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Markets shudder on dashed inflation hopes; Dow falls 1,250

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Markets Shudder On Dashed Inflation Hopes; Dow Falls 1,250
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NEW YORK — The Dow Jones Industrial Average sank more than 1,250 points Tuesday, its steepest sell-off in more than two years, after a government report showed that inflation is maintaining a surprisingly strong grip on the U.S. economy.

The S&P 500 sank 4.3%, its biggest drop since June 2020. The Dow fell 3.9% and the Nasdaq composite closed 5.2% lower. The sell-off ended a four-day winning streak for the major stock indexes and erased an early rally in European markets.

Bond prices also fell sharply, sending their yields higher, after a report showed inflation decelerated only to 8.3% in August, instead of the 8.1% economists expected.

The hotter-than-expected reading has traders bracing for the Federal Reserve to ultimately raise interest rates even higher than expected to combat inflation, with all the risks for the economy that entails. Fears about higher rates sent prices dropping for everything from gold to cryptocurrencies to crude oil.

“Right now, it’s not the journey that’s a worry so much as the destination,” said Brian Jacobsen, senior investment strategist at Allspring Global Investments. “If the Fed wants to hike and hold, the big question is at what level.”

The S&P 500 fell 177.72 points to 3,932.69. The drop didn’t quite knock out its gains over the past four days. The index is now down 17.5% so far this year.

The Dow lost 1,276.37 points to 31,104.97, and the Nasdaq dropped 632.84 points to 11,633.57.

All but six of the stocks in the S&P 500 fell. Technology and other high-growth companies fell more than the rest of the market because they’re seen as most at risk from higher rates.

Most of Wall Street came into the day thinking the Fed would hike its key short-term rate by a hefty three-quarters of a percentage point at its meeting next week. But the hope was that inflation was in the midst of quickly falling back to more normal levels after peaking in June at 9.1%.

The thinking was that such a slowdown would let the Fed downshift the size of its rate hikes through the end of this year and then potentially hold steady through early 2023.

Tuesday’s report dashed some of those hopes.

“This piece of data just hammered home that the Fed isn’t going to have the data to do anything differently than continue on their rate-raising path for longer,” said Tom Martin, senior portfolio manager with Globalt Investments. “It just increases the chance of an actual recession.”

Many of the data points within the inflation report were worse than economists expected, including some the Fed pays particular attention to, such as inflation outside of food and energy prices.

Markets honed in on a 0.6% rise in such prices during August from July, double what economists expected, said Gargi Chaudhuri, head of investment strategy at iShares.

The inflation figures were so much worse than expected that traders now see a one-in-three chance for a rate hike of a full percentage point by the Fed next week. That would be quadruple the usual move, and no one in the futures market was predicting such a hike a day earlier.

The Fed has already raised its benchmark interest rate four times this year, with the last two increases by three-quarters of a percentage point. The federal funds rate is currently in a range of 2.25% to 2.50%.

“The Fed can’t let inflation persist. You have to do whatever is necessary to stop prices from going up,” said Russell Evans, managing principal at Avitas Wealth Management. “This indicates the Fed still has a lot of work to do to bring inflation down.”

Higher rates hurt the economy by making it more expensive to buy a house, a car or anything else bought on credit. Mortgage rates have already hit their highest level since 2008, creating pain for the housing industry. The hope is that the Fed can pull off the tightrope walk of slowing the economy enough to snuff out high inflation, but not so much that it creates a painful recession.

Tuesday’s data puts hopes for such a “soft landing” under more threat. In the meantime, higher rates also push down on prices for stocks, bonds and other investments.

Investments seen as the most expensive or the riskiest are the ones hardest hit by higher rates. Bitcoin tumbled 9.4%.

To be sure, the stock market’s losses only return the S&P 500 close to where it was before its recent winning streak. That run was built on hopes that Tuesday’s inflation report would show a more comforting slowdown. The ensuing wipeout fits what’s become a pattern on Wall Street this year: Stocks fall on worries about inflation, turn higher on hopes the Fed may ease up on rates and then fall again when data undercuts those hopes.

