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Wall Street Faces More Turmoil as Stocks Waver: Live Updates Wall Street Faces More Turmoil as Stocks Waver: Live Updates
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Stocks were unsteady on Thursday, even as policymakers in the United States and Europe took more steps to offset the sharp decline gripping their economies.Stocks were unsteady on Thursday, even as policymakers in the United States and Europe took more steps to offset the sharp decline gripping their economies.
The losses followed a steep drop across financial markets on Wednesday and came as the steady drumbeat of bad news about the spread of the coronavirus continued. The S&P 500 was down as much as 3 percent in early trading before recovering, and shares in Europe and Asia were lower. Oil prices, which had fallen by more than 20 percent on Wednesday, rebounded on Thursday.The losses followed a steep drop across financial markets on Wednesday and came as the steady drumbeat of bad news about the spread of the coronavirus continued. The S&P 500 was down as much as 3 percent in early trading before recovering, and shares in Europe and Asia were lower. Oil prices, which had fallen by more than 20 percent on Wednesday, rebounded on Thursday.
In the United States, the number of workers filing first-time claims for unemployment insurance surged, government data released on Thursday showed. Those figures don’t reflect the sharp cutbacks that have taken place in the past few days as companies quickly scale down operations as efforts to contain the coronavirus keep consumers at home and force factories to close.In the United States, the number of workers filing first-time claims for unemployment insurance surged, government data released on Thursday showed. Those figures don’t reflect the sharp cutbacks that have taken place in the past few days as companies quickly scale down operations as efforts to contain the coronavirus keep consumers at home and force factories to close.
Overnight, the European Central Bank unveiled a huge bond-buying program aimed at preventing economic calamity, and the Fed presented a plan to support money market funds, which are threatened when there is a rush for cash. U.S. officials also neared passage of stimulus efforts to keep the American economy running.Overnight, the European Central Bank unveiled a huge bond-buying program aimed at preventing economic calamity, and the Fed presented a plan to support money market funds, which are threatened when there is a rush for cash. U.S. officials also neared passage of stimulus efforts to keep the American economy running.
On Thursday, Treasury Secretary Steven Mnuchin said that the White House’s economic relief plan includes sending checks to the public of $1,000 for every American adult and $500 per child within three weeks. If the crisis continues, the plan would be to send checks of the same amounts again in May.On Thursday, Treasury Secretary Steven Mnuchin said that the White House’s economic relief plan includes sending checks to the public of $1,000 for every American adult and $500 per child within three weeks. If the crisis continues, the plan would be to send checks of the same amounts again in May.
But news of efforts to bolster the economy has been matched by a sharp escalation in the number of coronavirus cases in Europe and the United States, and fresh evidence of the impact on businesses. On Thursday, Ford said that it would suspend its divided payment and draw down about $15 billion from two lines of credit to help offset the impact of coronavirus-related production shutdowns, becoming just the latest company to take such measures in order to cushion itself. But news of efforts to bolster the economy has been matched by a sharp escalation in the number of coronavirus cases in Europe and the United States, and fresh evidence of the impact on businesses. On Thursday, Ford Motor said that it would suspend its dividend payment and draw down about $15 billion from two lines of credit to help offset the impact of coronavirus-related production shutdowns, becoming just the latest company to take such measures in order to cushion itself.
The waves of selling in the past month have left the Dow Jones industrial average back where it stood in January 2017, as President Trump took office — erasing the gains that had become one of his primary measures of success in the White House.The waves of selling in the past month have left the Dow Jones industrial average back where it stood in January 2017, as President Trump took office — erasing the gains that had become one of his primary measures of success in the White House.
Economists in recent days have made increasingly dire predictions about the likely damage to the job market, with many predicting that the unemployment rate will quickly surpass the 10 percent level it hit in the worst of the last recession.Economists in recent days have made increasingly dire predictions about the likely damage to the job market, with many predicting that the unemployment rate will quickly surpass the 10 percent level it hit in the worst of the last recession.
“This is a body blow to the economy unlike anything we’ve experienced in recent memory,” said Patrick Anderson, an economist in East Lansing, Mich. “Even the Great Recession did not include shuttering of businesses by government order at the same time that people were being told to say home and distance themselves.”“This is a body blow to the economy unlike anything we’ve experienced in recent memory,” said Patrick Anderson, an economist in East Lansing, Mich. “Even the Great Recession did not include shuttering of businesses by government order at the same time that people were being told to say home and distance themselves.”
