Please ensure Javascript is enabled for purposes of website accessibility

Walgreens to pay up to $350 million in U.S. opioid settlement

Walgreens has agreed to pay up to $350 million in a settlement with the U.S. , which said that it was illegally filling millions of prescriptions in the last decade for opioids and other controlled substances.

The nationwide drugstore chain must pay the government at least $300 million and will owe another $50 million if the company is sold, merged, or transferred before 2032, according to the settlement reached last Friday.

That would include a potential buyout worth nearly $10 billion by the private equity firm Sycamore Partners that announced in early March.

The government’s complaint, filed in January in the U.S. District Court for the Northern District of Illinois, alleges that Walgreens knowingly filled millions of illegal prescriptions for controlled substances between August 2012 and March 2023. These include prescriptions for excessive opioids and prescriptions filled significantly early.

“We strongly disagree with the government’s legal theory and admit no liability,” Walgreens spokesperson Fraser Engerman said in a statement. “This resolution allows us to close all related litigation with federal, state, and local governments and provides us with favorable terms from a cashflow perspective while we focus on our turnaround strategy.”

Amid slumping store visits and shrinking market share, Walgreens announced it was closing 1,200 stores around the country last October. Rite Aid filed for bankruptcy at the end of 2023 as it was also and opioid lawsuit settlements. The U.S. Department of Justice filed a similar lawsuit against CVS in December.

The complaint says Walgreens pharmacists filled these prescriptions despite clear red flags that the prescriptions were highly likely to be invalid, and the company pressured its pharmacists to fill them quickly. The government alleges Walgreen’s compliance officials ignored “substantial evidence” that its stores were filling unlawful prescriptions and withheld important information on opioid prescribers from its pharmacists.

Walgreens then allegedly sought payment for many of the invalid prescriptions through Medicare and other federal healthcare in violation of the False Claims Act, according to the government.

The U.S. Justice Department has moved to dismiss its complaint in light of Friday’s settlement.

“Pharmacies have a legal responsibility to prescribe controlled substances in a safe and professional manner, not dispense dangerous drugs just for profit,” said Attorney General Pamela Bondi in a statement. “This Department of Justice is committed to ending the opioid crisis and holding bad actors accountable for their failure to protect patients from addiction.”

Walgreen has also entered into an agreement with the Drug Enforcement Administration to improve its compliance with rules around dispensing controlled substances, maintain policies and procedures requiring pharmacists to confirm the validity of controlled substance prescriptions, and maintain a system for blocking prescriptions from prescribers that are producing illegitimate prescriptions.

With the U.S. Department of Health and Human Services, Walgreen has agreed to establish and maintain a compliance program that includes training, board oversight, and periodic reporting to the agency regarding the pharmacy’s dispensing of controlled substances.

“In the midst of the opioid crisis that has plagued our nation, we rely on pharmacies to prevent not facilitate the unlawful distribution of these potentially harmful substances,” said Norbert E. Vint, Deputy Inspector General of the U.S. Office of Personnel Management, in a statement.

The settlement resolves four cases brought by former Walgreens employee whistleblowers. In 2022, CVS and Walgreens agreed to pay more than $10 billion in a multi-state settlement of lawsuits brought against them over the toll of the opioid crisis.

Over the past eight years, drugmakers, wholesalers and pharmacies have agreed to more than $50 billion worth of settlements with governments — with most of the money required to be used to fight the opioid crisis.

Attorneys from the Justice Department’s Civil Division Consumer Protection Branch and Commercial Litigation Branch, Fraud Section, as well as from the U.S. Attorneys’ Offices for the Eastern District of Virginia, Northern District of Illinois, Middle District of Florida, District of Maryland and Eastern District of New York represented the United States, according to a press release from the .

“Strict compliance with the law is essential to safeguarding the public, who rely on carefully considered and limited prescriptions for their health and wellbeing,” Erik S. Siebert, U.S. Attorney for the Eastern District of Virginia, said in the release. “Those companies and individuals authorized to provide controlled substances have a professional responsibility to ensure that the prescriptions they fill are within the course of professional practice and regulations. Medically unnecessary prescriptions are a cost ultimately borne by the taxpayers and consumers. As we continue to address the opioid crisis here in Virginia and across the nation, we are determined to ensure pharmacies and pharmacists operate within the law.”

___

AP Health Writer Tom Murphy and Virginia Business Associate Editor Beth JoJack contributed to this report. 

Tesla Q1 profit falls sharply as it fights backlash tied to Musk’s role in Trump administration

NEW YORK (AP) — ‘s first-quarter plunged by more than two-thirds amid a backlash against ‘s electric car company that has hurt sales and sent its plunging.

The Austin, Texas, company said Tuesday that quarterly profits fell by 70% to to $409 million, or 12 cents a share. That’s far below analyst estimates. Tesla’s revenue fell 9% to $19.3 billion in the January through March period, also below Wall Street’s forecast.

The disappointing results come as the company struggles to sell cars to consumers angry over Musk’s leadership of a federal government jobs-cutting group that has divided the country and sparked protests. Musk also has publicly supported far-right politicians in Europe and alienated potential buyers there, too.

Many investors have also complained Musk is too distracted with his role to be running Tesla and that he should either relinquish his position as CEO or abandon his advisory role in Washington.

Tesla’ stock has fallen more than 40% this year but rose slightly in after-hours trading.

Morningstar analyst Seth Goldstein said earlier reports of plunging sales that had tanked the stock made the results almost predictable.

“They’re not particularly surprising given that deliveries were down,” Goldstein said, adding that the company is still generating cash. “It was good to see positive cash flow.”

The company generated $2.2 billion in operating cash versus $242 million a year earlier.

Tesla will hold a conference call to review the quarterly results and give a company update later Tuesday afternoon.

Tesla investors will be listening closely for updates on several strategic initiatives. The company is expected to roll out a cheaper version of its best-selling vehicle, the Model Y SUV later in the year. Tesla has also said it plans to start a paid driverless robotaxi service in Austin, Texas, in June.

