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Major U.S. equities indexes moved lower on Friday as a major technology outage affected businesses around the world, grounding flights and disrupting financial transactions.
Concerns about malfunctioning computer systems compounded what had already been a tough week for the tech sector, with big-name stocks battered by geopolitical tensions and uncertainties surrounding international trade.
The S&P 500 fell 0.7% on the final trading day of the week. The IT turmoil added to pressures on the tech-heavy Nasdaq, which lost 0.8% on the day. The Dow dropped 0.9%, retreating further from the record closing high seen earlier this week.
The S&P 500 and the Nasdaq were in negative territory for the full week, while the Dow held onto a weekly gain.
Cybersecurity firm CrowdStrike Holdings (CRWD) was at the center of the technological mayhem, as a defective software update from the company led to widespread outages. Since CrowdStrike provides security software to major cloud computing platforms, including Microsoft's (MSFT) Azure, the incident had a far-reaching impact, disrupting operations for major airlines, health care facilities, and financial institutions, among other businesses. Shares of CrowdStrike plummeted 11.1%, marking the heaviest losses of any S&P 500 stock.
Shares of commercial lines insurance firm W.R. Berkley (WRB) dropped 8.3%. The company could face a flurry of business interruption insurance claims as a result of the CrowdStrike outage, although many policies are unlikely to include coverage for this type of event. W.R. Berkley is set to post its latest quarterly results before the markets open on Monday morning.
Shares of fellow insurer Travelers Companies (TRV) also lost ground on Friday, declining 7.8% after the company released its second-quarter earnings report. Although quarterly revenue and net premiums written came in higher than the year-ago period, both figures fell short of analysts' estimates. Travelers also reported an increase in catastrophe losses, citing severe storm activity, while investment losses also jumped over the year.
Intuitive Surgical (ISRG) shares notched the day's top performance in the S&P 500, soaring 9.3% to a record high after the manufacturer of robotic medical devices topped sales and profit forecasts with its second-quarter results. Robust demand for the company's da Vinci robotic surgical device helped drive the strong performance, with a 17% year-over-year increase in procedures performed using the system.
Starbucks (SBUX) shares jolted 6.9% higher amid reports that activist investor Elliott Investment Management has accumulated a significant position in the coffee giant. According to , Elliott has held discussions with Starbucks in recent weeks about ways to improve the company's performance. However, the exact size of Elliott's stake and any particular changes the firm may push for remain unknown.
Huntington Bancshares (HBAN) stock advanced 3.9% after the bank holding company reported better-than-expected revenue and earnings per share (EPS) for the second quarter. Although net interest income fell year over year, Huntington's average loans and deposits moved higher.
United Airlines (UAL) shares gained 3.3% on Friday, recovering losses posted in the previous session after the carrier released quarterly results. United's second-quarter revenue missed estimates, and the airline provided a muted forecast for the current quarter, citing a slowdown in air travel demand. However, analysts at Citi suggested these expectations may already be priced in after rival Delta Air Lines (DAL) highlighted demand concerns in its earnings report last week. Analysts also said United has benefitted from strong cost management and lower fuel expenses.
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Plateau federal lawmaker, Hon. Yusuf Gagdi, has gifted his teenage daughter brand new SUV to celebrate her graduation from secondary school.
The Father’s joy knew no bound as he saw his daughter graduating from secondary school and he is proud of her.
You may have heard recent news reports about a company that knowingly sold defective lead testing machines that tested tens of thousands of children between 2013 and 2017. Or wondered about lead in tap water after the widely reported problems with lead-contaminated water in Flint, Michigan. Reports like these are reminders that parents need to be aware of lead — and do everything they can to keep their children safe.
How is lead a danger to health?
Lead is poisonous to the brain and nervous system, even in small amounts. There really is no safe level of lead in the blood. We particularly worry about children under the age of 6. Not only are their brains actively developing, but young children commonly touch lots of things — and put their hands in their mouths. Children who are exposed to lead can have problems with learning, understanding, and behavior that may be permanent.
How do children get exposed to lead?
In the US, lead used to be far more ubiquitous than it is now, particularly in paint and gas. Yet children can be exposed to lead in many ways.
What can parents do to protect children from lead?
First, know about possible exposures.
Second, talk to your pediatrician about whether your child should have a blood test to check for lead poisoning. The American Academy of Pediatrics recommends:
How is childhood lead exposure treated?
If your child is found to have lead in their blood, the most important next step is to figure out the exposure — and get rid of it. Once the child is no longer exposed, the lead level will go down, although it does so slowly.
Iron deficiency makes the body more vulnerable to lead poisoning. If your child has an iron deficiency it should be treated, but usually medications aren't used unless lead levels are very high. In those cases, special medications called chelators are used to help pull the lead out of the blood.
For more information, visit the Centers for Disease Control and Prevention website on lead poisoning prevention.
Source: Harvard Health Publishing
After a CrowdStrike (CRWD) update caused an outage affecting businesses and governments across the world Friday, analysts said there could be lasting implications for the company and the big tech industry.
A defective update by the cybersecurity company disrupted Microsoft (MSFT) platforms, impacting organizations ranging from airlines to the London Stock Exchange. The news sent CrowdStrike shares tumbling Friday, while Microsoft shares were little changed.
The outage could negatively affect CrowdStrike through expenses associated with remedying the situation and damage to its reputation.
Jefferies analysts said that while it's too early to know the exact implications of the outage on the company's financials, the timing is not working in CrowdStrike's favor. The outage happened in the last two weeks of the quarter when the analysts said "a large portion of business is done," raising the likelihood it could weigh down results.
The analysts said that there could be an "expense burden" for the cybersecurity company as it works to appease impacted customers, which will likely mean "credits, discounting or additional free products" affecting margins.
While the analysts highlighted that it's important that the outage was not related to a security issue and that CrowdStrike was transparent with its immediate response, they did say the incident could cause reputational damage that might deter customers and lead CrowdStrike to miss out on potential deals.
While Microsoft was tied to the outage through disruptions to its systems, Jefferies analysts said the impact of the tech giant will likely be "minimal."
Microsoft is "working closely with CrowdStrike and across the industry to provide customers technical guidance and support to safely bring their systems back online," CEO Satya Nadella said in an X post Friday.
The scale of the outage also underlined the danger of consolidation within the tech industry where a few big players have a massive influence on the market, analysts said, and suggested it could draw attention from regulators to examine vulnerabilities in the ecosystem.
"Given the scope of the outage and scale of economic disruption, we expect fresh, louder debates on the limits of vendor consolidation (systemic risk) both across the IT stack and especially cybersecurity," Citi analysts said.
The analysts noted the "outage will garner more political/regulatory attention" as "software vendors have clearly become so large and so interconnected where events like these are plainly showcasing their influence on the greater economic system."
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In a robust defense of Senator Monday Okpebholo, former Edo State Governor and APC stalwart, Adams Oshiomole, has issued a stark rebuttal to the People’s Democratic Party (PDP). Amid growing criticism and political tension, Oshiomole emphatically declared, “Monday Okpebholo is the man the people want, so deal with it.”
Actress Stella Damasus’ third ex-husband, Daniel Ademinokan, has welcomed a child from his third marriage.
Daniel Ademinokan has shared the picture as he celebrate the arrival of the new born.