1.25.2022

Stock Markets, Harvard Suit, and Maine's Mega-Cat Everything you need to know for today in five minutes.

Good morning. It's Tuesday, Jan. 25, and we're covering big swings in the stock market, a challenge to college admissions processes, and much more. Have feedback? Let us know at [email protected].

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NEED TO KNOW

 

Stock Market Comeback

US stock markets closed up slightly for the first time in seven days, rebounding after the Dow Jones Industrial Average fell more than 1,000 points (over 3%) earlier in the day. Even with yesterday's reversal, the S&P 500 is on track for its worst January ever. Investors have been rattled by concerns over interest rate hikes to curb inflation, mixed earnings reports, and tensions over Russia’s military buildup on Ukraine’s border.

 

The S&P 500 briefly entered correction territory—down more than 10% from its record high earlier this month—but lifted 0.3% at close (see 101). The Dow also closed up 0.3% and the Nasdaq gained 0.6% at close after falling deeper into its own correction earlier in the day.


Big tech companies, including Apple, IBM, Intel, and Microsoft, will report their earnings this week. The Federal Reserve will meet today and tomorrow to chart monetary policy, though experts say they don't expect any changes yet.

College Discrimination Suit

The US Supreme Court agreed yesterday to hear arguments regarding the role of race in the college admission process, a case that may potentially upend affirmative action policies in higher education. The Students for Fair Admissions claims both Harvard, a private school, and the University of North Carolina, a public school, have been illegally targeting Asian American applicants.

 

The SFFA argues Asian American prospective students are held to higher standards than their Black and Hispanic peers—a violation of the Civil Rights Act (Harvard, UNC) and 14th Amendment (UNC) guaranteeing racial neutrality. The universities argue their policies are lawful, and race is only one of many factors in determining admission. 

 

At Harvard, Asian Americans make up roughly a quarter of the 2021 class. School officials estimate changes to the process may drop the Black student body from 14% to 6% and Hispanic student body from 14% to 9%. The 6-3 conservative majority court is expected to hear the case in the fall, with a decision in 2023.

Coup in Burkina Faso

Military troops in Burkina Faso appeared to have taken control of the government yesterday, detaining President Roch Marc Christian Kabore and other top officials and announcing the suspension of the country's constitution. It marks the fourth African coup in less than a year, following similar events in Mali, Guinea, and Sudan.  

The mutiny comes amid frustration over the government's inability to combat long-running attacks by Islamic militants in the country's north. Terror attacks have targeted the country's lucrative gold mining industry, which militants use to finance operations. A November attack left 49 troops and four civilians dead, with a shortage of equipment and financial support for the military spurring public anger.

 

The country is part of the Sahel, one of the most conflict-ridden regions in the world. 

In partnership with The Motley Fool

IS IT LIKE BUYING NETFLIX IN 2007?

 

What do Netflix and an internet company 1/50th the size of Google have in common? Well, for starters, they're both smaller than Google (ha!). But they also both have a special connection with our pals, Tom and David Gardner.

 

The Gardner brothers founded The Motley Fool back in 1993, and every month since then, their company has searched far and wide to release their most promising stock picks. But every once in a while, they like a stock so much that they recommend it a second time. Which brings us back to Netflix. Back in 2007, The Motley Fool recommended the little-known DVD-subscription site for a second time, and returns have been a whopping 18,570%. In fact, their teams have only arrived at the same pick 96 times in the entire history of The Motley Fool, with average returns of 582%.

 

And recently, The Motley Fool doubled down on another pick. Like we hinted at, it's a small internet company roughly 1/50th the size of Google, and though they can’t promise the same returns, it holds massive potential to grow within the entertainment advertising space. Motley Fool Stock Advisor members can check out the report for free—sign up now.

