TOP NEWS TODAY - Dow Jones & Company

[Pages:12]Thursday, December 23, 2021

Web Version

TOP NEWS TODAY

News and Insight from Dow Jones and The Wall Street Journal.

THE NUMBERS

DJIA S&P 500 NASDAQ EUR/US Gold NYMEX Crude US 10-Year Note

Powered by Dow Jones Research, FactSet, Eurostat.

35,950.56 4,725.79

15,653.37 $1.1328

$1,810.00 $73.79 1.50

Change 196.67 29.23 131.48

$0.0002 $7.80 $1.03 0.04

MARKET WRAPS

STOCKS: U.S. stock indexes rose after mixed economic data. Growth in durable-goods orders and consumer spending slowed, but labor-market data remained robust.

TREASURYS: U.S. Treasury yields rose to the highest level in weeks on Thursday, while also posting gains for the shortened holiday week, after a gauge of U.S. inflation jumped in November and weekly jobless benefit claims came in unchanged at 205,000.

FOREX: The U.S. dollar ticked down against a basket of other currencies, as traders hedged their bets on the outlook for interest rates.

COMMODITIES: Oil futures rose for a third straight session, with the U.S. benchmark ending a holiday-shortened week at a one-month high as worries over the effect of the Omicron variant's effect on demand faded.

HEADLINES

FDA Authorizes Merck's Covid-19 Pill for At-Home Treatment

U.S. regulators cleared use of a Covid-19 pill from Merck & Co. and partner Ridgeback Biotherapeutics LP, the latest easy-to-use therapy that infected people can take to keep out of the hospital.

The authorization by the U.S. Food and Drug Administration permits doctors to prescribe the drug, called molnupiravir, to adults at high risk of severe disease shortly after they develop mild to moderate symptoms.

The FDA recommended using the Merck drug only if other authorized drugs aren't available and medically appropriate. Health experts have raised safety concerns about the Merck drug, which also was less effective in testing than an antiviral from Pfizer Inc. On Wednesday, the FDA cleared the Pfizer pill, Paxlovid, also for people to take at home to try to stay out of the hospital.

Read More #

Omicron Starts to Slow U.S. Economy as Consumer Spending Flags

Signs are mounting that the U.S. economy is losing some steam as the Omicron variant of the Covid-19 virus spreads rapidly through parts of the country.

The number of diners seated at restaurants nationwide was down 15% in the week ended Dec. 22 from the same period in 2019, a steeper decline than in late November, data from reservations site OpenTable show. U.S. hotel occupancy was at 53.8% for the week ended Dec. 18, slightly below the previous week's level, according to STR, a global hospitality data and analytics company.

Rising case numbers are leading many businesses to close for a short period, entertainment venues to cancel shows, universities to shift classes online and offices to delay or reverse reopening plans.

Read More #

Amazon Reaches Federal Settlement Allowing Workers More Leeway to Organize

 Inc. has reached a settlement with the National Labor Relations Board to make it easier for its employees to organize at work, a step that comes as its workers in some areas continue to push for unionization.

Under the agreement, which was approved by both parties Wednesday, Amazon will notify past and current warehouse staff of their rights to organize in its buildings via email and other internal communications. The settlement also would allow the NLRB to more quickly hold Amazon accountable should it violate the terms of the agreement, according to the federal agency.

A representative for Amazon didn't immediately respond to a request for comment on the settlement. The company has previously said that it recognizes the right of its workers to unionize but believes it isn't necessary due to the pay and benefits it provides.

Read More #

Jobless Claims Hold Near Historic Lows, Showing Labor Market Remains Tight

Worker filings for unemployment benefits hovered at the lowest level in more than half a century last week as a strong labor market kept layoffs low, despite rising concerns about the rapid spread of the Omicron variant.

Initial jobless claims, a proxy for layoffs, were unchanged at 205,000 in the week ended Dec. 18, the Labor Department said Thursday. Read More #

Exxon Mobil Fire at Baytown, Texas, Refinery Injures Four

An industrial accident at an Exxon Mobil Corp. plant in Texas left several people injured Thursday morning, lawenforcement officials said.

A fire, possibly the result of an explosion, occurred at a plant in Baytown, Texas, about 25 miles east of Houston, leaving at least four people injured. Three were airlifted to the hospital, the Harris County Sheriff's Office said.

