Tag Archives: Abbott Laboratories

Abbott Laboratories reportedly faces U.S. criminal probe

Person’s hand holding a bottle of Similac baby formula from Abbott Laboratories in Lafayette, California, May 13, 2022.

Smith Collection | Gado | Archive Photos | Getty Images

Abbott Laboratories is under investigation by the Department of Justice, NBC News confirmed on Saturday, citing a spokesperson for the company.

“DOJ has informed us of its investigation and we’re cooperating fully,” according to spokesman Scott Stoffel.

The Wall Street Journal first reported that Abbott Labs was under criminal investigation related to the company’s manufacturing of infant formula, citing “people familiar with the matter.”

 NBC News has not confirmed the focus of the investigation.

Abbott voluntarily shut down production of its Sturgis, Michigan, infant formula manufacturing plant on Feb. 17, 2022, after infants who consumed formula made at the plant became sick. The shutdown contributed to a nationwide infant formula shortage.

As NBC News previously reported, federal investigators were unable to definitively determine the source or sources of a rare bacteria called Cronobacter that sickened four infants, two of them now dead, who all consumed powdered formula made at Abbott’s Michigan factory.

The company signed a consent decree with the federal government in May that laid out what it would do before re-opening its plant.   

A Food and Drug Administration press release that accompanied the consent decree described DOJ’s complaint filed on behalf of the FDA: “…the government alleges that powdered infant formula products manufactured at Abbott Nutrition’s Sturgis facility were adulterated because they were made under insanitary conditions and in violation of current good manufacturing practice requirements.”

Production at the Michigan factory, which makes three of the country’s most popular brands, Similac, Alimentum and EleCare resumed in June, 2022. 

Abbott said in a previous statement provided to NBC News that it “continue[s] to enhance our manufacturing and quality processes to ensure that our products remain free of Cronobacter Sakazakii” and has “already begun implementing corrective actions and enhancements at the facility.”

The company also said that the lack of a genetic match between sick infants and the formula confirmed its own internal testing showing there was no link and said it has not found the bacteria in any of its distributed products. 

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Abbott Nutrition restarts baby formula production in reopened Michigan plant

Shelves normally meant for baby formula sit nearly empty at a store in downtown Washington, DC, on May 22, 2022.

Samuel Corum | AFP | Getty Images

Abbott Nutrition on Saturday resumed baby formula production at its Sturgis, Michigan, plant, a move toward addressing a nationwide shortage.

The company has been given the green light from the U.S. Food and Drug Administration after meeting “initial requirements” as part of a May 16 consent decree.

The company said it will restart the production of EleCare, a formula for children who struggle to digest other products, along with other specialty and metabolic formulas.

Abbott aims for an initial EleCare product release around June 20 and is working to meet guidelines to resume production of Similac and other formulas.

“We understand the urgent need for formula and our top priority is getting high-quality, safe formula into the hands of families across America,” a spokesperson for Abbott said in a statement. “We will ramp production as quickly as we can while meeting all requirements.”

While supply problems started early in the Covid-19 pandemic, issues worsened in part due to the February closure of the Michigan plant amid scrutiny over contamination.

FDA investigations began after four infants were hospitalized with bacterial infections from drinking its powdered formula. Two of the babies died.

“The FDA is continuing to work diligently to ensure the safe resumption of production of infant formula at Abbott Nutrition’s Sturgis, Michigan, facility,” the FDA said in a statement.

“The agency expects that the measures and steps it is taking, and the potential for Abbott Nutrition’s Sturgis, Michigan, facility, to safely resume production in the near-term, will mean more and more infant formula is either on the way to or already on store shelves moving forward,” the FDA said.  

Abbott Nutrition is the largest baby formula manufacturer in the U.S.

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Walmart, Kroger Raise Prices of Covid-19 Test Kits

Prices are going up for some of the cheapest and most popular at-home Covid-19 test kits in the U.S.

Walmart Inc.

WMT -1.83%

and

Kroger Co.

KR 2.17%

are raising their prices for BinaxNOW at-home rapid tests, after the expiration of a deal with the White House to sell the test kits at cost for $14.

