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    Jim Cramer says the economy is headed for a soft landing

    Monday – Friday, 6:00 – 7:00 PM ET

    CNBC’s Jim Cramer told investors that he thinks the Federal Reserve will steer the economy to a soft landing.
    Stocks fell on Monday as investors grew cautious of rising bond yields.
    Cramer, who has said in recent weeks that the market is in bull mode, doubled down on his stance despite the worrying moves in bond yields.

    CNBC’s Jim Cramer on Monday told investors that he thinks the Federal Reserve will steer the economy to a soft landing.
    “The only outcome is a soft landing for the economy, which means it’s foolish to sell now since you’ll only end up buying back those same stocks at higher levels in order to get in ahead of the turn in 2024,” he said.

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    Stocks fell on Monday as investors grew cautious of rising bond yields. Treasury bond yields gained, with the 10-year yield up by nearly 11 basis points at 3.64% and the 2-year yield rising about 18 basis points to 4.48%. Yields and prices move inversely.
    Cramer, who has said in recent weeks that the market is in bull mode, doubled down on his stance despite the worrying moves in bond yields.
    “I’d even go as far as to say that the bond market’s wrong … long-term bond yields are lower than short[-term] ones, signaling a recession, and I think that’s simply incorrect,” he said.
    Cramer added that a key reason he doesn’t expect a hard landing is the stronger-than-expected January jobs report. Nonfarm payrolls grew by 517,000 last month, far surpassing the Dow Jones estimate of 187,000 and December’s gain of 260,000.
    “That number unequivocally supports the notion of a soft landing. You simply can’t get a hard landing when you’re seeing this much job creation,” he said.

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    Winklevoss twins’ crypto exchange Gemini to contribute $100 million to Genesis bankruptcy recovery

    Crypto exchange Gemini will contribute $100 million in cash to a recovery plan for bankrupt crypto lender Genesis.
    The exchange, founded by the Winklevoss twins, said the funds would be reserved for its Earn users, who had about $900 million of assets frozen when Genesis paused withdrawals.

    Cameron and Tyler Winklevoss.
    Adam Jeffery | CNBC

    Crypto exchange Gemini will contribute up to $100 million in cash, earmarked for its customers, as part of an agreement with bankrupt Genesis Global Capital and parent Digital Currency Group, Genesis’ lawyers said in a court hearing on Monday.
    The restructuring deal and recovery plan were announced during a status conference for crypto lender Genesis, which filed for bankruptcy protection in New York on Jan. 19. Genesis owed its creditors, including Gemini and its users, billions of dollars.

    Gemini, founded by Cameron and Tyler Winklevoss, had been engaged in a high-profile back-and-forth with Barry Silbert, who owns DCG. The Winklevoss twins have publicly blamed Silbert’s mismanagement of Genesis for issues with one of its own products called Earn, which promoted returns of up to 8% on customer deposits.
    “This plan is a critical step forward towards a substantial recovery of assets for all Genesis creditors,” Gemini told its users in correspondence viewed by CNBC. It demonstrates “Gemini’s continued commitment to helping Earn users achieve a full recovery.”
    The broader details of the restructuring plan were announced in Manhattan bankruptcy court. The deal, cut between Genesis, DCG, Gemini, and Genesis’ range of creditors, is largely predicated around a refinancing of Genesis’ loans to DCG. Genesis loaned over $500 million worth of cash and bitcoin to DCG, in part to fund founder Silbert’s venture investments.
    DCG will also contribute to Genesis “all equity” in Genesis’ trading subsidiary, which remained operational during the bankruptcy. Additionally, DCG will provide a two-tranche debt facility, maturing in June 2024, with 11% interest on one tranche, and a 5% interest-paying bitcoin tranche, “roughly equal to around $500 million,” a Gensis lawyer said.
    DCG will also issue convertible preferred stock to Genesis creditors.