Its closely watched gross margins, a measure of earnings for each dollar of revenue, fell to 16.3% from 17.4%.

The company that once dominated EVs is also facing fierce competition for the first time.

Earlier this year, Chinese EV maker announced it had developed an electric battery charging system that can fully power up a vehicle within minutes. And Tesla’s European rivals have begun offering new models with advanced technology that is making them real alternatives, just as popular opinion in Europe has turned against Musk.

Investors expect Tesla will be hurt less by the administration’s than most U.S. car companies because it makes most of its U.S. cars domestically. But Tesla won’t be completely unscathed. It sources some materials for its vehicles from abroad that will now face import taxes.

Tesla warned that tariffs will hit its energy storage business, too.

“While the current tariff landscape will have a relatively larger impact on our Energy business compared to automotive,” the company said, “we are taking actions to stabilize the business in the medium to long-term and focus on maintaining its health.”

Retaliation from China will also hurt Tesla. The company was forced earlier this month to stop taking orders from mainland customers for two models, its Model S and Model X. It makes the Model Y and Model 3 for the Chinese market at its factory in Shanghai.

Pembroke Square hotel set to open in 2027, two years late

The seven-story by hotel being planned for ‘s Pembroke Square development is expected to open in 2027 — about two years later than originally announced.

Developers on Tuesday revealed the new construction timeline of the hotel, along with several other updates on the $200 million of the former , including construction dates for a 273-apartment complex, the announcement of a new restaurant and the fall opening of a comedy club.

Limited liability company is the developer and owner of the former mall, which closed its interior in early 2022. Announced Tuesday was the May groundbreaking for the Tempo by Hilton hotel, which will have 163 guestrooms, a bar and a restaurant. Construction is expected to wrap up by summer 2027.

Tempo was initially set to open in 2025, but , president of Pembroke Realty Group and asset manager of Pembroke Square, said the project faced numerous setbacks, including increased construction costs and rising . The project was also revised from an initial 14-story building to a seven-story building.

Also coming to Pembroke Square is Dallas-based Brazilian steakhouse chain Fogo de Chão, which is expected to open in May. The 6,590-square-foot restaurant will be the fourth Fogo de Chão to open in Virginia, following locations in , Tysons and Reston.

This fall will see the opening of the Funny Bone Comedy Club and DraftCade, a gaming franchise that pairs nearly 50 rotating craft beer taps with over 75 classic arcade favorites.

Relocating to Pembroke Square from nearby Town Center, the Funny Bone Comedy Club will expand its footprint to increase showroom capacity by roughly 150 seats. In its new showroom, it will have capacity for 450 patrons. Pembroke Square Associates says the expansion will allow the comedy club to attract bigger names on the comedy circuit to Virginia Beach. DraftCade will open adjacent to the showroom.

Pembroke Square rendering shows green space surrounded by Funny Bone, DraftCade and The Pembroke apartments. Image courtesy Pembroke Square Associates

“We’re excited to join forces with Pembroke Square to elevate the entertainment scene in Virginia Beach,” Todd Leinenbach, vice president of Funny Bone Comedy Club and DraftCade, said in a statement.

In early 2026, Pembroke Realty Group is expected to break ground on The Pembroke — a seven-story, 273-apartment complex located in the middle of the former mall. The apartments will feature a parking garage with over 600 spaces. This project was initially set to break ground in 2025, but Smith said it was delayed due to economic factors and being completely redesigned from a 12-story complex into a seven-story building. He estimates it will likely be ready for use sometime in 2028.

Groundbreaking for the first phase of the project — a senior living community known as — kicked off in December 2022. The facility, which lies at the corner of Jeanne Street and Constitution Drive, opened in December 2024, featuring seven stories with 121 independent apartment units, 20 assisted living units and a dozen memory care units.

Demolition tied to the project’s second phase, which includes the hotel, kicked off in March 2024.

Pembroke Square Associates said retailers and restaurants will continue to remain open throughout construction, including major stores like Bath & Body Works, Old Navy, Target and The Fresh Market.

Sentara College of Health Sciences ends degree programs

Chesapeake-based of Health Sciences announced last week that it will stop offering nursing and non-nursing and will move those courses to state and regional universities.

The 130-year-old school also will pause admissions and evaluate its non-degree offerings, according to President Angela Taylor’s announcement posted April 17 on the Chesapeake-based college’s website, branding the change as “a new path forward.” Staff members and faculty were informed of the change April 16, according to the college.

Current degree-track students can complete their programs at the college or a designated partner, her statement said.

There are approximately 460 students at SCOHS, including 385 in degree programs, Sentara spokesperson Mike Kafka said in a statement. In addition to the end of degree-granting programs, Sentara is also “evaluating our certificate offerings, including the types of programs, structure and delivery format that will best meet future needs,” Taylor wrote.

Her announcement added that Sentara is “taking steps to align our academic model with current and emerging workforce needs across the communities we serve. … This shift reflects a common model in health care today, where health systems partner with external academic institutions rather than operate their own degree programs.”

While the exact changes are still being finalized, the college is working to establish partnerships with state and regional universities to transition all nursing and non-nursing degree-granting programs, Taylor wrote. Meanwhile, select certificate programs will continue to accept new students, including for medical assistant, patient care technician, cardiac electrophysiology and monitor surveillance courses.

According to Kafka, tuition payments will remain the same for current students who finish their course either at SCOHS or at a partnering university or college. The college has offered master’s and bachelor’s degrees in nursing, as well as various associate degrees and certificates.

Kafka said the college will continue to offer and expand select specialty certificate programs designed to address critical workforce needs, but those decisions are still under consideration and will be announced later.

In a statement, Sentara said the transition is being carefully planned and that it is “fully committed to supporting SCOHS students, faculty, and staff throughout this process.”