Layoffs rose sharply last week as the effects of the coronavirus pandemic began to ripple through the economy. The worst is yet to come.Layoffs rose sharply last week as the effects of the coronavirus pandemic began to ripple through the economy. The worst is yet to come.
Some 281,000 Americans filed first-time claims for unemployment insurance, up by 33 percent from 211,000 the week before, the Labor Department said Thursday. On a percentage basis, the increase was among the largest one-week spikes on record.Some 281,000 Americans filed first-time claims for unemployment insurance, up by 33 percent from 211,000 the week before, the Labor Department said Thursday. On a percentage basis, the increase was among the largest one-week spikes on record.
The Labor Department said the increase was “clearly attributable to impacts from the COVID-19 virus” and noted that many states reported a rise in jobless claims from workers in food services, accommodation and travel.The Labor Department said the increase was “clearly attributable to impacts from the COVID-19 virus” and noted that many states reported a rise in jobless claims from workers in food services, accommodation and travel.
Still, the data released Thursday was for claims filed from March 8-14, before the outbreak began to shut down restaurants, bars and retail stores in much of the country. The next report, which will reflect the first wave of closings, will almost certainly be much worse.Still, the data released Thursday was for claims filed from March 8-14, before the outbreak began to shut down restaurants, bars and retail stores in much of the country. The next report, which will reflect the first wave of closings, will almost certainly be much worse.
The Federal Reserve said late Wednesday night that it would offer emergency loans to money market mutual funds, its latest in a series of steps to keep the financial system functioning and prop up the economy as it spirals toward recession during the coronavirus pandemic.The Federal Reserve said late Wednesday night that it would offer emergency loans to money market mutual funds, its latest in a series of steps to keep the financial system functioning and prop up the economy as it spirals toward recession during the coronavirus pandemic.
Officials said they would establish a so-called Money Market Mutual Fund Liquidity Facility, which would be backed by $10 billion from the Treasury Department. That facility joins a similar lending program for banks, established earlier this week.Officials said they would establish a so-called Money Market Mutual Fund Liquidity Facility, which would be backed by $10 billion from the Treasury Department. That facility joins a similar lending program for banks, established earlier this week.
The Fed is trying to protect the financial system and insulate the broader economy, where short-term pain could turn into long-term suffering if credit crunches prevent companies from obtaining the cash they need to function.The Fed is trying to protect the financial system and insulate the broader economy, where short-term pain could turn into long-term suffering if credit crunches prevent companies from obtaining the cash they need to function.
General Motors and Ford Motor have told the White House that they would be willing to produce ventilators if the administration was interested in mobilizing private businesses to manufacture equipment needed to respond to the coronavirus.General Motors and Ford Motor have told the White House that they would be willing to produce ventilators if the administration was interested in mobilizing private businesses to manufacture equipment needed to respond to the coronavirus.
Neither company has detailed plans to produce the devices and said the discussions were preliminary. In a statement, G.M. said the topic came up on Wednesday when the company’s chief executive, Mary T. Barra, called to inform the White House that G.M. had decided to temporarily shut down plants to prevent the spread of the disease among workers.Neither company has detailed plans to produce the devices and said the discussions were preliminary. In a statement, G.M. said the topic came up on Wednesday when the company’s chief executive, Mary T. Barra, called to inform the White House that G.M. had decided to temporarily shut down plants to prevent the spread of the disease among workers.
Separately, Elon Musk, the chief executive of Tesla, said on Twitter that his electric car company would also produce ventilators “if there is a shortage.” Separately, Elon Musk, the chief executive of Tesla, said on Twitter that his electric car company would also produce ventilators “if there is a shortage.” New York City Mayor Bill de Blasio responded soon after, saying that the city was interested in purchasing ventilators and “could use your help.”
The discussions about automakers making ventilators hark back to World War II, when G.M., Ford, Chrysler, and other manufacturers stopped producing automobiles and switched to weapons and other war-related supplies. Ford famously produced B-24 bombers at the Willow Run plant near Ypsilanti, Mich. G.M. made Sherman tanks as well as planes, guns and other weapons.The discussions about automakers making ventilators hark back to World War II, when G.M., Ford, Chrysler, and other manufacturers stopped producing automobiles and switched to weapons and other war-related supplies. Ford famously produced B-24 bombers at the Willow Run plant near Ypsilanti, Mich. G.M. made Sherman tanks as well as planes, guns and other weapons.
