DAILY UPDATE: U.S. GDP Down as Stock Markets Collapse

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🟢 What’s up

  • Ford managed to rise 2.45% despite the automaker suspending its 2025 fiscal guidance, citing “industrywide supply chain disruption impacting production.”
  • WeRide skyrocketed 31.68% on the news that it’s expanding its partnership with Uber to include rolling out robotaxis in 15 new cities. Pony AI soared 47.63% thanks to its bigger role helping Uber grow throughout the Middle East.
  • Hims & Hers Health gained 18.12% after the telehealth stock beat analyst forecasts last quarter,even though it provided lower-than-expected revenue guidance this quarter.
  • Celsius Holdings missed on both top and bottom line expectations, but shares of the energy drink maker still managed to bubble 4.81% higher.
  • Mattel rose 2.78% even though the toy company paused its fiscal guidance and warned it will raise prices in the US.
  • Upwork, everyone’s favorite side-gig platform, soared 18.02% as Americans brace for economic upheaval by finding second jobs.
  • Constellation Energy may have missed Wall Street forecasts last quarter, but shareholders pushed the stock 10.29% higher on upbeat fiscal guidance.
  • SolarEdge Technologies climbed 11.22% on a smaller-than-expected loss last quarter and projections that tariffs won’t be as bad as feared.
  • Neurocrine Biosciences popped 8.36% thanks to strong revenue growth due to high sales of its movement disorder treatment Ingrezza.

What’s down

  • Tesla fell 1.75% on the latest data showing its sales plummeted in Europe last month, including a 46% decline in Germany.
  • Pharma stocks took a beating after the FDA announced that industry critic Dr. Vinay Prasad will be named its top vaccine regulator. Moderna lost 12.25%, Novavax fell 3.19%, Merck sank 4.59%, and Pfizer fell 4.15%.
  • Clorox got taken to the cleaners, losing 2.41% after missing Wall Street’s profit forecasts.
  • Vertex Pharmaceuticals fell 10.03% thanks to big misses across the board last quarter due to higher costs.
  • Lattice Semiconductor lost 9.28% after management warned that tariffs will have indirect consequences on its business.

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  • US gross domestic product (GDP) contracted 0.3% in Q1, the Commerce Department reported yesterday, missing economists’ expectations of a 0.4% increase.
  • That drop can likely be attributed to a massive spike in imports (roughly a 41% increase from the previous quarter) from companies stocking up on goods and materials before President Trump’s tariffs took effect. The Commerce Department counts imports as a negative in GDP calculations as they represent spending on foreign goods.

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Visualize: How private equity tangled banks in a web of debt, from the Financial Times.

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NATIONAL: Teacher’s Day 2025

By Doctor David Edward Marcinko; MBA MEd

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National Teachers’ Day is observed on the first Tuesday of the first full week of May (May 6th) and we’re more than ready to show our appreciation to those who have taught us. Everyone has had that favorite teacher that has helped inspire them. This day meant to honor them was actually made by a teacher.

None other than First Lady Eleanor Roosevelt herself. Eleanor Roosevelt was more than Franklin D. Roosevelt’s wife, she has a history of civic duty and was an advocate for fellow teachers. Her love for education began at a young age when she was privately tutored and encouraged by her aunt Anna “Barnie” Roosevelt. No matter how high she rose on the social ladder, she never forgot where she came from.

Invite Dr. Marcinko

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DAILY UPDATE: CVS Exits ACA Marketplace as Markets Flounder

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Aetna is waving goodbye to the ACA marketplace. Executives announced during CVS Health’s Q1 2025 earnings call on May 1 that the insurance giant is withdrawing from the individual marketplace created under the Affordable Care Act, as the company expects to lose as much as $400 million from that part of the business in 2025.

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Stocks sank a bit today while investors remain in wait-and-see mode. All eyes are on Jerome Powell & Co. this Wednesday: The market thinks the Fed will stay put until June, while some pros think the next rate cut will be in July.

Among the major indexes, the Dow Jones industrials fared best, though it was only up 0.1%. McDonald’s and UnitedHealth led blue chips with gains of more than 1%. Apple lagged most, dropping 2.6%. Chevron skidded more than 2%. The NASDAQ composite fell 0.4%. Trade Desk outperformed here, rallying more than 3%, while Charter Communications and Fortinet each rose nearly 3%. Meanwhile, On Semiconductor and Grail lagged, diving more than 8% and 4%, respectively. The S&P 500 dropped 0.4%. The benchmark index’s sectors were mixed, but with a slight downside bias. Energy and consumer discretionary were getting hit the hardest. Industrials and consumer staples made the best gains.

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🟢 What’s up

  • Skechers exploded 24.35% after the footwear retailer inked a deal with 3G Capital to go private.
  • Electronic Arts climbed 2.41% on the news that it has teamed up with Major League Soccer to offer four matches via its mobile gaming platform this year.
  • United Airlines rose 1.07% despite its announcement that it’s cutting some flights out of Newark, New Jersey, where apparently flying is terrible.
  • Howard Hughes Holdings gained 2.81% thanks to a $900 million investment in the real estate company from Bill Ackman’s Pershing Square.

What’s down

  • Sunoco sank 5.64% on the oil & gas company’s plans to acquire Canadian gas station chain Parkland Corporation for $9.1 billion.
  • Shell fell 2.28% on reports that the company is considering ways to acquire rival BP.
  • ON Semiconductor lost 8.35% despite outpacing analysts’ estimates on both the top and bottom lines, as shareholders focused on warnings of weaker demand.
  • Tyson Foods fell 7.75% after the meat giant missed sales estimates and warned revenue will remain flat in the coming year.
  • Loews may have beaten analysts’ estimates on revenue, but the luxury hospitality stock still fell 1.77% after missing on profits.
  • Wolfspeed, which is a company name we will never get tired of writing, gave up another 8.52% following a wild short squeeze last week.

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DAILY UPDATE: Strong Labor Department as Stock Markets Soar Last Week but Stock and Oil Futures Drop Early Monday Morning

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U.S. stock futures declined after the S&P 500 notched its longest winning streak in more than 20 years last week. Dow Jones Industrial Average futures were down around 280 points, or 0.7%, as of 11 p.m. Eastern. S&P 500 futures and NASDAQ-100 futures were off about 0.8%.

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The labor market stayed strong. The US added 177,000 jobs in April, while unemployment stayed steady at 4.2%, new Labor Department data shows. That was slightly less job growth than the month before, but still more than expected, and it shows a resilient labor environment even as the president’s introduction of tariffs roiled the stock and bond markets and raised concerns about a recession. President Trump celebrated the news in a Truth Social post that once again urged the Fed to cut interest rates.

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Markets: Stocks soared like a balloon whose string a toddler couldn’t keep hold of yesterday. Unexpectedly strong jobs data for last month and reports that China is open to trade talks helped push the S&P 500 to its longest winning streak in more than 20 years (more on that later), erasing the losses from recent tariff turmoil. On its own impressive streak is Netflix, which hit an all-time high and finished its 11th day in the green for its longest positive run ever.

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Crude oil futures dropped more than 3% Sunday after OPEC+ agreed to accelerate production increases for a second straight month in June by 411K bbl/day.

U.S. WTI crude (CL1:COM) for June delivery recently traded -3.4% at $56.28/bbl and July Brent crude (CO1:COM) -3.2% at $59.34/bbl, with both front-month contracts touching their lowest levels since April 9th.

Visualize: How private equity tangled banks in a web of debt, from the Financial Times.

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MEDICINE: Emergent Care

SOME PHYSICIAN WORK FOR FREE

By Staff Reporters

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What is an Emergency Medicine Physician?

An emergency medicine physician is a medical doctor who specializes in the diagnosis, treatment, and management of acute and life-threatening medical conditions that require immediate intervention. These physicians work in hospital emergency departments, urgent care centers, and other acute care settings, where they provide rapid assessment, stabilization, and treatment to patients of all ages with a wide range of medical emergencies.

Emergency medicine physicians are trained to handle diverse medical emergencies, including trauma, cardiac emergencies, respiratory distress, severe infections, neurological emergencies, and obstetric emergencies, among others. They play a vital role in the front line management of medical emergencies, ensuring that patients receive prompt and appropriate care to improve outcomes and save lives.

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Classic: Emergent Room or Emergency Department care is the provision of immediate medical service offering outpatient care for the treatment of acute and chronic illness and injury. It requires a broad and comprehensive fund of knowledge to provide such care. Excellence in care for patients with complex and or unusual conditions is founded on the close communication and collaboration between the urgent care medicine physician, the specialists and the primary physicians.

Modern: Urgent care does not replace your primary care physician. An urgent care center is a convenient option when someone’s regular physician is on vacation or unable to offer a timely appointment. Or, when illness strikes outside of regular office hours, urgent care offers an alternative to waiting for hours in a hospital Emergency Room.

Examples: Chest pain, bleeding that cannot be stopped and loss of consciousness; etc.

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SOME ER DOCTORS WORK FOR FREE

The new president of emergency medicine for the Alberta Medical Association says Emergency Room physicians already coping with long hours, staff shortages and jammed waiting rooms are also being obligated, in some cases, to work for free. Dr. Warren Thirsk says the government has yet to follow through on a promise to reimburse emergency room doctors for so-called “good faith” payments.

“There’s been lots of excuses, but the bottom line is no one has actually received a penny for those suspended good-faith payments,” Thirsk said in an interview. “On average, every emergency physician in this province is out thousands of dollars for free work.” Good-faith payments reimburse ER doctors when they see patients who don’t have identification and can’t prove an Alberta Health Care Insurance Plan billing number.

Thirsk said the United Conservative government stopped those payments when it ripped up the master agreement with the AMA in early 2020. He said it promised to bring back those payments when the two sides agreed to a new deal in September 2022. But to date that hasn’t happened, he said.

“I’m legally and morally bound to look after you [if] you’re unidentified [as a patient],” said Thirsk, an emergency room doctor at Edmonton’s Royal Alexandra Hospital.

“I’m going to look after you because it’s the right thing to do no matter what the problem is.”

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The Medical Executive-Post is a  news and information aggregator and social media professional network for medical and financial service professionals. Feel free to submit education content to the site as well as links, text posts, images, opinions and videos which are then voted up or down by other members. Comments and dialog are especially welcomed. Daily posts are organized by subject. ME-P administrators moderate the activity. Moderation may also conducted by community-specific moderators who are unpaid volunteers.

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DAILY UPDATE: Dr. Marty Makary Appointed to FDA as Stock Markets Continue Rise

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Stat: $1.5 billion. That’s how much a lawsuit alleged hospitals lost because of under funding for facilities serving low-income patients. The Supreme Court ruled against the push for more reimbursement. (Healthcare Dive)

Read: An exclusive interview with Marty Makary, the newly appointed FDA commissioner, on cuts, vaccines, and his future goals. (MedPage Today)

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🟢 What’s up

  • Big day for Big Oil: Shell rose 2.81% on better-than-expected earnings, Chevron inched 1.73% higher after beating on profits but missing on revenue, and Exxon Mobil eked out a 0.38% gain after reporting a big boost in production thanks to a recent acquisition.
  • MicroStrategy climbed 3.35% despite reporting a bigger EPS loss than expected. Shareholders must have liked hearing CEO Michael Saylor call the company the Domino’s Pizza of crypto.
  • Maplebear, which does business as Instacart, rose 13.62% after missing analyst estimates but issuing strong fiscal guidance for the coming quarter.
  • Dexcom popped 16.17% on strong earnings for the glucose monitor manufacturer.
  • Five Below rose 11.88% after the discount retailer raised its revenue guidance for the quarter ahead.
  • Wolfspeed exploded 23.89% higher as shareholders cheered the departure of the semiconductor stock’s CFO and a short squeeze took traders by surprise.

