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Future

Alden Clashes With Billionaire Over Future of Tribune—and of Local News


A few weeks ago, New York hedge fund Alden Global Capital LLC was on the verge of acquiring Tribune Publishing Co. —home to the Chicago Tribune, Baltimore Sun and other U.S. metro newspapers—with seemingly no one in its way.

Then it offended one of its partners in the deal, setting off a battle that could help shape the future of local news in America.

Maryland hotel magnate Stewart Bainum Jr. had worked out a side arrangement with Alden Chief Executive Heath Freeman to buy the Sun, a paper Mr. Bainum grew up reading. Then, in Mr. Bainum’s view, Alden tried to raise the cost of a fee agreement that would substantially jack up the price, people close to the situation said.

Mr. Bainum told his advisers late on the afternoon of Friday, March 12, that he was worried he could no longer trust Alden, according to a person familiar with the matter.

That evening, the 74-year-old got on the phone with his bankers and decided to attempt a stunning 11th-hour move: his own bid for the whole company, which he announced by the end of the weekend.



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Reviews

‘The World in a Selfie’ Review: The Trouble With Tourism


Two years ago, Rebecca Mead of the New Yorker published a long article, “The Airbnb Invasion of Barcelona,” that addressed some of the challenges of unfettered tourism. Prior to the Covid-19 pandemic, Barcelona, year over year, found itself steadily drowning in foreign visitors. Short-term rentals on Airbnb, often illegally operated, filled the city’s apartment buildings and depressed the local housing supply. Barcelona’s main tourist draws, including Park Güell and the Sagrada Familia Church, were thronged by enormous quantities of visitors.

In the summer of 2014, spurred by the drunken antics of holiday-makers, protesters took to the streets to bring attention to “the pestilence of young visitors who came to Barcelona not to sample the local culture but to enact internationally recognized tropes of partying.” Three years later, 60% of Barcelona residents claimed in a survey that the city had reached or exceeded its capacity to host tourists.

Hating tourists is nothing new, as the Italian journalist Marco D’Eramo notes in “The World in a Selfie,” translated into English by Bethan Bowett-Jones and David Broder. Mr. D’Eramo quotes a British magazine article from 1848 lamenting that, for all their merits, the advent of the railroad and the steamboat had “afflicted our generation with one desperate evil; they have covered Europe with Tourists.” Adam Smith, in his “Wealth of Nations” (1776), heaped mocking scorn on the vogue of young men gallivanting around the Continent on so-called Grand Tours.

“The World in a Selfie,” first published in 2017, has been updated in this English-language edition to account for the pandemic, which shut down international travel for a year. Mr. D’Eramo highlights tourism’s paramount role in the world economy, smartly observing that Covid “proved the centrality of tourism through tourism’s omission. Once this industry ceased, not only airlines and shipping companies but aircraft manufacturers and shipyards found themselves on the verge of bankruptcy.” The book, “an inquiry into the tourist age,” is somewhat disjointed, moving distractedly at times from topic to topic and losing the thread in the philosophical weeds. But in its more focused moments, “Selfie” makes for a bracing, provocative examination of an all-too-human pastime.

One recurring theme here is our futile search, through travel, for the “authentic.” Mr. D’Eramo saves his most biting commentary for UNESCO and its “World Heritage” listings, which he likens to a “kiss of death.” “Once the label is affixed,” he writes, “the city’s life is snuffed out; it is ready for taxidermy.” That’s hyperbole, no doubt, but his commentary on the unintended consequences of preservation is compelling.



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News

Microsoft Is in Exclusive Talks to Acquire Discord


Microsoft Corp. is in advanced talks to acquire messaging platform Discord Inc. for $10 billion or more, according to people familiar with the matter, as the software giant seeks to deepen its consumer offerings.

Microsoft and Discord are in exclusive talks and could complete a deal next month, assuming the negotiations don’t fall apart, the people said.

