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Stock futures rise following Tuesday’s losses in the Nasdaq

Traders on the floor of the NYSE, May 17, 2022.

Source: NYSE

U.S. stock futures rose on Tuesday night after the Nasdaq Composite dropped during the regular session, following a warning of slowing growth from social media company Snap that hurt the tech-heavy index.

Dow Jones Industrial Average futures rose 111 points, or 0.4%. S&P 500 and Nasdaq 100 futures climbed 0.5% and 0.7%, respectively.

Nordstrom shares jumped more than 10% in extended trading after the retailer surpassed sales expectations and raised its full-year outlook. The retailer experienced a surge in demand from shoppers refreshing their closets for “long-awaited occasions.”

The Nasdaq Composite fell 2.4% during regular trading while the S&P 500 slid 0.8%. The Dow rose by 0.2% in a late-day reversal, despite falling as much as 1.6% earlier in the session.

The losses in the Nasdaq came after a warning from Snap spooked the digital advertising industry, which dinged social media stocks including Facebook parent Meta, Twitter, and Google parent Alphabet. Snap’s stock price tumbled 43% during the regular session after the company said it will miss its own earnings and revenue targets.

“It tells me how much technology and comm services are still over-owned, right, because they’re the ones that are getting hit the hardest, and for good reason. Snap was really a big surprise for just about everybody,” Stephanie Link, chief investment strategist and portfolio manager at Hightower, said Tuesday on CNBC’s “Closing Bell.”

“I think that we’re in just really challenging times. I’ve been saying we’re going to be in a choppy environment all year long because there are so many unknowns,” she continued.

Traders will continue to parse through earnings reports this week to see how companies are handling inflationary pressures. Dick’s Sporting Goods is expected to report earnings Wednesday before the bell. Snowflake and Nvidia are set to post quarterly reports after the bell.

On the economic front, traders are also watching for the latest reports on weekly mortgage applications and durable goods orders before markets open. Investors are expecting the latest meeting minutes from the Federal Open Market Committee.

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CDC says monkeypox doesn’t spread easily by air: ‘This is not Covid’

The Centers for Disease Control and Prevention wants to calm public anxiety over how the monkeypox virus is transmitted, emphasizing that it doesn’t spread that easily through the air because it requires close contact with an infected person.

Monkeypox is primarily spread through sustained physical contact such as skin-to-skin touch with someone who has an active rash, CDC officials said this week. The virus can also spread through contact with materials that have the virus on it like shared bedding and clothing. But it can spread through respiratory droplets as well, although not nearly as easily as Covid-19, they said.

A monkeypox patient with lesions in their throat or mouth can spread the virus through respiratory droplets if they are around someone else for an extended period of time. However, the virus does not spread easily that way, according to Dr. Jennifer McQuiston, a CDC official.

“This is not Covid,” McQuiston told reporters on a call Monday. “Respiratory spread is not the predominant worry. It is contact and intimate contact in the current outbreak setting and population.”

For example, nine people with monkeypox took lengthy flights from Nigeria to other countries without infecting anyone else on the planes, according to McQuiston.

“It’s not a situation where if you’re passing someone in the grocery store, they’re going to be at risk for monkeypox,” she said.

The lesions that characterize monkeypox are the source from which the virus spreads, and people are most infectious when these lesions appear on the skin, according to Dr. John Brooks, a medical epidemiologist at the CDC’s division for AIDS prevention.

However, Brooks said front-line health-care providers should use the standard precautions for infectious diseases when treating a patient with monkeypox, including wearing a N95 respirator mask, gloves and a gown if contact with the patient is particularly close.

The U.S. has confirmed one monkeypox case in Massachusetts and four presumed cases in New York City, Florida and Utah that need further analysis. The CDC sequenced the virus from the Massachusetts patient within 48 hours and found a patient match in Portugal, McQuiston said. It’s likely that additional cases will be reported in the coming days, she said.

The recent monkeypox cases in the U.S. and around the world have been identified as the West African strain, a milder form of the virus. Monkeypox is in the same family as smallpox, but is not as severe. Most people who are infected with this strain of monkeypox recover in two to four weeks without specific treatment, McQuiston said.