As Uber ridership has vanished, the company is seeking to reassure investors about how it will fare.As Uber ridership has vanished, the company is seeking to reassure investors about how it will fare.
Dara Khosrowshahi, Uber’s chief executive, told investors during a conference call on Monday morning that Uber was preparing multiple models to gauge how it would fare as the pandemic continues, and that it had about $10 billion cash on hand to weather the storm.Dara Khosrowshahi, Uber’s chief executive, told investors during a conference call on Monday morning that Uber was preparing multiple models to gauge how it would fare as the pandemic continues, and that it had about $10 billion cash on hand to weather the storm.
“Our business is incredibly resilient and will bounce back,” Mr. Khosrowshahi said. “In some parts of our business, we are already seeing what we believe is the worst of the impact behind us.”“Our business is incredibly resilient and will bounce back,” Mr. Khosrowshahi said. “In some parts of our business, we are already seeing what we believe is the worst of the impact behind us.”
Uber did not update its revenue guidance, but revealed that in Hong Kong, rides had fallen by 45 percent from the previous year at the height of the outbreak there, before recovering slightly to a 30 percent decline. In Seattle, rides were down between 60 and 70 percent.Uber did not update its revenue guidance, but revealed that in Hong Kong, rides had fallen by 45 percent from the previous year at the height of the outbreak there, before recovering slightly to a 30 percent decline. In Seattle, rides were down between 60 and 70 percent.
Investors, corporations and trading clients are turning to Wall Street amid one of the most tumultuous periods in market history to borrow money, buy or sell assets, and limit losses on their holdings. But Wall Street itself is grappling with a challenge it never previously faced: how to protect employees from a worsening public-health threat while managing clients who need services around the clock.Investors, corporations and trading clients are turning to Wall Street amid one of the most tumultuous periods in market history to borrow money, buy or sell assets, and limit losses on their holdings. But Wall Street itself is grappling with a challenge it never previously faced: how to protect employees from a worsening public-health threat while managing clients who need services around the clock.
As the week started, numerous financial services firms — from the investment bank Goldman Sachs to the private equity firm Blackstone to the hedge fund Point72 — were adopting emergency work policies as employees tested positive for coronavirus. As far away as Cape Town, the commodities analyst Jeffrey Christian, who had traveled there from New York on business, was in an emergency room with chills and a fever.As the week started, numerous financial services firms — from the investment bank Goldman Sachs to the private equity firm Blackstone to the hedge fund Point72 — were adopting emergency work policies as employees tested positive for coronavirus. As far away as Cape Town, the commodities analyst Jeffrey Christian, who had traveled there from New York on business, was in an emergency room with chills and a fever.
“Waiting to be tested for C19,” wrote Mr. Christian, the managing partner of the research firm CPM Group, in an email. “Woke up with nasty fever and chills today.”“Waiting to be tested for C19,” wrote Mr. Christian, the managing partner of the research firm CPM Group, in an email. “Woke up with nasty fever and chills today.”
As household incomes feel the impact of the economic crisis from the coronavirus outbreak, there has been a groundswell of moves across the country to protect renters from eviction.As household incomes feel the impact of the economic crisis from the coronavirus outbreak, there has been a groundswell of moves across the country to protect renters from eviction.
The Miami-Dade police in Florida said they wouldn’t carry out evictions. A New York State judge declared that the courts would consider no eviction cases until further notice. Gov. Gavin Newsom of California issued an executive order allowing cities to impose eviction moratoriums.The Miami-Dade police in Florida said they wouldn’t carry out evictions. A New York State judge declared that the courts would consider no eviction cases until further notice. Gov. Gavin Newsom of California issued an executive order allowing cities to impose eviction moratoriums.
“The very least policymakers can do during a national health emergency is ensure that more people are not pushed into homelessness,” said Diane Yentel, chief executive of the National Low Income Housing Coalition, a nonprofit advocacy group in Washington.“The very least policymakers can do during a national health emergency is ensure that more people are not pushed into homelessness,” said Diane Yentel, chief executive of the National Low Income Housing Coalition, a nonprofit advocacy group in Washington.
