2023-06-22 06:59:43 ET
Summary
- US regulators approve the sale of cell-based meat from Upside Foods and Good Meat, with Tyson Foods investing in Upside Foods and Steakholder Foods developing beef and seafood products.
- Car insurer Root's shares rose 60% following reports of a takeover approach by Embedded Insurance, offering $19.34 per share.
- Fed Chair Jerome Powell suggests a more moderate pace of rate hikes may be necessary, as it will take "some softening of the labor market for inflation to come down" closer to the Fed's 2% inflation goal.
Listen on the go! Subscribe to Wall Street Breakfast on Apple Podcasts and Spotify Cell-based meat is approved in the U.S. for the first time (TSN).(00:24) Car insurer Root ( ROOT ) jumps on report of takeover offer (01:20). Fed's Jerome Powell says more 'moderate pace' of rate hikes may 'make sense' (01:54).
This is an abridged transcript of the podcast
Cell-based meat is approved in the U.S. for the first time. Root is rising on reports of a takeover offer and Powell says a more moderate rate of increases may make sense.
U.S. regulators approved the sale of chicken made from animal cells for the first time.
The Agriculture Department gave the green light to California companies Upside Foods and Good Meat to sell what is referred to as cell-cultivated or cultured meat and poultry.
The approval comes several months after the U.S. Food and Drug Administration determined products from Upside Foods and Good Meat were safe to eat.
Due to the high cost of mass-producing the lab-grown meat, the companies plan to serve the new products only in exclusive restaurants in the initial roll-out phase. Industry analysts think it will take seven to ten years before lab-grown meat will be seen broadly in grocery stores.
Tyson Foods ( TSN ) is an early investor in Upside Foods and Steakholder Foods ( STKH ) says it is developing beef and seafood products.
Car insurer Root (NASDAQ: ROOT ) rose 60% Wednesday on a report of a takeover approach.
According to a WSJ report , which cited people familiar, Embedded Insurance has made multiple approaches and offered $19.34 a share for Root ( ROOT ),
Embedded Insurance sent Root's ( ROOT ) board a proposal on June 9 after trying to engage in talks since last July.
Root is partly backed by Carvana ( CVNA ) and has a short interest of 20%.
Premarket Root is up more than 42%.
Day one of Fed chair Jerome Powell’s testimony on Capitol Hill is in the books and day 2 is upon us.
He told House lawmakers that it may "make sense" for the Fed to raise rates at a "more moderate pace" than it has in the past 15 months.
Powell said it will take "some softening of the labor market for inflation to come down" closer to the Fed's 2% inflation goal and he wouldn't use the word "pause" to describe the Fed's rate action last week.
And if you were on Twitter during Powell’s testimony, you probably noticed when #stablecoins started trending…
Seeking Alpha analyst Mike Fay has more on that…
(02:34)
By the way, if you’ve been following bitcoin over the past week you’ve noticed that it’s above 30,000 right now and that is in part due to the filing for the BlackRock bitcoin ETF.
Mike Fay wrote about that. I’ll leave a link in show notes.
Other headlines to look out for on Seeking Alpha:
Apple rolls out developer tools to create apps for its Vision Pro headset
Crypto exchange FTX already faces $200M in bankruptcy fees
Applied Optoelectronics inks supply deal with Microsoft
Toyota introduces next-gen minivans in Japan
Netflix's $2.5B South Korean investment to include grooming local talent - report
Intel to restructure manufacturing business
On our catalyst watch for the day, The National Transportation Safety Board will hold an investigative hearing open to the public in East Palestine, Ohio on the subject of the Norfolk Southern ( NSC ) derailment. And the go-shop period expires on the proposed merger between Global Net Lease ( GNL ) and Necessity Retail REIT ( RTL ). The deal has seen some large GNL stakeholders voice opposition.
Wall Street's major averages on Wednesday ended lower for a third straight session.
The Nasdaq ( COMP.IND ) slumped 1.2%. The S&P 500 ( SP500 ) slipped 0.5%. The Dow ( DJI ) outperformed the other two indexes, falling only 0.30%.
Of the 11 S&P sectors Tech, Communication Services and Consumer Discretionary lead the losers. Energy topped the gainers.
Treasury yields were mixed on Wednesday. The 10-year yield ( US10Y ) was down 1 basis point to 3.72% while the 2-year yield ( US2Y ) was up 2 basis points to 4.72%.
Now let’s take a look at the markets as of 6:20 am. Ahead of the opening bell today, Dow, S&P and Nasdaq futures are in the red. The Dow is down 0.2%, the S&P 500 is down 0.2% and the Nasdaq is down 0.3%. Crude oil is down 1.3% at more than $71 a barrel. Bitcoin is up 4.5% and is above 30,000.
In the world markets, the FTSE 100 is down 0.9% and the DAX is down 0.8%. The markets in China and Hong Kong are closed.
On today’s economic calendar, at 10am we’ll continue to hear from Fed chair Jerome Powell on Capitol Hill. Also at 10am existing home sales.
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Wall Street Breakfast Podcast: Cell-Based Meat Gains U.S. Approval