Originally favored by gamers, San Francisco-based Discord offers voice, text and video chatting. The platform’s popularity has surged since the pandemic took hold as people stay home and connect online—as has that of other chat services, like Facebook Inc.’s WhatsApp and Signal Messenger LLC. Discord has been considering an IPO.

Microsoft, which has a market value of more than $1.7 trillion, has been on the hunt for an acquisition that would help it reach more consumers. Last summer, it held talks to buy the popular video-sharing app TikTok amid a high-profile geopolitical standoff prompted by the Trump administration, before abandoning the effort.

VentureBeat reported this week that Discord was exploring a sale and had entered exclusive discussions with an unnamed suitor.



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‘Nobody’ Review: New Blood for an Old Genre


If you happen to be a psychopathic Russian drug lord with a yen for extinguishing human lives, the takeaway from “Nobody” might well be to think twice before you antagonize a mild-mannered American suburbanite who has rediscovered his inner

John Wick.

That’s the matchup in this bloody mashup of ultraviolent tropes. The film stars

Bob Odenkirk,

of all the unlikely casting choices for action hero—he’s pretty darned good—and was directed by

Ilya Naishuller

(“Hardcore Henry”) from a script by

Derek Kolstad,

who happens to have created the John Wick franchise and written three installments thus far, all of them notable for their elegantly stylized violence. No one can accuse “Nobody” of elegance, apart from

Pawel Pogorzelski’s

cinematography. This is punishment as entertainment, a short and sour saga of a pacifist turned vengeful brute in order to win back his self-respect. (The film is playing in theaters.)

The good news here is Mr. Odenkirk’s performance, not to mention his endurance in strenuous action sequences that must have taken a real-life toll on his physique; he certainly doesn’t look computer-generated. The body and soul of “Better Call Saul” was already famously versatile. Still, who could have guessed that the next stop on his artist’s journey would have him playing Hutch Mansell, a killing-and-maiming machine with a Dirty Harry scowl-and-growl in a movie where almost everyone spits out teeth if they’re still able to spit?

Hutch’s escapades don’t begin right away. He may be a nobody in the grand scheme of things, but he’s a quietly charming family man with a lovely wife, Becca (

Connie Nielsen,

absurdly wasted on an off-the-shelf housewife role), and a couple of kids—earnest Blake (

Gage Munroe

) and adorable Abby (Paisley Cadorath). His first personality shift comes after a home invasion that recalls “Straw Dogs,” except that Hutch, unlike

Dustin Hoffman’s

David, does not manage to cover himself in gory glory. Yet his failure of courage—at least that’s what those around him think it is—energizes him to go forth and inflict vigilante justice on bad guys in order to feel good about himself.

RZA, Bob Odenkirk and Christopher Lloyd in ‘Nobody’



Photo:

Universal Pictures

You needn’t know much more than that to decide whether to spend 92 minutes of your time on Earth watching the film, and you shouldn’t know much more if you’re going to open yourself to its grindhouse charms. Suffice it to say that mayhem begets mayhem, Hutch unwittingly incurs the wrath of Yulian, a Russian drug lord played with popping

Klaus Kinski

eyes by

Aleksey Serebryakov,

and a new cycle of violence is provoked—not by thugs from a Russian crime syndicate invading a home and killing a cute puppy named Daisy, as in John Wick’s story, but by Russian thugs relieving poor Abby of her Kitty Cat bracelet.

“I’m just a soul whose intentions are good,” goes the song from the Animals on the soundtrack. Maybe so. We’re given reason to believe that Hutch’s behavior during the first round of home invasions is less a matter of cowardice than a fear of reverting to who he was during a shadowy paramilitary past. Participants in that history pop up in the person of his father, David (a zestfully funny performance by

Christopher Lloyd

), who is not the nursing-home dodderer he seems to be; and in the voice of his mysterious brother, Harry, who is only heard on a radio link until he finally appears as a brother-in-arms played by the hip-hop artist and actor

RZA.

