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Tag: Chemicals

  • Your Next Mosquito Repellent Might Already Be in Your Shower

    Your Next Mosquito Repellent Might Already Be in Your Shower

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    For as long as I can remember, I have been that friend—the one who, from May to November, gets invited to every outdoor soiree. It’s not because I make the best desserts, even though I do. It’s because, with me around, the shoes can come off and the DEET can stay sheathed: No one else need fear for their blood when the mosquitoes are all busy biting me.

    Explanations abound for why people like me just can’t stop getting nipped—blood type, diet, the particular funk of the acids that emanate from our skin. Mosquitoes are nothing if not expert sniffers, evolving over millennia to detect the body’s many emissions, including the carbon dioxide we exhale and the heat we radiate.

    But to focus only on a mosquito’s hankering for flesh is to leave a whole chapter of the pests’ scent-seeking saga “largely overlooked,” Clément Vinauger, a chemical ecologist at Virginia Tech, told me. Mosquitoes are omnivores, tuned to sniff out blood and plants. And nowadays, most humans, especially those in the Western world, tend to smell a bit like both, thanks to all the floral, citrusy lotions and potions that so many of us slather atop our musky flesh.

    That medley of scents, Vinauger and his colleagues have discovered, may be an underappreciated part of what makes people like me smell so darn good to pests. The findings are from a small study with just five volunteers, four brands of soap, and one mosquito species, and still need to be confirmed outside the lab. But they’re a reminder that, as good or as bad as some of us might inherently smell to a mosquito, the insects experience us as dietarily diverse smorgasbords—not just as our animal selves.

    Researchers have also long known that “everything we use on our skin will affect mosquitoes’ behavior or attraction toward us,” says Ali Afify, a mosquito researcher at Drexel University. That includes extracts from plants—among them, chemicals such as citronella and limonene, which have both been found to repel the bloodsucking insects in at least some contexts. Something about encountering floral and faunal cues together seems to bamboozle mosquitoes, as if they’re “seeing an organism that doesn’t exist,” says Baldwyn Torto, a chemical ecologist and mosquito expert at the International Centre of Insect Physiology and Ecology. After all, female mosquitoes, the only ones that bite, spend their lives toggling between seeking nectar and hunting for blood, but never both at the same time. That’s part of why Vinauger initially figured that soap might deter mosquitoes from flying in for a sip.

    The story ended up being a bit more complicated. The researchers, led by Morgen VanderGiessen and Anaïs Tallon, collected chemicals from their volunteers’ arms—one scrubbed with soap, the other left aromatically bare—and offered them to the mosquitoes. One body wash, a coconut-and-vanilla-scented number made by Native, seemed to make a subset of people less appetizing, probably in part, Vinauger told me, because mosquitoes and other insects are not into coconut. (Duly noted.) But two other cleansers, made by Dove and Simple Truth, bumped up the attractiveness of several of their volunteers—even though all of the soaps in the study contained plenty of limonene. (None of the manufacturers of the body washes used in the study responded to a request for comment.)

    No single product was a universal attractant or repellent, which probably says more about us than it does about body wash. A bevy of lifestyle choices and environmental influences can tweak an individual’s unique odor profile; even identical twins, Torto told me, won’t smell the same to a mosquito on the prowl. Soaped up or no, some people will remain stubbornly magnetic to mosquitoes; others will continue to disgust them. This makes it “hard to say, ‘Hey, this soap will make you really attractive’ or ‘That soap will keep mosquitoes completely away from you,’” says Seyed Mahmood Nikbakht Zadeh, a chemical ecologist and medical entomologist at CSU San Bernardino, who wasn’t involved in the study. Plus, soap is hardly the only scented product that people use: Whatever enticing ingredients your body wash might contain, Tallon told me, could easily be counteracted by the contents of your lotion or deodorant.

    The point of the study isn’t to demonize or extol any particular products—especially considering how few soaps were tested and how many factors dictate each individual’s odor profile. The five volunteers in the study can’t possibly capture the entire range of human-soap interactions, though the researchers hope to expand their findings with a lot of follow-up. “I wouldn’t want the public to be alarmed about what type of soap they’re using,” Torto told me.

    But just knowing that personal-care products can alter a person’s appeal could kick-start more research. Scientists could design better baits to lure skeeters away from us, or develop a new generation of repellents using gentle, plant-based ingredients that are already found in our soaps. “DEET is really efficient, but it’s a chemical that melts plastic,” Vinauger told me. “Could we do better?”

    The researchers behind the study are already trying. After analyzing the specific chemicals in each of the soaps they tested, they blended some of the most alluring and aversive substances into two new concoctions—a flowery, fruity attractant and a nuttier repellent—and offered them to the insects. The repellent was “as strong as applying DEET on your skin,” Vinauger told me, “but it’s all coming from those soap chemicals.”

    What’s not yet clear, though, is how long those powers of repulsion last. Most people don’t manage more than a daily scrub; meanwhile, “the odors coming out of your pores are continuously coming out, so in the long run, those might win out,” says Maria Elena De Obaldia, a neurogeneticist who previously studied mosquito attraction at Rockefeller University. And it’s a lot less practical to ask someone to shower every few hours than to simply reapply bug spray.

    I’m certainly not ready to blame my mosquito magnetism on my body wash (which, for what it’s worth, contains a lot of “coconut-based cleanser”) or anything else in my hygiene repertoire. Part of the problem is undoubtedly just me—the tastiest of human meat sticks. But the next time I shop for anything scented, I’ll at least know that whatever wafts out of that product won’t just be for me. Some pest somewhere is always catching a stray whiff.

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    Katherine J. Wu

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  • U.S. stocks head for best day in 2 weeks on strong earnings from Meta and other big-tech names

    U.S. stocks head for best day in 2 weeks on strong earnings from Meta and other big-tech names

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    U.S. stocks rose on Thursday, on track for their biggest gain in two weeks, as another batch of strong big-tech earnings reports helped boost the broader market while offsetting signs of slowing economic growth.

    How are stocks trading

    On Wednesday, the Dow Jones Industrial Average fell 229 points, or 0.68%, to 33,302 as worries about First Republic Bank FRC overshadowed upbeat big-tech earnings.

    What’s driving markets

    For…

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  • 8 value stocks that look like bargains for long-term investors

    8 value stocks that look like bargains for long-term investors

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    When is it a good time to buy stocks? Some investors would say the current negativity dominating the financial media means you are better off sitting on the sidelines. Others would say it is always a good time to buy stocks, provided you can get them for good prices.

    Count John Buckingham, editor of the Prudent Speculator, in the latter camp. He is a value investor with decades of experience. During an interview, he emphasized the importance of remaining disciplined through all market conditions. While he favors the value…

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  • Europe’s disunity over China deepens

    Europe’s disunity over China deepens

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    BRUSSELS — Just when you thought Europe’s China policy could not be more disunited, the two most powerful countries of the European Union are now also at odds over whether to revive a moribund investment agreement with the authoritarian superpower.

    For France, resuscitating the so-called EU-China Comprehensive Agreement on Investment (CAI) is “less urgent” and “just not practicable,” according to French President Emmanuel Macron.