What’s down

  • Take Two Interactive Software tumbled 6.66% after the video game maker announced the release of its highly anticipated Grand Theft Auto 6 will be delayed until next May.
  • Reddit fell 4.15% despite crushing analysts’ EPS estimates, while daily active users soared 31% year over year.
  • Block plummeted 20.43% after the company behind Square and Cash App missed earnings estimates and cut its fiscal forecast due to macro uncertainty.
  • Roku sank 8.50% despite beating analysts’ revenue estimates this quarter, but predicting a worse-than-expected quarter ahead.
  • Atlassian beat top and bottom line forecasts, but the software maker still sank 8.99% after issuing weak guidance for the current quarter.
  • GoDaddy lost 8.36% after the domain registrar projected lower revenue for the coming quarter than analysts expected.

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Visualize: How private equity tangled banks in a web of debt, from the Financial Times.

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DAILY UPDATE: Meta, Eli Lilly, Microsoft, Amazon, Apple and the Roaring Markets

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Meta Platforms jumped 4.23% after the big tech giant reported that its advertising revenue came in at $41.39 billion, beating analyst projections of $40.44 billion, thanks to higher ad price growth than expected. Daily active users rose to 3.43 billion, up from 3.35 billion last quarter, while nearly 1 billion people use its digital AI assistant every month. Management expects Q2 sales to come in between $42.5 billion and $45.5 billion, in-line with analyst forecasts of $44.03 billion.

  • EPS: $6.43 per share, crushing estimates of $5.28
  • Revenue: $42.31 billion, above the $41.10 expected

Microsoft leaped 7.63% after reporting its profit jumped a staggering 18% from a year earlier. That wasn’t the only good news: Revenue from Microsoft’s Azure cloud software grew 33% year over year, higher than the 31% expected by analysts. But perhaps the best news of all was management’s upbeat guidance—Microsoft projected revenue between $73.15 billion and $74.25 billion for the current quarter, well above expectations of $72.26 billion.

  • EPS: $3.46 per share, beating forecasts of $3.22
  • Revenue: $70.07 billion, above the $68.42 billion projected

Eli Lilly dropped 11.66% today, despite the fact that the pharmaceutical giant reported that sales skyrocketed 45% year over year thanks to its lucrative GLP-1 drugs, Zepbound and Mounjaro. Two things spooked investors today: The company lowered its profit outlook well below its preview estimate due its acquisition of a cancer drug from Scorpion Therapeutics, and CVS Health dropped Zepbound from its preferred drug list in lieu of arch-rival Novo Nordisk’s Wegovy this morning.—LB

  • EPS: $3.34 adjusted, beating the $3.02 expected
  • Revenue: $12.73 billion, compared to the $12.67 projected

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🟢 What’s up

  • Kohls popped 7.76% after the retailer fired its brand-new CEO for unethical behavior.
  • CVS Health not only beat earnings expectations but raised its fiscal guidance, pushing shares of the pharmacy chain up 4.11%.
  • Wayfair rose 3.65% on surprisingly strong earnings for an online furniture seller that analysts were convinced would be hit hard by tariffs.
  • Roblox gained 2.91% as people checked out of reality and hit the metaverse in higher numbers than ever.
  • CoreWeave popped 7.31% thanks to key customer Microsoft’s strong capex guidance.
  • Carrier Global climbed 11.61% after the air conditioning company boosted its fiscal forecast. Turns out everyone needs AC regardless of economic uncertainty.
  • People also need straight teeth: Dental products manufacturer Align Technology rose 1.98% on solid earnings.
  • Quanta Services gained 9.99% after the construction engineering company beat Wall Street estimates on both the top and bottom line.

What’s down

  • Qualcomm may have beaten earnings expectations, but shares fell 8.92% after investors were disappointed by the chipmaker’s lower guidance.
  • GM was in the same boat: Earnings beat forecasts, but poor guidance and warnings that tariffs could cost the company up to $5 billion this year pushed shares 0.42% lower.
  • Robinhood Markets enjoyed a 50% increase in revenue last quarter as traders played the volatile market, but the stock still sank 5.07%.
  • Moderna fell 5.29% after the vaccine maker missed revenue expectations and said it’s planning another $1.5 billion in cost cuts.
  • Church & Dwight, maker of household goods like Arm & Hammer Baking Soda, missed revenue forecasts last quarter and sank 6.87%.
  • Becton Dickinson & Co. lost 18.13% after the medical device maker warned of the adverse effects of, what else, tariffs.

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Amazon plans to invest about $4 billion into its rural delivery network across the US.

Apple is in hot water after a judge ruled it violated a court order to reform the App Store.

The Department of Justice sued several big health insurers, alleging they used illegal kickbacks to nudge members into Medicare programs.

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STOCK MARKET WRAP-UP: As IBM, Nvidia & Apple Invest in Quantum Computers

By Staff Reporters

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If you looked at how stocks were doing yesterday morning and then looked away, we’ve got good news.

After a rough start to the day—especially for tech companies, whose earnings are due out soon—stocks mostly turned things around, with the S&P 500 and the Dow ending the day in the green.

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IBM plans to invest $150 billion in the US over five years. That includes $30 billion earmarked for R&D for manufacturing its mainframe and quantum computers in the US. It’s not the only tech company to announce a big commitment to spend in the US since President Trump took office and unveiled steep tariffs on imports from abroad.

Nvidia and Apple have each separately said that they plan to spend $500 billion stateside over the next four years. Companies in other industries, including pharmaceuticals, have also committed to increased US investment.—AR

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DAILY UPDATE: Stocks Mixed and End Flat

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What’s up

  • Plug Power soared 25.68% on the news that the hydrogen fuel cell manufacturer has signed a deal that allows it to issue $525 million in secured debentures.
  • Tesla eked out a 0.33% gain as investors took profits following the EV company’s strong week in spite of terrible earnings.
  • IBM rose 1.61% after the tech company pledged to invest $150 billion in US manufacturing over the next five years.
  • Peloton climbed 4.93% thanks to an upgrade from Truist analysts, who said the home workout company has cleaned up the “BS.”
  • MGM Resorts International gained 1.71% after reporting an impressive 34% increase in revenue last quarter thanks to its BetMGM platform.
  • ADMA Biologics popped 12.12% on FDA approval of its new production process that draws 20% more usable material from donated plasma than current methods.

What’s down

  • Nvidia sank 2.05% on the news that China’s Huawei Technologies is preparing to test a new semiconductor that could rival Nvidia’s most powerful tech.
  • Coinbase fell 2.08% on a double downgrade from Compass Point analysts, who cited a decline in retail trading activity.
  • DraftKings dropped 1.51% after Mizuho analysts lowered their price target on the company, cutting their expectations for the gambling stock’s EBITDA.

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NEWS IN BRIEF: Financial, Investing, Economics and IT

BREAKING NEWS

By Staff Reporters

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  • Spot bitcoin ETFs saw their highest inflows since January over the last few days, sparking a crypto rally.
  • The Federal Reserve withdrew its guidance for banks about engaging in crypto-related business.
  • California is now the fourth-largest economy in the world.
  • OpenAI expects its revenue to reach $125 billion in 2029, up from $3.7 billion last year.
  • The median pay for CEOs rose to a record $16.8 million in 2024.
  • Meta Platforms is laying off staff working in its virtual reality division.
  • Apple announced it’s shifting its iPhone production from China to India.

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DAILY UPDATE: Elevance Health, Health Start-Ups and Rising Stock Markets

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Despite rising Medicare Advantage (MA) utilization, Elevance Health has come out of Q1 2025 unscathed. The company reported adjusted diluted earnings per share of $11.97 and stuck to its prediction of $34.15 to $34.85 adjusted earnings per share for 2025. This contrasts with peer UnitedHealth Group, which lowered its earnings predictions for the year in its call last week following a disappointing quarter. (Elevance released a preview of its earnings in a Form 8-K on April 17, hours after UnitedHealth detailed its surprisingly bad quarter, to reassure investors.)

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What’s up

  • Tesla gained 9.80% following a White House announcement yesterday that it will loosen US regulations around self-driving cars.
  • Boston Beer popped 2.26% thanks to strong light beer sales offsetting lower craft beer revenue.
  • Charter Communications climbed 11.43% after it lost fewer internet customers than last year and beat estimates on both the top and bottom line.
  • VeriSign rose 8% following strong results for the internet infrastructure company, as well as the announcement of a new dividend.
  • SoFi Technologies got a 4.63% boost from Citizens JMP analysts, who initiated coverage of the fintech stock with an “outperform” rating and called the company “a compelling long-term investment opportunity.”

What’s down

  • T-Mobile tumbled 11.22% after the cell carrier added 495,000 new wireless phone subscribers last quarter, below Wall Street’s forecasts.
  • Gilead Sciences sank 2.81% due to a revenue miss in the first quarter thanks to lower sales of its cancer and Covid treatments.
  • Avantor plummeted 16.58% after the lab chemicals manufacturer missed estimates, cut its forecast, and announced its CEO is departing.
  • Saia plunged 30.66% thanks to an enormous first-quarter miss from the shipping company due to customer pullback amid tariff uncertainty.

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Investments are soaring: A new SVB report found that women’s health startups saw a whopping 55% increase in VC investments in 2024. Learn about the factors driving this record-breaking funding and the sector’s long-term potential.*

Visualize: How private equity tangled banks in a web of debt, from the Financial Times.

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DAILY UPDATE: Merck and the Surging Stock Markets

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Merck rose 1.40% today after beating earnings expectations. The problem is that the pharma giant expects a $200 million hit to its bottom line due to tariffs. And that doesn’t count the potential additional pharmaceutical levies Trump has indicated he’s planning.

CITE: https://tinyurl.com/2h47urt5

🟢 What’s up

  • Alphabet warned some remote employees that they must return to the office three days a week or lose their jobs. Shareholders clearly approve: The stock gained 2.53%.
  • Amazon and Nvidia executives made it clear that contrary to popular belief, demand for AI data centers isn’t slowing down. Amazon rose 3.29%, while Nvidia climbed 3.62%.
  • Newmont gained 4.80% after the gold miner reported strong earnings thanks to gold’s incredible run.
  • ServiceNow soared 15.49% after the enterprise tech company posted a beat-and-raise earnings report.
  • Texas Instruments popped 6.56% thanks to a strong first quarter and healthy fiscal guidance from the domestic semiconductor company.
  • Chipotle eked out a 1.60% gain despite a mixed quarter that saw same-store sales fall for the first time since 2020.

What’s down

  • IBM topped analyst expectations on sales and profits, but the tech stock fell 6.58% thanks to a poor performance from its consulting and its mainframe businesses.
  • Nokia tumbled 8.65% following a big earnings miss last quarter, and warned that tariffs will take a serious toll on its business this quarter.
  • Fiserv plunged 18.52% after the software provider beat expectations for profits but missed on revenue.
  • Procter & Gamble outpaced Wall Street’s forecast for earnings but fell short on revenue and cut its fiscal guidance, pushing shares of the consumer goods giant down 3.74%.
  • Comcast also beat analyst estimates on both the top and bottom lines, but sank 3.71% after reporting it lost 199,000 broadband customers last quarter.