Monkeypox usually begins with symptoms similar to the flu including fever, headache, muscle aches, chills, exhaustion and swollen lymph nodes. The disease then progresses to rashes that can spread to different parts of the body including the face, eyes, hands, feet, mouth or genitals. These rashes turn into raised bumps that become blisters. However, the rashes have appeared first in some of the recent cases.

The World Health Organization has identified about 200 confirmed or suspected cases in at least a dozen countries. The recent outbreaks are unusual because they are occurring in North American and European countries where the virus is not endemic, like in Africa. Monkeypox is usually found in West and Central African rainforests, home to animals that carry the virus live.

The WHO said this week the current virus appears to spreading among men who have sex with men. Brooks, the CDC official, alerted gay and bisexual men to the potential risk, though he emphasized that anyone can catch the virus regardless of sexual orientation.

Brooks said monkeypox is not a sexually transmitted disease, which generally spreads through semen and vaginal fluids. It’s important for physicians and individuals to know that some of the current patients have anal or genital lesions that can be confused with sexually transmitted diseases such as herpes or syphilis in addition to chickenpox, Brooks added.

“Anyone with a rash or lesion around or involving their genitals, their anus or any other place that they have not seen it before, should be fully evaluated, both for that rash but particularly for sexually transmitted infection and other illnesses that can cause rash,” he said.

The CDC plans to increase its public health messaging ahead of LGBTQ Pride Month, which starts in June, so people in the community are aware of the situation, Brooks said.

The recent monkeypox outbreak in multiple countries is also different from Covid because there are already federally approved vaccines effective in preventing monkeypox. The U.S. has a stockpile of 100 million doses of an older generation smallpox vaccine called ACAM2000, which can be used to protect against monkeypox, though it can have significant side effects and any decision to distribute it widely would require serious discussion, McQuiston said.

There’s another vaccine, Jynneos, that targets smallpox and monkeypox and does not have the same risk of significant side effects. It is administered in two doses for people ages 18 and older who are high risk of smallpox or monkeypox. However, the U.S. only has 1,000 available doses of this vaccine, though the drugmaker Bavarian Nordic will start ramping up its production in the coming weeks, McQuiston said.

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Monkeypox outbreak ‘containable,’ says WHO, as confirmed cases hit 131

Monkeypox cases are being investigated in Europe, the U.S., Canada and Australia following a recent spike in infections.

Jepayona Delita | Future Publishing | Getty Images

The World Health Organization said Tuesday that a recent outbreak of monkeypox cases in non-endemic countries is “containable,” even as it continues to confound health experts.

As of Tuesday, there were 131 confirmed cases and 106 suspected cases of the disease since the first was reported on May 7, according to the public health body. The cases are reportedly located in 19 countries outside of Africa.

The WHO said it was currently unclear whether the spike in cases was the “tip of the iceberg” or whether a peak in transmission had already been reached.

Monkeypox is a rare viral infection that is endemic to Central and West Africa. It spreads through close contact with people, animals or material infected with the virus, with symptoms including rashes, fever, headaches, muscle ache, swelling and backpain.

While most cases are mild, typically resolving within two to four weeks, health experts have been baffled by the recent spike in countries with no history of the disease and patients with no travel links to endemic countries.

Western cases rise, primarily through sex

At least 19 countries including the U.S., U.K. Canada, Australia, Italy, Spain and Portugal have so far reported cases. Belgium — currently home to four cases — on Friday became the first country to institute mandatory isolation for patients, while the U.K. has urged close contacts of patients to sell-isolate.

The majority of cases are spreading through sex, the WHO said Monday. Though not generally considered a sexually transmitted disease, health authorities have noted a particular concentration of cases among men who have sex with other men.

The Centers for Disease Control and Prevention on Monday alerted gay and bisexual men to take precautions if they have been in close contact with someone who may have the virus and to be on the lookout for symptoms.

“A notable proportion of recent cases in the UK and Europe have been found in gay and bisexual men so we are particularly encouraging these men to be alert to the symptoms,” Susan Hopkins, chief medical advisor at the U.K.’s Health Security Agency, added Monday.

