500 SPX,
the S&P 400 Mid Cap Index MID
and the S&P Small Cap 600 Index SML
that are expected to rise the most over the next year. Those lists are followed by a summary of opinions of all 30 stocks in the Dow Jones Industrial Average DJIA.
Stocks rallied on Dec. 13 when the November CPI report showed a much slower inflation pace than economists had expected. Investors were also anticipating the Federal Open Market Committee’s next monetary policy announcement on Dec. 14. The consensus among economists polled by FactSet is for the Federal Reserve to raise the federal funds rate by 0.50% to a target range of 4.50% to 4.75%.
A 0.50% increase would be a slowdown from the four previous increases of 0.75%. The rate began 2022 in a range of zero to 0.25%, where it had sat since March 2020.
A pivot for the Fed Reserve and the possibility that the federal funds rate will reach its “terminal” rate (the highest for this cycle) in the near term could set the stage for a broad rally for stocks in 2023.
Wall Street’s large-cap favorites
Among the S&P 500, 92 stocks are rated “buy” or the equivalent by at least 75% of analysts working for brokerage firms. That number itself is interesting — at the end of 2021, 93 of the S&P 500 had this distinction. Meanwhile, the S&P 500 has declined 16% in 2022, with all sectors down except for energy, which has risen 53%, and the utilities sector, which his risen 1% (both excluding dividends).
Here are the 20 stocks in the S&P 500 with at least 75% “buy” or equivalent ratings that analysts expect to rise the most over the next year, based on consensus price targets:
Most of the companies on the S&P 500 list expected to soar in 2023 have seen large declines in 2022. But the company at the top of the list, EQT Corp. EQT,
is an exception. The stock has risen 69% in 2022 and is expected to add another 62% over the next 12 months. Analysts expect the company’s earnings per share to double during 2023 (in part from its expected acquisition of THQ), after nearly a four-fold EPS increase in 2022.
Shares of Amazon.com Inc. AMZN
are expected to soar 50% over the next year, following a decline of 46% so far in 2022. If the shares were to rise 50% from here to the price target of $136.02, they would still be 18% below their closing price of 166.72 at the end of 2021.
You can see the earnings estimates and more for any stock in this article by clicking on its ticker.
Click here for Tomi Kilgore’s detailed guide to the wealth of information available for free on the MarketWatch quote page.
Mid-cap stocks expected to rise the most
The lists of favored stocks are limited to those covered by at least five analysts polled by FactSet.
Among components of the S&P 400 Mid Cap Index, there are 84 stocks with at least 75% “buy” ratings. Here at the 20 expected to rise the most over the next year:
Among companies in the S&P Small Cap 600 Index, 91 are rated “buy” or the equivalent by at least 75% of analysts. Here are the 20 with the highest 12-month upside potential indicated by consensus price targets:
Democratic Sen. Raphael Warnock of Georgia has defeated his Republican challenger Herschel Walker in their closely watched runoff election, according to an Associated Press projection.
While Democrats already had maintained their grip on the Senate by winning other crucial races in last month’s midterm elections, Warnock’s win means his party will have a 51-49 majority in the Senate for the next two years of President Joe Biden’s term.
That’s an upgrade from their situation over the past two years, when the chamber has been split 50-50, and they’ve controlled it only because Vice President Kamala Harris can cast tiebreaking votes.
Democrats now are expected to adjust ratios on Senate committees so they have a one-vote majority on each panel. Currently, committee ratios are set at 50-50 to reflect the chamber’s split.
A 51-49 Senate also is expected to lessen the influence of two moderate Democratic senators — West Virginia’s Joe Manchin and Arizona’s Kyrsten Sinema.
Walker’s loss is another blow for Donald Trump as the former president ramps up his 2024 White House campaign. Trump already saw other allies flop in their Senate midterm races, with, for example, Mehmet Oz coming up short in Pennsylvania and Blake Masters going down in Arizona.
Warnock had been favored to win by betting markets such as PredictIt, but Cook Political Report said the contest would be close and rated it as a toss-up.
Walker faced criticism from both Democrats and Republicans for his past treatment of women and gaffes while campaigning.
The former football star’s loss means the 2022 midterms end on a downbeat note for Republicans, and that’s after their hopes for a red wave were dashed. The GOP took control of the House of Representatives, but will have a slim majority in that chamber.
Analysts had said voters appeared increasingly focused on issues on which Republicans claimed high ground such as inflation. But exit polls on Nov. 8 suggested the party performed worse than expected because many Democrats and independents voted partly to show their disapproval of Trump — and those voters were energized by the Supreme Court’s June decision that overturned Roe v. Wade.