The two U.S. retail giants and

Amazon.com Inc.

agreed with the Biden administration last summer to discount the tests, which are made by

Abbott Laboratories

ABT -2.35%

and generally cost $24 or more for a box with two tests.

Abbott Laboratories’ FDA-approved BinaxNOW kit is among the most commonly used rapid Covid-19 antigen tests in the U.S.



Photo:

Paul Hennessy/Zuma Press

BinaxNOW, approved by the U.S. Food and Drug Administration, is among the most commonly used over-the-counter, rapid antigen tests, which have been in high demand as the highly contagious Omicron variant spreads across the U.S.

The deal with the White House expired in December, and Walmart said this week that it is raising the kits’ price to $19.98 a box. Kroger now sells them for $23.99. The BinaxNOW tests aren’t currently available on Amazon.

Representatives for Walmart and Kroger said they fulfilled their commitment to sell tests at cost for three months and are taking steps to make tests more available. The White House didn’t respond to a request for comment.

An Amazon spokeswoman said the company is working with suppliers to alleviate shortages. She said Amazon made a large investment to develop its own FDA approved PCR test, which sells for $39.99, lower than most similar tests. The effort, she said, involved setting up an in-house laboratory to process results.

Pharmacy chains

CVS Health Corp.

and Walgreens Boots-Alliance Inc., along with other big retailers, have been selling the tests for $23.99 a box. Other retailers already are charging even more.

To help combat Omicron, the Biden administration is opening up more Covid testing sites and delivering 500 million Covid tests to Americans. WSJ’s Daniela Hernandez breaks down why testing is still a pain point in the U.S., two years into the pandemic. Photo Illustration: David Fang

Even at the higher prices, tests are difficult to find. BinaxNOW is sold out on many major retailers’ websites or takes more than a week to arrive. A Walmart spokeswoman said the BinaxNOW tests are more readily available in physical stores.

Abbott said it is running plants around the clock, seven days a week to pump out 70 million tests a month. “Despite rising U.S. material and labor costs, we have not passed along any of these costs to our customers and the price at retail has not changed since we launched the test,” the company said.

Covid-19 tests—both at-home kits and those done on location in clinics or at drugstores—remain costly and difficult to find in many places as the Omicron-driven surge pushes many Americans to seek out the diagnostic tools. The Biden administration has said it is working to expand access to free testing and has pledged to distribute 500 million free at-home tests. Some cities and states have established similar programs.

The White House said last month that it would begin delivering at-home tests in January and that they would be available to the public free by mail through a new website. Officials haven’t provided details of the plans to mail out tests or to cover the costs of testing.

Kroger now sells BinaxNOW Covid-19 test kits for $23.99 a box.



Photo:

Barrett Lawlis/Eagle-Gazette/USA TODAY NETWOR/Reuters

The cost and availability of tests varies widely. BinaxNOW tests are hard to find online for $24 but can be purchased for twice the price. At-home PCR tests are more readily available but generally cost close to $100 for a single test. Other rapid tests approved by the FDA for home use include the Ellume Covid-19 Home Test and the QuickVue test made by

Quidel.

Free testing is generally offered at medical and community clinics and at retail pharmacies. In places where demand for testing is especially high, people face hours-long lines or scarce appointment slots. How much people pay for in-person tests varies based on a number of factors including whether a person is insured, if they are symptomatic and how quickly they want results.

“When the prices are that high, people will rationalize not using a kit. They’ll wait until they’re sick or need it for school or something,” said Eric Feigl-Ding, an epidemiologist and health economist and a senior fellow at the Washington, D.C.-based Federation of American Scientists. “The problem with this pricing, besides creating a lack of access, is that it creates a perverse incentive for people not to use them.”

The tests need to be free or cost closer to $1, as is the case in much of Europe, to be an effective tool, Dr. Feigl-Ding said. That is because people who have few or no symptoms can still spread the virus.