Treasury yields leaped immediately on expectations for a more aggressive Fed. The yield on the two-year Treasury, which tends to track expectations for Fed actions, soared to 3.74% from 3.57% late Monday. The 10-year yield, which helps dictate where mortgages and rates for other loans are heading, rose to 3.42% from 3.36%.

Expectations for a more aggressive Fed also helped the dollar add to its already strong gains for this year. The dollar has been surging against other currencies in large part because the Fed has been hiking rates faster and by bigger margins than many other central banks.

___

AP Business Writer Damian J. Troise contributed. Veiga reported from Los Angeles.

 

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The NRA’s highest-rated Republicans are also mostly election deniers

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The Nra'S Highest-Rated Republicans Are Also Mostly Election Deniers
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In the abstract, it makes sense that candidates who are strong supporters of gun rights are also more likely to reject the 2020 election results. The guideline is partisanship. Vigorous adherence to positions like those advocated by the National Rifle Association is expected of Republican candidates in most places, and most Republicans still think the 2020 election was stolen — which, of course, doesn’t. was not.

In practical terms, however, the overlap between gun ownership and voter denial is bewildering. Many of the strongest proponents of freely available firearms center their views on the idea that guns are necessary to fight an oppressive federal government. If this government is seen as also illegitimate, the risk of violence would necessarily seem to increase.

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Everytown for Gun Safety, an organization that lobbies for new legislation aimed at combating gun violence, decided to assess the extent of the overlap between the aforementioned viewpoints for one particular group of Republicans: those who seek to get elected. They looked at the letter grades the NRA uses to measure candidates’ support for gun rights and overlapped the findings with FiveThirtyEight’s examination of the prevalence of denial about the loss of Donald Trump in 2020.

A total of 397 candidates for House or state-level office (Senate, governor, executive offices) had both NRA rank and a publicly expressed position on the election. Of those, 138 were both given an A or A+ rating by the NRA and were classified as having “totally denied” the election by FiveThirtyEight. In other words: 52% of all A/A+ grade recipients were complete election deniers and 73% of complete election deniers had an A or A+.

Add to those who were rated A- or Aq (an A qualified by the lack of a voting record) and 186 of the 397 candidates had an A and were complete election deniers.

If we overlap the 2020 vote in the jurisdiction each candidate hopes to represent, an interesting pattern emerges. Those most likely to deny the election results and get the highest NRA ratings are also very likely to represent/seek to represent the places Trump won in 2020. Most others – especially those whose opinions on the FiveThirtyEight election could not determine – hope to represent the places President Biden won. It is safe to assume that some of those who held back from sharing their opinions did so because they recognized that an embrace of voter denial would not play well with their potential voters.

There is also the flip side of this overlapping voting history to consider. The fact that most of these jurisdictions are places where Trump won means that the Republican candidates included in this analysis are also more likely to win. There are 115 Grade A/A+ NRA recipients who have completely denied the election results and hope to represent places that were red in 2020.

More than 100 of them are candidates for the House.

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At least 15 dead after 2 migrant boats sink in Greek waters

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At Least 15 Dead After 2 Migrant Boats Sink In Greek Waters
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ATHENS, Greece — At least 15 people died when two boats carrying migrants sank in Greek waters on Wednesday night, and rescuers were searching for dozens of people still missing, authorities said Thursday.

The Coast Guard said 15 bodies were found near the eastern island of Lesvos after a dinghy carrying around 40 people sank. Five people were rescued and three had been located on a rocky outcrop near the sinking site. A second rescue effort was launched several hundred kilometers to the west, near the island of Kythera, where a sailboat carrying around 100 migrants struck rocks and sank on Wednesday evening.

Officials said 30 people were rescued after the boat hit rocks off the harbor in the village of Diakofti in the east of the island. Winds in the area were up to 45 mph.

“We could see the boat crashing against the rocks and people climbing over those rocks to try to save themselves. It was an amazing sight,” local resident Martha Stathaki told The Associated Press. “All the locals here have come down to the port to try to help.”