Monkeypox strain mutation unlikely

The WHO’s Director for Global Infectious Hazard Preparedness, Sylvie Briand, said Tuesday that it’s unlikely the virus has mutated. Rather, she said, its transmission may have been driven by a change in human behavior, particularly as a result of easing Covid-19 social restrictions.

The West African strain of monkeypox — which has been identified in the current outbreak — has a mortality rate of around 1%.

A section of skin tissue, harvested from a lesion on the skin of a monkey, that had been infected with monkeypox virus, is seen at 50X magnification on day four of rash development in 1968. 

CDC | Reuters

“We encourage you all to increase the surveillance of monkeypox to see where transmission levels are and understand where it is going,” Briand added.

Jeremy Farrer, director of global health charity Wellcome, told CNBC Monday that the recent outbreak was atypical of the monkeypox virus.

“We’ve never had a [monkeypox] epidemic before which has spread now to 15 countries in three weeks,” Farrer said at the World Economic Forum.

However, he added that it should not yet be a cause for concern for the general public, noting that it is not yet a “Covid-style risk.”

“That’s not the same as saying public health people shouldn’t be worried. It’s not the same as saying we must not act swiftly. But is it a huge risk to the public? No, I don’t believe it is, as of today.”

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Millionaires call on the global elite to tax them more

Protesters take part in a demonstration against the World Economic Forum (WEF) during the WEF annual meeting in Davos on May 22, 2022.

Fabrice Coffrini | Afp | Getty Images

A group of over 150 millionaires are calling on the elite attendees of this year’s World Economic Forum in Davos, to tax them more.

The group, known as “Patriotic Millionaires,” published an open letter on Monday reiterating calls for the attendees of WEF to “acknowledge the danger of unchecked wealth inequality around the world, and publicly support efforts to tax the rich.”

“Tax us, the rich, and tax us now,” the letter said, which included actor Mark Ruffalo and heiress Abigail Disney among its signatories.

They explained in the letter that the inequality baked into the international tax system had created distrust between the people of the world and its rich elites.

To restore that trust, the group argued that it would take a “complete overhaul of a system that up until now has been deliberately designed to make the rich richer.”

“To put it simply, restoring trust requires taxing the rich,” the millionaires said.

They said that the WEF Davos summit didn’t deserve the world’s trust right now, given the lack of “tangible value” that had come from discussions at previous events.

Some of the millionaires even staged pro-taxation protests at Davos over the weekend.

Cost of living crisis

This latest call from the rich to be taxed more comes as rising prices ratchet up the cost of living for people around the world.

Patriotic Millionaires referred to an Oxfam brief, published Monday, which found a billionaire was minted every 30 hours during the first two years of the Covid-19 pandemic. Oxfam estimated that nearly million people could fall into extreme poverty at a similar rate in 2022.

Julia Davies, founding member of Patriotic Millionaires U.K., said that as “scandalous as it is that governments seem to be utterly inactive on dealing with the cost of living, it is equally scandalous that they allow extreme wealth to sit in the hands of so few people.”

Davies added that “global crises are not accidental, they are the result of bad economic design.”

‘Race to the bottom’ on corporate taxes 

Speaking to CNBC’s Geoff Cutmore on a panel in Davos on Tuesday, Oxfam Executive Director Gabriela Bucher said that last year’s multilateral agreement proposing that companies pay at least 15% tax on earnings, did not go far enough.

The Organisation for Economic Co-operation and Development tax reform agreement was signed by 136 countries and jurisdictions in October, though it is yet to be implemented.

Bucher pointed out that if the agreed rate had been set higher, at 25%, as recommended by tax experts around the world, this would raise a further $17 billion for the developing world.

Bucher was also concerned that the agreement, at the current level, would see a “race to the bottom” for corporate taxes and that countries with higher rates might actually bring them down.

“There’s a danger that we’re not really using this important tool at this moment when we have so many competing crises,” she said, referring to a hunger crisis in both the developing world and in wealthier countries because of the surging cost of living.