Write to Sharon Terlep at sharon.terlep@wsj.com

Copyright ©2022 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8

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To detect omicron, take an at-home COVID-19 test right before a holiday gathering, experts say

Friends and families relying on at-home rapid COVID-19 tests to safely celebrate the holidays should do those tests as close to the point of arrival as possible, and not one or two days earlier or even the morning of. 

The standard thinking until now has been that performing a rapid test one to three days before an event, such as an international flight or a party, was enough to demonstrate that someone wasn’t sick at the time of the test. 

Rapid, or antigen, tests can detect if you have a current infection, though they are considered less sensitive than PCR tests.

But the new omicron variant, which is driving the surge in cases in the U.S., has changed that thinking. This variant is more transmissible, has a shorter incubation period than other strains, is causing breakthrough infections among the vaccinated, and it’s hitting the U.S. at the start of the holiday season. 

“There have been plenty of examples where perhaps you test negative in the morning, but you could be testing positive by the afternoon or the evening,” said Rachael Piltch-Loeb, an associate research scientist at NYU School of Global Public Health and a preparedness fellow at Harvard T.H. Chan School of Public Health.

One of those examples comes from an office holiday party in Oslo, Norway, in late November. Eighty-one out of 110 people who attended the party had confirmed or probable cases of COVID-19, according to preliminary research published Dec. 16. Everyone who attended the party was fully vaccinated, primarily with the mRNA shots, though no one had received a booster. Each person had to get a negative test one to two days before the party.

“That’s really dramatic transmission,” Michael Osterholm, an epidemiologist and ​​director of the University of Minnesota’s Center for Infectious Disease Research and Policy, told SiriusXM last week. “This thing goes through red lights at 300 miles an hour.”

This is why some public-health experts are instead suggesting that it’s better to conduct rapid at-home tests within minutes of arriving at a gathering of any kind.

“I would argue that a much more reliable result, even amidst omicron, is a test taken 15 minutes before you enter into a gathering,” said Dr. Michael Mina, an epidemiologist who recently left Harvard to join eMed, which markets at-home COVID-19 tests, as chief science officer.

Mina made the remarks Tuesday during a press call. 

Not only is omicron thought to be more transmissible than other SARS-CoV-2 strains, it also is believed to have a much shorter incubation period, of two to three days, compared with four days for delta and approximately five days for the original strain of the virus. Within weeks of omicron’s detection in the U.S., it’s already the most dominant version of the virus in the U.S. 

“It replicates incredibly quickly,” Piltch-Loeb said. “That’s why we’re seeing shorter incubation periods with this variant. And that’s also why our protocol for using rapid tests should be a little bit different.”

The emergence of this particularly vexing variant heading into the second pandemic holiday season has renewed COVID-19 anxieties for some people and raised broader questions about how best to use tools like at-home tests. Though they are considered a positive addition to the pandemic toolbox, rapid at-home tests are also expensive, at least $10 per test, and not always easy to find on store shelves.

Experts say the tools that have been available all along this year—vaccination, testing, using outdoor space to gather, if possible, and masking—still work. We just have to make some tweaks, especially how we use and supply rapid at-home tests. 

Mina recommends that people perform rapid tests in their cars in the driveway when they arrive at a party or gathering and to keep the tests at room temperature, saying that cold temperatures can damage their effectiveness. 

“There’s a real need to be able to live life in the safest way possible while still having it move forward,” he said. “Rapid tests are one of the most powerful tools that have not really been utilized in a powerful way in this pandemic.” 

The White House said Tuesday it is planning to provide 500 million free rapid, at-home tests to people in the U.S., starting in January.

At the same time, the exponential growth in new COVID-19 cases over the last week has fueled demand for at-home tests, including Abbott Laboratories’
ABT,
+2.75%
BinaxNOW, iHealth Labs. Inc.’s at-home antigen test, and Quidel Corp.’s
QDEL,
-0.42%
QuickVue At-Home test. (The Food and Drug Administration said Wednesday that the BinaxNOW and QuickVue antigen tests can pick up omicron as well as other variants.)

Many pharmacy chains that carry at-home COVID-19 tests say they are seeing unprecedented demand for these products right now. Some tests are unavailable to purchase online. The stores say they can be found on shelves, though purchases are now being limited. 