Fire rescuers lowered ropes to help migrants scale cliffs on the seafront. Local officials said a school in the area would be open to provide shelter for those rescued. Navy divers were also due to arrive on Thursday.

Most migrants arriving in Greece travel from neighboring Turkey, but smugglers have changed routes in recent months to avoid the heavily patrolled waters around the Greek islands near the Turkish coast.

Kythira is about 250 miles west of Turkey and on a route often used by smugglers to bypass Greece and head straight for Italy.

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Bidenomics pushes US national debt past $31 billion for first time

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The Biden administration’s relentless reliance on borrowing pushed the gross national debt to over $31 trillion for the first time amid record inflation, rising interest rates and fears of a recession imminent.

U.S. government debt closed at $31.1 trillion on Monday, according to Treasury Department data released Tuesday.

The step comes as the Federal Reserve continues to raise interest rates to tackle the highest inflation in 40 years, and the government borrows money to fund tax cuts even as it sends billions of overseas taxpayer dollars to Ukraine in aid.

“Many of the concerns we’ve had about the trajectory of our growing debt are starting to play out as we increase both our debt and our interest rates,” said Michael Peterson, chief executive of the Foundation. Peterson, who promotes deficit reduction.

“Too many people were happy with our debt trajectory, in part because rates were so low.”

The Congressional Budget Office (CBO), a US federal agency that provides Congress with economic and fiscal analysis, has warned of growing US debt under the Biden administration, warning that investors could lose confidence in the government’s ability to repay what it owes, as Breitbart News reported.

Those worries, the budget office said, could lead to “a sharp rise in interest rates and spiraling inflation.”

The $31 trillion threshold poses a political problem for President Biden, who has pledged to seek a more sustainable fiscal trajectory and reduce federal budget deficits by $1 trillion over a decade.

It also directly contradicts Biden’s assertion in September 2021 that his $3.5 trillion spending program actually costs “zero dollars” due to his safe and capable handling of taxpayers’ money.

“My build back better program costs nothing,” read a post from Biden’s Twitter account.

His message argued that the money was currently being “wasted” on “tax breaks, loopholes and tax evasion” and should be redistributed to working Americans as directed by his office.

The Committee for a Responsible Federal Budget estimates that Biden’s debt addiction has added nearly $5 trillion to deficits since he took office.

This projection includes Biden’s $1.9 trillion economic stimulus bill, a variety of new spending initiatives approved by Congress, and a student debt cancellation plan that is expected to cost taxpayers nearly $400. billion dollars over 30 years.

Sung Won Sohn, an economics professor at Loyola Marymount University, told AP “it took this nation 200 years to rack up its first trillion dollars in national debt, and since the pandemic we’ve been adding more at the rate of 1 trillion almost every quarter.”

Predicting high inflation for the “foreseeable future,” he said, “when you increase government spending and the money supply, you will pay the price later.”

Follow Simon Kent on Twitter: or by e-mail to: [email protected]

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Merced family kidnapping update: 4 family members, including baby, found dead, sheriff says

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Merced Family Kidnapping Update: 4 Family Members, Including Baby, Found Dead, Sheriff Says
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MERCED COUNTY, Calif. — The four family members who were abducted from a Merced County business have been found dead, the sheriff announced Wednesday night.

Merced County Sheriff Vern Warnke said the bodies were found in an orchard near Indiana and Hutchinson roads.

“Our worst fears have been confirmed,” the sheriff said. “We have found the four people from the abduction and they are in fact deceased.”

“There are no words at this time to describe the anger I feel and the senselessness of this incident,” he added. “I said earlier, there’s a special place in Hell for this guy.”

Authorities at a press conference on Wednesday showed surveillance video of a man abducting the baby, Aroohi Dheri; the child’s mother, Jasleen Kaur, 27; father Jasdeep Singh, 36; and uncle Amandeep Singh, 39, from their business.

The suspect, Jesus Salgado, is in custody but remains sedated in a hospital after attempting suicide.

