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The State Department defended a memo from Secretary of State Antony Blinken this month that urged staffers to steer clear of gendered language such as ‘mother’ and ‘manpower.’ 

‘If you look at that memo, as I have done, it’s a standard government practice to try to encourage people to just to be respectful of others, and use the terms with which others are comfortable, and talk to people the way that they would like to be addressed. And nothing more than that,’ State Department Spokesperson Matthew Miller said Tuesday during a press briefing. 

Miller was reacting to reports of Blinken sending a memo titled ‘Modeling DEIA: Gender Identity Best Practices,’ that aimed to ‘increase understanding of gender identity and provide guidance on gender identity language and best practices that support an inclusive work environment.’

‘When speaking, avoid using phrases like ‘brave men and women on the front lines,’’ Blinken’s Feb. 5 cable, which was first obtained by the National Review, said. Instead, State staffers should ‘use more specific language such as ‘brave first responders,’ ‘brave soldiers,’ or ‘brave DS agents.’’

Miller said that though the memo had Blinken’s name on it, it did not necessarily come directly from the Secretary of State. 

‘When it comes to these types of cables, they all come out with the Secretary’s signature on it. That’s the standard department practice, has been for years. It doesn’t mean that it’s necessarily a memo from the secretary himself,’ he said. 

The guidance runs through a list of gendered phrases and words that should be avoided, including: ‘manpower,’ ‘you guys,’ ‘ladies and gentlemen,’ ‘mother/father,’ ‘son/daughter’ and ‘husband/wife.’ Instead, the memo urged staff to use ‘labor force,’ ‘everyone,’ ‘folks,’ ‘you all,’ ‘parent,’ ‘child,’ ‘spouse’ or partner,’ according to the report. 

Use ‘gender-neutral language whenever possible’ to ‘show respect and avoid misunderstandings,’ the guidance continued, and encouraged employees to include their preferred pronouns in emails or during meetings. 

The cable also cautioned employees against assuming someone’s gender based on how they look or their name, as that ‘can be problematic’ and can send a ‘harmful, exclusionary message.’

The State Department is charged with advising the president on foreign policy, as well as negotiating agreements with other nations. The memo was published as the U.S. grapples with ongoing wars raging between Ukraine and Russia, as well as the war in Israel, and just days after the U.S. launched strikes on Iranian-backed militants following the deaths of three American service members. 

The memo added that staffers should not ‘pressure someone to state their pronouns,’ as it is ‘a personal decision that should be respected.’ If a staffer uses the wrong pronoun, Blinken’s memo asked that they handle the situation with ‘subtlety and grace,’ while noting identity ‘may be fluid, so remain attuned to and supportive of shifts in pronouns.’

Other agencies under the Biden administration have rolled out guidance on inclusive and non-gendered language, including pronoun guidance for the Department of Health and Human Services that was slammed by an expert last year as violating employee rights and speculating it would lead to firings for ‘misgendering.’

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House Speaker Mike Johnson marked President’s Day by meeting with former President Trump about the 2024 election cycle at Mar-a-Lago in Palm Beach, Florida, Fox News Digital has learned.

It comes as Trump’s last major primary opponent, former United Nations Ambassador Nikki Haley, announced Tuesday that she was staying in the race despite losing every contest to Trump so far.

‘Speaker Johnson met with President Trump in Florida on Monday to discuss growing the majority and securing Republican victories up and down the ballot in November,’ Johnson campaign spokesman Greg Steele told Fox News Digital.

Attending the meeting with Johnson was Rep. Richard Hudson, R-N.C., chairman of the National Republican Congressional Committee (NRCC), the House GOP’s campaign arm. They were in Florida for the House GOP leadership’s annual retreat.

The NRCC did not respond to a request for the group’s own readout of the meeting. A Trump spokesperson also did not respond to a request for comment.

House Republican leaders have made an unprecedented show of unity around Trump as he seeks the GOP nomination for president. Johnson released a video earlier this month calling on fellow Republicans to coalesce around Trump.

‘Following victories in Iowa, New Hampshire, the US Virgin Islands, and Nevada, it is time for Republicans to unite behind President Trump, so we can focus on ending the disastrous Biden presidency and growing our majority in Congress,’ he said in the short clip.

