Connect with us

Stock Markets

Biden presses companies on infant formula, FDA eyes more imports

Published

on

4/4

© Reuters. FILE PHOTO: Empty shelves show a shortage of baby formula at CVS in San Antonio, Texas, U.S. May 10, 2022. REUTERS/Kaylee Greenlee Beal/File Photo

2/4

By Jeff Mason and Susan Heavey

WASHINGTON (Reuters) -U.S. President Joe Biden met on Thursday with executives from infant formula manufacturers and retailers including Target , Walmart (NYSE:WMT) and Nestle’s Gerber, pressing them to beef up tight supplies and do everything possible to get families access.

The White House also outlined measures the administration is taking.

The U.S. Food & Drug Administration (FDA) will announce new steps in the coming days regarding importing certain infant formula products from abroad, the White House said, and Biden has asked the Federal Trade Commission (FTC) to probe reports of predatory conduct such as price gouging.

During his meeting with the executives, Biden discussed efforts to increase production and urged companies to “do more to help families purchase infant formula,” White House spokesperson Jen Psaki said.

“What we are seeing, which is an enormous problem, is hoarding,” Psaki said. “That is also something we’re focused on.”

Tight supplies of formula dwindled further after Abbott Laboratories (NYSE:ABT) in February recalled Similac and other baby formula made at its Michigan plant following consumer complaints of bacteria contamination. The FDA later cited five bacterial infections reported in babies given the company’s formula, including two deaths.

Abbott, the biggest U.S. supplier of milk formula, said tests showed one bacteria strain found in the facility was not linked to any known infant illnesses, although it was updating its cleaning and related protocols.

The plant’s closure exacerbated pandemic-related supply chain issues causing formula shortages the FDA has said it is working to address.

Other major formula producers include Reckitt Benckiser and Nestle SA (SIX:NESN).

Several retailers, including Target Corp (NYSE:TGT), CVS Health Corp (NYSE:CVS) and Walgreens Boots Alliance (NASDAQ:WBA), have limited formula purchases until supplies improve to prevent hoarding. New York Attorney General Letitia James also has warned against price gouging.

U.S. House lawmakers plan a hearing on the matter on May 25. [L2N2X322B]

House Speaker Nancy Pelosi told reporters lawmakers want to ensure it does not happen again, “but right now the baby’s crying, the baby’s hungry and we need to address the situation right now.”

Last month, House Appropriations Committee Chairwoman Rosa DeLauro sought a Department of Health and Human Services probe, citing a whistleblower report from October 2021.

On Thursday, House Republicans criticized the Biden administration, saying a plan should have been in place to address the shortages sooner.

Abbott said it could restart production in Sturgis, Michigan, within two weeks of FDA approval, adding it is prioritizing production at its Columbus, Ohio, facility and air-shipping formula from its Ireland plant.

The company announced the recall on Feb. 17.

On Feb. 28, the FDA warned of Cronobacter sakazakii and Salmonella Newport infections in babies fed with formula produced at the Michigan plant. FDA finished inspecting that facility on March 18, and the company responded on April 8, Abbott said.

Stock Markets

Dow Futures Tick Lower After Wall Street Sell-off Intensifies

Published

on


© Reuters.

By Oliver Gray 

Investing.com – U.S. stock futures were trading lower during Wednesday’s evening deals, after major benchmark averages finished the regular session sharply lower, with the Dow Jones Industrial Average posting its biggest loss since 2020 after retail earnings indicated rising inflation pressures weighing on corporate profits.

By 6:42pm ET (10:42pm GMT) Dow Jones Futures and S&P 500 Futures were each trading 0.1% lower while Nasdaq 100 Futures fell 0.2%.

In extended deals, Cisco Systems Inc (NASDAQ:CSCO) dipped 12.9% after results as the as the company forecasted a surprising decline in revenue for the current quarter. Q3 EPS came in at 87 cents versus 86 cents expected while revenue came in at $12.8 billion versus estimates of $13.34 billion.