CITE: https://tinyurl.com/tj8smmes

  • Warren Buffett owns 5% of all Treasury bills—more than the Federal Reserve
  • A list of every company that’s announced it’s moving manufacturing to the US
  • Home sales fell 5.9% in March, their biggest drop since 2022
  • The $TRUMP crypto surged over 50% after President Trump invited the coin’s top 220 holders to a private dinner
  • Durable goods orders, AKA purchases of big-ticket items like autos and aircraft, popped 9.2% as people rushed to buy ahead of tariffs
  • Speaking of, US liquor exports surged 10% to a record $2.4 billion

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DAILY UPDATE: OpenAI, FDA, Roche & Rite Aid as Stocks Soar

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  • OpenAI would be open to buying Chrome if Google is forced by a federal court to sell the web browser, the company’s ChatGPT head said yesterday.
  • The FDA suspended milk quality tests in some dairy products due to reduced capacity stemming from federal workforce cuts, Reuters reported.
  • Roche, the Swiss pharmaceutical giant, is investing $50 billion in US manufacturing to circumvent President Trump’s tariffs, the company said yesterday.
  • Rite Aid is preparing to sell itself in pieces ahead of a possible second bankruptcy, Bloomberg reported.

CITE: https://tinyurl.com/2h47urt5

What’s up

  • Intel surged 5.54% on reports that the chipmaker plans to cut 20% of its workforce.
  • Oklo gained 8.60% after OpenAI CEO Sam Altman announced he’s stepping down as chairman of the board of the nuclear power startup.
  • Duolingo popped 10.01% after Morgan Stanley initiated coverage of the language learning company, calling it a “best-in-class consumer internet asset.”
  • Cava climbed 6.29% due to an upgrade from analysts at Bernstein, who think the bowl slop stock will not only survive but thrive in an economic downturn.
  • Amphenol rose 8.21% thanks to impressive earnings for the high-speed cable company, coupled with a solid fiscal outlook.
  • Vertiv Holdings jumped 8.60% after the data center company posted an impressive quarterly profit and raised its fiscal forecast.
  • SAP rose 7.47% following the software stock’s strong profit performance last quarter.
  • Novavax soared 19.52% on the news that the FDA has asked for more clinical data about its Covid vaccine.

What’s down

  • Enphase Energy plunged 15.65% thanks to a big miss on both the top and bottom lines for the solar tech stock.
  • Going down: Elevator manufacturer Otis Worldwide fell 6.64% on an earnings miss thanks to fewer orders from Chinese customers.
  • Online learning platform Chubb fell 2.17% after announcing a 38% decline in net income last quarter.
  • Baker Hughes may have beaten profit forecasts last quarter, but the oilfield operator’s revenue miss sent shares tumbling 6.44%.
  • Bristol Myers Squibb lost 2.59% after the pharma giant announced its schizophrenia drug Cobenfy performed poorly in Phase 3 trials.

CITE: https://tinyurl.com/tj8smmes

  • Stocks surged first thing this morning after President Trump said the media blew things out of proportion and that he has “no intention” of firing Jerome Powell. He also said he would be “very nice” to China in tariff negotiations.
  • Treasury Secretary Scott Bessent also did some damage control, touting the opportunity for a “big deal” between the US and China.
  • The combination sent a relief rally sweeping through markets, and while the euphoria faded by mid-afternoon, all three indexes ended the day in the green.
  • Gold fell and bitcoin rose as investors took on more risk (see below), while oil dropped on reports that OPEC+ may hike its crude output after its meeting next month.

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ANNUITIES: Three Types of Insurance Products

By Staff Reporters

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An annuity is a contract between you and an insurance company.  When you purchase an annuity, you make a lump-sum contribution or a series of contributions, generally each month.  In return, the insurance company makes periodic payments to you beginning immediately or at a pre-determined date in the future.  These periodic payments may last for a finite period, such as 20 years, or an indefinite period, such as until both you and your spouse are deceased.  Annuities may also include a death benefit that will pay your beneficiary a specified minimum amount, such as the total amount of your contributions.

The growth of earnings in your annuity is typically tax-deferred; this could be beneficial as you may be in a lower tax bracket when you begin taking distributions from the annuity. 

Warning: A word of caution: Annuities are intended as long-term investments. If you withdraw your money early from an annuity, you may pay substantial surrender charges to the insurance company as well as tax penalties to the IRS and state.

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There are three basic types of annuities — fixed, indexed, and variable

1. With a fixed annuity, the insurance company agrees to pay you no less than a specified (fixed) rate of interest during the time that your account is growing. The insurance company also agrees that the periodic payments will be a specified (fixed) amount per dollar in your account.

2. With an indexed annuity, your return is based on changes in an index, such as the S&P. Indexed annuity contracts also state that the contract value will be no less than a specified minimum, regardless of index performance.

3. A variable annuity allows you to choose from among a range of different investment options, typically mutual funds. The rate of return and the amount of the periodic payments you eventually receive will vary depending on the performance of the investment options you select. 

READ: SEC’s publication, Variable Annuities: What You Should Know.

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Daily posts are organized by subject. ME-P administrators moderate the activity. Moderation may also conducted by community-specific moderators who are unpaid volunteers.

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DAILY UPDATE: Bitcoin and Stock Markets Soar

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Bitcoin climbed above $90,000 for the first time since March as investors search for alternatives anywhere they can find them.

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Stocks came off of their highs yesterday afternoon trading after US Treasury Secretary Scott Bessent reportedly said in a private speech for JPMorgan Chase that talks between the United States and China had yet to formally start and that negotiations will likely be a “slog.”

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Still, US stocks soared on Tuesday following a bruising day on Wall Street, as investors built hope for deescalation on several fronts of President Trump’s trade battles.

Still, markets delivered solid gains with Dow Jones Industrial Average (^DJI) adding over 1,000 points as the benchmark S&P 500 (^GSPC) and tech-heavy NASDAQ (^IXIC) each rose around 2.5% and 2.7%, respectively.

CITE: https://tinyurl.com/tj8smmes

Prior to Bessent’s reported comments, stocks hit earlier session highs as Bloomberg reported the treasury secretary told a closed-door investor summit Tuesday that “the tariff standoff with China is unsustainable and that he expects the situation to de-escalate.”

🟢 What’s up

  • Amazon rose 3.5% a day after Wells Fargo analysts revealed that the tech giant has paused some of its data center leases, the latest sign of an AI trade slowdown.
  • The DOJ has called for a breakup of Alphabet’s business. Investors don’t seem to mind: Shares of the search giant rose 2.57%.
  • Boeing gained 2% after announcing it will sell portions of its digital aviation solutions business to Thoma Bravo for $10.55 billion.
  • Ford is up 1.90% a day after reports emerged that it has stopped shipping cars to China.
  • 3M gained 8.12% after the industrial manufacturing giant beat Wall Street’s expectations in the first quarter.
  • Coreweave rose 8.74% after several Wall Street analysts initiated coverage of the newly public cloud computing company. While the pros lean toward bullish, the stock’s reception has been largely mixed.
  • Equifax soared 13.84% following strong results for the credit rating company, as well as its announcement of a $3 billion buyback program.
  • BP managed to gain 2.81% after regulatory filings revealed that Elliott Investment Management has accrued a 5% stake in the oil giant.
  • Verizon eked out a 0.61% gain after it beat Wall Street forecasts for the first quarter but lost more postpaid net phone subscribers than expected.

What’s down

  • Halliburton disappointed shareholders with a decline in both revenue and profits last quarter, sending the oil service company’s shares 5.57% lower.
  • Defense contractors tumbled after reporting mixed earnings. RTX lost 9.81%, and Northrop Grumman sank 12.66%.
  • Medpace Holdings crumbled 2.32% after the clinical research company revealed a 19% decline in net new business awards last quarter.

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DAILY UPDATE: Meta Anti-Trust Trial and Drug Price Negotiations with Few UP and Many DOWN Stocks

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Meta’s antitrust trial resumes: The FTC is accusing CEO Mark Zuckerberg of purchasing Instagram and WhatsApp to gain an unfair monopoly in the social media space, while the defense is expected to argue that the success of those apps is a product of Meta’s acquisition. Testimony will continue this week, with one Vanderbilt law professor telling Quartz that she expects to hear more expert testimony: “Judges tend to put a lot of stock in expert opinion in antitrust cases, especially when it comes to market definition and monopoly power.”

CITE: https://tinyurl.com/2h47urt5

🟢 What’s up

  • Netflix rose 1.57% on a strong vote of confidence from Wall Street pros: After last week’s earnings blowout, the streaming service received price target upgrades from JPMorgan, Wells Fargo, Goldman Sachs, Evercore ISI, Morgan Stanley and Piper Sandler today.
  • Discover Financial Services climbed 3.53% after its merger with Capital One got the greenlight from regulators. Capital One rose 1.54%.
  • MicroAlgo exploded 74.93% after the tech holding company became the latest hot penny stock du jour.
  • Gold miners continue to mint big gains as the hot commodity broke yet another record. Barrick Gold gained 1.39%, while Anglogold Ashanti climbed 2.13%.

What’s down

  • Chipotle sank 3.48% after announcing plans to open its first restaurant in Mexico.
  • Hertz Global gave up some of last week’s big gains today, dropping 4.98% as investors took profits following Bill Ackman’s hint that the rental car company may team up with Uber.
  • Speaking of, Uber fell 3.08% after the FTC sued the ride-hailing company for “deceptive billing and cancellation practices.”
  • Amazon lost 3.11% thanks to a downgrade from Raymond James analysts. They believe the e-commerce titan’s retail and advertising businesses are too exposed to tariffs.
  • Salesforce stumbled 4.45% on a downgrade from DA Davidson analysts, who say the SAAS company is too focused on AI and not on its core business.
  • Deutsche Post AG, better known as DHL, announced it is suspending shipments worth over $800 as the international shipping company struggles with tariffs. Shares fell 1%.
  • Comerica lost 4.36% after the regional bank forecast lower loans and deposits in 2025.

CITE: https://tinyurl.com/tj8smmes

Now that the US government is negotiating drug prices directly with manufacturers, states want to get in on the action, too. These efforts vary by state, but generally involve creating a board to review drugs’ affordability and sometimes setting upper price limits (UPLs). While none have implemented UPLs as of April, as the idea gains momentum, there are questions about UPLs and boards’ legality, practicality, and whether they will actually lower costs for patients.

Visualize: How private equity tangled banks in a web of debt, from the Financial Times.

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The DOCTOR EFFECT

Dr. David Edward Marcinko; MBA MEd CMP™

Medical Colleagues Beware the Advisors

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Several years ago a group of highly trusted and deeply  experienced financial advisors, insurance service professionals and estate planners noted that far too many of their mature retiring physician clients, using traditional stock brokers, management consultants and financial advisors, seemed to be less successful than those who went it alone. These Do-it-Yourselfers [DIYs] had setbacks and made mistakes, for sure. But, the ME Inc doctors seemed to learn from their mistakes and did not incur the high management and service fees demanded from general or retail one-size-fits-all “advisors.”

In fact, an informal inverse related relationship was noted, and dubbed the Doctor Effect.” In others words, the more consultants an individual doctor retained; the less well they did in all disciplines of the financial planning and medical practice management, continuum.

Of course, the reason for this discrepancy eluded many of them as Wall Street brokerages and wire-houses flooded the media with messages, infomercials, print, radio, TV, texts, tweets, dinners and internet ads to the contrary. Rather than self-learn the basics, the prevailing sentiment seemed to purse the holy grail of finding the “perfect financial advisor.”  This realization confirmed the industry culture which seemed to be:

Bread for the advisor – Crumbs for the client!

