Anthropic sues Pentagon over AI ban

2.782 - 15.656

Welcome to Seeking Alpha's Wall Street Lunch, our afternoon update on today's market action, news, and analysis. Good afternoon. Today is Monday, March 9th, and I'm your host, Kim Kahn. Our top story so far.

15.917 - 30.889

Anthropic has filed two civil suits against the Department of Defense after the Pentagon dropped its contract with the AI startup and labeled it a supply chain risk over ideological differences. Anthropic filed one suit in the U.S. District Court of the Northern District of California and another in the D.C.

30.929 - 49.373

Circuit Court of Appeals, accusing the Pentagon of misusing the designation to punish philosophical disagreement. It's the first time that label has ever been applied to a U.S. business. This is a necessary step to protect our business, our customers, and our partners, Anthropic said. We will continue to pursue every path towards resolution, including dialogue with the government.

77.275 - 93.216

They note some enterprises may go pencils down on Claude deployments while the legal fight plays out. Several government agencies, including the Treasury Department, have already said they will stop using Claude, and further ripple effects may follow as the lawsuit proceeds. In today's trading, the action has been pretty wild.

93.656 - 110.816

Oil surged nearly $120 a barrel before meeting resistance and has eased back through the day. That pullback is helping major stock averages almost completely erase sharp overnight losses. The VIX, Wall Street's fear gauge, topped 30 for the first time since the tariff turmoil last April, but it too is now well off the highs.

111.657 - 126.051

Among active stocks, airlines are tumbling on worries that rising jet fuel prices will squeeze margins. JetBlue is down the most, with United Airlines and American also under heavy pressure. All three have abandoned fuel hedging. Delta Airlines and Southwest are faring better, but still lower.

156.143 - 174.313

Billionaire investor Leo Kuguan says he's doubled his stake in Nvidia to 2 million shares, adding to his position as global markets face heightened volatility. In other news of note, Mattel is in the spotlight on National Barbie Day. March 9th marks the date in 1959 when Barbie debuted at the American International Toy Fair in New York.

174.754 - 192.209

The 11-inch teenage fashion model with adult features and a fashionable wardrobe was the first of its kind in the U.S. market. Barbie appeared in a black-and-white striped swimsuit and initially faced skepticism from buyers, but demand surged once Mattel aired TV commercials. The company went on to sell about 350,000 dolls in the first year.

192.65 - 209.686

Toy industry watchers estimate that more than a billion Barbie dolls have been sold in over 150 countries since launch. Sales saw a notable spike after 2023 when the Barbie movie created significant demand, adding roughly $150 million to Mattel's revenue and lifting the brand. And it's almost Ken's birthday as well.

209.927 - 225.888

Ken debuted in 1961, just two days after Barbie's official anniversary. And in the Wall Street Research Corner, central banks worldwide would likely postpone interest rate cuts as the energy shock threatens to add up to two percentage points to inflation, according to TS Lombard strategist Dario Perkins.

226.429 - 241.363

Oil is up about 50%, while natural gas prices have climbed even more sharply, up 60% in Europe, 90% in the UK, and around 15% in the United States. Inflation is already overshooting their targets, and in their minds that makes expectations more fragile, Perkins said.

241.343 - 257.081

Central banks that were already planning to hold rates steady will likely maintain that stance, while those anticipating cuts face the toughest dilemma. Perkins' sensitivity analysis shows that if current prices hold, inflation could rise 0.6 to 1 percentage point across major developed economies.