As of Tuesday, CVS Health Corp.
CVS,
+0.11%
said it is limiting the purchase to six at-home tests per order. Walgreens Boots Alliance Inc.
WBA,
+0.90%
has a limit of four at-home tests per purchase, and Walmart Inc.
WMT,
+0.13%
limits orders to 8 testing kits, according to statements from each company. On Wednesday morning, several tests were out of stock online at these chains. 

People can also get in-person rapid or PCR tests at clinics and mobile testing sites; however, in regions undergoing surges, like New York City, that can require waiting sometimes hours to get a test, and results can be delayed. 

“I personally believe that we’re way beyond the days of standing in line,” Mina said. “And I’m totally disheartened to drive down Boston [Street] and see people standing in the cold in line to get a PCR test because they can’t get a rapid test anywhere.”

Read more of MarketWatch’s coverage of rapid, at-home COVID-19 tests:

‘This is a critical moment,’ Biden says, while rolling out free, at-home COVID tests as omicron spreads

Biden plans to distribute 500 million at-home COVID-19 test kits. Here are the states and cities already providing free tests.

Is it safe to travel for Christmas as omicron spreads? Here are 5 steps to stay healthy during the holidays

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Pinterest, Sonos, Anthem and more

Customers view merchandise in an experience room at the Sonos store in New York.

Gabby Jones | Bloomberg | Getty Images

Check out the companies making headlines in midday trading.

Pinterest — Shares of the social media company rallied more than 9% following a Bloomberg News report that said PayPal may acquire Pinterest. PayPal shares fell 4.9%.

Sonos — Shares of the smart home sound system manufacturer jumped 1.6% after David Einhorn’s Greenlight Capital said it increased its bet on the company, calling Sonos a “bright growth story.” In a letter to investors obtained by CNBC, the hedge fund manager revealed that his firm expanded what was a small position in Sonos “to a size that makes it worthwhile to discuss.”

Ford – Shares of the automaker jumped 3.6% after Credit Suisse upgraded the stock to outperform from neutral. “In the past year, we’ve seen a significant turnaround underway at Ford,” the analyst said. “It has ended its cycle of quarterly earnings disappointments, and its transition to an EV/digital world has sharply accelerated.”

ProShares Bitcoin Strategy ETF – The bitcoin futures ETF gained about 4% in its second day of trading as the price of bitcoin rallied to an all-time high. The fund tracks contracts speculating on the future price of bitcoin.

Anthem — Shares of the insurance company popped more than 7% in midday trading after Anthem reported better-than-expected quarterly results. Anthem earned $6.79 per share, topping estimates by 42 cents, according to Refinitiv. Anthem made $35.55 billion in revenue, higher than the forecast $35.3 billion.

Omnicom Group — Omnicom shares slipped 4.1% following the media company’s third-quarter financial results. The company posted profit of $1.65 per share versus $1.37 analysts surveyed by StreetAccount were expecting. Revenue came in at $3.44 billion, slightly short of the $3.46 billion analyst estimate.

Novavax — Novavax shares sank 11% after a Politico report said the drugmaker is having challenges meeting regulators’ quality standards for its Covid vaccine.

Brinker International – Shares of the Chili’s parent dipped more than65% after the company warned about the impact of higher labor and commodities costs, saying its margins will be hit. “The Covid surge starting in August exacerbated the industry-wide labor and commodity challenges and impacted our margins and bottom line more than we anticipated,” CEO Wyman Roberts said in a statement. The company will report full quarterly results on Nov. 3.

Winnebago – Winnebago’s stock rose 0.1% despite the company beating top- and bottom-line estimates during its fiscal fourth quarter. The RV maker earned $2.57 per share excluding items on $1.04 billion in revenue.

Abbott Laboratories — Shares of the pharmaceutical company rose nearly 2.5% in midday trading after beating on the top and bottom lines of its quarterly results. Abbott earned an adjusted $1.40 per share, topping estimates of 95 cents per share, according to Refinitiv. Revenue came in at $10.93 billion, higher than the forecast $9.56 billion.