On Wednesday, the federal agency overseeing Fannie Mae and Freddie Mac, the giant government-run finance firms that back the mortgages of 28 million homeowners, ordered a suspension of foreclosures and foreclosure-related evictions for at least two months.On Wednesday, the federal agency overseeing Fannie Mae and Freddie Mac, the giant government-run finance firms that back the mortgages of 28 million homeowners, ordered a suspension of foreclosures and foreclosure-related evictions for at least two months.
Major American corporations spent roughly $1.4 trillion dollars buying back their own shares over the last three years, according to Goldman Sachs.Major American corporations spent roughly $1.4 trillion dollars buying back their own shares over the last three years, according to Goldman Sachs.
Now, after a stock market crash that has pushed prices back to where they were in early 2017, almost all that money is gone, at least for the moment.Now, after a stock market crash that has pushed prices back to where they were in early 2017, almost all that money is gone, at least for the moment.
The penchant of American corporations for buying back their own shares — it is largely an American phenomenon — became a political football in recent years.The Trump administration’s tax overhaul left major American companies flush with cash, and set off a record amount of share buybacks by S&P 500 companies. Buybacks hit a record in 2018, with net buybacks accounting for roughly $600 billion in outlays from companies, according to Goldman Sachs. The full numbers for 2019 are still coming in but are estimated to be around $480 billion. The penchant of American corporations for buying back their own shares — it is largely an American phenomenon — became a political football in recent years.The Trump administration’s tax overhaul left major American companies flush with cash, and set off a record amount of share buybacks by S&P 500 companies.
Defenders of buybacks say it is an efficient way for companies to return money to shareholders that they would not otherwise know how to invest efficiently. Critics say the practice is merely a way to inflate share prices and burnish key metrics, such as earnings per share.Defenders of buybacks say it is an efficient way for companies to return money to shareholders that they would not otherwise know how to invest efficiently. Critics say the practice is merely a way to inflate share prices and burnish key metrics, such as earnings per share.
The European Central Bank will embark on an enormous wave of bond purchases intended to counter the “serious risks” to the eurozone caused by the coronavirus pandemic. The bank will buy up to 750 billion euros, or $820 billion, in government and corporate bonds and other assets, pumping cash into financial markets deeply rattled by the pandemic.The European Central Bank will embark on an enormous wave of bond purchases intended to counter the “serious risks” to the eurozone caused by the coronavirus pandemic. The bank will buy up to 750 billion euros, or $820 billion, in government and corporate bonds and other assets, pumping cash into financial markets deeply rattled by the pandemic.
A reliable predictor of German economic growth, the Ifo Institute’s monthly survey of business managers, suffered its biggest plunge since eastern and western Germany reunited almost three decades ago.A reliable predictor of German economic growth, the Ifo Institute’s monthly survey of business managers, suffered its biggest plunge since eastern and western Germany reunited almost three decades ago.
Burberry, the British luxury fashion brand known for its trench coats and plaid, expects store sales to plunge as much as 80 percent. Though the initial losses were in Asia, the company said sales in the Americas, where over 85 percent of its stores are closed, and in Europe, Middle East, Africa and India, where over 60 percent are shut, are “materially” lower.Burberry, the British luxury fashion brand known for its trench coats and plaid, expects store sales to plunge as much as 80 percent. Though the initial losses were in Asia, the company said sales in the Americas, where over 85 percent of its stores are closed, and in Europe, Middle East, Africa and India, where over 60 percent are shut, are “materially” lower.
Australia’s central bank said on Thursday that it would cut its key interest rate to 0.25 percent to ward off a coronavirus-spurred recession. It will also begin buying government bonds, the first time in the country’s history it would use quantitative easing.
Reporting and research were contributed by Ben Casselman, Conor Dougherty, Emily Flitter, Isabella Kwai, Jack Ewing, Neal E. Boudette, Carlos Tejada, Kate Conger, Jason Karaian, Heather Murphy, Matt Phillips, Jeanna Smialek, Jim Tankersley, Mohammed Hadi and Katie Robertson.Reporting and research were contributed by Ben Casselman, Conor Dougherty, Emily Flitter, Isabella Kwai, Jack Ewing, Neal E. