What we’re reading (3/4)
“Stocks Recoup Some Losses But Close Lower As Middle East Conflict Stirs Up Volatility” (CNN Business). “Global stocks closed lower Tuesday after a volatile day that saw the Dow briefly tumble by more than 1,200 points as concerns linger among investors that the widening conflict in the Middle East could escalate further. The Dow closed lower by 404 points, or 0.83%, paring earlier losses. The S&P 500 sank 0.94% and the Nasdaq moved 1.02% lower, partially recovering from earlier declines of nearly 2.5% and 2.75%, respectively. Wall Street’s fear gauge, the VIX, was up 10% after briefly rising as much as 31%. The VIX settled at its highest level in just over three months. Stocks in Europe and Asia were also lower for a second day.”
“Morgan Stanley Lays Off 2,500 Employees Across All Divisions” (Wall Street Journal). “Morgan Stanley is laying off around 3% of its workforce or about 2,500 people, according to people familiar with the matter. The cuts are affecting employees in the bank’s three major divisions, the people said, which are investment banking and trading, wealth management and investment management. They are tied to shifting business and location priorities—as well as individual job performance—and are occurring both in the U.S. and abroad, one of the people said.”
“Why Treasurys Are Failing Their Biggest Test In Decades — And What You Should Own Instead” (MarketWatch). “U.S. Treasurys are providing more evidence that they’re no longer safe havens during times of crisis. Treasury bonds used to be places for investors to weather geopolitical upheaval. Whenever investors shifted to ”risk off” from “risk on,” out went stocks and other risky assets in favor of what was perceived as the world’s safest asset: U.S. government bonds. Recently, the opposite has been the case[.]”
“We Are In The Midst Of An Astonishing Productivity Miracle” (RealClear Markets). “Health insurance companies employ over one million employees to process claims. That figure does not include the administrative staff employed by your family doctor or local hospital to also prepare and submit those same claims. The result? Claims are entered incorrectly, fraud proliferates, inefficiencies abound, providers often wait 90 days or more to be paid—if they are paid at all—and patients are frequently left with bills they do not owe. Suppose there was a system that eliminated this mess.”
“Apple Debuts $599 MacBook Neo, Targeting Schools And Small Businesses” (Yahoo! Finance). “‘This is one of the most important announcements for Apple in the Mac product line and represents a shift in the history of the Mac. Apple has always positioned the MacBook as a premium computing product, with entry prices typically starting near or above $999,’ International Data Corporation vice president of client devices Francisco Jeronimo said.”