    Meanwhile, German Chancellor Olaf Scholz is in favor of “reactivating” the agreement, which stalled soon after it was announced in late 2020 after Beijing imposed sanctions on several members of the European Parliament for criticizing human rights violations. 

    Speaking to POLITICO aboard his presidential plane during a visit to China earlier this month, Macron said he and Chinese leader Xi Jinping discussed the CAI, “but just a little bit.”

    “I was very blunt with President Xi, I was very honest, as far as this is a European process — all the institutions need to be involved, and there is no chance to see any progress on this agreement as long as we have members of the European Parliament sanctioned by China,” Macron told POLITICO in English.

    Beijing has proved skilled at preventing the EU from developing a unified China policy, using threats ranging from potential bans on French and Spanish wine to warnings that China will buy American Boeing instead of French Airbus planes.

    Disagreement over the CAI is only one further example of divergence over China policy in Europe, where Beijing has expertly courted various countries and played them against each other in games of divide-and-rule over the past decade.

    Scholz seeks CAI thaw

    Following seven years of tortuous negotiations, the CAI was rushed through by former German Chancellor Angela Merkel at the end of Germany’s six-month rotating presidency of the Council of the EU in late 2020. 

    Merkel sought to seal the deal and ingratiate herself with Beijing before Washington could apply pressure to block it, causing tension with the incoming administration of U.S. President Joe Biden.

    Germany has long been the most vocal cheerleader for the CAI due to its scale of manufacturing investments in China, particularly in the car-making and chemicals sectors. 

    The CAI would have made it marginally easier for European companies to invest in China and protect their intellectual property there. But critics decried weak worker protections and questioned to what degree it could be enforced. 

    Xi Jinping during Macron’s visit to Beijing | Ludovic Marin/AFP via Getty Images

    Soon after the agreement was announced, Beijing imposed sanctions on several European parliamentarians in retaliation for their criticism of human rights abuses in the restive region of Xinjiang. 

    The deal, which requires ratification by the European parliament, went into political deep freeze.

    Scholz, who at times seems to mimic the more popular Merkel, would like to take CAI “out of the freezer” — but has cautioned that “this must be done with care” to avoid political pitfalls, according to a person he briefed directly but who was not authorized to comment publicly.

    “It is surprising Scholz still thinks this is a good idea, despite the vastly changed context from a couple of years ago,” said one senior EU official, who spoke on condition of anonymity to freely discuss sensitive diplomatic issues.

    EU branches split

    Not only are EU countries divided on how to approach CAI — there’s also a rift among institutions in Brussels.

    With its members sanctioned, the European Parliament is certain to reject any fresh attempt to ratify the CAI.

    But like Scholz, European Council President Charles Michel also hopes to resuscitate the deal. He has discussed this with Chinese communist leaders, including during his solo visit to Beijing late last year, according to a senior EU official familiar with the matter who was not authorized to speak publicly.

    European Commission President Ursula von der Leyen, however, has stymied Michel’s attempts to place the agreement back on the agenda in Brussels. Von der Leyen is far more skeptical of engaging with China, citing increasing aggression abroad and repression at home.

    Von der Leyen accompanied Macron on part of his China trip earlier this month, but said of her brief meeting with Xi Jinping and other Chinese officials that the topic of CAI “did not come up.” She has publicly argued that the deal needs to be “reassessed” in light of deteriorating relations between Beijing and the West.

    Meanwhile, Chinese officials have made overtures to Michel and other sympathetic European leaders, suggesting China could unilaterally lift its sanctions on members of the European Parliament — but only with a “guarantee” the CAI would eventually be ratified. 

    A spokesperson for Michel said an informal meeting of EU foreign ministers will discuss EU-China relations on May 12. “Following that discussion we will then assess when the topic of China is again put on the table of the European Council,” he said.

    During the same interview with POLITICO, Macron caused consternation in Western capitals when he said Europe should not follow America, but instead avoid confronting China over its stated goal of seizing the democratic island of Taiwan by force. 

    Manfred Weber, head of the center-right European People’s Party, the largest party in the European Parliament, described the French president’s comments as “a disaster.” 

    In an an interview with Italian media, he said that the remarks had “weakened the EU” and “made clear the great rift within the European Union in defining a common strategic plan against Beijing.”

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    Jamil Anderlini

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  • Is it safe to live near recycling centers? Questions surge after Indiana plastics site burns.

    Is it safe to live near recycling centers? Questions surge after Indiana plastics site burns.

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    As the fire at an Indiana plastics-recycling storage facility burned over several days and officials scrambled to calm evacuated residents and measure air quality, larger safety questions emerged across a nation that relies on recycling to help offset the impact of teeming landfills and littered waterways.

    Authorities in the eastern part of the state on Sunday finally lifted a dayslong evacuation order after it was determined immediate environmental concerns related to the fire had passed.

    But the man-made disaster had already done its part, leaving many wondering if recycling centers — challenging to regulate because they range from small community-led efforts to major industrial facilities — are as safe as Americans think they are?

    Public health experts told MarketWatch the nation needs to take a harder look at how we store and dispose of chemicals-heavy plastics in particular, along with other recycled materials that can act as a tinderbox in certain conditions. It may be a wakeup call to the scores of Americans who embrace recycling as one of the longest-tested and straightforward solutions to help the environment. What happens after recyclable materials leave the home can be quite another story, however.

    Read: Recycling is confusing — how to be smarter about all that takeout plastic

    Worker safety in the handling of large recycling machinery remains a priority of the Occupational Safety and Health Administration (OSHA) and other agencies, but less scrutiny may be given to the emissions those workers breathe in, and in the case of the Indiana emergency, what pollution community members near a recycling center may be exposed to.

    “Any company, regardless of its intentions, must be held accountable for regulations, not only for the safety of its employees, but for the communities around it,” Dr. Panagis Galiatsatos, a pulmonologist, who is the national spokesperson for the American Lung Association, told MarketWatch.

    “This [Indiana crisis] is alarming — a good deed [such as recycling] undone by the consequences of not having sound safety precautions,” said Galiatsatos, who is also an assistant professor at the Johns Hopkins School of Medicine and helps lead community engagement for the Baltimore Breathe Center.

    As for the fire in Richmond, Ind., a college town and county seat of about 35,000 people near the Ohio border, the city’s fire chief, Tim Brown, made clear that there were known code violations by the operator of the former factory that had been turned into plastics storage for recycling or resale. This dangerous fire was a matter of “when, not if,” Brown said in the initial hours that the fire, whose origin is not yet known, burned.

    The city of Richmond’s official site about the disaster described the fire as initially impacting “two warehouses containing large amounts of chipped, shredded and bulk recycled plastic, [which] caught fire.” The site does offer cleanup help advice.

    Brown, the fire chief, reported that just over 13 of the 14 acres which made up the recycling facility’s property had burned, according to nearby Dayton, Ohio, station WDTN. Brown told reporters the six buildings at the site of the fire were full of plastic from “floor to ceiling, wall to wall,” along with several full semi-trailers. He said Sunday that fire fighters would continue to monitor for flare-ups, according to the Associated Press.