And larger questions of identity are hinted at when Hutch, fully and lustily back in action, says to his wife, “Just like old times, huh?” and Becca responds, “I’m ready, Hutch.”

Bob Odenkirk in ‘Nobody’



Photo:

Universal Pictures

What is that all about? Who knows? The only thing certain is that, good intentions notwithstanding, Hutch is thrilled to be a wolf in wolf’s clothing once again. He and John Wick might both be hitmen, but the latter’s onscreen slaughters were always in the service of good, while Hutch’s appetite for inflicting—and sustaining—punishment is insatiable. As “Nobody” ground on, I thought not only of Wick, plus Dr. Jekyll and Mr. Hyde, but of one of my favorite movies, “The Incredibles.” Hutch could be the dark side of

Bob Parr,

restless and robbed of purpose until he regains the superpower of rage, and makes the world uglier.

Write to Joe Morgenstern at [email protected]

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

Appeared in the March 26, 2021, print edition as ‘‘Nobody’: New Blood for an Old Genre.’



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Stocks Drop Amid Powell’s Testimony


U.S. stocks edged down Tuesday as investors digested testimony by Federal Reserve Chairman Jerome Powell about the U.S. economy.

The S&P 500 ticked down 0.8% as of the 4 p.m. close of trading in New York. The Nasdaq Composite fell 1.1%, while the Dow Jones Industrial Average fell 0.9%.

Mr. Powell, in a joint appearance with Treasury Secretary Janet Yellen, reiterated in a congressional hearing that the central bank will continue providing support to the economy through loose monetary policy. Mr. Powell also said he doesn’t expect the $1.9 trillion stimulus package will lead to an increase in inflation, but he emphasized that the central bank has tools to deal with rising price pressures if necessary.

Investors are also reassessing their expectations for a fast and widespread global recovery, which had led to rising bets earlier this year that companies sensitive to an economic recovery would benefit. Rising Covid-19 cases in Europe and recent extensions to lockdowns in Germany, France and Italy are also weighing on sentiment.

“It feels like the reflation theme is running into a few roadblocks,” said Sebastian Mackay, a multiasset fund manager at Invesco. “We are probably in a cyclical recovery, but we may have gotten ahead of ourselves. This is a pause for thought: how rapid is this recovery actually going to be?”



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Gadgets

Insulet Stock Rises as It Joins the Automated Insulin Device Competition


An Insulet Omnipod insulin management system.


Courtesy of Insulet

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Stocks Turn Higher After Fed Holds Steady


U.S. stocks rose Wednesday after the Federal Reserve vowed to keep its easy-money policies in place until the U.S. economy further recovers from the effects of the Covid-19 pandemic.

The S&P 500 added 0.3%, and the Dow Jones Industrial Average climbed 0.6%. The tech-heavy Nasdaq Composite advanced 0.4%, reversing losses earlier in the session.

All three indexes turned higher at the release of the central bank’s 2 p.m. ET statement. Investors are focused on any sign the monetary stimulus that has supported markets during the pandemic could begin to subside.

With unemployment still elevated, Fed officials are taking a cautious approach that supports the economy, said

George Catrambone,

head of Americas trading at asset manager DWS Group,

“Investors are taking some solace in that,” he said. “We’re going to make sure it’s there, that the recovery is sustainable and inflation is sustainable, before we really think about raising rates.”

The Fed also highlighted the brightening outlook for growth. Investors in recent weeks have trimmed bets on the technology stocks that soared earlier in the pandemic while adding shares of economically sensitive companies that should do well as the vaccine rollout progresses and more fiscal stimulus enters the financial system.

Shares of

Apple

and

Amazon.com

are down 5.6% and 3.1% this year, respectively, while the energy and financial sectors are leading the S&P 500.

“Tech is the funding source for reallocation,” said

Jamie Cox,

managing partner for Harris Financial Group. “You’re restoring the allocations that you had pre-pandemic.”