 

Returns as of 1/16/22

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IN THE KNOW

 

Sports, Entertainment, & Culture

In partnership with ButcherBox

> The 2022 Baseball Hall of Fame class announced tonight (6 pm ET, MLB Network); see preview of possible inductees (More) | At least eight killed in crowd surge outside Cameroon stadium during Africa Cup of Nations soccer game (More)

 

> Amy Schneider's 39th consecutive "Jeopardy!" win last night is second-longest streak behind current host Ken Jennings (74) (More) | Donna Barba Higuera's "The Last Cuentista" wins 2022 Newberry Medal for best children's book (More)

 

> Bob Dylan sells entire recorded music catalog to Sony Music for over $150M; Dylan sold songwriting rights to Universal for $300M in 2020 (More)

From our partners: Here's a beefy deal. You've got that right—ButcherBox is offering you Ground Beef For Life.  New members receive 2 lbs of grass-fed and grass-finished ground beef for free in every ButcherBox for the lifetime of their membership. Pair that with regular shipments (to your door) of free-range organic chicken, wild-caught seafood, and more for the meats you and your family deserve. Claim free beef for life today.

Science & Technology

> NASA reports the James Webb Space Telescope successfully arrived at its orbital destination, 1 million miles away from Earth (More

 

> Meta (Facebook) reveals it built one of the world's fastest supercomputers; the Research SuperCluster will focus primarily on AI applications and powering the company's metaverse applications (More)

 

> Neuroscientists find the act of breathing coordinates activity across different brain regions while sleeping, effectively acting as a neuronal master clock (More)

Business & Markets

> Shares of Kohl’s surge 36% after sources say the retailer is entertaining takeover offers from numerous buyers (More)

 

> Google sued by four attorneys general—Indiana, Texas, Washington, and Washington, DC—for allegedly misleading consumers about when the company was tracking their location (More)

 

> Activist investor sends open letter demanding Peloton fire its CEO John Foley and pursue a sale (More)

Politics & World Affairs

> NATO deploys troops, military equipment to Baltic Sea region; officials say the moves bolster deterrence capabilities amid Russia-Ukraine standoff (More) | The US considering sending up to 8,500 troops to Eastern Europe (More)

 

> British court rules WikiLeaks founder Julian Assange may appeal his extradition to the US to the UK Supreme Court (More)

 

> Opening statements made in the federal civil rights trial against three former officers accompanying Derek Chauvin during the killing of George Floyd (More)

IN-DEPTH

 

Looking Back in Time

Reuters | Staff. The James Webb Space Telescope settled into the position from which it will peer across the universe. Explore one of the best interactive overviews of the craft and its mission. (Read)

'Everything is Content'

Rest of World | Yashraj Sharma. Inside the daily grind of one of India's most popular influencer families and their 24/7 online life. (Read)

A LEAGUE OF THEIR OWN

 

In partnership with The Motley Fool

 

We don’t think investors want to compete with The Motley Fool on stock portfolio performance. The service averages 582% returns, beating the S&P 500 by roughly five times.

 

And sometimes, they like a stock so much that they’ll recommend it a second time. On the 96 occasions that’s happened, returns have averaged an even more impressive 635%. Read their report today to learn about this “Ultimate Buy” sign.

 

Returns as of 1/16/22

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ETCETERA

 

Where to find the world's perfect pint.

 

The giants of the internet—by decade

 

It's (kind of) satire: The future of deep work.

 

Dedicated delivery driver shoos bear away. (w/video)

 

Scientists create everlasting bubbles.

 

How to make a U-turn on a cliff. (w/video)

 

One hundred escaped lab monkeys recovered after crash.

 

Meet Maine's mega-cat.

 

Clickbait: Toddler goes on online shopping spree.

 

Historybook: First Winter Olympics take place in Chamonix, France (1924); Battle of the Bulge comes to an end (1945); Al Capone dies (1947); HBD Alicia Keys (1981); RIP Mary Tyler Moore (2017).

 

"Take chances, make mistakes. That's how you grow."

- Mary Tyler Moore

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