Bath & Body Works Inc. (NYSE:BBWI) fell 6% after reporting, as the company forecasted lower-than-expected second-quarter earnings. Q1 EPS of 64 cents versus 53 cents expected on revenues of $1.45 billion versus $1.44 billion expected.

Synopsys Inc (NASDAQ:SNPS) gained 3.5% as the company reported Q2 EPS of $2.50 versus $2.37 expected on revenues of $1.28 billion versus estimates of $1.26 billion.

During Wednesday’s regular trade, the Dow Jones Industrial Average shed 1,164.52 points, or 3.57%, to close at 14-month lows of 31,490.07 and posting its largest daily losses since June 2020. The S&P 500 traded 4.04% lower to 3,923.68 while the NASDAQ Composite dropped 4.73% to 11,418.15.

Among stocks, Target Corporation (NYSE:TGT) shares tumbled 24.9% Wednesday after the retailer reported first-quarter earnings that were much lower than Wall Street estimated due to rising costs for fuel and compensation.

Major tech companies were also hit amid the sell-off with Block Inc (NYSE:SQ) down 3.2%, Amazon.com Inc (NASDAQ:AMZN) falling 7.2%, Microsoft Corporation (NASDAQ:MSFT) dipping 4.8% and Apple Inc (NASDAQ:AAPL) down 5.6%.

On the bond markets, United States 10-Year rates were at 2.884%.

Continue Reading

Stock Markets

New York Times pauses return to office for workers

Published

on


© Reuters. FILE PHOTO: The New York Times building is seen in Manhattan, New York, U.S., August 3, 2020. REUTERS/Shannon Stapleton

(Reuters) – The New York Times Co said on Wednesday it is pausing its plan to ask employees to return to office as COVID-19 cases rise in the United States.

Employees of the company, headquartered in New York City, were previously set to return to office in June.

The United States is averaging nearly 97,000 new cases a day, up from about 73,000 a week ago, according to a Reuters tally, with New York City raising its COVID-19 alert level to high on Tuesday.

“Based on the city’s guidance and the advice of our health experts, we are pausing the start of our Expected Phase of return to office until conditions improve,” the company said in a note sent to its staff.

The company also said it strongly recommends that employees wear masks in common areas at its facilities, including elevators, meeting rooms, restrooms and pantries, where social distancing is not possible

Continue Reading

Stock Markets

Hedge fund Melvin Capital tells investors it plans to shut down -letter

Published

on

2/2

© Reuters. FILE PHOTO: A Wall Street sign is pictured outside the New York Stock Exchange in New York, October 28, 2013. REUTERS/Carlo Allegri

2/2

By Svea Herbst-Bayliss

(Reuters) – Hedge fund manager Gabe Plotkin, who boasted one of Wall Street’s best investing records, on Wednesday told investors that he is shutting down his firm, Melvin Capital, after it suffered billions of dollars in losses.

“The appropriate next step is to wind down the Funds by fully liquidating the Funds’ assets and accounts and returning cash to all investors,” Plotkin wrote in a letter reviewed by Reuters on Wednesday.

Melvin Capital had $7.8 billion in assets at the end of April and the fund had lost 23% since January, a person familiar with the fund’s finances said.

This year’s losses come on the heels of steep losses in 2021 when Melvin Capital ended the year down 39%. The firm bet that shares of GameStop (NYSE:GME) would tumble but was battered when retail investors took the other side and sent the stock surging.

The firm had $12.5 billion in assets at the start of 2021.

In the letter Plotkin said he had already raised a substantial amount of cash and cut the funds’ exposure.

A spokesman for Plotkin declined to comment.

At the end of the first quarter Melvin’s biggest investments included bets on Live Nation Entertainment (NYSE:LYV), Hilton Worldwide Holdings (NYSE:HLT), Amazon (NASDAQ:AMZN) and Datadog (NASDAQ:DDOG). Their stock prices have fallen sharply in the last weeks, sparking speculation that a hedge fund might be trying to unwind positions.