    Richmond Mayor Dave Snow said the owner of the buildings has ignored citations that dinged his operation for code violations, and the city has continued to go through steps to get the owner to clean up the property, including preventing the operator from taking on additional plastic.

    “We just wish the property owner and the business owner would’ve taken this more serious from day one,” Snow said, according to the report out of Dayton, which cited sister station WXIN. “This person has been negligent and irresponsible, and it’s led to putting a lot of people in danger,” the mayor added.

    But some environmental groups say lax enforcement puts citizens at risk.

    “Indiana is already top in the nation for water and air quality violations, but the consequences are too negligible here for industry to adhere to the laws,” said Susan Thomas, communications director at Just Transition Northwest Indiana, a climate justice group based in the state.

    “We need real solutions to the climate crisis, not more false ones that shield chronic polluters from justice,” she said.

    The Environmental Protection Agency (EPA) had collected debris samples from the Richmond fire and searched nearby grounds for any debris, which will be sampled for asbestos given the age of the buildings housing the recycling facility. Residents have been warned not to touch or mow over debris until the sample results are available. Testing was also carried out on the Ohio side of the border.

    No doubt, the catastrophe had impacted daily life. Wayne County, Ind., health department officials and fire-safety officials told residents to shelter in place and reduce outdoor activity if they even smelled smoke. According to the health department’s help line, symptoms that may be related to breathing smoke include repeated coughing, shortness of breath or difficulty breathing, wheezing, chest tightness or pain, palpitations, nausea or lightheadedness.

    Any safer than a landfill?

    When a lens on recycling is widened, it comes to light that how facilities handle their plastic and other materials may not involve much more care than that given to chemical-emitting plastic left to break down in a landfill, say the concerned public health officials.

    Of the 40 million tons of plastic waste generated in the U.S., only 5%-6%, or about two million tons, is recycled, according to a report conducted by the environmental groups Beyond Plastics and The Last Beach Cleanup. About 85% went to landfills, and 10% was incinerated. The rate of plastic recycling has decreased since 2018, when it was at 8.7%, per the study.

    Generally speaking, when plastic particles break down, they gain new physical and chemical properties, increasing the risk they will have a toxic effect on organisms, says the environmental arm of the United Nations. The larger the number of potentially affected species and ecological functions, the more likely it is that toxic effects will occur.

    And although the conditions of the Indiana fire differ from those experienced earlier this year when a Norfolk Southern Corp.
    NSC,
    +0.30%

    freight train carrying hazardous materials in several cars derailed near East Palestine, Ohio, the public’s concern for that event — which also sparked an evacuation after a chemical plume from a controlled burn — spread widely on social media.

    Now, add in Richmond. The public, at large, is increasingly wondering if officials are doing their job to prevent such disasters, and whether the full extent of chemical exposure is known.

    “This [fire in Indiana] overlaps in a general sense the chemical safety question raised by the Ohio derailment — and it shouldn’t have just been raised by that one event, but that certainly brought it into focus,” said Dr. Peter Orris, chief of occupational and environmental medicine at the University of Illinois – Chicago.

    Orris said lasting solutions pushing awareness and safety around the storage and transportation of chemicals and chemical-based plastic must span political differences over the reach of regulation. He recalled a time just after the 9/11 terror attacks when a fresh look at the transportation of toxic chemicals and the storage and shipment of ammonia and other substances that can have nefarious uses in the wrong hands drew support from unusual partners.

    “Shortly after 9/11 a rather broad coalition, including environmental interests such as Greenpeace, and consumer groups, with congressional support, alongside Homeland Security all pushed a model bill about where and how you could transport toxic chemicals, especially going through populated areas,” he said. “Dealing with new concerns around chemicals and recycling plastic may require the same breadth of interests.”

    Already, the Biden administration has shown the will to target chemical exposure in U.S. water. Earlier this year, the EPA moved to require near-zero levels of perfluoroalkyl and polyfluoroalkyl substances, part of a classification of chemicals known as PFAS, and also called “forever chemicals” due to how long they persist in the environment. Both the chemical companies and their trade groups have pushed their own steps toward reducing risk, they say. Exposure to some of the chemicals has been linked to cancer, liver damage, fertility and thyroid problems, as well as asthma and other health effects.

    Read more: Cancer-linked PFAS — known as ‘forever chemicals’ — could be banned in drinking water for first time

    And, Orris stressed, regulating recycling with a one-size-fits-all approach may not work.

    Surprisingly, it can be the smaller recycling facilities that take bigger steps in curbing emissions than their larger counterparts. Orris in recent years reported on efforts of a San Francisco recycling plant that made emissions reduction a priority, including by banning incineration. The same research trip turned up issues with a Los Angeles-area plant, exposing “real problems with its policies and procedures beginning with the neighborhood smell from organic materials to other issues with toxins.”

    How can plastic be so dangerous?

    Specifically, the chemicals that help fortify plastic for its many uses present their own unique conditions.

    As plastic is heated at high temperatures, melted and reformed into small pellets, it emits toxic chemicals and particulate matter, including volatile gases and fly ash, into the air, which pose threats to health and the local environment, says a Human Rights Watch paper, citing environmental engineering research. When plastic is recycled into pellets for future use, its toxic chemical additives are carried over to the new products. Plus, the recycling process can generate new toxic chemicals, like dioxins, if plastics are not heated at a high enough temperature.

    There are other concerns. Plastic melting facilities can emit volatile organic compounds (VOCs) and carcinogens, which in higher concentrations can pollute air both inside facilities and in areas near recycling facilities.

    “Plastics, the way they burn, put out dangerous toxins. And plastic can create its own unique chemistry even when it comes into interaction with benign chemicals,” said Galiatsatos of Johns Hopkins.

    “There are the lung issues from people breathing in these chemicals and the toxins associated with them. But there is more: systemic inflation from breathing in chemicals, and that can lead to heart disease,” he said.

    “I wish we would pay the same amount of attention to plastics, their recycling and their disposal, as we do with sewer systems. When was the last time we heard of a waste system-based cholera outbreak in the U.S.?” he asked rhetorically. “Exactly. That we care about. Yet plastics, especially the burning of chemicals, we treat too lightly.”

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  • 14 dividend stocks yielding 4% or more that are expected to increase payouts in 2023 and 2024

    14 dividend stocks yielding 4% or more that are expected to increase payouts in 2023 and 2024

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    If you invest in dividend stocks, you are probably looking for long-term growth to go with the income. Otherwise you might be content to hold one-month U.S. Treasury bills, which yield 4.5% or park your money in an online savings account for a yield close to 4%.

    Below is screen of stocks with current dividend yields ranging from 4.14% to 8.46%. What sets these apart from other stocks with high dividend yields is that their payout increases are expected to accelerate in 2023 and 2024 from those in 2022.

    On Tuesday, S&P Dow Jones Indices said in a press release that it expected dividend payments by publicly traded U.S. companies to continue to hit record levels in 2023. But Howard Silverblatt, a senior index analyst with the firm, said that the pace of dividend increases in the first quarter had slowed and that he expected this year’s increases to be “at half the pace of the double-digit 2022 growth.”

