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Dose Of News Useful Today
Friday, January 29th
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The Freakin’ Weekend
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Happy Friday. A new virus variant has been detected in the U.S., Facebook’s content oversight board announced its first decisions, and GameStop can’t stop won’t stop… unless… well… we’ll get into that below. 🗞👇
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Have a fantastic (and hopefully calm) weekend. 😎
⏰🚀 Ready, Set, Go: Today's newsletter takes 4.13 minutes to read.
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Daily Sprinkle |
“Always be a first-rate version of yourself,
instead of a second-rate version of somebody else.”
—Judy Garland
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❌ Stock Trading Restricted
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Shares of GameStop closed down 44% (~$10.6B) yesterday after several popular online brokerages - including Robinhood, Interactive Brokers, & Webull Financial - restricted access to certain stocks, including GameStop, that have seen large gains in recent days.
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Other stocks that were restricted include AMC (-57%), BlackBerry (-41%), Bed Bath & Beyond (-36%), Express (-51%), Koss (-28%), and Nokia (-29%).
🤿 A deeper dive…
In a blog post, free-to-use trading platform Robinhood said it was restricting the stock transactions to position closing only, citing “recent volatility.”
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The broker’s move effectively blocked users from purchasing the stock and only permitted them to sell, known as ‘closing a position.’
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Interactive Brokers & Webull took similar actions to limit users’ ability to buy - but not sell - certain stock, while several other popular platforms, including Charles Schwab and TD Ameritrade, also restricted trading on their platforms.
Over the past week, GameStop and other heavily-shorted stocks have seen prices soar with the help of an enthusiastic group of retail investors from the subreddit ‘r/WallStreetBets,’ costing short-sellers - among them at least two hedge funds - an estimated $70B in losses to date. (Dig deeper.)
📉 Public Fallout
At least one class-action lawsuit against Robinhood was filed Thursday in a U.S. District Court in New York, alleging the online broker manipulated the market by restricting investors’ access to trading GameStop.
In a statement published Thursday afternoon, Robinhood CEO and founder Vlad Tenev said the company plans to “allow limited buys” of the stocks in question starting Friday. Webull similarly reversed course on its stock restrictions roughly 90 minutes before market close yesterday.
*GameStop was up 98% in overnight trading (as of 6:15 am ET).
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💉 COVID + Vaccine Update
Image via the CDC.
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The first two U.S. cases of a new COVID-19 variant were discovered in South Carolina yesterday. First identified in South Africa, the highly-infectious mutated strain known as B1351 was found in two SC resident with no recent travel records.
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U.S.-based biotech company Novavax announced its COVID vaccine proved 89% effective against the virus during its UK Phase 3 clinical trial. Novavax’s vaccine was found to be 86% effective against the UK variant of the virus, but only 49% effective against the South African strain mentioned above.
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📝 NY Nursing Home Report
NY AG Letitia James published a 76-page report Thursday morning revealing Gov. Andrew Cuomo’s administration undercounted COVID-related deaths of residents in state nursing homes by as much as 50%. Hours later, Health Department officials added more than 3,800 deaths to their tally, representing nursing home residents who had died in hospitals and were not previously counted as nursing home deaths (increasing the nursing home death toll by over 40%).
More: The findings do not change the overall number of COVID-19 deaths in New York (43,200 per Worldometer).
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🇵🇰 Pakistan Releases Alleged Terrorist
The Supreme Court of Pakistan upheld a lower-court decision yesterday overturning convictions of terrorism and murder for Ahmad Saeed Omar Sheikh, the man allegedly responsible for the beheading of American journalist Daniel Pearl in 2002. Sheikh is widely believed to have masterminded the plot, though Khalid Sheikh Mohammed, the chief planner of the 9/11 attacks, confessed to Pearl's killing in 2007. US intelligence has corroborated Mohammed's role in the actual
killing.
More: Read a deep-dive investigation into Pearl's murder.
Even More: Read the official U.S. statement from Secretary of State Antony Blinken.
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⚖️ Facebook Goes By the Board
Facebook's Oversight Board made its first set of decisions yesterday, ruling against Facebook in four out of the five posts it chose to review. The Board ordered Facebook to restore the four posts in question. Read the decisions here.
More: Yesterday's set of decisions did not include former President Donald Trump's suspension from the platform. The Oversight Board has until April 21 to give a ruling in regards to Trump.
LEFT CENTER → NPR
RIGHT CENTER → WSJ
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🔌🚘 General (Electric) Motors
General Motors announced plans to entirely phase out gas and diesel-powered cars by 2035 and exclusively offer electric vehicles. The move is part of a broader company initiative to become carbon neutral by 2040.
More: Over 95% of GM’s current portfolio runs on gas or diesel.
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💸 Market Update
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Comcast reported Q4 earnings beating analysts’ expectations, and said NBCUniversal’s Peacock streaming service now has 33M U.S. sign-ups – up 11M from last quarter.
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American Airlines & Southwest Airlines both reported record annual losses last year. The six-biggest U.S. airlines lost a combined $34B in 2020.
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Qualtrics, a management company being spun out of SAP, raised $1.55B in its IPO (at a $30 share price). The stock debuted on the Nasdaq Thursday at $41.85 before closing at $45.50.
More: Cryptocurrency exchange Coinbase announced plans to go public via SPAC yesterday.
Even More: The Commerce Department released its first GDP estimate for Q4, revealing 2020 was the U.S. economy's worst year since 1946.
💬 The Rumor Mill: The latest addition to Twitter’s sidebar navigation will reportedly be “Newsletters,” with a noted reverse engineer uncovering the information two days after Twitter announced its acquisition of newsletter platform Revue.
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❤️ Best Friends Forever
To clean up your newsfeed heading into the weekend, we bring you the story of Marshall, the golden retriever, and his human baby sister, Macy.
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Marshall has loved Macy since the day she was born. Over the first year of Macy’s life, their parents documented the pals’ budding friendship in a series of photos and videos they eventually assembled into this charming montage.
And in other heartwarming headlines…
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Jessica Nelson, a former Marine from Jackson, MS, who completed her undergraduate degree after retiring from the military, now serves on the board of directors of the Warrior-Scholar Project, a program helping former military members transition into academic careers.
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After discovering an elderly woman in the backcountry of British Columbia was breaking apart her own furniture to use as firewood, members of the Royal Canadian Mounted Police (known as ‘Mounties’) went out of their way to chop, split, and sort wood to help heat the woman’s home.
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📦 Outside the Box… at CES earlier this month, Berlin startup LivingPackets unveiled ‘The Box’ – a reusable, smart shipping container it says can survive 1,000 trips before being replaced.
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📰 Extra, Extra
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What is America’s oldest continuously published daily newspaper?
A) New York Times
B) Philadelphia Inquirer
C) New York Post
D) Boston Herald
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(keep scrolling for the answer) |
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Dose of Knowledge Answer |
C) New York Post
Established in 1801 by Alexander Hamilton, the New York Post is America’s oldest continuously published daily newspaper. The Hartford Courant bills itself as America’s oldest continuously publishing newspaper, but started as a semi-weekly publication in 1764 before switching to daily publication in 1836.
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