Rite Aid RAD did not immediately respond to a request for comment. Shares fell 1.2% after hours.
Inflation Report Arrives as Fed Confronts Bank Failures
The Labor Department's inflation reading Tuesday will inform the Federal Reserve on price pressures in the economy as the central bank confronts bank failures.
The inflation rate has cooled from a recent peak last June, but has remained stubbornly high. The consumer-price index, a closely watched measure of inflation, advanced 6.4% in January from a year earlier, just edging down from December's 6.5% increase.
Investor Anxiety Hits a Fever Pitch After Silicon Valley Bank Collapse
Investors are scrambling to protect against the possibility of a protracted stock-market downturn.
The collapse of three banks in the past week has exacerbated a bout of recent volatility that has quickly crested through stock, bond and derivatives markets. Many traders are reaching for bets that would pay out if the haywire stretch for U.S. markets continues.
Pro Take: Banking Crisis Could Lend Fed a Hand in Inflation Fight
The Federal Reserve's forceful tightening of interest rates for a year has battered housing markets and other sectors sensitive to higher rates, like recreational vehicles. But for the most part, the U.S. economy steamed on.
Now, Silicon Valley Bank's collapse and the threat of other troubled banks are "a wake-up call" to financial markets and companies that the Fed's rate hikes have consequences, said Ryan Sweet, chief U.S. economist at Oxford Economics.
Inflation Means Businesses Face Insurance Woes When Rebuilding
Persistent inflation has had spillover effects on the insurance that companies use to guard against disaster at their facilities, with higher construction costs making it harder to get coverage and harder to get paid on claims.
Businesses usually insure against events such as fire and hurricanes in one-year cycles, which in a typical economic environment doesn't pose major difficulties. If a factory would cost $40 million to build in January, it probably will cost slightly more than $40 million to replace in December, if, for example, a wildfire swept through.
Japan Has a Low Risk of a Wage-Price Spiral and That's a Mixed Blessing
SAKATA, Japan-Miki Iwai, 29, says she has never asked for a raise and isn't about to start this year, even with inflation at a four-decade high.
The sake brewery worker says she started tracking household expenses recently to cover the higher price of gasoline.
Asian Startups' Confidence in U.S. Banking Wanes After SVB Panic
SINGAPORE-The failure of Silicon Valley Bank reverberated through startups and venture-capital firms from China to Singapore and India during a roller coaster few days that shook confidence in Asia over reliance on U.S. tech financing.
After frantic efforts trying to secure their money, some startup executives said the incident served as a warning despite U.S. authorities stepping in Sunday to shore up the bank's customers.
UK Jobless Rate Stabilized in Three Months to January as Pay Growth Slowed
The U.K.'s jobless rate held steady at low levels in the three months to January, while pay growth slowed slightly, signaling that the labor market remained tight despite economic headwinds.
The U.K. unemployment rate stood at 3.7% in the November-January period, unchanged from the rate recorded in the fourth quarter of 2022, according to data from the Office for National Statistics released Tuesday.
SVB's Collapse Shows the Yield Curve Is Always Right
Financial markets' favorite negative signal, a so-called inverted yield curve, has been flashing red since July, and its record of predicting bad news remains intact.
In ordinary times, investors tend to demand higher interest to lend for longer periods because there is more inflation and interest-rate uncertainty over the long term than in the short term. When short-term U.S. Treasury yields exceed longer-term yields, it is a sign that investors expect higher interest rates or economic risk in the near term, and demand more compensation.
North Korea Fires Two Short-Range Ballistic Missiles
SEOUL-North Korea launched two short-range ballistic missiles, following its playbook of using weapons tests to keep pressure on the U.S. and South Korea as the two countries conduct joint military drills.
The missiles were fired around 7:40 a.m. on Tuesday from North Korea's western coastal province of South Hwanghae and traveled about 385 miles in 10 minutes before landing in waters near the east coast, South Korea's Defense Ministry said.
DeSantis Calls U.S. Support of Ukraine Distraction From More Vital Interests
Florida Gov. Ron DeSantis, a likely 2024 Republican presidential candidate, said Monday evening the U.S. shouldn't necessarily help defend Ukraine against Russia's invasion and instead focus its resources on issues closer to home.
"While the U.S. has many vital national interests-securing our borders, addressing the crisis of readiness within our military, achieving energy security and independence, and checking the economic, cultural, and military power of the Chinese Communist Party-becoming further entangled in a territorial dispute between Ukraine and Russia is not one of them," Mr. DeSantis said in a statement broadcast on "Tucker Carlson Tonight," on Fox News.The statement was in response to a questionnaire Mr. Carlson's show sent to all major prospective GOP presidential candidates."We cannot prioritize intervention in an escalating foreign war over the defense of our own homeland, especially as tens of thousands of Americans are dying every year from narcotics smuggled across our open border and our weapons arsenals critical for our own security are rapidly being depleted," Mr. DeSantis said.