In the Hampton Roads region, Tidewater Community College, Hampton University, Old Dominion University, Virginia Peninsula Community College, ECPI and Regent University offer nursing programs.

College sports enter new era with NIL deals

The Basics

  • Old Dominion’s embraces NIL to build his brand

  • Virginia legislation allows schools to pay student-athletes

  • Coaches and adapt to shifting power dynamics in recruiting

  • Risks include financial literacy gaps and potential exploitation

Kris Trinidad plays defensive end for Old Dominion University’s Division I football team, where he tallied 45 tackles and 5.5 sacks last season. He’s also building his brand thanks to new laws that allow student-athletes to ink endorsement deals and get paid by the university. 

“I feel like it’s teaching young guys how to be more marketable and prepare themselves for their future,” Trinidad said. “It gives them opportunities to express their true selves amongst the community.”

Trinidad is part of the growing class of student-athletes learning to navigate a new world of athletics, one where player statistics, social media presence and sponsorship potential increasingly all matter.

The Rise Of The Student Athlete

The has allowed student-athletes since 2021 to profit from their name, image and likeness, or NIL.

The financial shift and its impact on college athletics have been dramatic. went from landing full scholarships and cost-of-living expenses to earning an estimated $917 million in the first year NIL was enacted, according to Icon Source.

New legislation passed by the Virginia General Assembly in 2024 opened the door for direct payments from schools. This shift is backed by a legal settlement known as House v. NCAA, which will permit schools to allocate up to $20 million annually to pay student-athletes. The case argued current and even former student-athletes deserve a share of revenue generated by television deals, licensing agreements and even ticket sales. It recently received conditional approval from NCAA governance.

Virginia Commonwealth University student-athletes will be paid starting in the 2025-2026 year, with a projected $5 million allocation, according to CBS6 News.

The biggest NIL sums still go to marquee names. First-year Duke University power forward Cooper Flagg has a NIL valuation upwards of $4 million, according to 1075thefan sports website.

However, players of all levels can find opportunities to build their brands. Former Virginia State University running back Rayquan Smith was dubbed “King of NIL” for receiving over 100 , according to The Virginia Statesman.

Not Amateurism Anymore

Brendan Dwyer, a professor at ‘s Center for Sports Leadership, said the current NIL model is not sustainable for athletic departments.

“If all of a sudden they have to go out and find money through NIL to pay their athletes, it comes at the expense of so many other things for the athletic department,” Dwyer said.

Dwyer thinks schools are heading toward a professional model, and schools and athletes should be prepared. Although it might create other issues, employing athletes could be a solution.

“If you take a step back and you watch what happens on a Saturday afternoon in Tuscaloosa, or you watch what happened last weekend in San Antonio, those aren’t amateur sports,” Dwyer said. “That’s professionalism.”

Community, Coaches And The Changing Game 

Coaches are also evolving in the new era. VCU recently hired Phil Martelli Jr. as its new head coach and he is stepping into the role at a transformative time. Martelli led Bryant University to an America East title and its first NCAA Tournament appearance in March.

“The revenue sharing and NIL stuff is not going anywhere,” Martelli said. “It’s become a major part of this, the transfer portals become a major part of this for everybody, at every level.”

Coaches need resources to get recruits to campus. In most cases, athletes are straightforward in what they’re looking for when choosing which universities to attend, according to Martelli.

“Then it’s up to us to decide what that looks like,” Martelli said. “Is that worth it, is it not worth it?”

Martelli would like to see multi-year contracts for athletes. There would then be the potential for contract buyouts within college athletics, similar to professional sports. Both parties can negotiate the terms and lengths of the contracts and try to find common ground.

 “But right now if you go year-to-year, to have guys jumping in the transfer portal and shopping around, it isn’t the best for everybody,” Martelli said.

Former University of Virginia basketball coach Tony Bennett unexpectedly retired in 2024, saying he no longer felt he was the best coach to lead the program in the current environment. Bennett, who guided to the 2019 national championship, said NIL deals, along with the transfer portal, added aspects to his role that weren’t his strong suit.

“The game and college athletics is not in a healthy spot,” Bennett said. “There needs to be change.”

Community is also impacted when student-athletes solely chase money, said Ben Rekosh, a VCU broadcast student and sports commentator. College sports used to be built on the idea of student-athletes being integral to their community, by contributing to what makes their school and fan base great for three to four years.

“I think that it affects the community a lot,” Rekosh said. “There’s not really players anymore that people are able to to tie their hearts with and have a true connection with, if people are just jumping back and forth.”

Still, he understands why it could be in the best interest of athletes at their peak to move around and maximize their earnings.

One perk of NIL deals is that more college athletes are staying in school instead of going professional immediately, according to ESPN college basketball analyst Jay Bilas. They can continue their education while earning money, versus being pushed toward the pay-to-play professional route.

Top college players may earn more money and playing time than they would as rookies in the pros and would have more experience going into a draft.

New Kind Of Athlete

Athletes are not just a part of the university’s brand; they also have a personal business.

Thai Wilson, sports editor for VCU student-run paper The Commonwealth Times, said fans increasingly follow players, not just programs.

“You remember 2008 Florida winning the March Madness, or VCU making it to the Final Four in 2011,” Wilson said. “People don’t remember the players that played on those teams who made it all the way unless they were either a big name who made it to the NBA, or if it’s just a very memorable run.”

Wilson pointed to top recruit AJ Dybansta’s decision to go to Brigham Young University, a school not known for getting high-profile signees, as an example of how NIL has shifted power dynamics. That can benefit students and give them a better chance to negotiate for what they want.

“NIL’s landscape is starting to kind of open up doors for other programs to get higher recruits if they’re willing to pay for it,” Wilson said.

Risks And Reality

Student-athletes now have new opportunities, but with that comes risk. Especially for younger athletes still learning financial basics. For Trinidad, the key is using NIL to build the athlete experience.

Although NIL deals may give students more power, Trinidad worries some could be exploited by marketing agents or contract deals that they don’t understand.