Bucher later went on to say that “you can accumulate as much wealth as you want, but if everything ends around you then it doesn’t make much sense.”

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Abercrombie & Fitch (ANF) reports Q1 2022 loss

A person carries a bag from the Abercrombie & Fitch store on Fifth Avenue in New York City, February 27, 2017.

Andrew Kelly | Reuters

Abercrombie & Fitch shares fell more than 25% in premarket trading Tuesday after the retailer reported an unexpected loss in its fiscal first quarter, with freight and product costs weighing on sales.

Abercrombie also slashed its sales outlook for fiscal 2022, anticipating that economic headwinds will remain at least through the end of the year. The news sent shares of apparel retailers American Eagle Outfitters and Urban Outfitters both down about 7% in premarket trading.

Abercrombie now sees revenue flat to up 2%, compared with a prior forecast of a 2% to 4% growth. Analysts had been looking for a year-over-year increase of 3.5%, according to Refinitiv consensus estimates.

Chief Executive Officer Fran Horowitz said in a statement that the retailer will manage its expenses tightly and search for opportunities to offset the higher logistics costs in the near term. She also said Abercrombie plans to protect investments in marketing, technology and customer experiences.

Abercrombie joins a growing list of retailers, including Walmart, Target and Kohl’s, that are seeing profits take a hit as inflation hovers at a 40-year high. There are also concerns that inventories are beginning to pile up, following months of supply chain backlogs, right as consumer demand for certain products is waning. Businesses like Abercrombie could be forced to discount items to move them off shelves.

Here’s how Abercrombie did for the three-month period ended April 30, compared with what Wall Street was anticipating, based on Refinitiv estimates:

  • Loss per share: 27 cents adjusted vs. earnings of 8 cents expected
  • Revenue: $813 million vs. $799 million expected

Abercrombie reported a net loss in its fiscal first quarter of $14.8 million, or 32 cents per share, compared with net income of $42.7 million, or 64 cents a share, a year earlier.

Excluding one-time items, Abercrombie lost 27 cents per share. Analysts had expected the company to earn 8 cents a share during the quarter.

Sales grew 4% to $812.8 million from $781.4 million a year earlier. That was ahead of expectations for $799 million.

Within that figure, sales at Abercrombie’s Hollister banner fell 3% year over year, while those of its namesake label rose 13%.

Abercrombie’s inventories totaled $563 million as of April 30, up 45% from year-ago levels.

The retailer cut its outlook for full-year operating margins to a range of 5% to 6%, down from a prior range of 7% to 8%. Abercrombie said the adjustment takes into account higher freight and raw material costs, foreign currency and lower sales due to an assumed inflationary impact on consumers.

Beginning in the second quarter, Abercrombie said it will no longer provide full-year or quarterly outlooks on gross profit rate or operating expenses, “in response to volatility in freight and other costs.”

Abercrombie shares have fallen 23% year to date, as of Monday’s market close.

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Walmart expands drone-delivery service to reach 4 million households

Walmart is expanding drone deliveries to select stores in six states. That will make it possible for more customers to get diapers, groceries or more delivered by air.

Walmart

Walmart is expanding drone delivery across six states this year, making it possible for many more customers to get a box of diapers or dinner ingredients delivered in 30 minutes or less.

Through an expansion with operator DroneUp, the big-box retailer said it will be able to reach 4 million households in parts of Arizona, Arkansas, Florida, Texas, Utah and Virginia. The deliveries by air will be fulfilled from a total of 37 stores — with 34 of those run by DroneUp.

It announced its plans for growth on Tuesday in a blog post. Walmart currently offers drone deliveries from a few stores near its headquarters in northwest Arkansas and in North Carolina.

Walmart has been testing how the small, unmanned aircraft could change the game for retail, drive e-commerce growth and turn its stores into a way to outmatch Amazon on speed. Two years ago, it struck deals with three operators — Flytrex, Zipline and DroneUp — and began pilot projects to deliver groceries, household essentials and at-home Covid-19 test kits to customers. The company declined to share terms of the deals.