    Silverblatt also said current events in the banking industry were “expected to negatively impact future spending from both consumers and companies, which in turn may curtail corporate dividend growth.”

    For many banks, there’s another big item on the table. A focus on share buybacks in recent years is very likely to end — this is a use of cash that can raise earnings per share if the share count is reduced, but there can be consequences, especially after a year of rising interest rates that pushed down the market value of banks’ investments in bonds.

    In a note to clients on March 16, Dick Bove, a senior research analyst with Odeon Capital, predicted that stock repurchases in the banking industry would be “meaningfully cut back if not flat out eliminated.” He made three general points about buybacks in the banking industry:

    • Buybacks remove working capital that would otherwise provide returns to a bank.

    • Buybacks mean a bank’s board of directors is “in favor of flat-out giving capital away to investors that want nothing to do with the bank — they are selling its stock.”

    • Buybacks do “nothing to increase bank stock prices – many bank stocks are selling at below their prices of five years ago.”

    A company might find it much easier to curtail or stop buying back shares to preserve cash than it is to cut regular dividends. Preserving and increasing the dividend over time has been correlated with good performance for stocks over time. These articles provide examples of how dividend compounding is correlated with long-term growth as income streams build up:

    Dividend stock screen

    The S&P Dow Jones Indices report raises the question of which stocks might buck the trend.

    Starting with the S&P 500
    SPX,
    -0.50%
    ,
    there are 71 companies stocks with current dividend yields of at least 4.00% indicated by annual payout rates. Among these companies, 68 increased dividends during 2022, according to data provided by FactSet.

    Then we looked at the pace of dividend increases in 2022 and the consensus estimates for dividends paid during 2023 and 2024, among analysts polled by FactSet. Among the remaining 68 companies, there are 29 for which the estimated 2023 dividend increase is higher than the 2022 dividend increase. Narrowing further, there are 14 for which the estimated 2024 dividend increases are higher than the estimated 2023 dividend increases.

    Here are the 14 stocks that passed the screen, sorted by current dividend yield:

    Company

    Ticker

    Dividend yield

    Dividend increase – 2022

    Expected dividend increase in 2023

    Expected dividend increase in 2024

    Altria Group Inc.

    MO,
    +0.27%
    8.46%

    4.5%

    4.7%

    4.9%

    Newell Brands Inc.

    NWL,
    -1.19%
    7.55%

    0.0%

    0.1%

    0.6%

    Boston Properties Inc.

    BXP,
    -0.94%
    7.42%

    0.0%

    0.7%

    1.0%

    KeyCorp

    KEY,
    -2.22%
    6.99%

    5.3%

    6.7%

    6.8%

    Prudential Financial Inc.

    PRU,
    +0.17%
    6.08%

    4.3%

    4.7%

    4.8%

    ONEOK Inc.

    OKE,
    +0.60%
    5.87%

    0.0%

    2.2%

    2.4%

    Healthpeak Properties Inc.

    PEAK,
    -0.32%
    5.54%

    0.0%

    2.1%

    2.2%

    Dow Inc.

    DOW,
    -0.53%
    5.16%

    0.0%

    1.1%

    2.2%

    Iron Mountain Inc.

    IRM,
    -1.00%
    4.70%

    0.0%

    1.8%

    5.4%

    NRG Energy Inc.

    NRG,
    +1.34%
    4.50%

    7.7%

    7.9%

    7.9%

    Franklin Resources Inc.

    BEN,
    -0.58%
    4.50%

    3.6%

    4.3%

    5.7%

    Federal Realty Investment Trust

    FRT,
    -0.53%
    4.38%

    0.9%

    1.7%

    2.1%

    Ventas Inc.

    VTR,
    -0.57%
    4.26%

    0.0%

    3.3%

    5.5%

    Kraft Heinz Co.

    KHC,
    +1.42%
    4.14%

    0.0%

    0.7%

    0.8%

    Source: FactSet

    Click on the ticker for more about each company.

    Click here for Tomi Kilgore’s detailed guide to the wealth of information available for free on the MarketWatch quote page.

    Any stock screen is limited, but can be useful as a starting point or supplement to your own research. If you see any companies of interest, do some research to form your own opinion of how likely they are to remain competitive over the next decade, at least.

    Don’t miss: This stock ETF keeps beating the S&P 500 by selecting for quality

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  • J&J, C3.ai, Albemarle, Walmart, and More Stock Market Movers

    J&J, C3.ai, Albemarle, Walmart, and More Stock Market Movers

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  • First Republic gets $30 billion in deposits from 11 major U.S. banks, but stock resumes slide as it suspends dividend

    First Republic gets $30 billion in deposits from 11 major U.S. banks, but stock resumes slide as it suspends dividend

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    Bank of America BAC, Citigroup C, JPMorgan Chase JPM and Wells Fargo WFC said Thursday that they are each making $5 billion in uninsured deposits into First Republic Bank FRC as part of a $30 billion backstop by 11 banks against the ravaged banking landscape of the past week.

    However, First Republic stock fell 14.7% in after-hours trading after the bank said it would suspend its dividend to conserve cash. The bank last paid a quarterly dividend of 27 cents a share on Feb. 9 to shareholders of record as of Jan. 26.

    It…

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  • Philadelphia Fed’s manufacturing gauge remains deep in contraction territory in March

    Philadelphia Fed’s manufacturing gauge remains deep in contraction territory in March

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    The numbers: The Philadelphia Fed said Thursday its gauge of regional business activity inched up to negative 23.2 in March from negative 24.3 in the prior month. Any reading below zero indicates improving conditions. This is the seventh straight negative reading and the ninth in the last ten months.

    Key details: Broad indicators in the data were all negative in March. The barometer on new orders sank to negative 28.2 in March from negative 13.6 in the prior month. The shipments index sank to negative 25.4 from 8. The measure…

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  • Adobe results, outlook top Street views as ‘mission critical’ software tops spending priorities

    Adobe results, outlook top Street views as ‘mission critical’ software tops spending priorities

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    Adobe Inc. shares rallied in the extended session Wednesday after the software company topped Wall Street expectations for the quarter and hiked its outlook, while anticipating its acquisition of interactive-design platform Figma will close by the end of the year.

    Adobe ADBE shares rose 5% after hours, following a less than 0.1% gain to close the regular session at $333.61.

    The…

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  • Germany, Japan pledge to boost cooperation on economic security

    Germany, Japan pledge to boost cooperation on economic security

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    Germany and Japan agreed on Saturday to strengthen cooperation on economic security in the aftermath of tensions over global supply chains and the economic impact of the war in Ukraine.

    In the first high-ministerial government consultations held between the two countries, German Chancellor Olaf Scholz reached out to Tokyo to seek to reduce Germany’s dependence on China for imports of raw materials.

    “The current challenges of our time make it clear: It is important to expand cooperation with close partners and acquire new partners. We want to reduce dependencies and increase the resilience of our economies.” the German chancellor said in a tweet.

    Scholz and Japanese Prime Minister Fumio Kishida said they believe the agreement will allow both countries to diversify value chains in order to be able to reduce economic risks.