“Because these guys—they’ll come in, make you a contract and take 10% of your money,” Trinidad said. “It’s something young guys need to be wary of.”

He thinks high school athletics should start talking about brand building, contract literacy and financial management.

NIL deals are relatively new, with many rules in place around compensation and endorsement. Virginia law restricts athletes from NIL compensation from alcohol, cannabis and sports gambling, to name a few.

If the laws change and there is less regulation, there is a chance athletes could be taken advantage of.

“It gives you power, but power in the wrong hands can be bad,” Trinidad said.

Capital News Service is a program of Virginia Commonwealth University’s Robertson School of Media and Culture. 

US Treasury secretary says trade war with China is not ‘sustainable’

WASHINGTON (AP) — U.S. Treasury Secretary said in a Tuesday speech that the ongoing showdown against China is unsustainable and expects a “de-escalation” in the between the world’s two largest economies.

But in a private speech in Washington for JPMorgan Chase, Bessent also cautioned that talks between the United States and China had yet to formally start. placed import taxes of 145% on China, which has countered with 125% tariffs on U.S. goods. Trump has placed tariffs on several dozen countries, causing the market to stumble and to increase on U.S. debt as investors worry about slower economic growth and higher inflationary pressures.

Details of the speech were confirmed by two people familiar with the remarks who insisted on anonymity to discuss them.

“I do say China is going to be a slog in terms of the negotiations,” Bessent said according to a transcript obtained by The Associated Press. “Neither side thinks the status quo is sustainable.”

The stock index rose after Bloomberg News initially reported Bessent’s remarks.

The has met for talks with counterparts from Japan, India, South Korea, the European Union, Canada and Mexico, among other nations. But Trump has shown no public indications that he plans to pullback his baseline 10% tariff, even as he has insisted he’s looking for other nations to cut their own import taxes and remove any non-tariff barriers that the administration says have hindered exports from the U.S.

White House press secretary Karoline Leavitt told reporters Tuesday that Trump told her “we’re doing very well” regarding a “potential trade deal with China.”

China on Monday warned other countries against making trade deals with the United States that could negatively impact China.

“China firmly opposes any party reaching a deal at the expense of China’s interests,” China’s Commerce Ministry said in a statement.

Leavitt said the Trump administration has received 18 proposals from other countries for trade deals with the U.S., adding that “everyone involved wants to see a trade deal happen.”

The uncertainty over tariffs in the financial markets has also been amplified by Trump calling on the to cut its benchmark interest rate, with the president saying he could fire Fed Chair Jerome Powell if he wanted to do so.

Leavitt said Trump believes the Fed has by holding rates steady as it awaits the impacts of tariffs “in the name of , rather in the name of what’s right for the American economy.”

Henrico-based Elephant Insurance to be sold

The U.K.-based is selling Henrico County-based auto insurer Elephant to & Co., a New York-based private investment firm, according to a Tuesday announcement.

The deal is for “an undisclosed cash consideration … representing approximately the net asset value of Elephant,” a news release stated.

That value is believed to be more than $23.6 million, after being written down from more than $49 million in 2023, according to Admiral Group’s 2024 report. (Dollar figures are based on conversion rates of pounds to dollars at 12:30 p.m. on Tuesday.)

The transaction, which is subject to regulatory approval, is expected to close in the fourth quarter of the year.

Albert Schiavon, who became Elephant’s CEO in 2017, is expected to remain in that role. The company’s name is not expected to change and no employees are expected to lose their jobs.

Costantino Moretti, head of international insurance for Admiral Group, said the deal is good for Elephant’s employees and for Admiral Group and its shareholders. “This transaction will enable us to focus on the opportunities we see for delivering long-term sustainable growth in our businesses in the UK and Mainland Europe,” Moretti said in a news release.

Elephant has more than 500 employees, according to the company.

Eric Rahe, managing director and co-president, of J.C. Flowers stated in the news release that the firm will help “generate new opportunities as a standalone company.”

“J.C. Flowers has a long, distinguished history of investing in the insurance industry,” he stated in the news release.

In 2024, Elephant Insurance reported a profit of about $18.7 million after reporting a loss of about $25.6 million in 2023.

“These results were achieved through a continued focus on rate adequacy and careful expense management,” Schiavon stated in the annual report.

Admiral Group launched Elephant in 2009 to grow its overseas automobile insurance business. It initially traded only in Virginia. Elephant Insurance added Maryland, Illinois and Texas markets in 2013 and Indiana and Tennessee markets in 2016. Ohio was added in 2020 and Georgia the following year. More than 225,000 drivers and their vehicles are protected by Elephant Insurance, according to the company.

Founded in 1998, J.C. Flowers & Co. has invested more than $18 billion of capital, including co-investment, in 67 portfolio companies in 18 countries across sectors including insurance and specialty finance.

Admiral’s financial adviser for this transaction is BofA Securities and Chicago-headquartered Sidley Austin is its legal adviser. J.C. Flowers’ financial advisor is Keefe, Bruyette & Woods, and its legal adviser is New York-based Debevoise & Plimpton.

“This partnership will enable us to benefit from their extensive expertise which will play a critical role for the next phase of our growth strategy and add value for our customers, whilst maintaining our distinctive culture,” Schiavon stated.

Krispy Kreme investor to acquire Roanoke’s Shenandoah Life in deal

JAB Holding Co., the Luxembourg-based holding company that owns a majority stake in Krispy Kreme doughnuts, plans to pay $3.1 billion to buy , parent company of -based Shenandoah Life , according to a filing made last month with the .

Applications for approval of of an insurer typically take between two and six months to complete “depending on their complexity and other factors that may need to be considered,” according to a spokesperson for the Virginia regulatory agency.

JAB Holding announced in February that it had entered into a definitive agreement to acquire Prosperity Life Group, which includes Prosperity Life Group insurance companies and Prosperity Asset Management.