And so, Marcinko Associates formed a cadre’ of technology focused and highly educated multi-degreed doctors, nurses, financial advisors, attorneys, accountants, psychologists and educational visionaries who decided there must be a better way for their healthcare colleagues to receive financial planning advice, products and related advisory services within a culture of fiduciary responsibility.

We trust you agree with this specific niche knowledge, and collegial consulting philosophy, as illustrated thru our firm and these two books.

EDUCATION: Books

SPEAKING: Dr. Marcinko will be speaking and lecturing, signing and opining, teaching and preaching, storming and performing at many locations throughout the USA this year! His tour of witty and serious pontifications may be scheduled on a planned or ad-hoc basis; for public or private meetings and gatherings; formally, informally, or over lunch or dinner. All medical societies, financial advisory firms or Broker-Dealers are encouraged to submit a RFP for speaking engagements: MarcinkoAdvisors@outlook.com 

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DAILY UPDATE: Red Stocks, United Airlines and the Capital One-Discover Merger

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  • Markets: The markets were closed for Good Friday giving investors time to take a breather amid tariff-induced volatility after all three major indexes finished the short trading week in the red.
  • Stock spotlight: As a sign of just how confusing it is out there, United Airlines stock rose this week after the company released two different forecasts—one for a stable economy and one for a possible US recession.

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A $35 billion merger between Capital One and Discover that would make Capital One the nation’s largest credit card issuer cleared a major regulatory hurdle this week, according to multiple outlets, as the Justice Department told antitrust officials it did not find reasons to block the deal, paving the way for a potentially historic shakeup of the American credit card space.

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DAILY UPDATE: Measles, Mental Health and Lab Tests

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Stat: $30,000–$50,000. That’s the estimated cost to address one case of measles, making the growing outbreak quite pricey for the US public health system, a CDC official said Tuesday. (NBC)

Quote: “These are still children with illnesses, and they want to be in their home city, where their family can visit them.”—Cynthia Rogers, a pediatric psychiatrist at St. Louis Children’s Hospital, on resistance against pediatric mental health hospitals being built in some communities (KFF)

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Read: An FDA effort to better regulate laboratory-developed tests (LDTs) has hit a major hurdle. (Medtech Dive)

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STOCKS: Basic Definitions

By Staff Reporters

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When you buy a share of stock, you are taking ownership in a company.  Collectively, the company is owned by all the shareholders, and each share represents a claim on assets and earnings.  If the company distributes profits to its shareholders, you should receive a proportionate share of the earnings.

Stocks are often categorized by the size of the company, or their market capitalization.  The market capitalization is determined by multiplying the number of outstanding shares by the current share price.  The most common market cap classes are small-cap (valued from $100 million to $1 billion), mid-cap ($1 billion to $10 billion), and large cap ($10 billion to $100 billion).

Stocks are also categorized by their sector, or the type of business the company conducts.  Common sectors include utilities, consumer staples, energy, communications, financial, health care, transportation, and technology.

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Stocks are often viewed as being in one of two categories — growth or value.

  • Growth stocks are ones that are associated with high quality, successful companies that are expected to continue growing at a better-than-average rate as compared to the rest of the market.
  • Value stocks are ones that have generally solid fundamentals, but are currently out of favor with the market.  This may be due to the company being relatively new and unproven in the market, or because the company has recently experienced a decline due to the company’s sector being affected negatively.  An example of this would be if the federal government was to levy a new tax on all cell phones, thus negatively affecting all cell phone company stocks.

History has shown that, over time, stocks have provided a better return than bonds, real estate, and other savings vehicles.  As a result, stocks may be the ideal investment for investors with long-term goals.

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DAILY UPDATE: Stocks End Short Week on Mixed Note

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USPS open, as usual, today

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  • Stocks ended the shortened trading week on a mixed note.
  • The Dow sank all day long, while the NASDAQ and S&P 500 struggled to stay out of negative territory. The S&P 500 squeaked by with a win, but the NASDAQ fell into the red just before the closing bell.
  • The VIX is up.
  • US sanctions on a Chinese refinery that imported $1 billion worth of Iranian oil helped crude wrap the week with a win.
  • The WSJ reported that President Trump has explored firing Jerome Powell for months now. “If I want him out he’ll be out of there real fast, believe me,” Trump told reporters at the White House today.

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PRIVATE EQUITY COMPENSATION: Carried Interest [Pros and Cons]

DEFINITION

By Staff Reporters

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Carried interest accounts for the bulk of private equity fund managers’ compensation. It is calculated as a share of fund profits, historically 20% above a threshold rate of return for limited partners.

In contrast with most other forms of employment compensation and business income, carried interest earned from fund investments held for at least three years is taxed as a long-term capital gain at a rate below the top marginal income tax rate.

Critics of the provision contend it taxes highly compensated private equity managers at a lower rate than comparably paid providers of labor or business services.

Defenders of carried interest argue taxing it as income would be unfair because it represents capital gains even if they’re not derived from recipients’ capital.

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DAILY UPDATE: Zuck’s Testimony and Pfizer’s Liver as Stocks Fizzle Out

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Mark Zuckerberg testified as the trial for the FTC’s antitrust case against Meta over its purchases of Instagram and WhatsApp began yesterday.

Pfizer said it would end development of its daily weight loss pill after a patient reported liver damage.

CITE: https://tinyurl.com/2h47urt5

  • Stocks started the day strong but the rally eventually fizzled out as reports of trade talks between the US and EU making “little progress” left all three major indexes in the red.
  • The dreaded death cross has arrived: The S&P 500’s 50-day moving average is now below the 200-day moving average for the first time since 2022, a bearish technical indicator that has investors worried.
  • 10-year Treasury yields fell to a one-week low, letting traders breathe a small sigh of relief after tariffs upended the status quo last week.

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Visualize: How private equity tangled banks in a web of debt, from the Financial Times.

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DAILY UPDATE: UnitedHealth Group Members Appear Sicker as Stock Markets Edge Up

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A recent study published in the Annals of Internal Medicine found that in 2021, UnitedHealth Group received just under $14 billion in extra Medicare Advantage payments after using a code that made its members appear sicker. It’s another tough break for the plan and provider that has faced allegations of illegally taking additional money from patients and taxpayers, especially after its CEO was fatally shot in early December.

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US stocks edged higher on Monday as investors focused on tech’s temporary reprieve from President Trump’s tariffs.

The S&P 500 (^GSPC) trimmed bigger gains to rise a healthy 0.8%. The tech-heavy NASDAQ (^IXIC) also closed off its session high, up 0.6%. The Dow Jones Industrial Average (^DJI) was up around 0.7%, or more than 300 points.

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PHYSICIAN: Financial Education Lacking in Medical School

FRANKLY SPEAKING MY MIND!

By Dr. David Edward Marcinko MBA MEd CMP

SPONSOR: http://www.CertifiedMedicalPlanner.org

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The vast majority of physicians and medical professionals major in one of the hard science while in college; biology, engineering, chemistry, mathematics, computer science or physics; etc. Few take undergraduate courses in finance, business management, securities analysis, accounting or economics; although this paradigm is changing with modernity. These course are not particularly difficult for the pre-medical baccalaureate major, they are just not on the radar screen for time compressed and highly competitive students; nor are they needed for medical or nursing school admission, or the many related allied health professional schools.

In fact, William C. Roberts MD, originally from Emory University in Atlanta, and former editor for the Baylor University Medical Center Proceedings and The American Journal of Cardiology, opined just a decade ago:

“Of the 125 medical schools in the USA, only one of them to my knowledge offers a class related to saving or investing money.”

And so, it is important to review some basic principles of economics, finance and accounting as they relate to financial planning in thees two textbooks; and this ME-P.

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DAILY UPDATE: Medicare Rates and Indian Health Service as Stocks Markets Experience Explosive Surge!

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Stat: 5.06%. That’s how much Medicare payment rates will increase for 2026, doubling what was previously proposed. (the Wall Street Journal)

Quote: “The move displays the utmost disrespect for public service. It is clearly designed to force talented scientists and health experts to leave government. It is also an insult to those healthcare professionals in the Indian Health Service who dedicate their lives to providing healthcare services on tribal lands.”—Richard Besser, CEO of the nonprofit Robert Wood Johnson Foundation, on offers to reassign HHS workers on administrative leave to the Indian Health Service (NPR)

Read: Some psychologists are offering free or low-cost therapy for federal healthcare workers. (Stat)

CITE: https://tinyurl.com/2h47urt5

US stocks rocketed higher on Wednesday as President Trump announced a 90-day pause on tariffs for most countries, yet at the same time upped increasingly ballooning levies on China.

The benchmark S&P 500 (^GSPC) roared up over 9.5%, posting its best day since 2008. The tech-heavy NASDAQ Composite (^IXIC) rallied a whopping 12% for its second-best day on record and its biggest gain since 2001. The Dow Jones Industrial Average (^DJI) was up over 7.8%, or roughly 3,000 points.

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DAILY UPDATE: Medical Un-Affordability as Stock Market Rebound Collapses

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Stat: 11%. That’s the share of US residents who said they couldn’t afford medical care or medication over a three-month period, according to a new Gallup survey. (the New York Times)

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An epic stock-market bounce turned into a historic fizzle, extending the bruising selloff sparked by President Donald Trump’s sweeping tariff measures to a fourth straight session.

SPX-1.57% saw an intra-day gain of 4.05% evaporate to end with a loss of 1.6%, marking its biggest blown percentage gain since Oct. 14th, 2008, during the darkest days of the 2007-09 financial crisis. And it’s the first time the S&P 500 was up more than 4% at its intra-day high but finished with a loss of more than 1%, based on data going back to 1978, according to Dow Jones Market Data.

DJIA-0.84% rallied 1,461 points, or 3.85%, at its intra-day peak, but ended the day down more than 400 points, its biggest erased percentage gain since April 2020.The tech-heavy NASDAQ Composite.

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DAILY UPDATE: VA EHR Snafu and Stock Market Volatility

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e Department of Veterans Affairs announced plans last week to accelerate the rollout of its embattled electronic health records system. Lawmakers, meanwhile, continue to call for oversight despite concerns over the future of the modernization program. The VA added nine new medical facilities in Ohio, Kentucky, Indiana, and Alaska to the deployment schedule, along with four sites in Michigan that will launch in 2026 after the program expansion has largely been on hold since April 2023, when the agency acknowledged glitches in the system had contributed to at least four veterans’ deaths and “catastrophic harm” to others.

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After a roller coaster day, the Dow closed lower by 349 points, or 0.91%. The broader S&P 500 fell 0.23%. The NASDAQ Composite was 0.1% higher after fluctuating between gains and losses. Wall Street’s fear gauge, the CBOE Volatility Index, or VIX, on Monday closed at the highest level since the Covid pandemic as investors fretted over the market’s next move. The VIX surpassed an intraday level of 50 points midday Monday, a rare level associated with extreme volatility.

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BLOGGING: All Doctors Please Beware!

WARNING – WARNING

By Dr. DavidEdwardMarcinko; MBA MEd

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According to www.NPR.org, there are more than120,000 health care forums on the Internet with opinions ranging from pharmaceuticals, to sexual dysfunction, to acne. The same goes for commercial doctor blogs that promote lotions, balms and potions, diets and vitamins, minerals, herbs, drinks and elixirs, or various other ingest-ants, digest-ants or pharmaceuticals, etc.