    In a joint statement, the two countries said they will work on establishing “a legal framework for bilateral defense and security cooperation activities,” including ways to protect critical infrastructures, trade routes and to secure future supply of sustainable energy.

    Germany’s decision to prioritize consultations with Japan came after the Asian country put forward an economic security bill last year aimed at securing the uptake of technology and bolstering critical supply chains. 

    Japan is Germany’s second-largest trading partner in Asia after China, with a bilateral trade volume of €45.7 billion mainly based on the import and export of machinery, vehicles, electronics and chemical products.

    The two leaders also exchanged views on the situation in Ukraine, cooperation in the Indo-Pacific region and the G7 meeting in Hiroshima scheduled for May.

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    POLITICO Staff

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  • Tesla, Apple, Ciena, and More Stock Market Movers

    Tesla, Apple, Ciena, and More Stock Market Movers

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    Stock futures traded mostly flat Monday as Wall Street kicked off a week that includes testimony before Congress from Federal Reserve Chairman Jerome Powell and the U.S. jobs report for February.

    These stocks were poised to make moves Monday:


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  • The environmental scars of Russia’s war in Ukraine

    The environmental scars of Russia’s war in Ukraine

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    One year of war in Ukraine has left deep scars — including on the country’s natural landscape.

    The conflict has ruined vast swaths of farmland, burned down forests and destroyed national parks. Damage to industrial facilities has caused heavy air, water and soil pollution, exposing residents to toxic chemicals and contaminated water. Regular shelling around the Zaporizhzhia nuclear power plant, the largest in Europe, means the risk of a nuclear accident still looms large.

    The total number of cases of environmental damage tops 2,300, Ukraine’s environment minister, Ruslan Strilets, told POLITICO in an emailed statement. His ministry estimates the total cost at $51.45 billion (€48.33 billion).

    Of those documented cases, 1,078 have already been handed over to law enforcement agencies, according to Strilets, as part of an effort to hold Moscow accountable in court for environmental damage.

    A number of NGOs have also stepped in to document the environmental impacts of the conflict, with the aim of providing data to international organizations like the United Nations Environment Program to help them prioritize inspections or pinpoint areas at higher risk of pollution.

    Among them is PAX, a peace organization based in the Netherlands, which is working with the Center for Information Resilience (CIR) to record and independently verify incidents of environmental damage in Ukraine. So far, it has verified 242 such cases.

    “We mainly rely on what’s being documented, and what we can see,” said Wim Zwijnenburg, a humanitarian disarmament project leader with PAX. Information comes from social media, public media accounts and satellite imagery, and is then independently verified.

    “That also means that if there’s no one there to record it … we’re not seeing it,” he said. “It’s such a big country, so there’s fighting in so many locations, and undoubtedly, we are missing things.”

    After the conflict is over, the data could also help identify “what is needed in terms of cleanup, remediation and restoration of affected areas,” Zwijnenburg said.

    Rebuilding green

    While some conservation projects — such as rewilding of the Danube delta — have continued despite the war, most environmental protection work has halted.

    “It is very difficult to talk about saving other species if the people who are supposed to do it are in danger,” said Oksana Omelchuk, environmental expert with the Ukrainian NGO EcoAction.

    That’s unlikely to change in the near future, she added, pointing out that the environment is littered with mines.

    Agricultural land is particularly affected, blocking farmers from using fields and contaminating the soil, according to Zwijnenburg. That “might have an impact on food security” in the long run, he said.

    When it comes to de-mining efforts, residential areas will receive higher priority, meaning it could take a long time to make natural areas safe again.

    The delay will “[hinder] the implementation of any projects for the restoration and conservation of species,” according to Omelchuk.

    And, of course, fully restoring Ukraine’s nature won’t be possible until “Russian troops leave the territory” she said.

    Meanwhile, Kyiv is banking that the legal case it is building against Moscow will become a potential source of financing for rebuilding the country and bringing its scarred landscape and ecosystems back to health.

    It is also tapping into EU coffers. In a move intended to help the country restore its environment following Russia’s invasion, Ukraine in June became the first non-EU country to join the LIFE program, the EU’s funding instrument for environment and climate.

    Earlier this month, Environment Commissioner Virginijus Sinkevičius announced a €7 million scheme — dubbed the Phoenix Initiative — to help Ukrainian cities rebuild greener and to connect Ukrainian cities with EU counterparts that can share expertise on achieving climate neutrality.

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    Louise Guillot, Antonia Zimmermann and Giovanna Coi

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  • Can Putin win?

    Can Putin win?

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    “I am wicked and scary with claws and teeth,” Vladimir Putin reportedly warned David Cameron when the then-British prime minister pressed him about the use of chemical weapons by Russia’s ally in Syria, Bashar al-Assad, and discussed how far Russia was prepared to go.

    According to Cameron’s top foreign policy adviser John Casson — cited in a BBC documentary — Putin went on to explain that to succeed in Syria, one would have to use barbaric methods, as the U.S. did in Abu Ghraib jail in Iraq. “I am an ex-KGB man,” he expounded. 

    The remarks were meant, apparently, half in jest but, as ever with Russia’s leader, the menace was clear. 

    And certainly, Putin has proven he is ready to deploy fear as a weapon in his attempt to subjugate a defiant Ukraine. His troops have targeted civilians and have resorted to torture and rape. But victory has eluded him.

    In the next few weeks, he looks set to try to reverse his military failures with a late-winter offensive: very possibly by being even scarier, and fighting tooth and claw, to save Russia — and himself — from further humiliation. 

    Can the ex-KGB man succeed, however? Can Russia still win the war of Putin’s choice against Ukraine in the face of heroic and united resistance from the Ukrainians?  

    Catalog of errors

    From the start, the war was marked by misjudgments and erroneous calculations. Putin and his generals underestimated Ukrainian resistance, overrated the abilities of their own forces, and failed to foresee the scale of military and economic support Ukraine would receive from the United States and European nations.

    Kyiv didn’t fall in a matter of days — as planned by the Kremlin — and Putin’s forces in the summer and autumn were pushed back, with Ukraine reclaiming by November more than half the territory the Russians captured in the first few weeks of the invasion. Russia has now been forced into a costly and protracted conventional war, one that’s sparked rare dissent within the country’s political-military establishment and led Kremlin infighting to spill into the open. 

    The only victory Russian forces have recorded in months came in January when the Ukrainians withdrew from the salt-mining town of Soledar in the Donetsk region of eastern Ukraine. And the signs are that the Russians are on the brink of another win with Bakhmut, just six miles southwest of Soledar, which is likely to fall into their hands shortly.

    But neither of these blood-drenched victories amounts to much more than a symbolic success despite the high casualties likely suffered by both sides. Tactically neither win is significant — and some Western officials privately say Ukraine’s President Volodymyr Zelenskyy may have been better advised to have withdrawn earlier from Soledar and from Bakhmut now, in much the same way the Russians in November beat a retreat from their militarily hopeless position at Kherson.