Signature Bank — Shares of New York-based Signature Bank rose 4.1% after the company beat quarterly earnings expectations. The bank reported earnings of $3.88 per share versus the StreetAccount consensus of $3.72 per share.

WD-40 — Shares of the lubricant maker sank 7.9% after missing on the top and bottom lines of its quarterly results. CEO Garry Ridge said the pandemic had created abnormal swings in the company’s sales results.

Tegna — Shares of Tegna rose more than 4% following a Bloomberg report that media mogul Byron Allen has received additional backing for his $23 per share offer for the TV broadcasting company. 

— with reporting from CNBC’s Yun Li, Pippa Stevens, Hannah Miao and Tanaya Macheel.

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Abbott deploys 2,500 out-of-state medical workers as younger patients crowd hospitals

Dr. Joseph Varon, right, and Jeffrey Ndove, left, perform a procedure for hypothermia treatment on a patient in the COVID-19 intensive care unit on Christmas Eve at the United Memorial Medical Center on December 24, 2020 in Houston, Texas.

Go Nakamura | Getty Images

DALLAS — Hospitals in Texas are suspending elective procedures and turning to 2,500 medical workers from other states to help combat a surge in Covid cases as increasingly younger and healthier patients who didn’t get vaccinated against the virus crowd treatment floors.

The state is bracing for what could be its most aggressive fight against the coronavirus yet as the delta variant rips across the country and hits states with low vaccination rates and relaxed public health measures, particularly in the South and Midwest.

Covid cases in the Lone Star State have exploded in the last few weeks. Texas is averaging about 15,419 new cases per day, according to data compiled by Johns Hopkins University as of Wednesday, up 34% from a week ago and more than double the seven-day average of 6,762 just two weeks ago.

“What’s concerning about the trajectory is that we’re seeing a much more rapid increase in the number of cases,” said Dr. Trish Perl, chief of infectious diseases at UT Southwestern Medical Center in Dallas.

“We are seeing unvaccinated people that are younger as opposed to earlier in the pandemic when we saw a lot of hospitalizations over 65. Now, the largest and the highest increases that we’re seeing are the 18-to-49-year-olds, and a lot of these people don’t have underlying illnesses.”

The surge in cases comes as Republican Gov. Greg Abbott wages war against local school and government officials who have reinstituted mask mandates, threatening $1,000 fines against municipalities and officials who defy him. He first banned local mask mandates in a May 18 executive order, then issued a second order July 29 levying fines against any county, city, school district, health agency, or government official who disobeys his directive.

The second order also prohibited all public and private entities, government agencies, from requiring individuals to get vaccinated or submit proof of vaccination.

Local officials across Texas are defying state leaders, turning to the courts to challenge Abbott.

A person receives the Moderna Covid-19 vaccine at the American Bank Center in Corpus Christi, Texas, U.S., on Thursday, Feb. 11, 2021.

Go Nakumura | Bloomberg | Getty Images

A district court judge in Bexar County, home to San Antonio, issued a temporary restraining order Tuesday against Abbott’s ban on mask requirements, allowing local officials to reinstate the mandates and other emergency orders to combat the delta variant.

About 300 miles north, the Dallas Independent School District issued a temporary mask requirement on Monday for all district properties.

Dallas County Judge Clay Jenkins followed that with a new mask mandate for schools, businesses and county buildings on Wednesday after a local judge gave him a temporary restraining order that restricts Abbott from enforcing his ban.

Abbott has vowed to fight the restraining orders. In a joint press release with State Attorney General Ken Paxton, the two said they are relying on personal responsibility and protecting “the rights and freedoms of all Texans.”

“Attention-grabbing judges and mayors have defied executive orders before, when the pandemic first started, and the courts ruled on our side – the law,” Paxton said in the statement. “I’m confident the outcomes to any suits will side with liberty and individual choice, not mandates and government overreach.”

Austin Mayor Steve Adler said he is weighing a citywide mask mandate if “the science, the data, and the doctors tell us that’s something that needs to happen in order to keep the community safe.”