No fatalities were reported, and a shelter-in-place order wasn't issued, police said. The sheriff's office described the scene as "a major industrial accident." Read More #

U.S. core durable-goods orders cool in November after rising for 8 months

The numbers: Orders for durable goods increased 2.5% in November, the U.S. Commerce Department said Thursday. Economists had forecast a 1.5% gain in orders for durable goods, which are products made to last at least three years. Orders for October were revised up to a 0.4% gain from the prior estimate of a 0.4% decline. Read More #

Tesla to Restrict In-Car Gaming Following Federal Probe

Tesla Inc. is disabling a feature that allowed people, including the driver, to play games on a touch screen with the vehicle in motion, according to the top U.S. auto safety regulator. The reversal comes after the National Highway Traffic Safety Administration launched an investigation into the feature earlier this week. Tesla didn't immediately respond to a request for comment. Write to Rebecca Elliott at rebecca.elliott@ Read More #

Elon Musk's Share-Selling Spree Tops $15 Billion

Elon Musk on Wednesday unloaded more Tesla Inc. stock, bringing the total value of his share sales to more than $15 billion since the billionaire last month began a string of such transactions.

The sales came as Mr. Musk exercised more than 2.1 million Tesla stock options, according to regulatory filings late Wednesday. He sold more than 934,000 of the shares in the company he runs, valued at around $928.6 million, to cover tax withholdings, the disclosures state.

The latest transactions are part of a plan Mr. Musk set on Sept. 14 to exercise options and sell shares. The options he's exercised are part of a tranche of around 23 million vested stock options set to expire in August 2022. He has exercised about 21.3 million of those options.

Read More #

Citigroup Continues Consumer-Banking Pullback With Philippine Sale

Citigroup Inc. agreed to sell its consumer-banking business in the Philippines to a local lender, pressing ahead with its strategy to exit most of its retail operations in Asia and switch gears to grow in wealth management.

On Thursday, the New York-based bank said it would sell its consumer franchise in the Southeast Asian country to Union Bank of the Philippines. The buyer will pay a premium equivalent to $908 million, plus a cash consideration for the net assets transferred.

The sale includes personal loans, retail deposits, Citi's local wealth-management business and the country's third-largest credit-card operation, as well as several bank branches and outlets where it serves wealth-management clients. The two companies expect the deal to close in the second half of 2022, subject to regulatory approvals.

Read More #

Griddle Maker Blackstone Products to Go Public in $780 Million SPAC Deal

Blackstone Products is merging with a special-purpose acquisition company to go public in a combination that values the griddle maker at roughly $780 million, the companies said.

The deal adds to a wave of investment activity for makers of outdoor cooking equipment, with more consumers preparing food at home during the coronavirus pandemic. Well-known grill makers Weber Inc. and Traeger Inc. went public through traditional initial public offerings earlier this year, as did Solo Brands Inc., owner of the popular Solo Stove outdoor fire-pit brand.

Blackstone Products is combining with Ackrell SPAC Partners I Co., a blank-check company focused on the consumer-goods sector.

Read More #

Trump Asks Supreme Court to Shield Documents From House Panel on Jan. 6

After two setbacks in the lower courts, former President Donald Trump on Thursday asked the Supreme Court to block the House committee investigating the Jan. 6 assault by Trump supporters on the U.S. Capitol from accessing presidential records from his time in office.

Attorneys representing Mr. Trump also asked the court for an emergency order stopping the Biden administration from turning over the records, which could happen in the coming days if the Supreme Court declines to act. Mr. Trump's legal team said the issue of access to a former president's confidential records raised serious concerns about separation of powers and executive privilege and urged the court to take up the matter.

"The congressional request is untethered from any valid legislative purpose and exceeds the authority of Congress," Mr. Trump's lawyers wrote in a petition to the court.

Read More #

TALKING POINTS

Freight Backlog Causes Chaos At O'Hare

By Doug Carmeron

Cargo flights provided a solution this year for producers of consumer electronics, machine parts and toys that struggled to move goods along rails and through ports. Then the airports got clogged.

Labor shortages at air-cargo hubs like Chicago O'Hare International Airport during the fall have disrupted operations for the ground-handling companies that unload planes, and left goods piling up. Airlines, handlers and freight companies said they are working to speed up loading and security checks, tapping warehouse robots and trained sniffer dogs.

O'Hare, America's fifth-busiest airfreight hub by volume, has been the U.S. focus for cargo pileup problems during the fall, said handling and airline executives. A shortage of staff to unload planes and sort shipments, as well as drivers to move them away, left goods spilling into airport staff parking lots.

"We had cargo sitting for weeks at the warehouses," said Warren Jones, vice president of business development at closely held Alliance Ground International, O'Hare's biggest cargo handler. Alliance, which typically handles 250 flights a week in Chicago during the fall peak season, turned down almost 50 flights in October and November so it could deal with existing clients.