    For a real reversal of Russia’s military fortunes Putin will be banking in the coming weeks on his forces, replenished by mobilized reservists and conscripts, pulling off a major new offensive. Ukrainian officials expect the offensive to come in earnest sooner than spring. Ukrainian Defense Minister Oleksii Reznikov warned in press conferences in the past few days that Russia may well have as many as 500,000 troops amassed in occupied Ukraine and along the borders in reserve ready for an attack. He says it may start in earnest around this month’s first anniversary of the war on February 24.

    Other Ukrainian officials think the offensive, when it comes, will be in March — but at least before the arrival of Leopard 2 and other Western main battle tanks and infantry fighting vehicles. Zelenskyy warned Ukrainians Saturday that the country is entering a “time when the occupier throws more and more of its forces to break our defenses.”

    All eyes on Donbas

    The likely focus of the Russians will be on the Donbas region of the East. Andriy Chernyak, an official in Ukraine’s military intelligence, told the Kyiv Post that Putin had ordered his armed forces to capture all of Donetsk and Luhansk by the end of March. “We’ve observed that the Russian occupation forces are redeploying additional assault groups, units, weapons and military equipment to the east,” Chernyak said. “According to the military intelligence of Ukraine, Putin gave the order to seize all of the territories of Donetsk and Luhansk regions.” 

    Other Ukrainian officials and western military analysts suspect Russia might throw some wildcards to distract and confuse. They have their eyes on a feint coming from Belarus mimicking the northern thrust last February on Kyiv and west of the capital toward Vinnytsia. But Ukrainian defense officials estimate there are only 12,000 Russian soldiers in Belarus currently, ostensibly holding joint training exercises with the Belarusian military, hardly enough to mount a diversion.

    “A repeat assault on Kyiv makes little sense,” Michael Kofman, an American expert on the Russian Armed Forces and a fellow of the Center for a New American Security, a Washington-based think tank. “An operation to sever supply lines in the west, or to seize the nuclear powerplant by Rivne, may be more feasible, but this would require a much larger force than what Russia currently has deployed in Belarus,” he said in an analysis.

    But exactly where Russia’s main thrusts will come along the 600-kilometer-long front line in Ukraine’s Donbas region is still unclear. Western military analysts don’t expect Russia to mount a push along the whole snaking front — more likely launching a two or three-pronged assault focusing on some key villages and towns in southern Donetsk, on Kreminna and Lyman in Luhansk, and in the south in Zaporizhzhia, where there have been reports of increased buildup of troops and equipment across the border in Russia.

    In the Luhansk region, Russian forces have been removing residents near the Russian-held parts of the front line. And the region’s governor, Serhiy Haidai, believes the expulsions are aimed at clearing out possible Ukrainian spies and locals spotting for the Ukrainian artillery. “There is an active transfer of (Russian troops) to the region and they are definitely preparing for something on the eastern front,” Haidai told reporters.

    Reznikov has said he expects the Russian offensive will come from the east and the south simultaneously — from Zaporizhzhia in the south and in Donetsk and Luhansk. In the run-up to the main offensives, Russian forces have been testing five points along the front, according to Ukraine’s General Staff in a press briefing Tuesday. They said Russian troops have been regrouping on different parts of the front line and conducting attacks near Kupiansk in the Kharkiv region and Lyman, Bakhmut, Avdiivka, and Novopavlivka in eastern Donetsk.

    Combined arms warfare

    Breakthroughs, however, will likely elude the Russians if they can’t correct two major failings that have dogged their military operations so far — poor logistics and a failure to coordinate infantry, armor, artillery and air support to achieve mutually complementary effects, otherwise known as combined arms warfare.

    When announcing the appointment in January of General Valery Gerasimov — the former chief of the defense staff — as the overall commander of Russian forces in Ukraine, Russia’s defense ministry highlighted “the need to organize closer interaction between the types and arms of the troops,” in other words to improve combined arms warfare.

    Kofman assesses that Russia’s logistics problems may have largely been overcome. “There’s been a fair amount of reorganization in Russian logistics, and adaptation. I think the conversation on Russian logistical problems in general suffers from too much anecdotalism and received wisdom,” he said.

    Failing that, much will depend for Russia on how much Gerasimov has managed to train his replenished forces in combined arms warfare and on that there are huge doubts he had enough time. Kofman believes Ukrainian forces “would be better served absorbing the Russian attack and exhausting the Russian offensive potential, then taking the initiative later this spring. Having expended ammunition, better troops, and equipment it could leave Russian defense overall weaker.” He suspects the offensive “may prove underwhelming.”

    Pro-war Russian military bloggers agree. They have been clamoring for another mobilization, saying it will be necessary to power the breakouts needed to reverse Russia’s military fortunes. Former Russian intelligence officer and paramilitary commander Igor Girkin, who played a key role in Crimea’s annexation and later in the Donbas, has argued waves of call-ups will be needed to overcome Ukraine’s defenses by sheer numbers.

    And Western military analysts suspect that Ukraine and Russia are currently fielding about the same number of combat soldiers. This means General Gerasimov will need many more if he’s to achieve the three-to-one ratio military doctrines suggest necessary for an attacking force to succeed. 

    Ukrainian officials think Russia’s offensive will be in March, before the arrival of Leopard 2 and other Western tanks | Sascha Schuermann/Getty Images

    But others fear that Russia has sufficient forces, if they are concentrated, to make some “shock gains.” Richard Kemp, a former British army infantry commander, is predicting “significant Russian gains in the coming weeks. We need to be realistic about how bad things could be — otherwise the shock risks dislodging Western resolve,” he wrote. The fear being that if the Russians can make significant territorial gains in the Donbas, then it is more likely pressure from some Western allies will grow for negotiations.

    But Gerasimov’s manpower deficiencies have prompted other analysts to say that if Western resolve holds, Putin’s own caution will hamper Russia’s chances to win the war. 

    “Putin’s hesitant wartime decision-making demonstrates his desire to avoid risky decisions that could threaten his rule or international escalation — despite the fact his maximalist and unrealistic objective, the full conquest of Ukraine, likely requires the assumption of further risk to have any hope of success,” said the Institute for the Study of War in an analysis this week. 

    Wicked and scary Putin may be but, as far as ISW sees it, he “has remained reluctant to order the difficult changes to the Russian military and society that are likely necessary to salvage his war.”

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    Jamie Dettmer

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  • Royal Caribbean Beats Earnings Estimates and Signals Strong Bookings

    Royal Caribbean Beats Earnings Estimates and Signals Strong Bookings

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    Royal Caribbean Group


    did better than anticipated in the fourth quarter, turning in a narrower-than-expected loss and saying bookings were nearing record highs at higher prices.

    The stock surged more than 6% in early trading Tuesday. It is now up close to 50% so far in 2023.

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  • These 20 stocks led the January rally

    These 20 stocks led the January rally

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    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.

    This…

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  • Could Big Tech layoffs keep growing? Apple, Amazon, Facebook and Google may give hints in biggest week of earnings.

    Could Big Tech layoffs keep growing? Apple, Amazon, Facebook and Google may give hints in biggest week of earnings.

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    In the biggest week of the holiday-earnings season, Big Tech results will receive the spotlight amid thousands of layoffs that could only be the beginning.