Plotkin was a star investor at Steven A. Cohen’s hedge fund SAC Capital Advisors and launched his own firm after SAC pleaded guilty to criminal insider trading charges. Melvin Capital quickly attracted attention and powerful investors and ended 2020, the year the pandemic began, with gains of 52.5%.

Continue Reading

News

Stock Markets4 mins ago

Dow Futures Tick Lower After Wall Street Sell-off Intensifies

© Reuters. By Oliver Gray  Investing.com – U.S. stock futures were trading lower during Wednesday’s evening deals, after major benchmark...

World4 mins ago

Biden presses companies on infant formula, FDA eyes more imports

4/4 © Reuters. FILE PHOTO: Empty shelves show a shortage of baby formula at CVS in San Antonio, Texas, U.S....

Stock Markets4 mins ago

New York Times pauses return to office for workers

© Reuters. FILE PHOTO: The New York Times building is seen in Manhattan, New York, U.S., August 3, 2020. REUTERS/Shannon...

Stock Markets4 mins ago

Hedge fund Melvin Capital tells investors it plans to shut down -letter

2/2 © Reuters. FILE PHOTO: A Wall Street sign is pictured outside the New York Stock Exchange in New York,...

World4 mins ago

More Ukraine fighters surrendering in Mariupol, Russia says

© Reuters. Buses carrying service members of Ukrainian forces who have surrendered after weeks holed up at Azovstal steel works...

Economy5 mins ago

Exclusive-Japan Inc turns against central bank’s monetary stimulus, Reuters survey shows

© Reuters. FILE PHOTO: A businessman walks near the Bank of Japan headquarters in Tokyo, Japan, Feb. 15, 2016. REUTERS/Thomas...

Stock Markets34 mins ago

U.S. lodges third labor complaint in Mexico, on behalf of Panasonic workers

© Reuters. FILE PHOTO: A logo of Panasonic Corp is pictured at the CEATEC JAPAN 2017 (Combined Exhibition of Advanced...

Cryptocurrency34 mins ago

Candidate supported by Bankman-Fried-linked PAC loses Oregon primary

Candidate supported by Bankman-Fried-linked PAC loses Oregon primary Andrea Salinas has won the Democratic primary election for the newly created...

Stock Markets34 mins ago

Cisco shares slump as China lockdowns, Ukraine crisis hit outlook

© Reuters. FILE PHOTO: The Cisco Systems logo is seen as part of a display at the Microsoft Ignite technology...

Stock Markets35 mins ago

Biden invokes Defense Production Act to increase infant formula supply

© Reuters. FILE PHOTO: Empty shelves show a shortage of baby formula at CVS in San Antonio, Texas, U.S. May...

Economy1 hour ago

Brazil’s govt will maintain GDP outlook for 2022 and 2023 -sources

© Reuters. FILE PHOTO: Consumers shop at a weekly street market in Rio de Janeiro, Brazil, September 2, 2021. REUTERS/Ricardo...

Cryptocurrency1 hour ago

Socios fan tokens rally 40%+ after Chiliz rolls out mainnet upgrade and token burn plan

Socios fan tokens rally 40%+ after Chiliz rolls out mainnet upgrade and token burn plan In times of high stress...

Economic Indicators1 hour ago

JPMorgan cuts U.S. GDP estimates for 2022 and 2023

© Reuters. FILE PHOTO: Stacked containers are shown as ships unload their cargo at the Port of Los Angeles in...

Stock Markets1 hour ago

Plotkin’s Melvin Capital to Wind Down – Report

© Reuters Plotkin’s Melvin Capital to Wind Down – Report Gabe Plotkin’s Melvin Capital Management, a hedge fund that lost...