And, to other doctors, the blogging craze is a new novelty where there are no rules, protocols, standards or precise figures on how many “medical-doctor” or related physician-blogs are “out there.” Unfortunately, too many recount gory ER scenes, or pictorially illustrate horrific medical conditions, or serious and traumatic injuries. Of course, others simply are medical practice websites, or those that entice patients into more lucrative plastic surgery or concierge medical practices. Some are from self-serving/credible plaintiff-seeking attorneys wishing to assist patients.

Not all physician blogs are geared toward practice information, marketing or medical sensationalism. In fact, just the opposite seems to be the case in extremely candid blogs, like “Ranting Docs”, “White Coat Rants,” “Grunt Docs”, “Cancer Doc,” “The Happy Hospitalist,” “Mom MD”, “Cross-Over Health”, “Angry Docs” and “M.D.O.D.,” which bills itself as “Random Thoughts from a Few Cantankerous American Physicians.”

According to some of these, they are more like personal journals, or public diaries, where doctors vent about reimbursement rates, difficult cases, medical mistakes, declining medical prestige and control, and/or what a “bummer” it is to have so many patients die; not pay, or who are indigent, noncompliant. We call these the “disgruntled doctor sites.” Some even talk about their own patients, coding issues, or various doctor-patient shenanigans.

But, according to psychiatrist and blogger Dr. Deborah Peel and others, the problem with blogging about patients is the danger that one will be able to identify themselves – the doctor – or that others who know them will be able to identify them.”  Her affiliation, Patient Privacy Rights, rightly worries that patients might track back to the individual, and adversely affect their employment, health insurance or other aspects of life.

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And, according to Dr. Jay S. Grife; MA Esq., it is certainly true that if a doctor violates a patient’s privacy there could be legal consequences. Under HIPAA, physicians could face fines or even jail time. In some states, patients can file a civil lawsuit if they believe a doctor has violated their privacy. Still, internet privacy issues are an evolving gray-area that if not wrong, may still be morally and ethically questionable [personal communication].

Our colleague Robert Wachter MD, author of the blog called “Wachter’s World,” says it’s important for doctors to be able to share cases, as long as they change the facts substantially. On the other hand, the author of “Wachter’s World” and a leading expert on patient safety alternately suggests “You might say we as doctors should never be talking about experiences with our patients online or in books or in articles.” But, he says that “patients shouldn’t take all the information on blogs at face value. Taken for what they are — unedited opinions, and in some cases entertainment — blogs can give readers some useful insight into the good, the bad and the ugly of the medical profession”. Link: http://www.the-hospitalist.org/blogs

Well, fair enough! But, doctors unhappy with their current medical career choice, or its modern evolution, should probably consider counseling or even career change guidance, re-education and re-engineering. It is very inappropriate to vent career frustrations in a public venue. It’s far better for the blog to be private and/or by invitation only; if at all [Personal communication].

We believe that a hybrid mash-up of both views can be wholly appropriate, or grossly inappropriate in some cases. Of course the devil is in the details; linguistics and semantics aside. Nevertheless; what is not addressed in electronic physician “mea-culpas” are the professional liability risks and concerns that are evolving in this quasi-professional, quasi-lay, communication forum.

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Example: We have seen medical mistakes, and liability admissions of all sorts, freely and glibly presented. In fact,

“Some physicians find that the act of liability blogging as a professional confession that is useful in moving past their malpractice mistakes. And, it is also a useful way to begin a commitment to a better professional life of caring in the future. It helps eliminate the toxic residue and angst of professional liability and guilt. Moreover, as they are unburdened of past acts of omission or commission, doctors should remember to also forgive those who have wronged them. This helps greatly with the process and brings additional peace.”

However, although some may say that this electronic confession is good for the soul, it may not be good for your professional liability carrier, or you, when plaintiff’s attorneys release a legion of IT focused interns, or automated bots, searching online for your self-admissions and scouring for your self-incriminations. Of course, a direct connection to a specific patient may still not be made and no HIPAA violation is involved. But, a vivid imagination is not need needed to envision this type of blind medical malpractice discovery deposition query even now.

QUESTION: “Doctor Smith, I noted all the medical errors admitted on your blog. What other mistakes did you make in the care and treatment of my client?”

And so, the question of plausible deniability, or culpability, is easily raised.  If you must journalize your thoughts for sanity or stress release; do it in print. And, don’t tell anyone about it so the diary won’t be subpoenaed. Then tear it up and throw it away. Remember, with risk management, “It is all about credibility.” Don’t trash yours! These thoughts may be especially important if you covet a medical career as a researcher, editor, educator, medical expert or something other than a working-class or employed physician.

EDUCATION: Books

SPEAKING: Dr. Marcinko will be speaking and lecturing, signing and opining, teaching and preaching, storming and performing at many locations throughout the USA this year! His tour of witty and serious pontifications may be scheduled on a planned or ad-hoc basis; for public or private meetings and gatherings; formally, informally, or over lunch or dinner. All medical societies, financial advisory firms or Broker-Dealers are encouraged to submit a RFP for speaking engagements: CONTACT: MarcinkoAdvisors@outlook.com 

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DAILY UPDATE: Microsoft Tempers A.I. as Hershey Buys LesserEvil and Stock Markets Crater!

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Microsoft is reportedly pulling back on data center projects around the world as it reexamines its AI plans. Hershey reportedly bought the popcorn brand LesserEvil for $750 million.

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US stocks cratered on Friday with the Dow Jones Industrial Average (^DJI) plunging more than 2,200 points after China stoked trade-war fears and Fed Chair Jerome Powell warned of higher inflation and slower growth stemming from tariffs.

The Dow pulled back 5.5% to enter into correction territory. Meanwhile, the S&P 500 (^GSPC) sank nearly 6%, as the broad-based benchmark capped its worst week since 2020. The tech-heavy NASDAQ Composite (^IXIC) dropped 5.8% to close in bear market territory.

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MONEY SCRIPTS: Fundamental Subconscious Beliefs and Economic Behavioral Patterns Defined

SALES PSYCHOLOGY FOR INVESTMENT ADVISORS, FINANCIAL ADVISORS, INSURANCE AGENTS, WEALTH MANAGERS AND FINANCIAL PLANNERS

By Dr. David Edward Marcinko; MBA MEd CMP®

http://www.MarcinkoAssociates.com

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Stocks were decimated yesterday in the first full trading day following President Trump’s tariff announcement. It was the biggest single-day decline since the start of the Covid-19 pandemic in March 2020. Every Magnificent Seven stock was battered—Apple worst of all. And so perhaps it is a good time to discuss the concept of “Money Scripts”.

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Money Scripts are unconscious beliefs about money that are typically only partially true, are developed in childhood, and drive adult financial behaviors. Money scripts may be the result of “financial flashpoints,” which are salient early experiences around money that have a lasting impact in adulthood. Money scripts are often passed down through the generations and social groups often share similar money scripts. And so, we argue that Money scripts are at the root of all illogical, ill-advised, self-destructive, or self-limiting financial behaviors.

In research at Kansas State University [KSU], researchers identified four distinct Money script patterns, which are associated with financial health and predict financial behaviors. These include: (a) money avoidance, (b) money worship, (c) money status, and (d) money vigilance [personal communication Brad Klontz, PsyD, CFP®, Kenneth Shubin-Stein, MD, MPH, MS, CFA and Sonya Britt, PhD, CFP®].

And so, we all like to think our financial decisions are fully rational, but the truth is that our subconscious beliefs have a dramatic impact on our money and financial decisions. These money scripts are important to know and understand. A summary is below:

            Money Avoidance

Money avoidance scripts are illustrated by beliefs such as “Rich people are greedy,” “It is not okay to have more than you need,” and “I do not deserve a lot of money when others have less than me.” Money avoiders believe that money is bad or that they do not deserve money. They believe that wealthy people are corrupt and there is virtue in living with less money. They may sabotage their financial success or give money away even though they cannot afford to do so. Money avoidance scripts may be associated with lower income and lower net worth and predict financial behaviors including ignoring bank statements, overspending, financial dependence on others, financial enabling of others, and having trouble sticking to a budget.

            Money Worship 

Money worship is typified by beliefs such as “More money will make you happier,” “You can never have enough money,” and “Money would solve all my problems.” Money worshipers are convinced that money is the key to happiness. At the same time, they believe that one can never have enough. Money worships have lower income, lower net worth, and higher credit card debt. They are more likely to be hoarders, spend compulsively, and put work ahead of family.

            Money Status

Money status scripts include “I will not buy something unless it is new,” “Your self-worth equals you net worth,” and “If something isn’t considered the ‘best’ it is not worth buying.” Money status seekers see net worth and self-worth as being synonymous. They pretend to have more money than they do and tend to overspend as a result. They often grew up in poorer families and believe that the universe should take care of their financial needs if they live a virtuous life. Money status scripts are associated with compulsive gambling, overspending, being financially dependent on others, and lying to one’s spouse about spending.

            Money Vigilance

Money vigilant beliefs include “It is important to save for a rainy day,” “You should always look for the best deal, even if it takes more time,” and “I would be a nervous wreck if I did not have an emergency fund.” The money vigilants are alert, watchful and concerned about their financial welfare. They are more likely to save and less likely to buy on credit. As a result, they tend to have higher income and higher net worth. They also have a tendency to be anxious about money and are secretive about their financial status outside of their household. While money vigilance is associated with frugality and saving, excessive anxiety can keep someone from enjoying the benefits that money can provide.

Identification

When money scripts are identified, it is helpful to examine where they came from. A simple behavioral finance technique involves reflecting on the following questions:

  • What three lessons did you learn about money from your mother?
  • What three lessons did you learn about money from your father?
  • What is your first memory around money?
  • What is your most painful money memory?
  • What is your most joyful money memory?
  • What money scripts emerged for you from this experience?
  • How have they helped you?
  • How have they hurt you?
  • What money scripts do you need to change?

Conclusion

Ideally, from a balanced middle ground, we can see past the limitations of money scripts, our self and others who are polarized. Those who believe “Money is meant to be spent” or “Money is meant to be saved” have a world view that results in extreme positions. Labeling them as “correct” or “wrong” is not a useful way to try to shift anyone’s polarized money script beliefs.

EDUCATION: Books

SPEAKING: Dr. Marcinko will be speaking and lecturing, signing and opining, teaching and preaching, storming and performing at many locations throughout the USA this year! His tour of witty and serious pontifications may be scheduled on a planned or ad-hoc basis; for public or private meetings and gatherings; formally, informally, or over lunch or dinner. All medical societies, financial advisory firms or Broker-Dealers are encouraged to submit a RFP for speaking engagements: CONTACT: MarcinkoAdvisors@outlook.com 

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DAILY UPDATE: DJIA Plummets 1,700 Points While NASDAQ & S&P 500 Plunge for Biggest Drop Since 2025

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Essays, Opinions and Curated News in Health Economics, Investing, Business, Management and Financial Planning for Physician Entrepreneurs and their Savvy Advisors and Consultants

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Roughly $2.5 trillion was erased from the S&P 500 Index on Thursday amid worries that President Donald Trump’s sweeping new round of tariffs could plunge the economy into a recession. The damage was heaviest in companies whose supply chains are most dependent on overseas manufacturing. Apple Inc., which makes the majority of its US-sold devices in China, fell 9.3%. Lululemon Athletica Inc. and Nike Inc., among companies with manufacturing ties to Vietnam, were both down more than 9%. Target Corp. and Dollar Tree Inc., retailers whose stores are filled with products sourced outside of the US, dropped more than 10%.