Acquiring Prosperity, which has over $25 billion in assets, is a “foundational part” of JAB’s strategy to build a global platform, according to the news release.

“The transaction, which we expect to close upon receipt of the requisite regulatory approvals, has no impact on Prosperity or Shenandoah Life’s business in Roanoke,” a spokesperson for Prosperity Life Group said in a statement Thursday.

Requests for comment were not returned by spokespersons for JAB Holding.

, a global credit rating agency specializing in the insurance industry, previously gave a financial strength rating of A-, or excellent, before placing the rating under review after the acquisition was announced.

Founded in 1916, Shenandoah Life hit troubled waters during the Great and in 2009 was placed into a receivership, meaning it could not write new policies. By 2012, the company announced it had exited the receivership due to a $60 million capital infusion from its new owner, Prosperity Life Insurance Group.

The company had 284 employees at the start of the receivership, according to The Roanoke Times. Its workers once filled a large building on Brambleton Avenue, but that was sold to Carilion Clinic in 2015. At that time, only 90 employees worked there, an article in the Roanoke newspaper stated. A Prosperity Life Group spokesperson did not respond to a request for a current head count of Roanoke employees.

The company’s president and CEO is listed as Nicholas von Moltke, who is also  CEO of Prosperity Life Insurance and lives in New York City.

Shenandoah Life Insurance had $1.96 billion in assets at the end of 2024, according to its annual report filed with the . It collected $315 million in premiums in 2024, with the largest chunk ($278 million) going for annuities.

An investor group led by Elliott Management bought Prosperity Life Insurance Group in 2019.

Wall Street rallies to recover some of its sharp losses as the dollar and US bond market steady

NEW YORK (AP) — U.S. stocks are rallying Tuesday after companies reported fatter than expected, and other U.S. investments are also steadying a day after falling sharply on worries about President Donald Trump’s trade war and his attacks on the head of the .

The was 2% higher in morning trading and on track to recover most of Monday’s drop. The Industrial Average was up 765 points, or 2%, as of 10:45 a.m. Eastern time, and the Nasdaq composite was 2.2% higher.

The value of the U.S. dollar also stabilized after sliding against the euro and other competitors, while Treasury yields held steadier. Sharp, unusual moves in those markets have recently raised worries that Trump’s policies are making investors more skeptical that U.S. investments still deserve their reputations as the world’s safest.

The only prediction many Wall Street strategists are willing to make is that financial markets will continue to jerk up and down as hopes rise and fall that Trump may negotiate deals with other countries to lower his . Otherwise, many investors expect the economy to fall into a recession.

The International Monetary Fund on Tuesday slashed its forecast for global economic growth this year to 2.8%, down from 3.3%. But Vice President JD also said he made progress with India’s prime minister, Narendra Modi, on trade talks Monday.

Some signs of nervousness remain in financial markets. Gold continued to rise, for example, as it holds onto its reputation as a safer investment when fear is dominating markets.

A suite of better-than-expected profit reports from big U.S. companies, meanwhile, drove U.S. stocks higher.

Equifax jumped 11.8% after reporting better profit for the first three months of 2025 than analysts expected. It also said it would send more cash to its shareholders by increasing its dividend and buying up to $3 billion of its over the next four years.

climbed 7.6% after the maker of Scotch tape and Command strips said it made more in profit from each $1 of revenue during the start of the year than it expected. The company also stood by its forecast for profit for the full year, though it said tariffs may drag down its earnings per share by up to 40 cents per share.

Homebuilder PulteGroup rose 6.2% after it likewise delivered a stronger profit for the start of 2025 than analysts expected.

It’s been benefiting from the sharp moves in the bond market. The unusual drops for Treasury yields recently are translating into lower rates for mortgages for potential customers. The drops for stock prices that are happening at the same time, though, are likely also scaring potential buyers.

CEO Ryan Marshall said buyers “remain caught between a strong desire for homeownership and the affordability challenges of high selling prices and monthly payments that are stretched.”

rose 4.1% ahead of its , which is scheduled to arrive after trading ends for the day. That trimmed its loss for the year so far below 42%.

Elon Musk’s electric car company has already reported its first-quarter car sales dropped by 13% from the year before. It’s been hurt by vandalism, widespread protests and calls for a consumer boycott amid a backlash to Musk’s high-profile role in the White House overseeing a cost-cutting purge of U.S. government agencies.

Stocks also showed how Trump’s tariffs could create winners and losers in a remade global economy.

First Solar jumped 13.5% after the U.S. Department of Commerce finalized harsher-than-expected solar tariffs on some southeast Asian communities.

Defense contractors had some of the market’s sharpest losses after RTX said U.S. tariffs on Mexican and Canadian imports, along with other products, could mean an $850 million hit to its profit this year. RTX, which builds airplane engines and military equipment, fell 8.4% even though it reported a stronger profit for the latest quarter.

Kimberly-Clark lost 2.2% even though the maker of Huggies and Kleenex likewise reported a better-than-expected profit.

CEO Mike Hsu said that “the current environment will now mean greater costs across our global supply chain” versus what it expected at the start of the year, and the company lowered its forecast for an underlying measure of profit this year.

In the bond market, the yield on the 10-year Treasury eased to 4.39% from 4.42% late Monday.

In stock markets abroad, indexes were mixed in modest moves across Europe and Asia.

___

AP Business Writers Yuri Kageyama and Matt Ott contributed.

Notes: Eds: UPDATES: trading, media.

The Latest: As controversies pile up, Trump allies increasingly turn on one another

The infighting and backstabbing that plagued ‘s first term have returned as a threat to his second, with deepening fissures over trade, national security and questions of personal loyalty.

The latest turmoil threatens to engulf the , where Defense Secretary Pete Hegseth has pushed out top advisers and faces fresh controversy over sharing sensitive information about airstrikes in Yemen outside of classified channels. Hegseth on Tuesday denied that the information was classified, despite reports that it was pulled from secure communications from the head of U.S. Central Command.

