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The Dow fell more than 800 points Wednesday after the bond market, for the first time in over a decade, flashed a warning signal that has an eerily accurate track record for predicting recessions.Here's what happened: The 10-year Treasury bond yield fell below 1.6% Wednesday morning, dropping just below the yield of the 2-year Treasury bond. It marked the first time since 2007 that 10-year bond yields fell below 2-year yields.US stocks fell as investors sold stock in companies and moved it into bonds. The Dow was about 2.8% lower. The broader S&P 500 was also down 2.8% and the Nasdaq sank 3.1% Wednesday.CNN Business' Fear and Greed Index signaled investors were fearful. The VIX volatility index spiked 26%.Investors are on edge because the German economy shrank in the second quarter, and the US-China trade war still looms large over markets despite the latest truce. Industrial production in China grew at the weakest rate in 17 years in July.As the global economy sputters, investors are plowing money into long-term US bonds. The 30-year Treasury yield fell to 2.05%, the lowest rate on record.Government bonds — particularly US Treasuries — are classic "safe-haven" assets that investors like to hold in their portfolios when they're nervous about the economy. Stocks, by contrast, are riskier assets that tend to be more volatile during economic slowdowns.Gold, another safe-haven asset, rose 1% Wednesday.Here's what this all means: Normally, long-term bonds pay out more than short-term bonds because investors demand to be paid more to tie up their money for a long time. But that key "yield curve" inverted on Wednesday. That means investors are nervous about the near-term prospects for the US economy. Bonds and yields trade in opposite directions, so yields sink when investors buy bonds.Part of the yield curve has been inverted for several months. In March, the yield on the 3-month Treasury bill rose above the rate on the 10-year Treasury note for the first time since 2007. It inverted again on July 24 and has remained negative. But Wednesday marked the first time in over a decade that the "main" yield curve — the 2-year / 10-year ratio — had inverted.That spooked Wall Street, because an inversion of the 2/10 curve has preceded every recession in modern history. That doesn't mean a recession is imminent, however: The Great Recession started nearly two years after the December 2005 yield-curve inversion.William Foster, Moody's lead US analyst, predicts the US economy will avoid a recession in 2019 and in 2020, despite the yield curve inversion's warning sign. He expects growth to slow in the second half this year into 2020.The US economy remains strong: Unemployment is historically low, consumer spending is booming, and the financial system is healthy."Even though we're discouraged by the yield curve's shape right now, we see few signs of danger ahead," said John Lynch, LPL Research chief investment strategist, in a blog post.Stocks have grown volatile lately, with the Dow plunging and rising more than 350 points in each session this week. But the yield curve inversion doesn't mean the stock market is about to collapse. The S&P 500 has rallied 22% on average between the first time a yield curve inverts and the start of a recession, Lynch noted.Following the last yield curve inversion in 2005, stocks rose for 12 straight months. 3400
The fate of abortion in Missouri was to be argued in court Wednesday as Planned Parenthood fights the state for refusing to renew the license it needs to continue offering the service in its St. Louis clinic.That annual license expires on Friday, and without it, abortion services in Missouri will be no more -- making it the first state in more than 45 years to no longer offer the procedure.This does not mean that the health center will close. It will still provide care including birth control, STD testing and treatment, cancer screenings and more, explained Planned Parenthood spokeswoman Bonyen Lee-Gilmore. But the reality of what this would mean for abortion access is stark."This is not a drill. This is not a warning. This is a real public health crisis," Dr. Leana Wen, president and CEO of Planned Parenthood Federation of America, said in 865