    After tech stocks were decimated in 2022, investors will be looking for signs of a turnaround in holiday reports and potential forecasts for the year ahead from three of 2022’s top five market-value losers: Amazon.com Inc.
    AMZN,
    -0.66%
    ,
    Apple Inc.
    AAPL,
    -0.63%

    and Meta Platforms Inc.
    META,
    -0.60%
    .
    The other two stocks on that list — Microsoft Corp.
    MSFT,
    -1.38%

    and Tesla Inc.
    TSLA,
    -0.15%

    — reported last week, and Microsoft’s results in the wake of a mass-layoffs announcement did not bode well for its Big Tech brethren.

    See also: Microsoft could be the cloud sector’s ‘canary in the coal mine’

    Those companies — along with Google parent Alphabet Inc.
    GOOGL,
    -1.32%

    GOOG,
    -1.49%

    — will deliver results after finding themselves in unfamiliar territory: A backdrop of layoffs amid slowing demand for core products like digital ads, electronics and e-commerce, after a two-year pandemic surge and a two-decade-plus honeymoon with investors. Some analysts say the bottom hasn’t arrived, for either their finances or their workforces.

    The one Big Tech company that hasn’t taken a sword to its payroll is Apple, which also increased its staff the least among the group during the COVID-19 pandemic. Apple shed $846 billion from its market cap last year, and now reports after its core product was part of the smartphone industry’s worst year since 2013 and worst holiday-season decline on record. The iPhone maker could also face questions from Wall Street about changing up its product sourcing, which has relied heavily on China, a nation whose COVID-19 restrictions have constrained production of some phones.

    While the tech-industry layoffs have yet to hit Apple, some analysts say the company is unlikely to be spared, despite Chief Executive Tim Cook requesting and receiving a healthy cut to his compensation.

    “Similar to other big technology companies, we expect Apple to adjust its head count to reflect an increasingly challenging global macroeconomic environment,” D.A. Davidson analyst Tom Forte said in a research note Tuesday.

    Rivals that have already cut could face more if profit continues to fall along with revenue growth. Alphabet, for instance, is cutting 12,000 employees, but an activist investor has already said that is not enough considering how much the company grew during the pandemic, and the difficulties it now faces in the online-ad sector.

    Opinion: Microsoft’s big move in AI does not mean it will challenge Google in search

    Analysts have said Meta’s “darkest days” are still ahead, as it navigates a round of more than 11,000 layoffs, competition from TikTok and its early stumbles in the metaverse. While cutting, Chief Executive Mark Zuckerberg has promised to keep spending on metaverse development, even as the efforts slash the Facebook parent company’s previously healthy bottom line.

    “In 2023, we expect Meta to remain engulfed in arduous battles inside the Octagon,” Monness Crespi Hardt analyst Brian White said in a research note on Thursday. “In the long run, we believe Meta will benefit from the secular digital ad trend and innovate in the metaverse; however, regulatory scrutiny persists, internal headwinds remain, and we believe the darkest days of this downturn are ahead of us.”

    Full Facebook earnings preview: Meta’s ‘darkest days’ are ahead, but some analysts say ad sales are still on track

    Online retailer Amazon
    AMZN,
    -0.66%

    was the first Big Tech company to publicly declare cost-cutting was in order a year ago, and still coughed up $834 billion in market value in 2022. It kicked off 2023 with plans to lay off more than 18,000 workers as struggles continued throughout last year, when inflation siphoned away more consumer dollars toward essentials.

    Amazon’s own AWS cloud-infrastructure unit has helped to drive sales in years past, as businesses built out their tech infrastructures. But remarks and the outlook from Microsoft executives — the third-biggest market-cap loser of 2022, and a big barometer for tech spending overall — weren’t exactly encouraging for cloud growth: Executives there last week warned of “moderating consumption growth” for its own cloud business.

    For more: One company could determine whether U.S. corporate profits rise to a record in 2023

    “Sentiment was already bearish on AWS, with investors looking for slowing revenue over the next three quarters, largely confirmed after Microsoft earnings and conversations with industry checks,” Oppenheimer analyst Jason Helfstein said in a note on Wednesday. “Positively, we believe e-commerce revenue has stabilized, and margins should improve from organic scale and announced head-count reductions.”

    Layoffs are also starting to spread beyond Big Tech companies that grew fast during the pandemic in response to massive demand spikes. International Business Machines Corp.
    IBM,
    +0.76%

    confirmed plans for 3,900 layoffs as it reported earnings, despite already reducing its workforce by at least 20% during the pandemic.

    One sector to watch is semiconductors, where a chip shortage has turned into a glut: Chip-equipment maker Lam Research Corp.
    LRCX,
    +0.04%

    announced layoffs in the past week as Silicon Valley semiconductor giant Intel Corp.
    INTC,
    +0.27%

    displayed “astonishingly bad” results while laying off workers. When Intel rival Advanced Micro Devices Inc.
    AMD,
    -1.64%

    reports this week, it could determine whether there is any silver lining in the semiconductor storm.

    Earnings preview: AMD faces even more scrutiny after ‘astonishingly bad’ Intel outlook

    Wedbush analyst Daniel Ives said in a Sunday note that a common theme of this week’s Big Tech earnings will be that “tech layoffs will accelerate with more pain ahead to curb expenses,” though he added that “Apple will likely cut some costs around the edges, but we do not expect mass layoffs from Cupertino this week.”

    Big Tech earnings were a salve to other problems in the market for the past decade-plus, but with layoffs already under way and doubts about the path forward, don’t expect salvation from their results this week.

    This week in earnings

    For the week ahead, 107 S&P 500
    SPX,
    -0.19%

    companies, including six members of the Dow Jones Industrial Average
    DJIA,
    +0.18%
    ,
    will report results, according to FactSet. While more Dow components reported last week, this will be the busiest week for S&P 500 holiday earnings of the season, FactSet senior earnings analyst John Butters confirmed to MarketWatch.

    Appliance-maker Whirlpool Corp.
    WHR,
    +1.18%

    reports on Monday, after it forecast fourth-quarter sales that were below expectations, following what it called a “one-off supply-chain disruption” and the pandemic home-renovation boom.

    On Tuesday, package-deliverer United Parcel Service Inc.
    UPS,
    -0.26%

    reports, amid questions about holiday-season demand. So does streaming service Spotify Technology,
    SPOT,
    -0.02%

    following its own layoffs and suggestions of possible price hikes, as well as McDonald’s Corp.
    MCD,
    -0.30%
    ,
    amid concerns that rising prices are keeping people from dining out. Exxon Mobil Corp.
    XOM,
    -0.99%
    ,
    Caterpillar Inc.
    CAT,
    -0.12%
    ,
    Snap Inc.
    SNAP,
    +0.64%

    and Pfizer Inc.
    PFE,
    +0.72%

    also report Tuesday.

    Earnings outlook: McDonald’s earnings haven’t been hit by higher prices

    On Wednesday, T-Mobile US Inc.
    TMUS,
    +0.23%

    reports, in the wake of a data breach and wobbling cellphone demand. Coffee chain Starbucks Corp.
    SBUX,
    -0.58%

    reports on Thursday, with analysts likely to be zeroed in on U.S. demand and China’s reopening, after executives said they were confident that higher prices, along with enthusiasm from younger customers and for customizable drinks, could help them navigate any potholes in the economy.