Vice President JD Vance on Tuesday called for enhanced engagement with India and said that the South Asian country should buy more defense equipment and energy from the U.S. and allow Washington greater access to its market, lending momentum to an expected bilateral trade deal.

Here’s the Latest:

Trump plans to leave Friday for Pope Francis’ funeral

Trump is planning to leave Washington on Friday morning to fly to Rome for Pope Francis’ funeral services.

He’ll return Saturday evening, once services are over.

White House press secretary Karoline Leavitt announced the president’s travel plans during her briefing with reporters on Tuesday. She did not provide details on if Trump will meet with foreign leaders during the trip, or who might travel with him as part of a U.S. delegation.

The White House says more details on travel will be coming.

Trump to travel to the Middle East in May

President Donald Trump will travel to Saudi Arabia, Qatar and the United Arab Emirates from May 13 to May 16.

White House press secretary Karoline Leavitt confirmed the dates at Monday’s news briefing. Trump would be traveling to the Middle East at a time of ongoing tensions with Iran, the Houthis in Yemen and the ongoing war between Israel and Hamas.

Trump calls attack in Kashmir ‘deeply disturbing’

Trump called reports of the attack on tourists in Kashmir, India “deeply disturbing” and offered support to Indian Prime Minister Narendra Modi.

“The United States stands strong with India against Terrorism. We pray for the souls of those lost, and for the recovery of the injured,” Trump wrote in a post on his social media network.

Kellogg will attend Ukraine talks in London, not Rubio

Secretary of State Marco Rubio will not be attending discussions with Ukrainian and European officials this week in London about peace prospects in Ukraine.

State Department spokeswoman Tammy Bruce told reporters Tuesday that it was a scheduling issue and that retired Lt. Gen. Keith Kellogg, President Donald Trump’s envoy for Ukraine and Russia, would be taking part in those talks.

Speaking of Trump and Rubio, Bruce said, “They want diplomacy to work.”

It comes after Rubio and special envoy Steve Witkoff attended meetings with European and Ukrainian officials last week about efforts to end the Russia-Ukraine war.

After those talks, Rubio said the U.S. may “move on” from trying to secure a peace deal if there is no progress in the coming days, after months of efforts failed to bring an end to the fighting.

Bruce said she could not speak to Russian reports that Witkoff was expected to visit Moscow again this week.

EPA environmental justice workers face layoffs — again

Employees working in environmental justice will face layoffs this summer, according to a memo obtained by The Associated Press.

The memo, sent late Monday by EPA Assistant Deputy Administrator Travis Voyles, says employees in the Office of Environmental Justice and External Civil Rights and regional environmental justice divisions will be laid off as of July 31.

The layoffs are “necessary to align our workforce with the agency’s current and future needs and to ensure the efficient and effective operation of our programs,” he wrote.

About 280 employees will be laid off, and another 175 employees were reassigned to other offices, the agency said. The EPA placed 168 workers on administrative leave in February, but many were later called back to work.

-By Matthew Daly

Anti-Defamation League says anger at Israel is driving antisemitism

The ADL recorded a record 9,354 antisemitic incidents in the United States last year — 58% of them related to Israel — including chants, speeches and signs at rallies.

The ADL’s annual report released Tuesday cites widespread opposition to Israel’s military response in Gaza after the Hamas attack on Israel on Oct. 7, 2023. And it says it’s “careful to not conflate general criticism of Israel or anti-Israel activism with antisemitism.”

The debate among American Jews over what exactly constitutes antisemitism has led to a balancing act among Jewish leaders as the seeks to punish universities and deport pro-Palestinian campus activists.

“The fears of antisemitism are legitimate and real — and we don’t want to see those real fears exploited to undermine democracy,” said Amy Spitalnick, CEO of the Jewish Council for Public Affairs. “I feel that a majority of American Jews can believe that two things are true at the same time.”

Rubio unveils a massive overhaul of the State Department

The plans include reducing staff in the U.S. by 15% and closing and consolidating more than 100 bureaus worldwide as part of the Trump administration’s “America First” mandate.

The reorganization plan, announced by Secretary of State Marco Rubio on social media and detailed in documents obtained by The Associated Press, is the latest effort by the White House to reimagine U.S. foreign policy and scale back the size of the federal government.

“We cannot win the battle for the 21st century with bloated bureaucracy that stifles innovation and misallocates scarce resources,” Rubio said in a department-wide email obtained by The AP.

Plans include consolidating 734 bureaus and offices to 602 as well as transitioning 137 offices “to another location within the Department to increase efficiency,” according to a fact sheet obtained by The AP.

Wall Street rallies and recovers all of Monday’s slide as the dollar and US bond market steady

U.S. stocks are rallying Tuesday after companies reported fatter profits than expected, and other U.S. investments are also steadying a day after falling sharply on worries about President Donald Trump’s  and his attacks on the head of the .

The was 2.7% higher in afternoon trading and on track to recover most of Monday’s drop. The Dow Jones Industrial Average was up 765 points, or 2%, as of 10:45 a.m. Eastern time, and the Nasdaq composite was 2.2% higher. Every major index recovered all of their losses from sharp drops on Monday.

The value of the U.S. dollar also stabilized after sliding against the euro and other competitors, while Treasury yields held steadier. Sharp, unusual moves in those markets have recently raised worries that Trump’s policies are making investors more skeptical that U.S. investments still deserve their reputations as the world’s safest.

Colorado fights Trump administration bid to help imprisoned loyalist

Colorado Attorney General Phil Weiser accused the Justice Department of wielding “political power” to give unprecedented help to a former county election clerk who was convicted of letting Trump supporters access election equipment after his 2020 defeat.

Trump administration prosecutors are trying to intervene in the case of Tina Peters, who wants to be released from prison while she appeals her conviction and nine-year sentence. A hearing is scheduled for Tuesday afternoon in federal court in Denver.