DEVELOPMENT: We will add more details to this report as they become available.

California Family Kidnapping: Chilling New Video Shows Suspect Takes 2 Zippered Family Members, Mother and Baby

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Jerry Vainisi, general manager of Chicago Bears Super Bowl XX championship team, dies at 80 – The Denver Post

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Jerry Vainisi, General Manager Of Chicago Bears Super Bowl Xx Championship Team, Dies At 80 - The Denver Post
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Former Chicago Bears manager Jerry Vainisi, general manager when the team won Super Bowl XX in January 1986, died Tuesday at age 80.

Vainisi served as the Bears’ general manager for four seasons, promoted to that position by franchise founder and owner George Halas in the summer of 1983. The team confirmed Vainisi’s death Wednesday night.

Vainisi remained in that role throughout the 1986 season, and during that time, under coach Mike Ditka, the Bears won 47 games and three NFC Central championships and had an iconic season in 1985. They went 15-1 during the regular season. season, then crushed three playoff opponents by a combined score of 91-10 en route to their only Super Bowl title and their first NFL championship since 1963.

“I will always appreciate the few years I spent with Jerry and will be eternally grateful to him for his decision to hire me as Bears controller in 1983, which started my 40-year career with the Bears.” , Bears president Ted Phillips said Wednesday. . “My thoughts and prayers are with him and his entire family.”

Vainisi’s exit from Halas Hall with two years remaining on his contract came after the Bears suffered a 27-13 home loss to the Washington Redskins in their postseason opener after the 1986 season. a 14-2 regular season, the Bears started Doug Flutie at quarterback in the playoff game. This became a burning issue at Halas Hall and was partly behind then-president Michael McCaskey’s efforts to replace Vainisi.

Flutie, who the team traded for just 12 weeks earlier, had started just one game for the Bears before that playoff game and went 11 for 31 for 134 yards with a touchdown pass and two interceptions in the season-ending loss to the Redskins. .

In an emotional statement after the firing, Ditka choked up when he called Vainisi “my best friend”, and when he found out that McCaskey had called for Vainisi’s resignation, Ditka was so upset he cried. He threatened to quit and tried to talk McCaskey out of letting Vainisi go.

“I was completely surprised and was very, very hurt,” Ditka said.

Vainisi joined the Bears as a controller in 1972 after leaving accounting firm Arthur Andersen. He also served as the club’s treasurer and lawyer before being appointed general manager. He replaced Jim Finks, who had resigned.

Finks is widely considered the primary architect of the Bears’ 1985 Super Bowl team roster.

After leaving the Bears, Vainisi spent three seasons as vice president of player personnel for the Detroit Lions before working in operations for what started as the World League of American Football and was later renamed NFL Europe. . Vainisi was with the Lions in 1989 when they used the No. 3 pick to sign Hall of Fame running back Barry Sanders.

Vainisi, a Chicago native, worked as a ball boy in the 1950s at the Green Bay Packers’ summer camp. After earning an accounting degree from Georgetown University and a law degree from Kent College in Chicago, Vainisi was a sportscaster in Monmouth, west-central Illinois.

In 2010, Vainisi was inducted into the Chicagoland Sports Hall of Fame. In 1999, he became chairman and sole owner of Forest Park Bank and also served as its chairman and chief executive.

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Cleveland Cavaliers star Donovan Mitchell makes his new team debut, and it was just ‘a little bit different’

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Cleveland Cavaliers Star Donovan Mitchell Makes His New Team Debut, And It Was Just 'A Little Bit Different'
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PHILADELPHIA — Less than five weeks after being acquired by the Cleveland Cavaliers in a stunning blockbuster of a trade to cap a frenzied NBA offseason, Donovan Mitchell made his debut for the Cavaliers on Wednesday in the preseason opener. of Cleveland.

And, after finishing with 16 points on 6-for-9 shooting, including 3-for-4 from 3-point range, to go with five assists in 19 minutes in a 113-112 loss to the Philadelphia 76ers at Wells Fargo Center, Mitchell admitted that the idea of ​​donning a different jersey than the Utah Jazz he wore the first five years of his career will take some getting used to.