‘I am convinced he’s going to be the next president of the United States, and I am very much looking forward to that happening.’

Johnson endorsed Trump for president in November last year, days after he won the speaker’s gavel. Hudson endorsed him in November 2022.

In addition to being a call for unity, the speaker’s video also appears to be a veiled shot at Haley for staying in the race.

The former South Carolina governor and Trump administration official was defiant during a speech in Greenville, South Carolina, on Tuesday, days before her home state’s primary election.

‘Some of you, perhaps a few of you here in the media, came here today to see if I’m dropping out of the race. Well, I’m not – far from it,’ Haley said. ‘I’m running for president because we have a country to save.’

Fox News Digital reached out to Haley’s campaign for comment on Trump’s meeting with Johnson and Hudson but did not immediately hear back.

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Prince William of the United Kingdom is urging an end to the war in Gaza, citing the ‘sheer scale of human suffering.’

The Prince of Wales made the statement on Tuesday via social media, at odds with the Royal Family’s general aversion to wading into current events.

‘I remain deeply concerned about the terrible human cost of the conflict in the Middle East since the Hamas terrorist attack on 7 October,’ Prince William wrote in a monogrammed message shared on X. ‘Too many have been killed.’

‘I, like so many others, want to see an end to the fighting as soon as possible. There is a desperate need for increased humanitarian support to Gaza,’ the presumed future king of England said. ‘It’s critical that aid gets in and hostages are released. Sometimes it is only when faced with the sheer scale of human suffering that the importance of permanent peace is brought home.’

The statement does not call for a specific outcome but highlights the royal’s concern about ongoing issues and rendering aid to the region that has been torn apart by a war that began with the Oct. 7 terror attacks last year.

An estimated 29,000 Palestinians have died in the ongoing war, according to the Hamas-run health ministry. The Israeli Defense Forces reports approximately 574 soldiers killed since Oct. 7, with an additional 2,930 wounded. 

Approximately 1,200 Israelis were killed in the initial terrorist attacks.

The United Kingdom is strongly allied with Israel, and King Charles III released a statement following the initial attacks, saying he was ‘appalled by and condemns the barbaric acts of terrorism in Israel.’ 

Prince William is expected to meet in the coming weeks with humanitarian organizations helping to render aid in the region.

‘Even in the darkest hour, we must not succumb to the counsel of despair,’ the prince’s message concludes. ‘I continue to cling to the hope that a brighter future can be found and I refuse to give up on that.’

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House Speaker Mike Johnson is putting together a formal ‘task force’ to explore how the U.S. can stay competitive in the artificial intelligence (AI) sphere while also managing the rapidly evolving technology’s risks.

‘Because advancements in artificial intelligence have the potential to rapidly transform our economy and our society, it is important for Congress to work in a bipartisan manner to understand and plan for both the promises and the complexities of this transformative technology,’ Johnson, R-La., said in a Monday morning statement. 

The new project is bipartisan, having been the product of discussions between Johnson and House Democratic Leader Hakeem Jeffries, D-N.Y.

Johnson said the task force would be made up of House lawmakers who have ‘AI expertise and represent the relevant committees of jurisdiction.’

‘Congress has a responsibility to facilitate the promising breakthroughs that artificial intelligence can bring to fruition and ensure that everyday Americans benefit from these advancements in an equitable manner,’ Jeffries said. ‘The rise of artificial intelligence also presents a unique set of challenges and certain guardrails must be put in place to protect the American people.’

The group’s co-chairs are members who have been some of the most vocal about AI – Rep. Jay Obernolte, R-Calif., the oversight subcommittee chairman of the House Committee on Science, Space and Technology, and Rep. Ted Lieu, D-Calif., who sits on the House Judiciary Committee’s internet subcommittee.

Both Obernolte and Lieu are also members of the House’s AI Caucus. 

Johnson has not yet laid out a clear strategy on how he wants to handle AI, but he has taken strides to wrap his head around the issue since taking the speaker’s gavel in October. That included a meeting with OpenAI CEO Sam Altman last month, after which Johnson told reporters they ‘talked about where we are with regard to the approach of Congress to AI.’

However, as Congress continues to learn about AI, there appears to be little movement – or agreement – in the legislative sphere. 