The city of El Paso, Texas spent the day grieving and paying respects to the victims killed in a mass shooting Saturday. Multiple vigils were held in the city, honoring the 20 people who lost their lives after a gunman opened fire at a Walmart near the Cielo Vista Mall. Police received calls reporting a gunman in the area just after 10:30 a.m. local time.Bishop Jesus Ibarra held a special mass Sunday at La Paz Faith Memorial and Spiritual Center. “It hurts me to see the extent of violence, especially when it’s people who have nothing to do with the events that happened,” Bishop Ibarra said.The shooting hit the community hard. Twenty roses were displayed for the 20 lives lost in the attack. It’s a scene the bishop could have witnessed in person had he followed his usual routine. “That’s my Walmart,” he explained. “Every first Saturday of the month, I go stock up. I’m there from 9 to 11:30, but I didn’t go that day.” Members of the community gather at the vigils, looking for ways they can help.“Pretty tough, but all we can do now is remain together and don’t change who we are as people,” said the bishop, as he wiped away his tears.Perches Funeral Home, which is part of the La Paz Faith church, is working to help the families of the victims. “Everyone is putting their own part, so we are going to be offering the family free services for their loved ones,” said Jorge Ortiz with the funeral home.Ortiz says the El Paso community is based off love and unity, and love is needed more than ever in El Paso. “Without love, there is nothing,” said Bishop Ibarra. “We are nothing.” 1607
The maker of Miller Lite and Coors Light doesn't see the funny side of Bud Light's corn syrup Super Bowl ads.MillerCoors filed suit against Anheuser-Busch, the brewer of Bud Light, over the commercials, which it says are "false and misleading." It wants them blocked and its rival to set the record straight.Bud Light's ads during Super Bowl LIII touted the fact that the beer is sweetened with rice rather than corn syrup. And they took jabs at its competitors.In the first ad, the Bud Light King, Bud Knight and others are trying to figure out what to do with a corn syrup barrel that was delivered to them by mistake. They set out to the Miller Lite castle to see if the barrel belongs there, but the castle had already received its delivery of corn syrup. Finally, they make it to the Coors Light castle whose occupants have been looking for their corn syrup barrel.MillerCoors said in Thursday's lawsuit that Anheuser-Busch "plotted an extensive and pervasive advertising scheme designed to frighten consumers into switching away from Miller Lite and Coors Light to Bud Light." It accused Anheuser-Busch of using corn syrup as a fermentation aid in drinks such as Stella Artois Cidre and Bud Ice.MillerCoors said it never uses high fructose corn syrup, which it says is different from corn syrup. But it alleged that Anheuser-Busch uses high fructose corn syrup in some of its drinks such as Rita's Berry-A-Rita.The American Heart Association recommends that people limit the amount of sugar and added sugar, such as high fructose corn syrup and honey, that they consume because too much of it 1611
The list of places intended for sporting events, entertainment, and other everyday activities, that are instead being used as temporary hospitals just got longer. On Tuesday, work began to convert the indoor tennis center at the Billie Jean King U.S. Open facility into a 350-bed temporary hospital. It joins a group of nine locations in or near New York City being converted into temporary hospitals. All but one of the temporary facilities are intended to handle non-coronavirus patients. However, doctors are fast learning that there may be no such thing."That was one of the initial most surprising things for us," said Dr. Eric Wei, NYC Health + Hospitals' chief quality officer. "People who got hit by cars or were beat up," Dr. Wei continued, "had pneumonia that's consistent for COVID-19."It's why the city is now instructing its medical personnel to assume that all patients have coronavirus. The temporary facilities are part of a constellation of hospitals in the city and its suburbs where patients can be moved and treated, depending on their condition. More than 170 hospitals and temporary hospitals are part of the network, and on Monday, Gov. Andrew Cuomo promised that a central command center would be operational by Tuesday to coordinate them all. "It is up and running," said Deanne Criswell, the city's emergency management commissioner at a news conference on Tuesday afternoon. "It's located at the Javits Center."Criswell added that, for now, the command center is only coordinating between two locations, the U.S.N.S. Comfort hospital ship, and the temporary hospital at the Jacob Javits Center.The full center is not expected to be fully operational until next week. 1705
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