“One hundred percent,” Mitchell said with a smile, when asked if it felt weird wearing a different jersey for the first time. “It just didn’t feel real to me…it still hasn’t hit me yet.”

Mitchell said he spent Monday looking out the window of the Four Seasons above downtown Philadelphia, and it was only then that he really realized that he was about to officially play for another team for the first time.

“Today I just sat there and had one of those moments where you sit there and look outside and see everything and it’s like, ‘Wow. It’s really here,’” a- he declared.

“Then once you’re on the court, basketball is still basketball. But all the little things, it’s definitely weird. A little different. But I’m excited. It’s going the way I thought it would, in the good meaning.”

Mitchell’s arrival in Cleveland to augment a burgeoning young core with All-Stars Darius Garland and Jarrett Allen and finalist for last season’s Rookie of the Year award in Evan Mobley has the Cavaliers hoping this season will mark a rise in fortune to places the franchise hasn’t seen in decades when LeBron James was out of town.

When was the last time Cleveland made the playoffs without James? The 1997-98 season. When was the last time the Cavaliers won a playoff series without him? Thirty seasons ago, during the 1992-93 campaign, when Cleveland were swept by Michael Jordan and the Chicago Bulls in four games in the Eastern Conference Semifinals.

But to do those things — especially in what is arguably the deepest version of the Eastern Conference the NBA has seen in a generation or more — Cleveland will first need to get its two dominant guards, Mitchell and Garland, on the same page.

Ahead of Wednesday night’s game, Cavaliers coach JB Bickerstaff laid out the criteria that will show the process taking hold, saying the focus was on avoiding playing basketball “your turn.” , my turn”.

Afterwards, he, Garland and Mitchell were all happy with how things went in their first dry run against another team.

“I thought it was pretty seamless,” Bickerstaff said. “The way they played together, the way the ball moved, everyone got involved… as long as we play in the same style that we want to play, where it’s not just one guy based, but on the team, I think it will go well for us.”

And, for the most part, it did Wednesday night. Mitchell’s first mark as a Cavalier – a 3-pointer from right wing – came with an assist from Garland, who finished with 12 points and four assists on a 4-for-7 shot in 15 minutes, and was sandwiched between setting Mitchell down to Kevin Love for a pair of triples himself.

“I think we did a lot of things right,” Mitchell said. “You walk up the floor and it’s like, ‘He got it.’ But it’s not like, ‘He isolated him.’ It’s like, he made it, made a play, created… I said in the locker room, we didn’t call a lot of plays in the first half. It speaks to our ball movement.

After Cleveland relied almost solely on Garland to create an offense for himself and his teammates last season, he was thrilled with his first look at life playing alongside Mitchell – even within the meaningless confines of the first. half of Cleveland’s preseason opener, largely because of how it’s going to take the pressure off him to do everything offensively.

“I think it was the spacing, for me,” Garland said, when asked what he noticed the most while playing alongside Mitchell. “Just out of the pick and roll, there are so many threats on the other side, and it’s just a lot easier…you can just pick your poison. You have to live with it.

“It was just fun there, to be honest with you.”

As Cleveland waits to get Evan Mobley back on the court after spraining his ankle over the weekend, the Cavaliers also have another decision to make between now and opening night: who will start at small forward alongside Garland, Mitchell, Mobley and Allen.

There are a few possible options, including Caris LeVert, who started Wednesday’s game, Dean Wade, who hit 3 triples off the bench, and Isaac Okoro, the fifth overall pick in the 2020 NBA Draft. Bickerstaff said his ultimate decision on who to plug in there will be determined by how well they can help unlock the best attributes of the four stars around them.

“It’s really going to be about fit, and it’s going to be who makes these four guys better,” he said. “Who helps them on the attacking side of the pitch? Who helps them on the defensive side of the pitch? Who can defensively protect the guys in certain situations? How does that help our matchups? Offensively, how does that help us space the floor? Those are all things we take into consideration.”

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