CITE: https://tinyurl.com/2h47urt5

The tech-heavy NASDAQ Composite (^IXIC) led the sell-off, plummeting 6%. The S&P 500 (^GSPC) sank nearly 5%, while the Dow Jones Industrial Average (^DJI) tumbled 4%. The Dow’s 1,700-point drop was the fifth-worst in its history.

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TRADITIONAL INVESTMENT PORTFOLIO DIVERSIFICATION MODEL: Routed by Larry Fink CEO of BlackRock?

BREAKING NEWS – MARKET VOLATILITY

By Staff Reporters

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US stocks nosedived on Thursday, with the Dow tumbling more than 1,200 points as President Trump’s surprisingly steep “Liberation Day” tariffs sent shock waves through markets worldwide. The tech-heavy NASDAQ Composite (IXIC) led the sell-off, plummeting over 4%. The S&P 500 (GSPC) dove 3.7%, while the Dow Jones Industrial Average (^DJI) tumbled roughly 3%. [ongoing story].

So, does the traditional 60 stock / 40 bond strategy still work or do we need another portfolio model?

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The 60/40 strategy evolved out of American economist Harry Markowitz’s groundbreaking 1950s work on modern portfolio theory, which holds that investors should diversify their holdings with a mix of high-risk, high-return assets and low-risk, low-return assets based on their individual circumstances.

While a portfolio with a mix of 40% bonds and 60% equities may bring lower returns than all-stock holdings, the diversification generally brings lower variance in the returns—meaning more reliability—as long as there isn’t a strong correlation between stock and bond returns (ideally the correlation is negative, with bond returns rising while stock returns fall).

CORRELATION: https://medicalexecutivepost.com/2024/10/27/correlation-diversification-in-finance-and-investments/

For 60/40 to work, bonds must be less volatile than stocks and economic growth and inflation have to move up and down in tandem. Typically, the same economic growth that powers rallies in equities also pushes up inflation—and bond returns down. Conversely, in a recession stocks drop and inflation is low, pushing up bond prices.

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  • But, the traditional 60/40 portfolio may “no longer fully represent true diversification,” BlackRock CEO Larry Fink writes in a new letter to investors.
  • Instead, the “future standard portfolio” may move toward 50/30/20 with stocks, bonds and private assets like real estate, infrastructure and private credit, Fink writes.
  • Here’s what experts say individual investors may want to consider before dabbling in private investments.

It may be time to rethink the traditional 60/40 investment portfolio, according to BlackRock CEO Larry Fink. In a new letter to investors, Fink writes the traditional allocation comprised of 60% stocks and 40% bonds that dates back to the 1950s “may no longer fully represent true diversification.

DI-WORSIFICATION: https://medicalexecutivepost.com/2024/04/09/what-is-financial-portfolio-di-worsification-2/

EDUCATION: Books

SPEAKING: Dr. Marcinko will be speaking and lecturing, signing and opining, teaching and preaching, storming and performing at many locations throughout the USA this year! His tour of witty and serious pontifications may be scheduled on a planned or ad-hoc basis; for public or private meetings and gatherings; formally, informally, or over lunch or dinner. All medical societies, financial advisory firms or Broker-Dealers are encouraged to submit a RFP for speaking engagements: MarcinkoAdvisors@outlook.com 

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MEDICAL OFFICE: Patient Satisfaction Management

The “Soft Science” of Patient Relationship Management

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By Dr. David Edward Marcinko; MBA MEd CMP

SPONSOR: http://www.CertifiedMedicalPlanner.org

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INTRODUCTION

Patient satisfaction occurs when patient perceptions exceed their expectations. They get an intangible “something extra” from their visit, above what they paid for. When patient expectations match their perceptions, mutual obligations are fulfilled, making both practitioner and patient “break-even”.

The clinical result, within a relevant range, is only part of the patient’s perceptions. Numerous sub-conscious impressions comprise the remainder. We’ve all had patients love us despite a less than optimal result. We’ve all had patients angrily leave the practice over some non-clinical matter like a trivial billing dispute. A patient’s perception of any health care service is colored by a vast array of prior experiences that set up current expectations. The patient is pleased to the extent that his current perceptions exceed his/her pre existing expectations. This encompasses far more than the clinical result (within a relevant range), and includes such non-treatment issues as the demeanor of the staff, condition of the physical premises, psychological comfort during the visit, etc.

Remember, all patients talk about you anyway. In the past, a happy patient told four others about what a nice doctor you are. Today, patients post website comments or blogs immediately after their visits. They are more likely to complete treatment and follow instructions, thus obtaining a better medical outcome, and, generating additional fees for the practice. They pay quicker, cause less bad-debt and help create a pleasant environment for us to work in.

An unhappy patient vehemently tells nine others, onground or online, what a nasty greedy rip-off artist you are. Sad, but true! They are not as likely to complete treatment, thus incurring a less than optimal result, and generate fewer fees. They pay slower, if at all, create a stressed environment and detrimentally affect the attitude of other patients in the office.

Try to eliminate problems that might cause negative perceptions (i.e., a filthy restroom) and implement controls that help assure positive perceptions. Patient satisfaction is a soft managerial science. It is a numbers game. Most patients don’t pre-define what would be “acceptable” from this encounter, but have vaguely defined ranges of prior expectations anyway, gleaned from a lifetime of health care related experience. Any variance between these this “acceptable” range of expectations and each trivial encounter invokes some degree positive or negative feeling in the patient.

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The total perception of the office experience is an aggregate of multiple trivial, often subliminal, observations. Patient satisfaction is an intangible and amorphous process complicated by:

Inter patient variables: Significant differences between patients in their “expectations”.
Intra patient variables: A single patient can perceive the same thing or situation differently at different times, depending on uncontrollable variables like mood, or, context of occurrence which may (sometimes and/or partially) be controllable by the practice.
Luck of the draw” in physical variables: Does Sally or Mary escort the patient to the exam room? Was it the blue or green exam room? Did the last patient to use the rest room, five minutes ago, leave a disgusting mess?
Heterogeneous staff variables: Even with appropriate training, people are not machines and have their own quirks.

ASSESSMENT

By proactively anticipating the entire visit, from the patient’s perspective, the practitioner can structure and arrange things such that most patients have, mostly positive perceptions, most of the time. This can be done despite all the potential hetero-genicity of the above factors. Patient satisfaction can be improved in any office, and can be done by anyone.

CONCLUSION

Because patient satisfaction is a multi-faceted amorphous subject, there are multiple correct approaches to the subject and no “cook book” recipe on how to proceed. Try and get the big picture. Identify the worst areas and fix them. Identify the best areas and reinforce them. Proceed slowly. It can be done one facet at a time. Adapt things to your own managerial style and personality. Be completely open to suggestion and change.

Finally, be aware that patient relationship and satisfaction implementation strategies frequently overlap.

EDUCATION: Books

SPEAKING: Dr. Marcinko will be speaking and lecturing, signing and opining, teaching and preaching, storming and performing at many locations throughout the USA this year! His tour of witty and serious pontifications may be scheduled on a planned or ad-hoc basis; for public or private meetings and gatherings; formally, informally, or over lunch or dinner. All medical societies, financial advisory firms or Broker-Dealers are encouraged to submit a RFP for speaking engagements: MarcinkoAdvisors@outlook.com 

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DAILY UPDATE: Newsmax Surges but HHS, FDA, CDC & Zelle Go Down as Jittery Stock Markets Rise

MEDICAL EXECUTIVE-POST TODAY’S NEWSLETTER BRIEFING

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Essays, Opinions and Curated News in Health Economics, Investing, Business, Management and Financial Planning for Physician Entrepreneurs and their Savvy Advisors and Consultants

Serving Almost One Million Doctors, Financial Advisors and Medical Management Consultants Daily

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Stocks looked like a very concerning EKG recently, fluctuating throughout as investors weighed today’s tariff announcement. The Newsmax meme stock kept on surging, stacking a 180% gain on top of Monday’s 735% spike to skyrocket over 900% since the conservative media outlet went public earlier this week.

CITE: https://tinyurl.com/2h47urt5

U.S. stocks whipped through another dizzying day Wednesday in the final hours before President Donald Trump’s unveiling of the tariffs promised as part of his “Liberation Day,” which could drastically remake the global economy. The S&P 500 rose 0.7%, but only after careening between an earlier loss of 1.1% and a later gain of 1.1%. It’s had a pattern this week of opening with sharp drops only to finish the day higher.

The Dow Jones Industrial Average added 235 points, or 0.6%, and the NASDAQ composite climbed 0.9%. Both also veered from sharply lower in the morning to sharply higher in the afternoon before doubling back.

CITE: https://tinyurl.com/tj8smmes

Mass layoffs at health agencies begin. The purge of thousands of Health and Human Services (HHS) employees announced last week by Secretary Robert F. Kennedy Jr. started yesterday, with senior leaders at the FDA, CDC, and other departments saying they had been pushed out. Among those removed were the FDA’s chief tobacco regulator, its top veterinarian, and medical officers in charge of new drug approvals.

f you like to use Zelle to send money to others, you need to find a new solution. On April 1st, the digital payment app shut down.

Visualize: How private equity tangled banks in a web of debt, from the Financial Times.

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OBTAIN: An Unbiased Second Financial Planning Opinion

By Ann Miller RN MHA CPHQ CMP

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Finally … Fiduciary second investing and financial planning opinions right here!

Telephonic or electronic advice for medical professionals that is:

  • Objective, affordable, medically focused and financially personalized
  • Rendered by a pre-screened financial consultant for doctors and medical professionals
  • Offered on a pay-as-you-go basis, by phone or secure e-mail transmission

The iMBA Discussion Forum™ is a physician-to-financial advisor telephone or e-mail portal that connects independent financial professionals to doctors, nurses or healthcare executives desiring affordable and unbiased financial planning advice.

Medical professionals and healthcare executives can now receive direct access to pre-screened iMBA professionals in the areas of Investing, Financial Planning, Asset Allocation, Portfolio Management, Insurance, Mortgage and Lending, Human Resources, Retirement Planning and Employee Benefits. To assist our medical professional and healthcare executive members, we can be contracted with per-minute or per-project fees, and contacted by client phone, email or secure instant messaging.

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http://www.MARCINKOASSOCIATES.com

E-mail CONTACT: MarcinkoAdvisors@outlook.com

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HEDGE FUNDS: In Individual Retirement Accounts?

By Staff Reporters

SPONSOR: http://www.CertifiedMedicalPlanner.org

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QUESTION: What is a Hedge Fund?

A hedge fund is a limited partnership of private investors whose money is pooled and managed by professional fund managers. These managers use a wide range of strategies, including leverage (borrowed money) and the trading of nontraditional assets, to earn above-average investment returns. A hedge fund investment is often considered a risky, alternative investment choice and usually requires a high minimum investment or net worth. Hedge funds typically target wealthy investors.

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SPONSOR: http://www.MARCINKOASSOCIATES.com

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QUESTION: Can I invest my Individual Retirement Account [IRA] in a Hedge Fund?

This is up to the manager, but there is no legal restriction on a hedge fund accepting individual retirement account (IRA) assets. IRA accounts are not well suited for funds that make extensive use of leverage, however. In such cases, the fund is likely to generate significant amounts of unrelated business taxable income (UBTI) – profits of the fund attributable to the use of leverage. The holder of an IRA account must pay taxes on UBTI, even if the UBTI was generated in an IRA account.

But, today’s hedge funds may or may not use leverage. Many hedge funds are not hedged at all, but rather are just specialized versions of regular long stock portfolios. If such funds do not use much leverage, IRA investors will not encounter much difficulty with UBTI and should not hesitate in considering these funds.