Stock Markets1 hour ago

Chevron, Schlumberger withdraw request for California carbon-capture permit

2/2 © Reuters. FILE PHOTO: The logo of Chevron Corp is seen in its booth at Gastech, the world’s biggest...

Economy1 hour ago

Factbox-U.S. companies offering abortion travel benefits

© Reuters. Signage is seen at an Amazon facility in Staten Island, New York City, U.S., April 24, 2022. REUTERS/Andrew...

Sports & General1 hour ago

New York state opens probe of social media platforms used by Buffalo shooting suspect

2/2 © Reuters. FILE PHOTO: Members of the Buffalo Police department work at the scene of a shooting at a...

Stock Markets2 hours ago

Synopsys Shares Up 4% Following Q2 Beat, Upbeat Guidance

© Reuters. Synopsys Shares Up 4% Following Q2 Beat, Upbeat Guidance Synopsys (NASDAQ:SNPS) shares were trading more than 4% higher...

Stock Markets2 hours ago

Under Armour CEO Frisk Steps Down After 5 Tumultuous Years

© Reuters. Under Armour CEO Frisk Steps Down After 5 Tumultuous Years Under Armour, Inc. (NYSE:UA), announced that Patrik Frisk...

Coronavirus2 hours ago

Democrats warn abortion, voting rights at stake in Pennsylvania governor’s race

© Reuters. FILE PHOTO: Pennsylvania State Senator Doug Mastriano speaks at a protest against the state’s extended stay-at-home order to...

Cryptocurrency2 hours ago

Was Terra’s UST cataclysm the canary in the algorithmic stablecoin coal mine?

Was Terra’s UST cataclysm the canary in the algorithmic stablecoin coal mine? The past week has not been an easy...

World2 hours ago

Massachusetts identifies first 2022 U.S. case of monkeypox infection

2/2 © Reuters. An electron microscopic (EM) image shows mature, oval-shaped monkeypox virus particles as well as crescents and spherical...

Stock Markets2 hours ago

U.S. lodges labor complaint against Panasonic in Mexico

© Reuters. FILE PHOTO: A logo of Panasonic Corp is pictured at the CEATEC JAPAN 2017 (Combined Exhibition of Advanced...

Cryptocurrency2 hours ago

Meta trademark filing hints at plans for crypto payments platform

Meta trademark filing hints at plans for crypto payments platform Social media giant Facebook (NASDAQ:FB)’s parent company, Meta, may be...

Stock Markets2 hours ago

Cisco Shares Plunge 17% on Q3 Revenue Miss and Disappointing Outlook

Cisco Shares Plunge 17% on Q3 Revenue Miss and Disappointing Outlook Cisco Systems (NASDAQ:CSCO) shares dropped around 17% after-hours Wednesday...

Stock Markets2 hours ago

Cisco shares plunge after China lockdowns, Ukraine crisis hits outlook

© Reuters. FILE PHOTO: The Cisco Systems logo is seen as part of a display at the Microsoft Ignite technology...

Stock Markets2 hours ago

NASA set for Boeing’s Starliner uncrewed space capsule test

© Reuters. FILE PHOTO: The Atlas V rocket carrying Boeing’s CST-100 Starliner capsule is seen after the launch to the...

Stock Markets2 hours ago

Under Armour CEO Frisk to step down

© Reuters. FILE PHOTO: Under Armour clothing is seen for sale in a store in Manhattan, New York City, U.S.,...

World2 hours ago

Turkey’s Erdogan links Sweden, Finland NATO bid to return of ‘terrorists’

© Reuters. FILE PHOTO: Turkey’s President Tayyip Erdogan holds a news conference during the NATO summit at the Alliance’s headquarters...

Coronavirus2 hours ago

U.S. warns North Korea could greet Biden with nuclear, missile tests

© Reuters. FILE PHOTO: FILE PHOTO: North Korean leader Kim Jong Un walks next to what state media reports is...

Trending