CHESAPEAKE, Va. (AP) — A Walmart manager opened fire on fellow employees in the break room of a Virginia store, killing six people in the country’s second high-profile mass shooting in four days, police and a witness said Wednesday.
The gunman, who apparently shot himself, was dead when police found him, Chesapeake Police Chief Mark G. Solesky said. There was no clear motive for the shooting, which also put four people in the hospital.
The store was busy just before the attack Tuesday night as people stocked up ahead of the Thanksgiving holiday, a shopper told a local TV station.
Employee Briana Tyler said workers had gathered in the break room as they typically did ahead of their shifts. “I looked up, and my manager just opened the door and he just opened fire,” she told ABC’s “Good Morning America,” adding that “multiple people” dropped to the floor.
“He didn’t say a word,” she said. “He didn’t say anything at all.”
Solesky confirmed that the shooter, who used a pistol, was a Walmart employee but did not give his name because his family had not been notified. The police chief could not confirm whether the victims were all employees.
Employee Jessie Wilczewski told Norfolk television station WAVY that she hid under the table and the shooter looked at her with his gun pointed at her, told her to go home and she left.
“It didn’t even look real until you could feel the … ‘pow-pow-pow,’ you can feel it,” Wilczewski said. “I couldn’t hear it at first because I guess it was so loud, I could feel it.”
President Joe Biden in a statement said he and first lady Jill Biden “grieve for the family, for the Chesapeake community and for the Commonwealth of Virginia.”
Gov. Glenn Youngkin tweeted that he was in contact with law-enforcement officials in Chesapeake, Virginia’s second largest city, which lies next to the seaside communities of Norfolk and Virginia Beach.
“Our hearts break with the community of Chesapeake this morning,” Youngkin wrote. “Heinous acts of violence have no place in our communities.”
It was the second time in a little more than a week that Virginia has experienced a major shooting. Three University of Virginia football players were fatally shot on a charter bus as they returned to campus from a field trip on Nov. 13. Two other students were wounded.
“I am devastated by the senseless act of violence that took place late last night in our city,” Mayor Rick W. West said in a statement posted on the city’s Twitter account Wednesday. “Chesapeake is a tight-knit community, and we are all shaken by this news.”
A database run by the Associated Press, USA Today and Northeastern University that tracks every mass killing in America going back to 2006 shows this year has been especially violent.
The U.S. has now had 40 mass killings so far in 2022, compared with 45 for all of 2019. The database defines a mass killing as at least four people killed, not including the killer.
The attack at the Walmart came three days after a person opened fire at a gay nightclub in Colorado, killing five people and wounding 17. Last spring, the country was shaken by the deaths of 21 when a gunman stormed an elementary school in Uvalde, Texas.
Tuesday night’s shooting also brought back memories of another at a Walmart in 2019, when a gunman who targeted Mexicans opened fire at a store in El Paso, Texas, and killed 22 people.
A 911 call about the shooting came in just after 10 p.m. Solesky did not know how many shoppers were inside, whether the gunman was working or whether a security guard was present.
Joetta Jeffery told CNN that she received text messages from her mother who was inside the store when the shots were fired. Her mother, Betsy Umphlett, was not injured.
“I’m crying, I’m shaking,” Jeffery said. “I had just talked to her about buying turkeys for Thanksgiving, then this text came in.”
One man was seen wailing at a hospital after learning that his brother was dead, and others shrieked as they left a conference center set up as a family reunification center, The Virginian-Pilot reported.
Camille Buggs, a former Walmart employee, told the newspaper she went to the conference center seeking information about her former co-workers. “You always say you don’t think it would happen in your town, in your neighborhood, in your store — in your favorite store, and that’s the thing that has me shocked,” Buggs said.
Walmart WMT, +0.74%
tweeted early Wednesday that it was “shocked at this tragic event.” In the aftermath of the El Paso shooting, Walmart made a decision in September 2019 to discontinue sales of certain kinds of ammunition and asked that customers no longer openly carry firearms in its stores.
It stopped selling handgun ammunition as well as short-barrel rifle ammunition, such as the .223 caliber and 5.56 caliber used in military style weapons. Walmart also discontinued handgun sales in Alaska.
The company had stopped selling handguns in the mid-1990s in every state but Alaska. The latest move marked its complete exit from that business and allowed it to focus on hunting rifles and related ammunition only.
Many of its stores are in rural areas where hunters depend on Walmart to get their equipment.