In considering whether to accept IRA money, hedge fund managers must consider several factors. If the only type of retirement money accepted by the hedge funds is IRA money, then the manager has no limit on how much retirement money the fund can accept. If, however, there are other types of retirement money invested in the fund, such as pension funds, IRA money will be counted towards a total of 25 percent of fund assets that can be invested in retirement accounts before the fund becomes subject to the Employment Retirement Income Security Act of 1974 (ERISA). Funds subject to ERISA regulations face a heavy administrative burden and more restrictions than most fund managers like.

Finally, IRA distributions from a hedge fund are subject to the standard 20 percent withholding unless the funds are directly rolled over to other qualified plans.

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DAILY UPDATE: Superior HealthPlan, Larry Fink and the Mixed Stock Markets

MEDICAL EXECUTIVE-POST TODAY’S NEWSLETTER BRIEFING

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Essays, Opinions and Curated News in Health Economics, Investing, Business, Management and Financial Planning for Physician Entrepreneurs and their Savvy Advisors and Consultants

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The CEO of a Texas health insurance company was fired after admitting before a DOGE panel of state lawmakers that he hired private investigators to spy on customers and obtain sensitive details about their lives. Mark Sanders was dismissed from his duties as chief executive of Austin-based Superior HealthPlan after he testified before the Texas House Delivery of Government Efficiency Committee in a hearing on Medicaid procurement last week.

CITE: https://tinyurl.com/2h47urt5

US stocks closed mixed on Tuesday as investors cautiously counted down to President Trump’s highly anticipated “Liberation Day” rollout of sweeping new reciprocal tariffs. The S&P 500 (^GSPC) rose about 0.4%, extending the gains the benchmark index secured on Monday, while the Dow Jones Industrial Average (^DJI) fell just below the flatline. The tech-heavy NASDAQ Composite (^IXIC) rebounded to close up around 0.9%.

CITE: https://tinyurl.com/tj8smmes

BlackRock CEO Larry Fink said private markets should be open to all investors, not just the wealthy few in his annual letter to investors (here.)

Visualize: How private equity tangled banks in a web of debt, from the Financial Times.

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ACCOUNTABLE CARE ORGANIZATION: A Financially Toxic Contract Example for Physicians

SPONSOR: http://www.MarcinkoAssociates.com

By. Dr. David Edward Marcinko; MBA MEd CMP®

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SPONSOR: http://www.CertifiedMedicalPlanner.org

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WARNING – DISASTROUS ACO EXAMPLE – WARNING

GIVEN CASH FLOW MODEL

Suppose that in a new Accountable Care Organization [ACO] contract, a certain medical practice was awarded a new global payment or capitation styled contract that increased revenues by $100,000 for the next fiscal year. The practice had a gross margin of 35% that was not expected to change because of the new business. However, $10,000 was added to medical overhead expenses for another assistant and all Account’s Receivable (AR) are paid at the end of the year, upon completion of the contract.

Cost of Medical Services Provided (COMSP):

The Costs of Medical Services Provided (COMSP) for the ACO business contract represents the amount of money needed to service the patients provided by the contract.  Since gross margin is 35% of revenues, the COMSP is 65% or $65,000.  Adding the extra overhead results in $75,000 of new spending money (cash flow) needed to treat the patients. Therefore, divide the $75,000 total by the number of days the contract extends (one year) and realize the new contract requires about $ 205.50 per day of free cash flows.

Assumptions

Financial cash flow forecasting from operating activities allows a reasonable projection of future cash needs and enables the doctor to err on the side of fiscal prudence. It is an inexact science, by definition, and entails the following assumptions:

  • All income tax, salaries and Accounts Payable (AP) are paid at once.
  • Durable medical equipment inventory and pre-paid advertising remain constant.
  • Gains/losses on sale of equipment and depreciation expenses remain stable.
  • Gross margins remain constant.
  • The office is efficient so major new marginal costs will not be incurred.

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Physician Reactions:

Since many physicians are still not entirely comfortable with global reimbursement, fixed payments, capitation or ACO reimbursement contracts; practices may be loath to turn away short-term business in the ACA era.  Physician-executives must then determine other methods to generate the additional cash, which include the following general suggestions:

1. Extend Account’s Payable

Discuss your cash flow difficulties with vendors and emphasize their short-term nature. A doctor and her practice still has considerable cache’ value, especially in local communities, and many vendors are willing to work them to retain their business

2. Reduce Accounts Receivable

According to most cost surveys, about 30% of multi-specialty group’s accounts receivable (ARs) are unpaid at 120 days. In addition, multi-specialty groups are able to collect on only about 69% of charges. The rest was written off as bad debt expenses or as a result of discounted payments from Medicare and other managed care companies. In a study by Wisconsin based Zimmerman and Associates, the percentages of ARs unpaid at more than 90 days is now at an all time high of more than 40%. Therefore, multi-specialty groups should aim to keep the percentage of ARs unpaid for more than 120 days, down to less than 20% of the total practice. The safest place to be for a single specialty physician is probably in the 30-35% range as anything over that is just not affordable.

The slowest paid specialties (ARs greater than 120 days) are: multi-specialty group practices; family practices; cardiology groups; anesthesiology groups; and gastroenterologists, respectively. So work hard to get your money, faster. Factoring, or selling the ARs to a third party for an immediate discounted amount is not usually recommended.

3. Borrow with Short-Term Bridge Loans

Obtain a line of credit from your local bank, credit union or other private sources, if possible in an economically constrained environment. Beware the time value of money, personal loan guarantees, and onerous usury rates. Also, beware that lenders can reduce or eliminate credit lines to a medical practice, often at the most inopportune time.

4. Cut Expenses

While this is often possible, it has to be done without demoralizing the practice’s staff.

5.  Reduce Supply Inventories

If prudently possible; remember things like minimal shipping fees, loss of revenue if you run short, etc.

6. Taxes

Do not stop paying withholding taxes in favor of cash flow because it is illegal.

Hyper-Growth Model:

Now, let us again suppose that the practice has attracted nine more similar medical contracts. If we multiple the above example tenfold, the serious nature of potential cash flow problem becomes apparent. In other words, the practice has increased revenues to one million dollars, with the same 35% margin, 65% COMSP and $100,000 increase in operating overhead expenses. 

Using identical mathematical calculations, we determine that $750,000 / 365days equals $2,055.00 per day of needed new free cash flows!  Hence, indiscriminate growth without careful contract evaluation and cash flow analysis is a prescription for potential financial disaster.

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EDUCATION: Books

SPEAKING: Dr. Marcinko will be speaking and lecturing, signing and opining, teaching and preaching, storming and performing at many locations throughout the USA this year! His tour of witty and serious pontifications may be scheduled on a planned or ad-hoc basis; for public or private meetings and gatherings; formally, informally, or over lunch or dinner. All medical societies, financial advisory firms or Broker-Dealers are encouraged to submit a RFP for speaking engagements: CONTACT: MarcinkoAdvisors@outlook.com 

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DAILY UPDATE: DJIA Rebounds to End Volatile Month

MEDICAL EXECUTIVE-POST TODAY’S NEWSLETTER BRIEFING

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Essays, Opinions and Curated News in Health Economics, Investing, Business, Management and Financial Planning for Physician Entrepreneurs and their Savvy Advisors and Consultants

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US stocks rebounded Monday to cap a volatile month and quarter as trade-war worries mount in the run-up to President Trump’s tariff bonanza later in the week.

The tech-heavy NASDAQ Composite (^IXIC) closed down about 0.1%, while the S&P 500 (^GSPC) recuperated losses of as much as 1.7% to close up nearly 0.6%. The Dow Jones Industrial Average (^DJI) erased early morning losses to gain 1%, or about 400 points.

CITE: https://tinyurl.com/2h47urt5

Markets wrapped up March on a woeful note after a rough month and quarter beset by Trump’s fast-evolving tariff policy. Last week was the fifth in six weeks that the NASDQ Composite and S&P 500 ended the week in the red. The benchmark index is down over 4.5% to start the year while the NASDAQ has lost over 10%, finishing with their worst quarters since 2022.

Some of the biggest-name megacaps have led the decline. NVIDIA (NVDA) fell Monday as it has neared a 20% loss so far this year, while TESLA (TSLA) has lost more than 35%.

CITE: https://tinyurl.com/tj8smmes

Visualize: How private equity tangled banks in a web of debt, from the Financial Times.

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MERGER ARBITRAGE: Risk Arbitrage Defined

By Dr. David Edward Marcinko; MBA MEd CMP

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Sponsor: http://www.CertifiedMedicalPlanner.org

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Merger Arbitrage (a.k.a. Risk Arbitrage)

Merger risk arbitrage, while a subset of a larger strategy called event-driven arbitrage, represents a sufficient portion of the market-neutral universe to warrant separate discussion.

Merger arbitrage earned a bad reputation in the 1980s when Ivan Boesky and others like him came to regard insider trading as a valid investment strategy. That notwithstanding, merger arbitrage is a respected strategy and when executed properly, can be highly profitable. It bets on the outcomes of mergers, takeovers and other corporate events involving two stocks which may become one.

Example:

A classic example is acquisition of SDL Inc. (SDLI) by JDS Uniphase Corp (JDSU). On July 10, 2010 JDSU announced its intent to acquire SDLI by offering to exchange 3.8 shares of its own shares for one share of SDLI. At that time, the JDSU shares traded at $101 and SDLI at $320.5. It was apparent that there was almost 20 percent profit to be realized if the deal went through (3.8 JDSU shares at $101 are worth $383 while SDLI was worth just $320.5).

This apparent mispricing reflected the market’s expectation about the deal’s outcome. Since the deal was subject to the approval of the U.S. Justice Department and shareholders, there was some doubt about its successful completion.

Risk arbitrageurs who did their homework and properly estimated the probability of success bought shares of SDLI and simultaneously sold short shares of JDSU on a 3.8 to 1 ratio, thus locking in the future profit. Convergence took place about eight months later, in February 2011, when the deal was finally approved and the two stocks began trading at exact parity, eliminating the mis-pricing and allowing arbitrageurs to realize a profit.

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Hedge Fund Research defines the strategy as follows:

Merger Arbitrage,also known as risk arbitrage, involves investing in securities of companies that are the subject of some form of extraordinary corporate transaction, including acquisition or merger proposals, exchange offers, cash tender offers and leveraged buy-outs. These transactions will generally involve the exchange of securities for cash, other securities or a combination of cash and other securities. Typically, a manager purchases the stock of a company being acquired or merging with another company, and sells short the stock of the acquiring company. A manager engaged in merger arbitrage transactions will derive profit (or loss) by realizing the price differential between the price of the securities purchased and the value ultimately realized when the deal is consummated. The success of this strategy usually is dependent upon the proposed merger, tender offer or exchange offer being consummated.

When a tender or exchange offer or a proposal for a merger is publicly announced, the offer price or the value of the securities of the acquiring company to be received is typically greater than the current market price of the securities of the target company. Normally, the stock of an acquisition target appreciates while the acquiring company’s stock decreases in value. If a manager determines that it is probable that the transaction will be consummated, it may purchase shares of the target company and in most instances, sell short the stock of the acquiring company. Managers may employ the use of equity options as a low-risk alternative to the outright purchase or sale of common stock. Many managers will hedge against market risk by purchasing S&P put options or put option spreads.

Cite: https://www.hfr.com See § 23.03[E].