    DCG also extended a $1.1 billion promissory note to Genesis after crypto hedge fund Three Arrows Capital collapsed. The Winklevoss brothers blasted that maneuver as “a complete gimmick that did nothing to improve Genesis’ immediate liquidity position or make its balance sheet solvent.”
    As part of the recovery plan, that promissory note will be equitized, meaning it will be converted into something of substantive value, typically equity, CoinDesk reported.
    “Thank you for putting your trust in us during this challenging time,” Gemini said in its message to users.
    For months, Gemini customers loaned money to Genesis for placement across various crypto trading desks. When Genesis halted its lending business following the collapse of FTX in November, Gemini Earn was forced to temporarily shutter its operations, as well.
    All withdrawals on Earn have been paused for nearly three months. Gemini’s 340,000 retail clients are angry, and some have come together in class actions against Genesis and Gemini.
    The Securities and Exchange Commission complaint filed charges against both Gemini and Genesis on Jan. 12, for allegedly selling unregistered securities in connection with a high-yield product offered to depositors.
    WATCH: Crypto broker Genesis files for Chapter 11 bankruptcy

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    Watch live: U.S. House Speaker Kevin McCarthy speaks on the debt ceiling

    (The stream is slated to start at 5:30 p.m. ET. Please refresh the page if you do not see a video above at that time.)
    House Speaker Kevin McCarthy will deliver an address Monday on the debt ceiling. His speech comes a day before President Joe Biden is scheduled to give the annual State of the Union address.

    Biden and McCarthy are engaged in the early phases of what is expected to be a months long negotiation on a debt ceiling vote.
    The nation hit its statutory limit last month, forcing Treasury Secretary Janey Yellen to take several temporary measures to prevent the government from defaulting.
    If Congress does not pass a bill to raise or suspend the nation’s debt limit by early June, it could wreak economic havoc around the world.
    But House Republicans say they will not vote to raise the limit without massive spending cuts in return.
    “I believe you have to lift the debt ceiling, but you do not lift the debt ceiling without changing your behavior. So it’s got to be both,” McCarthy said after his first meeting with Biden last week.

    The White House has so far refused to “negotiate” on a debt limit hike, however. Instead, Biden has called on Congress to pass a so-called “clean” bill, meaning one with no legislative strings attached.
    McCarthy recently told reporters that will “never happen.”

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    Judge suggests abortion might be protected by 13th Amendment despite Supreme Court ruling

    A federal judge in Washington, D.C., suggested in a court order in a criminal case against a group of anti-abortion activists that the federal right to abortion might still be protected by the Constitution’s 13th Amendment, which abolished slavery.
    The Supreme Court last year, in a majority opinion written by Justice Samuel Alito, ruled there was no constitutional right to abortion, overturning the 1973 decision in Roe v. Wade.
    A number of states moved to sharply restrict or ban access to abortion on the heels of the high court ruling in Dobbs v. Jackson Women’s Health Organization.
    Judge Colleen Kollar-Kotelly, who was appointed by President Bill Clinton, asked lawyers to file briefs on the question of whether the Supreme Court’s decision is only limited to the 14th Amendment.

    Agnes Scott College student Jordan Simi (C) participates in a chant during a pro-abortion rights march and rally held in reaction to the leak of a draft U.S. Supreme Court majority opinion written by Justice Samuel Alito preparing for a majority of the court to overturn the landmark Roe v. Wade abortion rights decision later this year, in Atlanta, Georgia, May 3, 2022.
    Alyssa Pointer | Reuters

    A federal judge in Washington, D.C., on Monday suggested in a court order in a criminal case against a group of anti-abortion activists that the federal right to abortion — which was overturned last year by the Supreme Court — might still be protected by the Constitution’s 13th Amendment, which abolished slavery.
    Judge Colleen Kollar-Kotelly also asked federal prosecutors and lawyers for the defendants to file briefs on the questions of whether the Supreme Court’s ruling is only limited to the 14th Amendment, and whether any other provision in the Constitution “could confer a right to abortion.”