Peters’ case is among those the government has said it is reviewing for “abuses of the criminal justice process.” Weiser’s office said the Justice Department has not given any good reason why it should intervene.

“Tina Peters was not prosecuted because of any political pressure; she was prosecuted because she broke the law,” lawyers from Weiser’s office said in a filing.

A state judge sentenced Peters in October to nine years.

Trump has always had a high tolerance for chaos

He’s shunned traditional policy deliberations to entertain divergent opinions and viewing unpredictability as a negotiating tool. He’s spent years fostering a competitive atmosphere among his staff, who are often chosen for their devotion and penchant for aggression.

There’s a risk for more turmoil in the months ahead, as Trump presses forward with a dramatic overhaul of the federal bureaucracy, international trade, foreign policy and more.

John Bolton, Trump’s first-term national security adviser who later wrote a tell-all book about the president’s inner circle, said the drama reflects the lack of consistent ideology and the inexperience of many administration officials.

“The only thing they have in common is the belief that they should show personal fealty to Trump,” Bolton said. “That got them the job. That may in fact keep them in the job. But it shows how fundamentally unserious they are.”

DC weighs layoffs and other cuts as House leaves capital city in budget limbo

Mayor Muriel Bowser and the D.C. Council are scrambling to address a financial crisis created when the Republican-controlled House of Representatives recessed without voting on a fix to a city budget hole.

To address it, Bowser’s government has ordered a spending freeze on new hires, promotions, bonuses and contracts. An overtime freeze starts Sunday. And she expects to receive a detailed plan for potential layoffs and furloughs by week’s end.

Bowser also has invoked a 2009 law allowing the city to increase spending by 6%. That shrinks the shortfall to $410 million, instead of $1.1 billion. She’s walking a public tightrope, balancing elected responsibilities and demands of the president and Congress as some rekindle calls for D.C. statehood.

Trump speaks with the Israeli prime minister

Trump said his conversation with Benjamin Netanyahu on Tuesday touched on Iran, trade and other subjects, and he found agreement with the foreign leader.

The Republican president said in a post on Truth Social that “The call went very well — We are on the same side of every issue.”

Trump endorses two GOP candidates as they compete for Arizona governor

Trump already made his Republican primary pick — housing developer Karrin Taylor Robson. She’s been trying to eliminate any daylight between herself and the president, touting Trump’s endorsement and eagerly embracing him and his policies.

Now Trump says he’s also endorsing her rival, U.S. Rep. Andy Biggs, who formerly chaired the House’s hard-right Freedom Caucus and was president of the Arizona Senate. Biggs has long been a close Trump ally and supported his stolen election claims.

“When Andy Biggs decided to run for Governor, quite unexpectedly, I had a problem — Two fantastic candidates, two terrific people, two wonderful champions, and it is therefore my Great Honor TO GIVE MY COMPLETE AND TOTAL ENDORSEMENT TO BOTH,” Trump said Monday in a post on Truth Social.

The GOP primary winner will face likely face Gov. Katie Hobbs, who has no serious Democratic challenger.

Roche announces $50B investment in US over next 5 years

The Swiss pharmaceuticals powerhouse announced Tuesday that the investment will create 12,000 jobs.

The Basel-based company envisions high-tech research and development sites and new manufacturing facilities in California, Indiana, Massachusetts and Pennsylvania.

Trump has urged foreign businesses to invest more in the United States, saying his sweeping  are meant to reduce the U.S. trade deficit in sales of goods.

Roche spokesperson Rebekka Schnell said in an e-mail that the company isn’t specifying how much of the $50 billion was announced for the first time on Tuesday, and that some was already being spent or planned.

Supreme Court hears religious rights dispute over LGBTQ books in schools

The U.S. Supreme Court is hearing arguments over the religious rights of parents in Maryland to remove their children from elementary school classes that use storybooks with LGBTQ characters.

Tuesday’s case is the latest dispute involving religion to come before justices who have repeatedly endorsed claims of religious discrimination in recent years.

The Montgomery County public schools introduced the storybooks to better reflect the district’s diverse population. Some parents sued after the district stopped allowing them to pull their kids from the book lessons.

Some GOP states are targeting driver’s licenses issued to immigrants illegally in the US

As Trump cracks down on illegal immigration, Republican legislators lawmakers are pushing new state laws targeting people lacking legal status to live in the U.S. Nineteen other states and Washington, D.C., issue driver’s licenses regardless of whether residents can prove their legal presence.

In Florida, motorists with special out-of-state driver’s licenses issued to those in the U.S. illegally are not welcome to drive. Wyoming’s governor enacted a comparable ban this year. And Tennessee’s governor said he will sign similar legislation sent to his desk.

On May 7, the U.S. will start enforcing national standards for state driver’s licenses. Licenses compliant with the REAL ID Act are marked with a star and require applicants to provide a Social Security number and proof of U.S. citizenship or legal residency.

Mahmoud Khalil’s wife gave birth without him after ICE denied his plea for temporary release

Khalil, a Columbia University activist held in a detention center in Jena, Louisiana, requested a two-week furlough on Sunday morning, noting that his wife, Dr. Noor Abdalla, had gone into labor eight days earlier than expected. Their child was born Monday in New York, according to emails shared with The Associated Press.

His lawyers had said he would be “open to any combination of conditions” to allow the temporary release, but an ICE official promptly wrote back denying the request.

“My son and I should not be navigating his first days on earth without Mahmoud,” she added. “ICE and the Trump administration have stolen these precious moments from our family in an attempt to silence Mahmoud’s support for Palestinian freedom.”

A message seeking comment was left with ICE officials.

Vance calls for greater ties with India, hails progress on trade talks

The U.S. vice president talked up an expected bilateral trade deal with India by calling Tuesday for enhanced engagement. He said India should buy more U.S. defense equipment and energy and allow Washington greater access to its market.