The new kind of delivery is an extension of Walmart’s strategy to use its huge physical footprint as a competitive edge. About 90% of Americans live within 10 miles of one of Walmart’s more than 4,700 stores. Through those stores, Walmart has offered a growing list of fast online options including curbside pickup; InHome, which delivers directly to customers’ fridges; and Express Delivery, which drops items at doorsteps in two hours or less.

Customers who live within the range of a Walmart drone-delivery site can order any of thousands of items between 8 a.m. and 8 p.m. Each drone delivery comes with a $3.99 fee. Customers can order items totaling up to 10 pounds.

Each order is picked, packaged and loaded at the store and flown remotely by a certified pilot to the customer’s yard or driveway. A cable on the drone slowly lowers the package.

Orders must be placed on DroneUp’s website or through the websites of the two other operators. Walmart said it plan to eventually add the order-placing capability to its own website and app.

With the larger network of sites, Walmart will be able to deliver over 1 million packages by drone in a year, David Guggina, senior vice president of innovation and automation for Walmart U.S., said in the blog post.

One of the surprises of the drone tests has been what customers order, he added. Walmart anticipated customers would use the drones to get emergency items, such as over-the-counter medication, Guggina said. Instead, he said, many have used it for convenience. At one store, for instance, the top seller for drone delivery is Hamburger Helper.

Other frequent items delivered by drone are batteries, trash bags, laundry detergent and Welch’s fruit snacks, the company said.

Walmart will use the drones to make money in another way, too. It said it plans to offset the cost of deliveries by selling photographs taken by drones to municipalities and local business, such as construction or real estate companies. The revenue will be split with the drone operator.

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Stock futures fall after Dow’s 600 point comeback

Stock futures fell in overnight trading on Monday as the markets struggled to sustain a comeback rally following weeks of losses.

Futures on the Dow Jones Industrial Average fell 110 points, or 0.34%. S&P 500 futures dipped 0.69% and Nasdaq 100 futures dropped 1.33%.

Zoom Video shares popped 6% in extended trading after sharing strong guidance for the second quarter while Snap shares plummeted more than 28% as the company said it’s bracing to miss earnings and revenue targets in the current quarter and warned of a hiring slowdown.

The moves came as the markets staged a rebound from last week’s steep market sell-off, which saw the Dow hit its first eight-week losing streak since 1923 and the S&P 500 briefly fall into bear market territory on an intraday basis.

Stocks rallied during Monday’s regular trading session as the Dow jumped 618 points, or nearly 2%, following a week of sharp losses. The S&P 500 rose 1.9% and the Nasdaq Composite gained 1.6%.

The moves left investors wondering whether the bounce can hold or if it was yet another minor relief rally amid the relentless sell-off that has yet to reach a bottom.

“This kind of environment where you’ve got the whipsaw and ups and downs that are so big is a trading environment where it can feel on any given day like you were wrong yesterday and that is ripe for mistakes,” Sofi’s head of investment strategy Liz Young told CNBC’s “Closing Bell: Overtime.”

Bank stocks contributed to Monday’s gains led by JPMorgan, which jumped 6.2% after the company said it will reach key targets earlier than expected with the help of rising rates. VMware shares soared nearly 25% on news that Broadcom is reportedly in talks to acquire the clouder service provider.

Monday’s market rally was broad-based, with 11 sectors positive, led by financials. The sector added 3.23% and saw its best day since March 9.

Investors are looking ahead to new home sales and a speech from Fed Chairman Jerome Powell at the National Center for American Indian Enterprise Development summit on Tuesday. Nordstrom, Best Buy, and Ralph Lauren are also slated to report earnings.

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CDC officials sound alarm for gay and bisexual men as monkeypox spreads in community

A section of skin tissue, harvested from a lesion on the skin of a monkey, that had been infected with monkeypox virus, is seen at 50X magnification on day four of rash development in 1968. 

CDC | Reuters

The Centers for Disease Control and Prevention on Monday alerted gay and bisexual men that monkeypox appears to be spreading in the community globally, cautioning people to take precautions if they have been in close contact with someone who may have the virus and to be on the lookout for symptoms.