Money managers have started pricing in a rise in inflation, leading to a selloff in government bonds, and are betting that interest rates will start climbing by the end of next year. They have started exiting stocks that look to be too richly valued after last year’s rally.

“Markets across the board are expensive today, and that is pinned on central-bank support,” said

Hugh Gimber,

a strategist at J.P. Morgan Asset Management. “So this whole market is very, very sensitive to changes in central-bank policy.”

After the Fed’s reassurance that interest rates will stay low, shares of rapidly growing companies rebounded from earlier losses. The Russell 1000 Growth Index was recently up 0.3%, trailing a 0.4% gain by the Russell 1000 Value Index. Value stocks—which trade at low multiples of their book value, or net worth—have outperformed growth stocks in recent weeks.

“The resurgence of value investing has been the big story of the year,” said

Mace McCain,

chief investment officer at Frost Investment Advisors, noting that the rollout of coronavirus vaccines should help the economic recovery. “We expect tremendous growth this next year.”

In bond markets, the yield on the benchmark 10-year U.S. Treasury note rose to 1.641%, from 1.622% Tuesday. Yields rise as the price falls. The yield has climbed sharply from this year’s low of 0.915% on Jan. 4.

Traders worked on the floor of the New York Stock Exchange on Tuesday.



Photo:

Colin Ziemer/Associated Press

Among individual stocks,

NRG Energy

fell 17%. The company said it is withdrawing its 2021 financial guidance after the recent winter storm hit its results. Shares of

Plug Power

dropped 8% after the hydrogen and fuel-cell technology company said it would restate financial statements.

Brent crude, the international benchmark for oil, fell 0.6% to $68.00 a barrel.

In overseas markets, the Stoxx Europe 600 edged 0.4% lower. Most major indexes in Asia were little changed. South Korea’s Kospi index fell 0.6%, while the Shanghai Composite, Hang Seng and Nikkei 225 indexes all ended the day nearly flat.

Write to Karen Langley at [email protected] and Will Horner at [email protected]

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



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Stock Futures Mixed After Record-Setting Rally


U.S. stock futures were mixed Friday, with the technology sector poised to decline and the Dow Jones Industrial Average on track to notch a fresh record.

Futures tied to the S&P 500 edged down 0.3%, pointing to a decline after the opening bell. The broad-market index closed at an all-time high record on Thursday. Contracts linked to the Dow ticked up 0.2% in choppy trading. The blue-chips index had also closed at a record.

Stocks have broadly rallied this week following a rebound in technology shares and growing appetite for sectors like banking and energy that may benefit from the economy rebounding. On Friday, money managers again pulled funds from government bonds as their appetite for the safest assets waned. That sent yields ticking up and sapped demand for richly valued tech shares.

Prospects for the economy have brightened with President Biden signing the $1.9 trillion fiscal stimulus package on Thursday. He also said every adult in the U.S. will be able to get a vaccine by May 1. The moves are expected to accelerate the reopening and spur growth.

“Markets will take a break after all the news we had yesterday,” said Sophie Chardon, a cross-asset strategist at Lombard Odier. “This all points to the fact that we are in a recovery, especially given all the substantial policy support both on the fiscal and monetary fronts.”

Futures tied to the Nasdaq-100 index dropped 1.2% on Friday. The tech-heavy index ended Thursday up over 3% for the week, following three weeks of declines.

“We haven’t been advocating for a major move out of growth stocks,” said David Stubbs, global head of investment strategy at J.P. Morgan Private Bank. “We’ve seen the permanent adoption of many digital technologies, from this shift from the real world to the digital world. I don’t think that shift will reverse.”

His company is also buying financial and industrial stocks, expecting them to benefit from the recovery because they are economically-sensitive sectors.

The yield on the benchmark 10-year Treasury note rose to 1.614%, before easing to 1.590%. That is still up from 1.525% on Thursday.