    The order by Kollar-Kotelly potentially opens the door to a federal legal challenge on 13th Amendment grounds to state laws that have sharply restricted access to abortion in some states since the high court’s controversial ruling last summer overturning the 1973 decision in Roe v. Wade, which established the federal right to abortion.
    The 14th Amendment covers several rights, including citizenship rights and a prohibition against the government depriving “any person of life, liberty, or property, without due process of law.”
    The amendment’s due process clause was a keystone of the Supreme Court’s ruling in Roe v. Wade that established the federal right to abortion.
    Kollar-Kotelly in her order, which was previously reported by Politico, wrote that the 13th Amendment “has received substantial attention among scholars and, briefly, in one federal Court of Appeals decision.”
    A 1990 paper by a Northwestern University School of Law professor found that the 13th Amendment, with its prohibition against involuntary servitude, provides a textual basis for the right to abortion.

    “When women are compelled to carry and bear children, they are subjected to ‘involuntary servitude’ in violation” of that amendment,” wrote the paper’s author Andrew Koppelman, which was cited by Kollar-Kotelly in her order.

    U.S. District Judge Colleen Kollar-Kotelly
    Charles Dharapak | AP

    That order came in a case where Lauren Handy, a Virginia resident, and nine other anti-abortion activists were charged in an indictment last year with conspiring to obstruct access to a Washington abortion clinic on Oct. 22, 2020.
    Handy and the other defendants have asked Kollar-Kotelly, who was appointed to the district court in Washington by former President Bill Clinton, to dismiss the indictment for lack of jurisidiction.
    Their argument is at least partially based on the grounds that the court’s majority opinion by Justice Samuel Alito last year, in the case known as Dobbs v. Jackson Women’s Health Organization, said “the Constitution does not confer a right to abortion,” the judge noted in her order.
    But Kollar-Kotelly wrote that argument “is predicated on the false legal premises that the “federal law cited in the indictment “only regulates access to abortion,” when in fact is also regulates access to a broad category of reproductive health services.

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    “Nevertheless, to the extent that Defendants seek resolution of this matter via a constitutional holding, the Court will require additional briefing,” Kollar-Kotelly wrote.
    The judge wrote that the question before the high court in Dobbs “was not whether any provision of the Constitution provided a right to abortion.”
    “Rather, the question before the Court in Dobbs was whether the Fourteenth Amendment to the Constitution provided such a right,” Kollar-Kotelly wrote.
    “That is why neither the majority nor the dissent in Dobbs analyzed anything but the Fourteenth Amendment,” she wrote. “In fact, on the Court’s initial review, not a single [friend-of-the-court] brief mentioned anything but the Fourteenth Amendment and the unratified Equal Rights Amendment.”
    The 14th Amendment’s due process clause was cited by the Supreme Court in Roe v. Wade, which established that there was a right to privacy contained in that clause and elsewhere in the Constitution which gave people the right to obtain an abortion until a fetus became viable.
    In its ruling tossing out Roe, the Supreme Court wrote in its majority opinion that the 14th Amendment “clearly does not protect the right to an abortion.”
    Kollar-Kotelly wrote that “it is entirely possible that the Court might have held in Dobbs that some other provision of the Constitution provided a right to access reproductive services had that issue been raised.”
    “However, it was not raised,” she noted.
    And she wrote that since last year, the court’s holding that the Constitution does not confer a right to abortion “is often read as saying “the Supreme Court held that no provision of the Constitution extends any right to reproductive health services.”
    Kollar-Ketelly wrote that for her part, she “is uncertain that this is the case.”

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    Stocks making the biggest moves after hours: Pinterest, Chegg, Take-Two Interactive and more

    Andrew Harrer | Bloomberg | Getty Images

    Check out the companies making headlines after the bell: 
    Pinterest — The social media stock shed more than 7% after revenue for the recent quarter fell short of analysts’ expectations. Pinterest also shared guidance for the first quarter that was lighter than expected and said it expects sales to increase by “low single digits” versus the 6.9% growth rate expected by analysts.