Vance said he and Prime Minister Narendra Modi had finalized the terms of reference for the trade negotiation, a vital step towards setting the road map for a final agreement aimed at more than doubling bilateral trade to $500 billion by 2030.

“I believe there is much that India and America can accomplish together,” Vance said in the western city of Jaipur, where and his wife Usha and their three children were sightseeing during their four-day visit to India.

US, global economic outlook worsens in response to Trump’s tariffs, IMF says

The International Monetary Fund said Tuesday that due to uncertainty over Trump’s plans, the global economy will grow just 2.8% this year, down from its 3.3% forecast in January. U.S. economic growth will come in at just 1.8% this year, down sharply from its previous forecast of 2.7% and a full percentage point below its 2024 expansion.

The IMF’s World Economic Outlook raised the odds of a U.S. recession this year from 25% to 37%. Economists at JPMorgan say the chances of a U.S. recession are now 60%.

“We are entering a new era,” chief IMF economist Pierre-Olivier Gourinchas said. “This global economic system that has operated for the last eighty years is being reset.”

Defense secretary again denies sharing classified info despite reports that operational details were pulled from secure military comms

Hegseth doubled down during a Tuesday morning Fox and Friends interview, insisting that the information on airstrike launches and bomb drop times that he shared with his wife and brother and dozens of others in two separate Signal chats was not classified.

Hegseth didn’t deny the existence of a separate chat, instead attacking the media and his former staff, which he accused of leaking information about the chats.

His repeat denial comes as NBC News reported Tuesday that the information Hegseth posted came directly from secure communications from the head of U.S. Central Command, Gen. Erik Kurilla.

The Pentagon’s inspector general is investigating the chats.

Hegseth says he’s never doubted his decision to become defense secretary

“Oh, not for a minute,” Hegseth said Tuesday on Fox News Channel’s “Fox & Friends.”

“I haven’t blinked, and I won’t blink because this job is too big and too important for the American people, and I’m grateful for every opportunity the president’s given,” Hegseth said.

Hegseth had a rocky road to confirmation and is under investigation by the Defense Department’s acting inspector general for allegedly sharing classified information over the Signal messaging app and with people outside of the military, like his wife. Close advisers recently were dismissed from top roles at the Pentagon, leading to questions about Hegseth’s leadership and viability. Trump has dismissed the allegations.

Wall Street opens slightly higher amid skepticism about the strength and safety of US investments

President Donald Trump’s trade war and his attacks on the Federal Reserve Chairman Jerome Powell have sent markets sharply lower.

Futures for the S&P 500, the Dow Jones Industrial Average and Nasdaq rose less than 1% before the bell, far from recovering Monday’s loss of more than 2% as Trump stepped up his public criticism of Powell.

Trump has been demanding that the central bank lower its key interest rate to boost the economy. Trump called Powell “a major loser” and declared that the central bank no longer needs to keep elevated to suppress inflation. The Fed has resisted lowering rates quickly, which could reignite inflation after it soared to more than 9% during the COVID-19 pandemic.

Any attempt to unseat Powell would likely set off a crisis in global financial markets.

As controversies pile up, Trump allies increasingly turn on one another

The infighting and backstabbing that plagued Trump’s first term have returned as a threat to his second, with deepening fissures over trade, national security and questions of personal loyalty.

The latest turmoil threatens to engulf the Pentagon, where Defense Secretary Pete Hegseth has pushed out top advisers and faces fresh controversy over sharing sensitive information about airstrikes in Yemen outside of classified channels. A former Pentagon spokesperson who was ousted last week wrote in Politico that Trump should fire Hegseth for presiding over a “full-blown meltdown.”

The interpersonal drama is not — at least yet — a dominant plot line of Trump’s return to the White House. But its reemergence after a period of relative discipline in his ranks reflects a turbulent management style that has been suppressed or papered over, not reformed.

Trump says he’ll give commencement addresses at West Point and the University of Alabama

Trump called the institutions “two really GREAT places” as he announced his upcoming schedule in a social media post.

It’s tradition for the commander in chief to speak at one of the military service academies and West Point’s commencement is May 24.

Alabama’s website says commencement ceremonies are May 2-4.

Vance and Modi meet in New Delhi to discuss trade deal and avoid US tariffs

Vance held talks with Indian Prime Minister Narendra Modi on Monday as New Delhi looks to avoid American tariffs, negotiate a bilateral trade deal with Washington and strengthen ties with the Trump administration.

Vance, who is on a largely personal four-day visit to India, met with Modi at his residence in New Delhi and the two leaders “reviewed and positively assessed the progress in various areas of bilateral cooperation,” Modi’s office said in a statement. They also “welcomed the significant progress” in the negotiations of an expected trade deal between the two countries, the statement said.

The White House, in a statement, said that Vance and Modi set the terms for ongoing talks, “laying down a roadmap for further discussions.” It’s a sign that talks are moving forward but remain far from finalized, though Trump administration officials also spoke with their counterparts from India in a sign of the high level of engagement.

The Trump administration has portrayed its strategy of tariffs as forcing negotiations that could limit the reach and influence of China, the world’s dominant manufacturer.

sues Trump administration to stop the freeze of more than $2 billion in grants

Harvard University announced Monday that it has filed suit to halt a federal freeze on more than $2.2 billion in grants after the institution said it would defy the Trump administration’s demands to limit activism on campus.

In an April 11 letter to Harvard, the Trump administration had called for broad government and leadership reforms at the university and changes to its admissions policies. It also demanded the university audit views of diversity on campus and stop recognizing some student clubs. The administration has argued that universities allowed antisemitism to go unchecked at campus protests last year against Israel’s war in Gaza.

Harvard President Alan Garber said the university would not bend to the demands. Hours later, the government froze billions of dollars in federal funding.

Harvard’s suit called the funding freeze “arbitrary and capricious,” saying it violated its First Amendment rights and the statutory provisions of Title VI of the Civil Rights Act.

Within hours, the White House lashed back

 

Notes: Eds: UPDATES: with new items