“The bigger picture is, vaccines are going to create a sustainable reopening. That is what the market is reacting to,” Mr. Stubbs said. “You’re seeing a rapid reassessment of the macro environment.”

Ahead of the market open, megacap tech stocks including Apple, Microsoft, Alphabet and

Amazon.com

declined. Tesla shed over 3% premarket.

Fresh data on U.S. consumer sentiment will be out at 10 a.m. ET. The University of Michigan’s preliminary reading for March is expected to show an uptick in confidence amid the vaccination rollout and job gains.

Bitcoin climbed to a record high, topping $58,700 in overnight trading. It has since pulled back about 5% to around $55,900.

Overseas, the pan-continental Stoxx Europe 600 slipped 0.4%.

Among European equities,

Burberry

rose over 6% after the luxury goods maker said it expects its revenue and a measure of profit to be above analysts’ expectations for the 2021 fiscal year.

In Asia, most major benchmarks closed higher. The Shanghai Composite Index added 0.5% and Japan’s Nikkei 225 rose 1.7%. Hong Kong’s Hang Seng Index dropped 2.2%.

A banner for South Korea’s Coupang adorned the New York Stock Exchange facade before the company’s IPO on Thursday.



Photo:

Courtney Crow/Associated Press

Write to Anna Hirtenstein at [email protected]

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



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J&J Single-Dose Covid-19 Vaccine Gains Backing From FDA Advisory Panel


Johnson & Johnson’s


JNJ -2.64%

single-dose Covid-19 vaccine worked safely and should be authorized for use in the U.S., a panel of experts advised federal health regulators Friday.

The advisory committee’s vote in support of the vaccine’s authorization is the last step before the U.S. Food and Drug Administration issues a decision, which is expected Saturday.

The panel, a group of 22 medical specialists in fields like internal medicine, pediatrics, vaccines and epidemiology, regularly advises the FDA about experimental vaccines. It voted to recommend shots from

Pfizer Inc.


PFE -0.98%

and partner

BioNTech


BNTX -2.94%

SE and

Moderna Inc.


MRNA 4.33%

before the agency authorized them in December.

During the all-day public meeting, representatives from the FDA and J&J discussed the safety and effectiveness of the company’s vaccine in a 44,000-plus subject study, as well as how effective the J&J vaccine is in preventing new cases caused by variants.

The give-and-take of questions and answers can be valuable in bolstering public confidence in the shot, according to FDA officials.

The vaccine was 66% effective at protecting people from moderate to severe Covid-19, an FDA review found, and even more effective at preventing severe disease alone.

“If authorized, Janssen’s vaccine candidate would play a pivotal role in the global effort to fight Covid-19,”

Johan Van Hoof,

global head of vaccines research at J&J’s Janssen pharmaceutical unit, said during the panel’s meeting. “A single-dose regimen offers the ability to vaccinate a population faster.”

As highly transmissible coronavirus variants sweep across the world, scientists are racing to understand why these new versions of the virus are spreading faster, and what this could mean for vaccine efforts. New research says the key may be the spike protein, which gives the coronavirus its unmistakable shape. Illustration: Nick Collingwood/WSJ

A rollout of the J&J vaccine could add enough shots in the U.S. by the end of March to boost the total number of people vaccinated by 20%. Health authorities are pushing to inoculate enough people as quickly as possible so that business, schools and other establishments can fully reopen.

SHARE YOUR THOUGHTS

How would you grade the vaccine rollout? Join the conversation below.

J&J has said it would deliver about 20 million doses for U.S. use by the end of March.

The FDA often convenes public meetings of outside experts to scrutinize experimental drugs, devices and vaccines up for agency approval, in part to boost public acceptance of the products should they be cleared for wide use.

J&J’s vaccine appeared to be safe in its pivotal study, the FDA found, aside from being effective.