“Local school districts ought to be able to make that decision themselves to provide the best protection for their children,” Adler said in an July 28 interview with CNBC.

“I haven’t heard any scientific or data-driven rationale for a policy that doesn’t allow masking to be enforced in order to protect the public health,” Adler said, adding that he is “strongly recommending that all children in schools wear masks, and that teachers and guests in the school do the same thing.”

Hospitalizations, meanwhile, keep climbing. The Lyndon B. Johnson Hospital in Houston and St. Luke’s Hospital in the nearby Woodlands have set up overflow tents outside to handle the influx of patients, a majority of whom are unvaccinated, according to local officials. Texas lags the U.S. in vaccinations with 53.6% of its total population receiving at least one shot, compared with 58.9% nationwide, according to the Centers for Disease Control and Prevention.

A construction crew works to set up tents that hospital officials plan to use with an overflow of COVID-19 patients outside of Lyndon B. Johnson Hospital, Monday, Aug. 9, 2021, in Houston.

Godofredo A. Vásquez | Houston Chronicle via AP

Abbott asked the Texas Hospital Association earlier this week to voluntarily postpone elective medical procedures to free up ICU beds and said the state was bringing in 2,500 out-of-state medical personnel to relieve exhausted doctors and nurses.

“This help could not come fast enough. Many hospitals have already idled non-essential services and are diverting patients to extend staffing capability,” Texas Hospital Association President Ted Shaw said in a statement Tuesday. “The hospital industry is losing frontline staff, particularly nurses, to burnout and illness; many have left the profession due to the extreme nature of the work during a relentless pandemic.”

More than 90% of all ICU beds in Texas were full with roughly 40% dedicated to Covid patients as of Wednesday, according to the Department of Health and Human Services.

While cases and deaths across the nation are down from their January record highs, they are on the rise again — but at a much faster pace in Texas. The state’s death toll is also on the rise at a seven-day average of 57 daily Covid deaths as of Monday, up 36% from last week but below the record average of more than 341 deaths per day in late January 2021, according to Hopkins data.

“It’s honestly heartbreaking. There’s this feeling that they’re invisible but that’s not true, we are seeing critically ill individuals,” said Perl, of UT Southwestern Medical Center in Dallas. She said vaccinations are the “absolute best defense.”

Editor’s note: Nate Ratner and Robert Towey reported from New York and New Jersey, respectively.

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The Boss Wants You Back in the Office. Like, Now.

After 16 months of enduring remote work as a viable pandemic-era solution, many CEOs have a message for their staff: Enough.

At healthcare products maker Abbott Laboratories , executives told corporate employees to return to the company’s headquarters near Chicago this month.

In Pontiac, Mich., the 200-acre campus of lender United Wholesale Mortgage is full again after the company brought nearly 9,300 employees back five days a week as of mid-July.

Office attendance at CenterPoint Energy Inc., a Houston company that delivers electric power in Texas, is back to pre-pandemic levels. The company told all corporate employees to return to its headquarters downtown in June after asking some senior-level employees to return last year.

The finally-had-it moment comes just as the highly transmissible Covid-19 Delta variant has injected uncertainty into reopening plans. Apple Inc. said Monday it was delaying its planned September return to the office by at least a month. A number of companies across industries, in particular technology, are maintaining work-from-home arrangements or hybrid plans.

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Fast Acquisition Corp is a buy

Abbott Laboratories: “Abbott Labs is a great stock … You’re in it now for the diabetes glucose monitoring, but also because we’re going to start having a lot of elective surgery again. I think you’re making a good move.”

Fast Acquisition Corp: “This is a very good example of a great operator, Tilman [Fertitta], whom I think the world of. … The guy is just smart as a whip. I want to invest with Tilman. This would give me a chance to do so. It’s a buy.”

Organogenesis Holdings: “I have to do more work.”

Yelp: “I actually felt that when people start going out, Yelp’s business is going to return to being a little bit better. I had been negative on Yelp, and I am much-less negative on Yelp with the reopening play, but I totally hear what you’re saying from the point of view as a restauranteur. It is a very tough thing alike.”