A flurry of bills touching on AI issues like deepfakes and intellectual property rights have been introduced over the last year, but none have made it to the House floor for a vote.

In the Senate, Majority Leader Chuck Schumer’s promised AI legislative framework has made little public advancement beyond its announcement late last year. 

There is also still disagreement within Congress about whether to even regulate AI at this stage, or whether regulatory burdens could stifle U.S. innovation in that sphere.

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The U.S. Justice Department joined the United Kingdom and other international law enforcement partners to disrupt the LockBit ransomware group, one of the most active ransomware groups in the world, the department announced Tuesday.

The DOJ, the FBI and the U.K.’s National Crime Agency’s (NCA) Cyber Division disrupted the ability of LockBit actors to attack networks, steal data and extort victims in the U.S. and around the world after they seized numerous public websites used by LockBit, which connected the organization’s vital infrastructure, and seized control of servers used by its administrators, it said in a joint statement.

According to the statement, the DOJ and its partners also indicted two Russian nationals for deploying LockBit against numerous victims: Artur Sungatov and Ivan Kondratyev, also known by his online alias ‘Bassterlord.’

‘For years, LockBit associates have deployed these kinds of attacks again and again across the United States and around the world,’ said Attorney General Merrick B. Garland. ‘Today, U.S. and U.K. law enforcement are taking away the keys to their criminal operation. And we are going a step further — we have also obtained keys from the seized LockBit infrastructure to help victims decrypt their captured systems and regain access to their data. LockBit is not the first ransomware variant the Justice Department and its international partners have dismantled. It will not be the last.’

LockBit has targeted more than 2,000 victims and has received more than $120 million in ransom payments. It has also made ransom demands totaling hundreds of millions of dollars.

According to the Justice Department statement, the law enforcement agencies also developed new capabilities to decrypt systems and data stolen by LockBit. This new discovery may enable hundreds of victims around the world to restore systems encrypted via the LockBit ransomware variant, the DOJ added.

‘Today, the FBI and our partners have successfully disrupted the LockBit criminal ecosystem, which represents one of the most prolific ransomware variants across the globe,’ said FBI Director Christopher A. Wray. ‘Through years of innovative investigative work, the FBI and our partners have significantly degraded the capabilities of those hackers responsible for launching crippling ransomware attacks against critical infrastructure and other public and private organizations around the world. This operation demonstrates both our capability and commitment to defend our nation’s cybersecurity and national security from any malicious actor who seeks to impact our way of life. We will continue to work with our domestic and international allies to identify, disrupt, and deter cyber threats, and to hold the perpetrators accountable.’

Additionally, the department unsealed two search warrants issued in the District of New Jersey for multiple U.S.-based servers used by LockBit members.

According to the indictment, Sungatov allegedly deployed LockBit ransomware against victim corporations and took steps to fund additional LockBit attacks against other victims at least as early as January 2021.

Several U.S. attorneys joined in the effort to prosecute the Russian nationals and praised the indictments as successful progress in clamping down on international criminal activity.

‘Today’s actions are another down payment on our pledge to continue dismantling the ecosystem fueling cybercrime by prioritizing disruptions and placing victims first,’ said Deputy Attorney General Lisa Monaco. ‘Using all our authorities and working alongside partners in the United Kingdom and around the world, we have now destroyed the online backbone of the LockBit group, one of the world’s most prolific ransomware gangs. But our work does not stop here: together with our partners, we are turning the tables on LockBit — providing decryption keys, unlocking victim data, and pursuing LockBit’s criminal affiliates around the globe.’

‘Today’s indictment, unsealed as part of a global coordinated action against the most active ransomware group in the world, brings to five the total number of LockBit members charged by my office and our FBI and Computer Crime and Intellectual Property Section partners for their crimes,’ said U.S. Attorney Philip R. Sellinger for the District of New Jersey. ‘And, even with today’s disruption of LockBit, we will not stop there. Our investigation will continue, and we remain as determined as ever to identify and charge all of LockBit’s membership — from its developers and administrators to its affiliates. We will put a spotlight on them as wanted criminals. They will no longer hide in the shadows.’

With the indictments unsealed Tuesday, a total of five LockBit members have now been charged with cyber crimes. These include Russian nationals Mikhail Pavlovich Matveev, Mikhail Vasiliev and Ruslan Magomedovich Astamirov.