“The known and potential benefits of Ad26 outweigh the known and potential risks,” Macaya Douoguih, head of clinical development and medical affairs at J&J’s Janssen unit, said during Friday’s meeting, using a code name for J&J’s vaccine.

FDA medical officer Yosefa Hefter said there are still unknowns about the vaccine, including the duration of immune protection and the safety and effectiveness in children.

An FDA analysis for the committee meeting also said rare cases of deep vein clots and of blockages in lung arteries were slightly more common in vaccine recipients than in placebo patients, and that the FDA considers these as “of clinical interest.”

The vaccine was effective “across demographic subgroups,” the FDA said. The demographic subgroups in the large study of J&J’s vaccines included racial and ethnic groups such as Black, Latino and Asian people, and age groups such as those 60 years and older.

Researchers also assessed efficacy in people who had underlying medical conditions including obesity and high blood pressure before entering the clinical trial. Sometimes vaccines don’t work as well in older people because of weakened immune systems.

One exception was that the vaccine appeared to be less effective in people 60 and older who had certain underlying medical conditions like diabetes and high blood pressure.

The Pfizer-BioNTech and Moderna vaccines also worked effectively across various demographic subgroups.

The vaccine was less effective in South Africa, where a more-transmissible Covid-19 variant has thrived, than in the U.S. J&J is among the companies working on new shots targeting the new strain, against which several current vaccines don’t appear to work as well.

J&J’s Covid-19 shot was, however, very effective against severe and critical cases in South Africa. The vaccine was 73.1% effective in preventing such cases occurring at least 14 days after vaccination, and 81.7% effective in preventing such cases at least 28 days after vaccination.

How Viral Vector Vaccines Work

Johnson & Johnson’s vaccine relies on a different mechanism for conferring immunity than traditional vaccines.

Traditional Vaccines

1. In classic vaccines, such as those against measles and polio, the patient is inoculated with weakened or inactivated versions of the virus. This triggers the immune system to produce specialized antibodies that are adapted to recognize the virus.

2. After vaccination, the antibodies remain in the body. If the patient later becomes infected with the actual virus, the antibodies can identify and help neutralize it.

Johnson & Johnson’s Vaccine

Scientists have isolated the genes in coronavirus responsible for producing these spike proteins. The genes are spliced into weakened, harmless versions of other viruses.

Instead of using the whole virus to generate an immune response, these vaccines use only coronavirus’s outer spike proteins, which are what antibodies use to recognize the virus.

Weakened virus with

spike protein genes

When injected into a patient, the genetically engineered viruses enter healthy cells where they produce coronavirus spike proteins.

The spike proteins produced by the cells prompt the immune system to mount a defense, just as with traditional vaccines.

Vaccine-generated antibody response

1. In classic vaccines, such as those against measles and polio, the patient is inoculated with weakened or inactivated versions of the virus. This triggers the immune system to produce specialized antibodies that are adapted to recognize the virus.

2. After vaccination, the antibodies remain in the body. If the patient later becomes infected with the actual virus, the antibodies can identify and help neutralize it.

Johnson & Johnson’s Vaccine

Scientists have isolated the genes in coronavirus responsible for producing these spike proteins. The genes are spliced into weakened, harmless versions of other viruses.

Instead of using the whole virus to generate an immune response, these vaccines use only coronavirus’s outer spike proteins, which are what antibodies use to recognize the virus.

Weakened virus with

spike protein genes

When injected into a patient, the genetically engineered viruses enter healthy cells where they produce coronavirus spike proteins.

The spike proteins produced by the cells prompt the immune system to mount a defense, just as with traditional vaccines.

Vaccine-generated antibody response

1. In classic vaccines, such as those against measles and polio, the patient is inoculated with weakened or inactivated versions of the virus. This triggers the immune system to produce specialized antibodies that are adapted to recognize the virus.

2. After vaccination, the antibodies remain in the body. If the patient later becomes infected with the actual virus, the antibodies can identify and help neutralize it.