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DAILY UPDATE: NIH, FDA, CMS and HHS Nominees as Stock Markets Collapse

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Dr. Jay Bhattacharya is officially the new NIH director. The Senate voted to confirm the Stanford University professor’s appointment on March 26 in a 53–47 vote. Marty Makary MD was also confirmed as FDA commissioner in the same hearing in a 56–44 vote. The appointments come as additional “healthcare disruptors,” alongside Robert F. Kennedy Jr.’s confirmation as HHS secretary and Mehmet Oz’s nomination as head of the Centers for Medicare and Medicaid Services. The nominees have faced backlash from the medical community following their controversial stances on topics like vaccinations and alternative medical practices.

CITE: https://tinyurl.com/2h47urt5

US stocks tanked on Friday as Wall Street grappled with President Trump’s escalating trade war and weighed signs of reinvigorated inflation pressures as consumer sentiment plummets.

The Dow Jones Industrial Average (^DJI) dropped more than 700 points or nearly 1.7%, while the benchmark S&P 500 (^GSPC) fell almost 2%. The NASDAQ Composite (^IXIC) dropped 2.7% as tech stocks led the declines.

CITE: https://tinyurl.com/tj8smmes

As noted above, the major averages fell on Friday after the release of a hotter-than-expected Personal Consumption Expenditures index reading, which includes the Federal Reserve’s preferred inflation gauge of “core” PCE. The reading showed prices increased more than expected last month, rising 0.4% month over month and 2.8% year over year, continuing a stubborn plateau on the path to the Fed’s 2% target.

Visualize: How private equity tangled banks in a web of debt, from the Financial Times.

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PHYSICIAN NET WORTH: Versus Average Family

By Dr. David Edward Marcinko MBA MEd CMP®

SPONSOR: http://www.MarcinkoAssociates.com

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Average Net Worth of an American Family

Both median and average family net worth surged between 2019 and 2022, according to the U.S. Federal Reserve. Average net worth increased by 23% to $1,063,700, the Fed reported in October 2023, the most recent year it published the data. Median net worth, on the other hand, rose 37% over that same period to $192,900.

You might wonder why the average and median net worth figures are so different. That’s because when you take the average of something, you add together every value in a data set and then divide that figure by the number of individual values.

When calculating a median, you simply look at the middle figure within a data set. That said, an average figure can be significantly higher or lower than a median figure if there are extreme outliers – meaning a group of people with significantly more net worth than the rest of the group can bring the average higher.

Average Net Worth by Age

The average net worth of someone younger than 35 years old is $183,500, as of 2022. From there, average net worth steadily rises within each age bracket. Between 35 to 44, the average net worth is $549,600, while between 45 and 54, that number increases to $975,800. Average net worth surges above the $1 million mark between 55 to 64, reaching $1,566,900.

Average net worth again rises for those ages 65 to 74, to $1,794,600, before falling to $1,624,100 for the 75 and older group. The median net worth within every single age bracket, however, is much lower than the average net worth.

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Physicians [MD/DO] Net Worth by Specialty

A 2023 Medscape report shows the top 10 specialties with the most survey respondents saying they are worth more than $5 million.

  1. Plastic Surgery (31% of all survey respondents)
  2. Orthopedics (28%)
  3. Gastroenterology (25%)
  4. Urology (23%)
  5. Cardiology (22%)
  6. Ophthalmology (18%)
  7. Radiology (17%)
  8. Oncology (17%)
  9. Pathology (14%)
  10. Ob/Gyn (14%)

EDUCATION: Books

SPEAKING: Dr. Marcinko will be speaking and lecturing, signing and opining, teaching and preaching, storming and performing at many locations throughout the USA this year! His tour of witty and serious pontifications may be scheduled on a planned or ad-hoc basis; for public or private meetings and gatherings; formally, informally, or over lunch or dinner. All medical societies, financial advisory firms or Broker-Dealers are encouraged to submit a RFP for speaking engagements: CONTACT: MarcinkoAdvisors@outlook.com 

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DAILY UPDATE: HHS Cuts Jobs as US Stocks Slip

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Essays, Opinions and Curated News in Health Economics, Investing, Business, Management and Financial Planning for Physician Entrepreneurs and their Savvy Advisors and Consultants

Serving Almost One Million Doctors, Financial Advisors and Medical Management Consultants Daily

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Health and Human Services Secretary Robert F. Kennedy Jr. is expected to announce 10,000 employees will be cut, the Wall Street Journal reported today—the latest round of layoffs in the Trump administration’s push to slash the size of the federal workforce.

CITE: https://tinyurl.com/2h47urt5

US stocks slid lower on Thursday after President Trump pushed ahead with hefty new tariffs on auto imports, stoking concerns about a potential full-on trade war and global economic harm. The S&P 500 (^GSPC) and the Dow Jones Industrial Average (^DJI) fell just over 0.3% on the heels of a losing day for the major gauges. The tech-heavy NASDAQ Composite (^IXIC) led the losses, falling more than 0.5%.

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Visualize: How private equity tangled banks in a web of debt, from the Financial Times.

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CURRENT RATE OF RETURN: Defined

By Staff Reporters

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Current Rate of Return

An important concept for all medical professionals to understand is the current rate of return (CCR).

According to this principle, the current rate of a taxable return must be evaluated in reference to a similar non-taxable rate of return. This allows you to focus on your portfolio’s real (after-tax return), rather than its’ nominal, or stated return.

Now, since most medical professionals own a combination of both vehicles, it is important to calculate the average rate of return (ARR), as demonstrated in the following matrix. Usually, this will result in the assumption of more risk, for the possibility of great return.

To compare after tax yields, with taxable yields, use the following formulas:

Tax equivalent yield = yield / (1 – MTB), while taxable yield X (1-tax rate) = tax exempt yield.

Example: if the yield on a tax exempt municipal bond was 6%, and you are in a 28% tax bracket; the equivalent taxable yield (ETY), is 8.3%, calculated in the following manner: 06 / 1.00 – .28 =.083, or, 8.3% ETY. This means that you would need a taxable instrument paying almost 9 % to equal the 6 percent tax exempt bond.       

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DAILY UPDATE: A.I. to Replace Doctors, 23andMe Drops as US Stock Markets Slide

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Over the next decade, advances in artificial intelligence will mean that humans will no longer be needed “for most things” in the world, says Bill Gates. That’s what the Microsoft co-founder and billionaire philanthropist told comedian Jimmy Fallon during an interview on NBC’s “The Tonight Show” in February. At the moment, expertise remains “rare,” Gates explained, pointing to human specialists we still rely on in many fields, including “a great doctor” or “a great teacher.”

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US stocks closed sharply loser Wednesday as President Trump prepared to unveil new tariffs on US auto imports. The benchmark S&P 500 (^GSPC) was down more than 1.1%, while the Dow Jones Industrial Average (^DJI) fell about 0.4%. The tech-heavy NASDAQ Composite (^IXIC) led the losses, sliding over 2%. Tech leaders Nvidia (NVDA) and Tesla (TSLA) both closed down more than 5%.

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It’s a shocking fall for 23andMe that once boasted a $6 billion valuation in 2021—despite never making a profit. As of Friday, it was worth $50 million, and on Monday, shares for the consumer genetic testing pioneer fell 50% to 88 cents, Reuters reported.

Visualize: How private equity tangled banks in a web of debt, from the Financial Times.

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DAILY UPDATE: Stablecoin [USD1] as US Stock Markets Gain Again

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Donald Trump has officially dropped a stablecoin. It’s called USD1, and it’s pegged 1:1 with the US dollar, according to a statement from his family company World Liberty Financial Inc, (WLFI) today. The company says the token is fully backed by short-term US government treasuries, USD deposits, and other cash equivalents. Every token equals one dollar, no exceptions. WLFI says it built the whole thing to give people a stablecoin they don’t have to second guess.

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US stocks rose for a third day in a row despite souring consumer confidence — and as investors weighed whether President Trump would temper his plans for upcoming tariffs.

The benchmark S&P 500 (^GSPC) rose more than 0.1%, while the Dow Jones Industrial Average (^DJI) ticked just above the flatline. The tech-heavy NASDAQ Composite (^IXIC) rose nearly 0.5%, bolstered by a more than 3% jump from Tesla (TSLA).

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DAILY UPDATE: US Healthcare History as Stock Markets Soar

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We are embarking on the ambitious task of highlighting some big moments from the last 25 years of healthcare.

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US stocks closed near session highs on Monday as investors welcomed reports that the next wave of President Trump’s tariffs will be narrower than expected.

The S&P 500 (^GSPC) rose almost 1.8% on the heels of the broad benchmark snapping a four-week losing streak. The Dow Jones Industrial Average (^DJI) advanced 1.4%, while contracts on the tech-heavy NASDAQ Composite (^IXIC) led the gains, up 2.3%.

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HOSTILE COMPANY TAKEOVER: Definition, Defense & Pharmaceutical Company Example

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A hostile takeover happens when an entity takes control of a company without the knowledge and against the wishes of the company’s management. A hostile takeover is an acquisition strategy requiring that the entity acquire and control more than 50% of the voting shares issued by the company.

In mergers and acquisitions (M&A), a hostile takeover is the acquisition of a target company by an acquiring company that goes directly to the target company’s shareholders, either by making a tender offer or through a proxy vote.

Ideally, an entity interested in acquiring a company should seek approval from the target company’s Board of Directors. The difference between a hostile and a friendly takeover is that, in a friendly takeover, the target company’s board of directors approve of the transaction and recommend shareholders vote in favor of the deal.

Defenses against a hostile takeover

These defense mechanisms can be preemptive or reactive, depending on how prepared the company is for the possibility of a hostile bid.

Poison pill is one of the most common defenses against a hostile takeover. Officially known as a “shareholder rights plan,” the poison pill allows existing shareholders to purchase additional shares at a discount, diluting the ownership interest of the acquiring company. The goal is to make it prohibitively expensive for the acquirer to complete the takeover.

A golden parachute is another defense strategy, which involves providing lucrative compensation packages (bonuses, severance pay, stock options, etc.) to key executives in the event they are terminated as a result of the takeover. This creates a financial disincentive for the acquiring company, as it would need to pay out these large sums upon completing the takeover.

In a Crown jewel defense, the target company sells or threatens to sell its most valuable assets—its “crown jewels”—if the takeover is completed. This reduces the attractiveness of the company to the acquirer, as the most desirable assets would no longer be part of the deal.

The Pac-Man defenses a more aggressive strategy in which the target company turns the tables by attempting to buy shares of the acquiring company, effectively launching a counter-takeover. While rare, this defense can deter hostile bids by making the takeover battle more costly and complex.

A White-Knight defense involves the target company seeking out a more favorable acquirer, or “white knight,” to make a friendly takeover bid. This allows the target company to avoid the hostile acquirer while still securing the benefits of a merger or acquisition.

EXAMPLE: Sanofi-Aventis and Genzyme Corp. Year: 2011 Deal value: $20.1 billion Industry: Pharmaceutical

The hostile takeover between Sanofi-Aventis and Genzyme Corp. occurred in 2010 when Sanofi, a French pharmaceutical company, wanted to buy Genzyme, a US biotech firm specializing in rare diseases. Genzyme resisted the offer, leading to conflict. Sanofi started a public campaign to pressure Genzyme’s shareholders into selling.

After months of negotiations, the two companies reached a deal in 2011. Sanofi agreed to pay $74 per share, with additional payments tied to Genzyme’s future performance, bringing the total deal value to around $20.1 billion. This acquisition allowed Sanofi to expand into the lucrative market for rare disease treatment.

MORE: https://www.law.cornell.edu/wex/hostile_takeover

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