    Chegg — Chegg shares sank 20% in extended trading after sharing weaker-than-expected first-quarter and full-year revenue guidance, according to Refinitiv. The company cited economic uncertainties and subscriber growth concerns.
    Skyworks Solutions — The semiconductor stock gained 3% in extended trading after announcing a $2 billion share buyback program. It came despite an earnings miss and light guidance for the current quarter.
    Take-Two Interactive – The video game company saw its shares fall 0.5% after it posted quarterly revenue that came in below Wall Street’s expectations. Take-Two posted revenue of $1.38 billion, compared to estimates of $1.46 billion, according to Refinitiv.
    ZoomInfo – Shares of the software company dipped about 5% after hours following the company’s quarterly results for the latest period. ZoomInfo reported better-than-expected earnings and revenue, according to FactSet. However, the company’s revenue outlook for the first quarter and full year were lower than what analysts expected
    Spirit Airlines — The airline stock rose 3% during extended trading after sharing stronger-than-expected fourth-quarter earnings. Spirit Airlines reported per-share earnings of 12 cents, excluding items. Analysts surveyed by FactSet had anticipated earnings of 3 cents a share.

    Leggett & Platt — Shares of Leggett & Platt fell more than 5% in extended trading after fourth-quarter earnings came in below analysts’ expectations, according to FactSet. Full-year per-share earnings guidance for the home and automobile products manufacturer also fell short of analysts’ expectations.
    — CNBC’s Tanaya Macheel and Darla Mercado contributed reporting

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    Crypto exchange Binance will suspend U.S. dollar transfers

    Binance will suspend U.S. dollar withdrawals and deposits for international customers beginning Feb. 8, the company said.
    Binance banking partner Signature Bank in January raised transaction minimums for dollar transfers.
    Millions of dollars worth of crypto flowed out of Binance after it announced the suspension, but the company says it remains “net-positive.”

    Changpeng Zhao, billionaire and chief executive officer of Binance Holdings Ltd., speaks during a session at the Web Summit in Lisbon, Portugal, on Wednesday, Nov. 2, 2022.
    Zed Jameson | Bloomberg | Getty Images

    Binance, the world’s largest cryptocurrency exchange, will suspend U.S. dollar deposits and withdrawals, the company said Monday, without providing a reason for the decision.
    “We are temporarily suspending USD bank transfers as of February 8th,” a Binance spokesperson told CNBC. “Affected customers are being notified directly.” The company said “0.01% of our monthly active users leverage USD bank transfers” and added that “we are working hard to restart service as soon as possible.”

    Binance US, a unit of the company that’s regulated by the Treasury Department’s Financial Crimes Enforcement Network, said in a tweet that it’s not affected by the suspension. Thus the move applies only to non-U.S. customers who transfer money to or from bank accounts in dollars.
    Data from Arkham Intelligence shows that following the announcement, there was a sharp spike in outflows from Binance’s crypto wallets, as millions of dollar-pegged stablecoins such as tether and USDC flowed to rival exchanges or individual wallets.
    Binance’s net U.S. dollar outflow was over $172 million for the day, based on data from DefiLlama. That represents a tiny amount of money for a company that has $42.2 billion worth of crypto assets, according to Arkham.
    “We’re still overwhelmingly net-positive on net deposits,” the spokesperson said. “Outflows always tick up when prices start to level off following a bullish market swing like we saw last week as some users take profits.” Bitcoin rose more than 38% in January, its best month since October 2021.
    Binance’s exchange token, BNB, was largely unaffected by the news, holding steady at around $328.

    Stock chart icon

    Binance’s exchange token, BNB, since Feb. 3, 2023.

    In late January, Binance said U.S. banking partner Signature Bank had increased U.S. dollar transaction minimums to $100,000. At the time, Binance said Signature had told the exchange that the new minimum applied to all crypto exchange customers.
    Regarding Monday’s suspension, a Binance representative told CNBC in an email that “Binance.US has its own banking partners and does not have any issues.” The main Binance exchange does not serve U.S. users.
    Binance said customers can still use other fiat currencies or payment methods to purchase crypto. For the small number affected, “we’ll have a new partner to announce for those users in the next couple weeks,” the spokesperson said.
    — CNBC’s Kate Rooney contributed to this report.

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    Stocks making the biggest moves midday: Dell, On Semiconductor, PayPal, Catalent & more

    The PayPal logo displayed on a smartphone screen with a stock market graphic in the background.
    Omar Marques | SOPA Images | LightRocket | Getty Images

    Check out the companies making headlines in midday trading Monday.
    On Semiconductor — Shares lost 0.6%, closing Monday’s trading session in the red after the company reported earnings that beat Wall Street estimates. The company posted $2.1 billion in revenue for the quarter, a 13.5% increase from $1.85 billion in revenue last year.