U.S. Skeptical of Middle East Deal Brokered by Beijing
U.S. officials expressed skepticism that Tehran would honor a Chinese-brokered entente between Iran and Saudi Arabia, and denied the deal illustrated Washington's diminishing influence in the region.
Under the agreement announced Friday, Riyadh and Tehran will reopen their respective embassies within two months, restoring diplomatic ties for the first time in seven years. Tehran agreed to stop encouraging cross-border attacks on Saudi Arabia by Houthi rebels in Yemen, and Riyadh agreed to tone down critical coverage of Iran by a Farsi-language news channel funded by Saudi business interests.
Biden Seeks to Strengthen Gun Background Checks
President Biden on Tuesday is expected to announce an executive order aimed at reducing gun violence, including increasing background checks, while visiting the area of a January mass shooting in Monterey Park, Calif.
The White House said Mr. Biden's actions are designed to move the U.S. "as close to universal background checks as possible" without the passage of legislation in Congress, where partisan divides have left most gun-safety legislation dead on arrival.
Mitch McConnell Released From Hospital but Will Enter Rehabilitation Facility
Senate Minority Leader Mitch McConnell (R., Ky.) was discharged from the hospital but will enter an inpatient rehabilitation facility before he returns home, an aide said, leaving him sidelined from the Senate for longer.
Last week, Mr. McConnell suffered a concussion after tripping at a hotel during a private dinner and was hospitalized.
China Reopens to Foreign Tourists, Lifting Covid Visa Suspensions
China's Embassy in Washington said it would again permit foreign tourists to visit the country, a major easing of travel restrictions put in place early in the Covid-19 pandemic.
Step by step, China has been permitting more foreigners to enter the country in recent months, including in January when it opened its borders to let Chinese begin traveling overseas again. It also made it easier for business travelers to enter.
Write to ina.kreutz@wsj.com TODAY IN CANADA
Earnings:
Info Svs 4Q
Economic Calendar (ET):
0830 Jan Manufacturing Survey
Stocks to Watch:
Cardinal Energy 4Q EPS C$0.71; 4Q Net C$113.9M; 4Q Rev C$154.9M
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Dorel Industries 4Q Loss/Shr $1.27; 4Q Rev $340.3M; 4Q Adj Loss/Shr $1.22; 'Upbeat About Our Ability to Return to Profitability'
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Imperial Metals: East Ridge Exploration Target Significantly Enhanced at Red Chris; Exploration Target Increased to Between 400M Tons at 0.49% Copper and 0.42 G/t Gold and 500M Tons at 0.47% Copper and 0.39 G/t Gold
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Titanium Transportation 4Q Rev C$110.8M; Sees FY23 Rev C$500M-C$520M; 4Q EPS C$0.11
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Westport Fuel Systems 4Q Rev $78M; 4Q Cont Ops Loss/Shr 10c
Expected Major Events for Tuesday
00:01/UK: 2Q Manpower UK Employment Outlook Survey
04:01/US: 2Q Manpower U.S. Employment Outlook Survey
07:00/UK: Feb UK monthly unemployment figures
09:00/ITA: Jan Industrial Production
09:30/UK: 4Q Mortgage Lenders and Administrators Return (MLAR) statistics
10:00/US: Feb NFIB Index of Small Business Optimism
11:00/FRA: Jan OECD Harmonised Unemployment Rates
12:30/US: Feb CPI
12:30/US: Feb Real Earnings
12:30/CAN: Jan Monthly Survey of Manufacturing
12:55/US: 03/11 Johnson Redbook Retail Sales Index
14:00/US: 4Q Quarterly Services
20:30/US: 03/10 API Weekly Statistical Bulletin
All times in GMT. Powered by Onclusive and Dow Jones.
Expected Earnings for Tuesday
Acer Therapeutics Inc (ACER) is expected to report $-0.88 for 4Q.
Acerus Pharmaceuticals Corp (ASP.T) is expected to report for 4Q.
Agenus Inc (AGEN) is expected to report $-0.22 for 4Q.
American Public Education Inc (APEI) is expected to report $0.00 for 4Q.
Apollo Endosurgery Inc (APEN) is expected to report $-0.22 for 4Q.
Axogen Inc (AXGN) is expected to report $-0.16 for 4Q.
BELLUS Health Inc (BLU,BLU.T) is expected to report for 4Q.
BioAtla Inc (BCAB) is expected to report for 4Q.
Blade Air Mobility Inc (BLDE) is expected to report for 4Q.
(MORE TO FOLLOW) Dow Jones Newswires
03-14-23 0615ET