Johnson & Johnson’s Vaccine

Scientists have isolated the genes in coronavirus responsible for producing these spike proteins. The genes are spliced into weakened, harmless versions of other viruses.

Instead of using the whole virus to generate an immune response, these vaccines use only coronavirus’s outer spike proteins, which are what antibodies use to recognize the virus.

Weakened virus with

spike protein genes

When injected into a patient, the genetically engineered viruses enter healthy cells where they produce coronavirus spike proteins.

The spike proteins produced by the cells prompt the immune system to mount a defense, just as with traditional vaccines.

Vaccine-generated antibody response

1. In classic vaccines, such as those against measles and polio, the patient is inoculated with weakened or inactivated versions of the virus. This triggers the immune system to produce specialized antibodies that are adapted to recognize the virus.

2. After vaccination, the antibodies remain in the body. If the patient later becomes infected with the actual virus, the antibodies can identify and help neutralize it.

Johnson & Johnson’s Vaccine

Instead of using the whole virus to generate an immune response, these vaccines use only coronavirus’s outer spike proteins, which are what antibodies use to recognize the virus.

Scientists have isolated the genes in coronavirus responsible for producing these

spike proteins. The genes are spliced into weakened, harmless versions of other viruses.

Weakened virus with

spike protein genes

When injected into a patient, the genetically engineered viruses enter healthy cells where they produce coronavirus spike proteins.

The spike proteins produced by the cells prompt the immune system to mount a defense, just as with traditional vaccines.

Vaccine-generated antibody response

J&J, citing preliminary evidence in an analysis released by the FDA, said the vaccine was 65.5% effective in preventing asymptomatic infections in a subset of study subjects.

Health authorities have been watching whether Covid-19 shots can stop people without symptoms from transmitting the virus. The virus has largely been spread by people who were infected but didn’t realize it because they had no symptoms.

The vaccine was less effective in South Africa, where a more-transmissible Covid-19 variant has thrived, than in the U.S. J&J is among the companies working on new shots targeting the new strain, which several current vaccines don’t appear to work as well against.

Write to Thomas M. Burton at [email protected] and Peter Loftus at [email protected]

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



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Dow Slips Amid New Travel Curbs


The index of blue-chip stocks fell 200.94 points, or 0.7%, to 30015.51, marking its largest one-day point and percentage decline in December. The S&P 500 slid 7.66 points, or 0.2%, to 3687.26 to extend its losing streak to a third session.

The tech-heavy Nasdaq Composite, in contrast, rose 65.40 points, or 0.5%, to 12807.92, a new all-time high.

Much of the stock market has lost steam this week as some nations began taking steps to curtail travel in an effort to contain the emergence of a fast-spreading variant of coronavirus from England. The U.K. imposed stringent restrictions on social and business activity, prompting concern that more countries may be required to adopt measures that would hamper the global economic recovery.

“It would be a brave man to suggest this will just remain a U.K.-specific issue,” said

Derek Halpenny,

head of research for global markets in the European region at MUFG Bank. “Are we going back into another phase of more pronounced global lockdowns again?”

Oil prices slipped for a second day amid growing worries over the new restrictions imposed on travelers from the U.K. to other countries. Brent crude futures, the benchmark in international energy markets, dropped 1.6% to $50.08 a barrel.

Meanwhile, the yield on the 10-year note ticked down to 0.917%, from 0.941% Monday, as some investors looked to the relative safety of U.S. government bonds. Yields fall when prices rise.

Investors are trying to gauge whether the new strain of Covid-19 will impact the efficacy of vaccines that are being rolled out this month.

BioNTech

Chief Executive

Ugur Sahin

said the vaccine developed by his company, in partnership with

Pfizer,

would likely work against the new variant and is being tested. If a new mutation would make the current vaccine ineffective, BioNTech can develop another tailored to the new variant in six weeks, he said.

Technology stocks traded higher on Nasdaq, in contrast to declines for the S&P and Dow.