The LockBit ransomware variant first appeared around January 2020 and has become one of the most active and destructive variants in the world.

The FBI Newark Field Office continues to investigate the LockBit ransomware variant.

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From Russia with love.

Vladimir Putin has gifted North Korean dictator Kim Jong Un a luxury Russian Aurus limousine in a show of the countries deepening ties, although observers said it could violate a U.N. resolution that bans supplying luxury items to North Korea in an attempt to pressure the country to abandon its nuclear weapons.

The Russian-made limousine was delivered to Kim’s top aides by the Russian side on Feb. 18, North Korea’s official KCNA news agency said.

The limousine is similar to one of the black armored limousines Putin uses and the decision to gift the Aurus to Kim came after the North Korean leader liked the car when the Russian president showed it to him last year, the Kremlin said on Tuesday. The pair met in September at the Vostochny Cosmodrome, a Russian spaceport above the 51st parallel north in the Amur Oblast, in the Russian Far East.

Putin showed Kim one of the limousines and Kim sat beside him in the car and appeared to enjoy it, according to Kremlin spokesman Dmitry Peskov.

‘When the head of the DPRK (North Korea) was at the Vostochny cosmodrome, he looked at this car, Putin showed it to him personally, and like many people, Kim liked this car,’ Peskov said when asked about the gift.

‘So this decision was made,’ Peskov said. ‘North Korea is our neighbor, our close neighbor, and we intend, and will continue, to develop our relations with all neighbors, including North Korea.’

Kim’s sister ‘courteously conveyed Kim Jong Un’s thanks to Putin to the Russian side, saying that the gift serves as a clear demonstration of the special personal relations between the top leaders,’ North Korea’s official KCNA news agency said.

Kim, 40, is known to possess many foreign-made luxury cars believed to have been smuggled into his country in breach of the U.N. resolution. Kim arrived at the September summit in a Maybach limousine brought onboard a special train he traveled on from Pyongyang, while he is also understood to possess several Mercedes limousines, a Rolls-Royce Phantom and a Lexus sports utility.

Kim reportedly used a Mercedes Maybach S600 Pullman Guard for his two summits with then-President Donald Trump in Singapore in 2018 and Vietnam in 2019, according to The AP. 

South Korea’s foreign ministry said it was closely monitoring the cooperation between Russia and North Korea while urging both countries to comply with U.N. Security Council resolutions.

‘Security Council sanctions on North Korea prohibit directly or indirectly supplying, selling or moving all transportation vehicles internationally categorized as HS Code 86 through to 89 regardless of their origin to North Korea including luxury cars,’ ministry spokesperson Lim Soo-suk told a media briefing, according to Reuters. 

North Korea and Russia have boosted their cooperation significantly since the September summit and since the onset of Russia’s invasion of Ukraine two years ago.

The U.S., South Korea and their partners accuse North Korea of sending conventional arms to Russia for its war in Ukraine, in return for high-tech Russian weapons technologies and other support.

North Korea has also been advancing its nuclear program, while Kim last week vowed to fire upon any South Korean vessel that violates its waters.

Reuters and The Associated Press contributed to this story.

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Police in Spain say a recently discovered body is believed to be a Russian soldier who previously defected to Ukraine.

Spanish authorities are identifying the victim, who was found on Feb. 15 with multiple gunshot wounds in the town of La Cala, as Russian defector Maksim Kuzminov.

Last year, Kuzminov abandoned his post and flew an army helicopter over the front lines into Ukrainian territory. The Mi-8 AMTSh helicopter had been loaded with parts for Sukhoi fighter jets.

Ukrainian military spokesperson Andrii Yusov confirmed Kuzminov’s death to local news outlets.

Russian Foreign Intelligence Service chief Sergei Naryshkin also confirmed the reports, calling Kuzminov as a ‘traitor and criminal.’

Naryshkin told state news agency Tass that Kuzminov became a ‘moral corpse’ after planning his ‘dirty and terrible crime.’

Ukrainian National Security and Defense Council Secretary Alexei Danilov reportedly told Kuzminov to stay in Ukraine following his defection, citing the risk of attack by Russian agencies if he left the country.

Spanish Civil Guard officers found the corpse with six gunshots and run over by a vehicle. 