Dr. John Brooks, a CDC official, emphasized that anyone can contract monkeypox through close personal contact regardless of sexual orientation. However, Brooks said many of the people affected globally so far are men who identify as gay or bisexual. Though they may have greater chance of exposure to monkeypox right now, that doesn’t mean the risk is limited only to the gay and bisexual community, he said.

“We want to help people make the best informed decisions to protect their health and the health of their community from monkeypox,” Brooks said.

Monkeypox is not a sexually transmitted disease, which are generally passed through semen or vaginal fluid, but it can be transmitted through sexual and intimate contact as well as through shared bedding. The virus spreads through contact with body fluids and sores, Brooks said. It’s important for physicians and individuals to be aware of the symptoms associated with monkeypox, particularly anal or genital lesions that can be confused with herpes, syphilis or chickenpox, he said.

“Anyone with a rash or lesion around or involving their genitals, their anus or any other place that they have not seen it before, should be fully evaluated, both for that rash but particularly for sexually transmitted infection and other illnesses that can cause rash,” Brooks said.

The U.S. has confirmed one case of monkeypox in Massachusetts and four cases of orthopox in New York City, Florida and Utah, according to Dr. Jennifer McQuiston, a CDC official. State labs have tests that can identify orthopox, which are presumed to be monkeypox, but they have to be sent to the CDC in Atlanta for further analysis to confirm that diagnosis, McQuiston said.

The cases identified in the U.S. are a milder West African strain, McQuiston said. Most people who catch the virus recover in two to four weeks without specific treatments, she said.

The World Health Organization has identified about 200 confirmed or suspected monkeypox cases across at least a dozen countries in Europe and North America in recent days.

It’s unusual, though not unheard of, for monkeypox cases to be found outside a handful of West and Central African nations where the virus is endemic. The U.S. had an outbreak of more than 70 cases in 2003 that stemmed from people keeping infected prairie dogs as pets.

There has been a surge of cases in Nigeria in recent years, but the cases identified around the world over the past two weeks are unusual because most of the patients did not have recent travel history to Nigeria or another country where the virus is usually found, according to McQuiston.

This is breaking news. Please check back for updates.

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Monkeypox outbreak is primarily spreading through sex, WHO officials say

An outbreak of the monkeypox virus in North America and Europe is primarily spreading through sex among men with about 200 confirmed and suspected cases across at least a dozen countries, World Health Organization officials said Monday.

The outbreak has quickly advanced across Europe and North America over the last week and is expected to be far more widespread as more doctors look for the signs and symptoms. Two confirmed and one suspected case of monkeypox in the U.K. were reported to the WHO just 10 days ago, the first cases this year outside of Africa where the virus has generally circulated at low levels over the last 40 years, the organization said.

“We’ve seen a few cases in Europe over the last five years, just in travelers, but this is the first time we’re seeing cases across many countries at the same time in people who have not traveled to the endemic regions in Africa,” Dr. Rosamund Lewis, who runs WHO’s smallpox research, said in a Q&A livestreamed on the organization’s social media channels.

European nations have confirmed dozens of cases in what’s become the largest outbreak of monkeypox ever on the continent, according to the German military. The U.S. has confirmed at least two cases and Canada has confirmed at least five so far. Belgium just introduced a mandatory 21-day quarantine for monkeypox patients.

The WHO convened an emergency meeting this weekend via video conference to look at the virus, identify those most at risk and study its transmission. The organization will hold a second global meeting on monkeypox next week to more thoroughly study the risks and treatments available to fight the virus.

While the virus itself is not a sexually transmitted infection, which are generally spread through semen and vaginal fluids, the most recent surge in cases appears to have been spread among men who have sex with other men, WHO officials said, emphasizing that anyone can contract monkeypox.

“Many diseases can be spread through sexual contact. You could get a cough or a cold through sexual contact, but it doesn’t mean that it’s a sexually transmitted disease,” said Andy Seale, who advises WHO on HIV, hepatitis and other sexually transmitted infections.