    Dell — The tech company gained 0.8% on Monday, after seeing its shares fall 3.7% during midday trading upon announcing plans to lay off 5% of its workforce. Dell co-chief operating officer Jeff Clarke said the staff cuts are an effort to “stay ahead of downturn impacts.” The company has been struggling with the global slowdown in demand for PCs and laptops during the past year.
    Tyson Foods — Shares of the food processing giant suffered a 4.6% drop on Monday following the company’s weaker-than-expected results for its most-recent quarter. Tyson earned 85 cents per share on revenue of $13.26 billion. Analysts expected $1.34 per share in earnings and revenue of $13.52 billion, according to Refinitiv.
    T-Mobile – The telecom stock fell 2.2% after MoffettNathanson downgraded shares to market perform from an outperform rating, citing concerns about slowing growth.
    Children’s Place — Shares dropped more than 4% on Monday after management said it expects to report a net loss in the range of $52 million to $57 million for the fourth quarter, citing a “deterioration in gross margin” because of a difficult macro environment.
    PayPal — Shares of the payments company fell more than 3.7% during Monday trading after Raymond James downgraded the stock to market perform from outperform. The Wall Street firm said it holds a cautious stance on the stock ahead of PayPal’s fourth-quarter earnings set for later this week, expecting “flat to negative growth for branded checkout.”

    Energizer Holdings — The battery maker’s stock price lost 4.9% after fourth-quarter revenue and earnings fell short of expectations.. The company reaffirmed earnings per share and revenue growth guidance for the full year.
    Catalent — Shares of the contract manufacturer surged 19.5% on Monday following a Bloomberg News report showing Danaher has expressed interest in taking over the company. Shares of Danaher lost 1%. 
    Under Armour — Shares of the sports equipment retailer lost 3.4% during Monday trading. However, Baird on Monday said that sentiment for the company’s shares are improving more positively since last fall, citing hopes of an earnings recovery this year off of prospects for a soft landing. Year to date, Under Armour’s Class A stock is up 20%.
    Align Technology — The medical device company ended Monday down 0.2% after it announced a $250 million accelerated stock repurchase agreement with Citibank.
    — CNBC’s Tanaya Macheel, Samantha Subin, Alex Harring, Sarah Min, Yun Li, and Hakyung Kim contributed reporting.

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    Canoo’s shares sink after EV maker agrees to sell $52 million in discounted stock

    Canoo said it will sell new shares to institutional investors at a substantial discount.
    The startup is low on cash as it works to get its EVs into full production.
    The deal will dilute the value of existing shareholders’ positions, and it sent the stock sharply lower.

    The Lifestyle Vehicle electric minivan from Canoo.
    Source: Canoo

    Shares of electric vehicle startup Canoo were sharply lower in early trading on Monday after the company said that it has agreed to sell discounted shares to raise $52.5 million.
    Canoo’s shares closed at $1.09 on Monday, down over 12%. The stock has lost more than 80% of its value in the last 12 months.

    Canoo said in a statement that it has entered into agreements with institutional investors to sell 50 million new shares, together with warrants that give the investors an option to buy up to 50 million more. The investors are paying $1.05 per share, and each share comes with one warrant that can be exercised at $1.30 per share.
    Canoo didn’t name the institutional investors involved in the deal.
    The deal price is a substantial discount, as Canoo’s shares closed at $1.25 on Friday. For current shareholders, the deal also means significant dilution of their holdings, as it will add between 50 million and 100 million shares to the company’s current outstanding share count of 356 million.
    Canoo said in November that it was running low on cash and that it expected to raise funds by issuing new shares. It had just $6.8 million on hand as of the end of the third quarter.
    Canoo said Monday that it will use the net proceeds of the offering for “general working capital purposes.” The company is expected to report its fourth-quarter results later this month.

    Stock chart icon

    A 5-day chart of Canoo stock.

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