Kuzminov’s body was also planted with documents that identified him as an unrelated 33-year-old Ukrainian citizen, authorities say.

After the investigation commenced, police became confident that the documents were false and began suspecting the victim was actually Kuzminov.

Kremlin spokesman Dmitri Peskov said he had no details on the incident and had not received information from diplomatic channels.

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On this episode of StockCharts TV’s Sector Spotlight, I separate the 11 sectors in the S&P 500 into Offensive, Defensive, and Sensitive, assessing their group rotational patterns to see if there is any alignment with the current technical condition of the S&P 500. After that, I use my RRG-Breadth approach to get a handle on the dominant price trends per sector and their expected effect on the S&P 500.

This video was originally broadcast on February 20, 2024. Click anywhere on the Sector Spotlight logo above to view on our dedicated Sector Spotlight page.

Past episodes of Sector Spotlight can be found here.

#StaySafe, -Julius

In this edition of StockCharts TV‘s The Final Bar, Dave focuses on AAPL which closed below its 200-day moving average as it tests key price support. Guest Jesse Felder of The Felder Report reports on the Titanic Syndrome, a market breadth indicator similar to the Hindenburg Omen that suggests an elevated risk of market downside.

This video originally premiered on February 20, 2024. Watch on our dedicated Final Bar page on StockCharts TV!

New episodes of The Final Bar premiere every weekday afternoon. You can view all previously recorded episodes at this link.

BETA

One of the Risk ON/OFF metrics I like to keep an eye on is BETA.

From Investopedia:

Beta (β) is a measure of the volatilityor systematic riskof a security or portfolio compared to the market as a whole (usually the S&P 500). Stocks with betas higher than 1.0 can be interpreted as more volatile than the S&P 500.

I have updated my spreadsheet with last year’s data for this article. And I want to take a look at the current (sector) rotations with the BETA for each sector.

On the Relative Rotation Graph above, you will find the 12-month BETA values for all sectors.

Before diving into the sector rotation part, a quick look at the BETA values. As said the RRG at the top shows the 12-month BETA values.

The tables below show 12- and 36-month BETAs side by side.

Note that there are only minimal position switches among sectors. There may be some significant differences in BETA values over time. Most notably, the energy sector which has a BETA of 1.39 over 36 months but “only” 1.14 over 12 months.

Nevertheless, the top three sectors did not change. The same goes for the bottom three sectors.

My expectation regarding rotations is that I would expect the high-BETA sectors to show strong rotations during strong periods for $SPX and strong rotations for low-BETA sectors during weak periods for $SPX.

No Dominance On Either Side

Looking at that RRG, I do not see a dominant direction for either high-BETA or low-BETA sectors as a group.

The highest BETA sector (1.23) has the highest reading on the RS-Ratio scale and just dropped into the weakening quadrant, while Energy (1.14) is deep inside, lagging but starting to curl back up. Discretionary (1.15) is clearly inside, lagging and heading further into that quadrant.

In the low-BETA group, we see Utilities (0.73) nose-diving deeper into the lagging quadrant, while Staples (0.52) is static at a low RS-Ratio reading. Health Care (0.65) is the exception here, with a strong trajectory into the improving quadrant at a strong RRG-Heading.

The RRG image is mixed, with no clear preference for either group.

Bringing that observation to the SPY chart (daily) helps interpret the index’s recent price action.

SPY Outlook

Breaking the previous all-time high (January 2022) was obviously a bullish sign. New ATHs are not a sign of bear markets, right?

And so was the rally that followed after the break. A regular rhythm of higher highs and higher lows took SPY to a new ATH at 503.50. Even the shock decline last Tuesday has not damaged this up-trend yet.

However, the mixed rotations on the RRG, combined with a negative divergence building up between SPY and its RSI, signal some hesitation. At least something to be aware of.

Downside risk seems limited, with the former resistance at 480 now expected to return as solid support in case of a decline.

Clearly, a push beyond 503.50 will again be a bullish signal for the market. On the downside, I am watching the lower boundary of the new short-term channel and the previous low at 490. Breaking these levels subsequently will very likely trigger a decline back to the breakout level near 480.

What happens there will be crucial for further development in the coming months.

For the time being, the uptrend is still intact, with limited near-term risk. (4-5%)

#StayAlert. –Julius