Photo:

Michael Nagle/Bloomberg News

“The big unknown is to what degree could the new strain make the efficacy of the vaccine lower,” said

Peter Garnry,

head of equity strategy at Saxo Bank. “If it just turns out to be more infections, and it doesn’t have an effect on the vaccine, then the market will be less concerned.”

Late Monday, a fresh $900 billion fiscal stimulus package was passed by Congress, ending weeks of anticipation from investors about whether lawmakers could end their stalemate. The bill, which includes direct checks to households and relief for small businesses, is expected to be signed by

President Trump.

Even so, the bill’s passage wasn’t enough to propel the broader stock market higher.

“We’ve had the positive news on the vaccines and the fiscal deal, so there’s probably not a catalyst to drive stocks meaningfully higher in the next few weeks,” said

Brian Levitt,

global market strategist at Invesco.

When Is the Market on Holiday?

Select stock-market closures through year’s end

  • Thurs. Dec. 24: U.S. stock market closes at 1 p.m. ET
  • Fri. Dec. 25: Markets closed
  • Mon. Dec. 28: London stock market closed
  • Fri. Jan. 1: Markets closed

Still, Mr. Levitt noted that he maintains a positive outlook on equities.

“In my opinion, betting against stocks over the next year and beyond is betting against medicine, science and policy makers,” he said. “And I’m not willing to make those bets.”

In corporate news,

Apple

rose $3.65, or 2.9%, to $131.88 after Reuters reported that the iPhone maker intends to move forward with its own self-driving car technology.

Exercise-equipment maker

Peloton Interactive

gained $16.82, or 12%, to $161.21, hitting a new all-time-high, after it agreed to buy commercial fitness-equipment provider Precor for $420 million in cash.

Travel stocks and shares of energy companies tumbled.

Norwegian Cruise Line Holdings

slid $1.70, or 6.9%, to $23.08.

Chevron

fell for an eighth consecutive day, losing $1.73, or 2%, to $84.36. That marks the longest losing streak for the oil giant since October 2013.

Meanwhile,

Tesla

tumbled $9.52, or 1.5%, to $640.34, extending its losses for the week to nearly 8%. The electric-car maker made its S&P 500 debut Monday.

Moves in stocks could be big and markets may be especially choppy in coming days because fewer people are trading as the holiday period starts, said

Salman Ahmed,

global head of macro at Fidelity International.

The final stretch of trading in December is historically positive for the stock market. But this week’s losses may be a sign that investors are starting to take profits after a blockbuster year, especially as they consider the possibility of tax changes after President-elect

Joe Biden

takes office, said

JJ Kinahan,

chief market strategist at TD Ameritrade. The S&P 500 is up 14% in 2020, and the Nasdaq Composite has catapulted 43% higher.

Footage shows empty supermarket shelves while trucks bearing cargo get stuck at the border after France imposed a travel ban on Britain following the spread of a new coronavirus strain. Other countries have also barred passengers from the U.K. Photo: Neil Hall/EPA/Shutterstock

Additionally, Mr. Kinahan noted, Tuesday’s worse-than-expected consumer confidence report may also be weighing on markets.

The Conference Board, a private research group, said its index of consumer confidence dropped to 88.6 in the first two weeks of December, from a revised 92.9 in November. Economists surveyed by The Wall Street Journal had expected a level of 97.5.

Still, there were small signs of optimism. Data from the Commerce Department showed Tuesday that U.S. gross domestic product—the value of all goods and services produced across the economy—increased at an annualized rate of 33.4% in the third quarter, slightly stronger than the previous estimate issued last month.

Overseas, European shares rebounded after Monday’s losses. The pan-continental Stoxx Europe 600 gained 1.2%.

Major stock indexes in Asia closed lower. China’s Shanghai Composite fell 1.9%, and South Korea’s Kospi declined 1.6%.

Write to Caitlin Ostroff at [email protected] and Caitlin McCabe at [email protected]

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