Virgin Galactic: “This is an age-and-suitability issue. [Older inestors] I would say, ‘listen, you don’t want to be in Virgin Galactic. That’s a mistake. It may take 40 years for that thing to get off the ground. But you’re young and you want to hold it for a while. Maybe space travel becomes the norm.’ So it’s fine for you, but not fine for others.”

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GameStop, Microsoft, AMC: What to Watch When the Stock Market Opens Today

Here’s what we’re watching ahead of Wednesday’s opening bell.

U.S. stock futures slipped, as investors awaited a bumper day of major earnings reports and a meeting of the Federal Reserve.

S&P 500 futures were down 1.1%, while futures tied to the technology-heavy Nasdaq-100 edged down 0.7%. Dow Jones Industrial Average futures fell 1.1%.

What’s Coming Up

Earnings updates expected:

Tesla,

TSLA -0.71%

Apple

AAPL -0.22%

and

Facebook

FB -2.39%

are due after the close. The electric-car maker is expected to record its first full-year profit.

The Federal Reserve releases a policy statement at 2 p.m. and Chairman Jerome Powell holds a press conference at 2:30 p.m.

Market Movers to Watch

And then there’s GameStop. Its stock popped again ahead of the bell, soaring 73% in wildly volatile trading. CNBC reported that Melvin Capital, a hedge fund that has posted big losses so far this year in part because of a wager against the videogame retailer’s stock, had closed out its short position on Tuesday afternoon. The report caused a stir on the online platform Reddit—popular among day traders waging a battle against hedge-fund short-sellers—where some members wrote that it was an attempt to pull

GameStop

GME 109.79%

‘s share price back down. And

Elon Musk

weighed in on the stock again last night with a tweet, “Gamestonk!!“

The show must go on: Another heavily shorted stock, movie-theater operator

AMC Entertainment Holdings,

AMC 133.87%

saw its shares vault more than 350% higher premarket.

—Headphone maker

Koss

KOSS 72.20%

has also joined the party, and its shares jumped 109% premarket.

Bed Bath & Beyond

BBBY 28.21%

resumed its upward trajectory, up 20% ahead of the bell. Online traders point to an early 2020 change in management and the fact that the company is buying back shares as signs that the share price will continue to increase.

Microsoft

MSFT 1.44%

shares are up 2.1% premarket. The software giant’s profit and sales jumped, propelled by pandemic-fueled demand for videogaming and accelerated adoption of its cloud-computing services.

Boeing

BA -4.46%

shares fell 3.3% premarket after the plane maker reported its biggest-ever annual loss and took a huge financial hit on its new 777X jetliner, reflecting the pandemic’s worsening toll.

Abbott Laboratories

ABT 1.12%

shares added 1.5% premarket after it logged hearty profit growth in the latest quarter as a surge in demand for its Covid-19 diagnostics services contributed to higher revenue.

Starbucks

SBUX -5.30%

slipped 3% premarket after the coffee chain reported that sales fell during the holiday quarter but showed signs of recovery, particularly in China. Its operating chief

Roz Brewer

is leaving to become CEO of

Walgreens

WBA 6.21%

Boots Alliance, where she’ll be the only Black woman leading a Fortune 500 company. Walgreens shares climbed 5%.

A Walgreens store in Tomball, Texas, Jan. 16, 2021.



Photo:

Jeff Lautenberger for The Wall Street Journal

AT&T

T -1.11%

shares slipped 1.3% premarket after it reported a fourth-quarter loss as it booked a $15.5 billion charge on its pay-TV business.

—Chip maker

Texas Instruments

TXN -2.81%

‘s shares slipped 1.7% premarket even though quarterly results and outlook both topped Wall Street estimates after Tuesday’s close.

Market Fact

Retail order flows have reached 20% of the U.S. stock market’s total, according to

UBS

research, twice what they were in 2010.

Chart of the Day

GameStop shares have become a favorite of online traders who are seeking to make money from buying options.

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Copyright ©2020 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8



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