    For the Big Tech companies, Thursday is also the big day: Apple, Amazon and Alphabet will report that afternoon, after Meta reports the prior day.

    The calls to put on your calendar

    WWE upheaval: World Wrestling Entertainment Inc.
    WWE,
    +0.91%

    reports earnings on Thursday, as Vince McMahon — who returned to the professional-wrestling organization this month following allegations of sexual misconduct — seeks a buyer or some other so-called “strategic alternative” for the company.

    Analysts have speculated how the company’s wrestling events and backlog of media content might be repurposed, with some entertaining the possibility of interest from Amazon or Netflix Inc.
    NFLX,
    -0.39%
    .
    But WWE has struggled to develop story lines that stick with viewers, and has thinned its ranks of wrestlers.

    The Wall Street Journal this month reported that McMahon would pay a multimillion-dollar settlement to a former referee who accused him of raping her. Among the changes since McMahon returned was the departure of his daughter, who had been promoted to co-CEO after he stepped down from the role last year.

    There isn’t much clarity on whether Vince McMahon will be on Thursday’s earnings call, which was moved from the morning to the afternoon due to a scheduling conflict. But it should offer drama no matter who attends.

    The numbers to watch

    GM and Ford auto sales: Auto makers General Motors Co.
    GM,
    -2.00%

    and Ford Motor Co.
    F,
    -0.94%

    will issue results on Tuesday and Thursday respectively, amid signs of waning demand and rising interest rates that have made car loans more expensive. Despite falling new-vehicle sales in the third quarter, GM managed to keep its own sales higher, the AP noted.

    Mary Barry, GM’s chief executive, called out the popularity of vehicles like the Escalade, the Chevrolet Bolt EV and some pickups and SUVs during the auto maker’s third-quarter earnings call in October. During that quarter, GM said it completed and shipped nearly 75% of the unfinished vehicles held in its inventory in June. She said supply-chains were opening up again, but added that “short-term disruptions will continue to happen.”

    The auto makers report as they try to put a chip shortage and other production constraints behind them. But some forecasts call for 2022 auto sales, or sales volumes, to be the weakest in roughly a decade. Electric vehicle maker Tesla’s recent price cuts could also cut into GM’s and Ford’s own EV sales.

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  • Intel stock drops nearly 10% after earnings miss, execs predict quarterly loss as data-center market shrinks

    Intel stock drops nearly 10% after earnings miss, execs predict quarterly loss as data-center market shrinks

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    Intel Corp. shares dropped more than 9% in the extended session Thursday after the chip maker reported a big miss for the fourth quarter, forecast a loss for the first quarter, said the data-center market was contracting and that inventory digestion will gnaw at margins.

    Intel
    INTC,
    +1.31%

    executives forecast an adjusted loss of 15 cents a share on revenue of about $10.5 billion to $11.5 billion and adjusted gross margins of about 39% for the current quarter. Analysts surveyed by FactSet had estimated adjusted first-quarter earnings of 25 cents a share on revenue of $13.93 billion.

    Chief Executive Pat Gelsinger told analysts on a conference call he would not provide a 2023 forecast. Gelsinger restricted the outlook to the current quarter, citing macro uncertainties, a digestion of PC inventory that was “difficult” to forecast and a contracting data-center market. In the fourth quarter, AI group sales dropped 33% to $4.3 billion, while the Street expected revenue of $4.08 billion.

    “We expect Q1 server consumption [total addressable market] to decline both sequentially and year-over-year at an accelerated rate, with first-half 2023 server consumption TAM down year-on-year before returning to growth in the second half,” Gelsinger said.

    Chief Financial Officer David Zinsner told analysts that the company will institute an accounting change in the first quarter, where Intel will extend the useful life of their machinery to eight years from a current five years. Gelsinger said that Intel was going to “squeeze” its effective capacity.

    While Zinsner would not give a full-year outlook, he did say that continued inventory digestion should be weighted to the first half of the year.

    Pressed on how Intel could get back to the 51% to 53% margins range he promised a year ago, Zinsner said a “significant inventory burn” on PC inventory would hit gross margins by 400 basis points in the first quarter. Gross margins for the fourth quarter dropped to 43.8% from 55.8% a year ago, and from 45.9% in the third quarter.

    Intel reported a fourth-quarter loss of $664 million, or 16 cents a share, versus net income of $4.62 billion, or $1.13 a share, in the year-ago period. After adjusting for restructuring charges and other items, Intel reported earnings of 10 cents a share, compared with $1.13 a share from a year ago.

    Revenue declined to $14.04 billion from $20.52 billion in the year-ago quarter, for a 10th straight quarter of year-over-year declines.

    Analysts surveyed by FactSet estimated earnings of 21 cents a share on revenue of $14.49 billion, based on Intel’s forecast of 20 cents a share on about $14 billion to $15 billion.

    Intel shares fell 9% in after-hours trading, after closing the regular session up 1.3% at $30.09. Other chip stocks also declined, including top rival Advanced Micro Devices Inc.
    AMD,
    +0.33%
    ,
    which saw shares drop more than 3% in after-hours trading, and Nvidia Corp.
    NVDA,
    +2.48%
    ,
    which declined 2%.

    Breaking down divisions: Client-computing sales fell 36% to $6.6 billion from a year ago; “network and edge” sales slipped 1% to $2.1 billion; and foundry services revenue rose 30% to $319 million.

    Analysts surveyed by FactSet expected revenue from client computing to come in at $7.36 billion; “network and edge” revenue of $2.23 billion; and foundry services revenue of $199.1 million.

    Over the past 12 months, Intel stock has fallen 43%. Over the same period, the Dow Jones Industrial Average 
    DJIA,
    +0.61%

     — which counts Intel as a component — has slipped 1%, the PHLX Semiconductor Index 
    SOX,
    +1.63%

     has dropped 13%, the S&P 500 index 
    SPX,
    +1.10%

     has declined 7%, and the tech-heavy Nasdaq Composite Index 
    COMP,
    +6.59%

     has dropped 15%.

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  • Dow to cut 2,000 jobs, to record charges of up to $725 million primarily for severance and benefits costs

    Dow to cut 2,000 jobs, to record charges of up to $725 million primarily for severance and benefits costs

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    Dow Inc. DOW followed up its downbeat fourth-quarter earnings report with another release saying it would cut 2,000 jobs as part of its $1 billion cost-cutting plan. The cuts represent about 5.6% of the chemicals and specialty materials company’s workforce, according to FactSet data. Dow said it will also shut down select assets as it evaluates its global asset base, particularly in Europe. The company said it will record a charge of $550 million to $725 million in the first quarter of 2023 for costs resulting from its cost-cutting actions, which primarily include severance and benefit costs. Earlier, the company reported…

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  • Russia-Ukraine war leaves Doomsday Clock closest to ‘crisis’ hour of midnight in report’s 76-year history

    Russia-Ukraine war leaves Doomsday Clock closest to ‘crisis’ hour of midnight in report’s 76-year history

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    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.”

    The…

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