The labor crunch has upset the rhythm of an air cargo industry that carries 30% of the world' s trade by value, according to the International Air Transport Association. Cargo executives said shortages have eased in recent weeks, especially after supplementary unemployment benefits ended in September. Labor issues haven't intensified with the latest infection surge caused by the Omicron variant of Covid-19, said handling executives.

Global trade data show the logjams' ripple effect during what is traditionally the busiest period for airfreight ahead of the holiday shopping season. Air cargo shipments typically increase in the second half of the year, with the final quarter generating almost 30% of annual industry revenue, according to IATA, a trade group.

While business traditionally grows each month in the final quarter of the year, air cargo volume dropped 1.2% last month and planes flew less full, according to Clive Data Services, an Amsterdam-based consultant.

"The volumes in November were less than in October, which in any given year is quite remarkable," said Niall van de Wouw, Clive's managing director.

Mr. van de Wouw said planes were leaving airports in Asia without full loads because of insufficient staff to pack them and then unload at hubs. Chinese airports were hit by Covid19 restrictions, while airports in Los Angeles, New York and Amsterdam suffered staff shortages, with pallets and containers waiting on the tarmac, according to Mr. van de Wouw.

Many cargo flights depart and arrive at night, Mr. van de Wouw said, and the time pressure created by longstanding airport curfews to avoid local noise restrictions exacerbated the problems.

Industry executives said the worst of the logjams are being addressed, with ground-handling companies and airports using their own trucks to move goods from warehouses. Some have asked customers like manufacturers to fill pallets used to carry cargo on board with single types of goods, so they don't have to be broken down and repacked at the airport.

While those remedies have provided temporary relief, they are inefficient and push the problems down the supply chain, said Robert Fordree, executive vice president for cargo at U.K.-based John Menzies PLC, one of the world's biggest ground handlers. Using its own drivers to ferry goods from airports left Menzies short elsewhere, Mr. Fordree said, and

pallets have to be broken down eventually, so that goods can be sorted to their end destination.

Menzies and other cargo handlers said they raised warehouse storage rates in an effort to encourage freight forwarders, which arrange trucking for retailers and manufacturers, to pick up goods more quickly. Globally, the company's cargo volume this year is running 15% above 2019 levels, and analysts expect profits to more than double this year from 2020.

O'Hare responded to the freight backlog by opening Terminal 5, normally reserved for international passenger service, to also handle cargo-only flights. The Chicago Department of Aviation said the terminal has now reverted to passenger-only flights, but it also created a dedicated office to process security and customs clearances for new cargo-handling staff, which involve extensive background checks.

Alliance, the cargo handler, said the office has helped cut the processing time for new hires by more than a third to 60 days.

With airport warehouses full, handlers have snapped up nearby space. Alliance in the summer invested $17 million in a 253,000-square-foot facility near O'Hare to sort imported cargo before handing it off to freight forwarders.

Omicron Response Hints At Endemic Status For Covid-19

By Brianna Abbott and Daniela Hernandez

The Omicron variant's aggressive advance is the latest twist in the course of a disease that public-health experts say is on a path toward becoming endemic in the U.S.

In other words, the Covid-19 pandemic won't have an end date. Rather, a crisis that engulfed the world within months of the coronavirus's discovery in China will dissipate in fits and starts into something that feels more like normal over the course of years, infectious-disease experts say.

"I don't think there's going to be a day where the whole thing feels over," said Joshua Schiffer, an associate professor in the vaccine and infectious disease division at Fred Hutchinson Cancer Research Center.

How quickly an endemic, steady-state arrives and how disruptive the virus remains will depend on what level of disease officials and individuals decide to tolerate, the precautions they are willing to adopt, and how the virus evolves.

"It's a tug of war between society and the virus," said Peter Chin-Hong, an infectious-disease specialist at the University of California, San Francisco.

Omicron shows how vulnerable society remains, even in countries with relatively high levels of population immunity. The variant accounted for 73% of new U.S. infections in the week through Dec. 18, Centers for Disease Control and Prevention estimates show, up from 13% the week before. Hospitalizations and deaths were already rising in the U.S. before Omicron was identified, and officials have said they expect its rapid spread to further strain the healthcare system.

With a new wave rising, people and institutions are making decisions that reflect changing attitudes toward the threat that Covid-19 represents. The Biden administration is preparing to

 ................
................

In order to avoid copyright disputes, this page is only a partial summary.

Google Online Preview   Download