The virus is spread through close contact with people, animals or material infected with the virus. It enters the body through broken skin, the respiratory tract, the eyes, nose and mouth. Though human-to-human transmission is believed to occur through respiratory droplets as well, that method requires prolonged face-to-face contact because the droplets cannot travel more than a few feet, according to the CDC.

“This is a virus that is super stable outside the human host, so it can live on objects like blankets and things like that,” Dr. Scott Gottlieb told CNBC in a separate interview Monday. “And so you can see situations where people become reluctant to try on clothing, things like that, where it could become disruptive in areas where this is spreading, like New York City.”

He said to expect more confirmed cases in the U.S. in the coming weeks as doctors and public health officials reevaluate patients who have presented with symptoms and the virus continues to spread.

Monkeypox is a disease caused by a virus in the same family as smallpox but is not as severe, according to the Centers for Disease Control and Prevention. However, monkeypox can kill as many as 1 in 10 people who contract the disease, based on observations in Africa, according to the CDC.

The vaccine used to prevent smallpox appears to be about 85% effective in guarding against monkeypox in observational research in Africa, WHO officials said. But the vaccines aren’t widely available so it’s important to reserve them for populations that are most at risk, said Maria Van Kerkhove, the WHO’s leading epidemiologist on zoonotic diseases. She said WHO will be teaming up with vaccine makers to see if they can ramp up production.

Early symptoms of monkeypox include a fever, headache, back pain, muscle aches and low energy, WHO officials said. That then progresses to a rash on the face, hands, feet, eyes, mouth or genitals that turns into raised bumps, or papules, that then become blisters that often resemble chicken pox. Those can then fill with a white fluid, becoming a pustule, that breaks and scabs over.

Gottlieb described it as a disabling disease that can last two to four months and has a lengthy 21-day incubation period.

“I don’t think this is going to be uncontrolled spread in the same way that we tolerated the Covid-19 epidemic,” Gottlieb said. “But there is a possibility now this has gotten into the community if in fact it’s more pervasive than what we’re measuring right now, that becomes hard to snuff out.”

— CNBC’s Spencer Kimball and Karen Gilchrist contributed to this article.

Disclosure: Dr. Scott Gottlieb is a CNBC contributor and is a member of the boards of Pfizer, genetic testing start-up Tempus, health-care tech company Aetion and biotech company Illumina. He also serves as co-chair of Norwegian Cruise Line Holdings′ and Royal Caribbean‘s “Healthy Sail Panel.”

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Starbucks will exit Russia after 15 years, closing 130 licensed cafes

A woman drinks coffee in a Starbucks in a mall in Khimki outside Moscow.

Alexander Natruskin | Russia

After 15 years operating in Russia, Starbucks will exit the market, joining companies like McDonald’s, Exxon Mobil and British American Tobacco in withdrawing from the country completely.

The coffee giant announced Monday that it will no longer have a brand presence in Russia. Starbucks has 130 locations in the country, which account for less than 1% of the company’s annual revenue. They are all licensed locations, so the Seattle-based company itself doesn’t operate them.

Starbucks said it will pay its nearly 2,000 Russian workers for six months and help them transition to new opportunities outside of the coffee chain.

Both consumers and investors pressured Western companies like Starbucks to cut ties with Russia to show opposition to the Kremlin’s war with Ukraine, but unwinding licensing deals takes time. Starbucks has suspended all business activity with the country since March 8. The pause included shipping all Starbucks products and temporarily shuttering cafes.

In its latest quarterly results released in early May, the company did not disclose the financial impact of the suspension of business operations. Former CEO Kevin Johnson had pledged to donate royalties from the Russian business to humanitarian causes.

But it was surely a smaller financial blow than that dealt to McDonald’s, which has been in Russia for over 30 years.

The fast-food giant said the suspension of its sizable Russian and Ukrainian operations cost it $127 million in its first quarter. The two markets accounted for 9% of its revenue in 2021. The company had roughly 850 restaurants in Russia, most of which were operated by the company instead of licensees.

On Thursday, McDonald’s announced it would be selling those locations for an undisclosed sum to a Siberian franchisee, who will run them under a new brand.

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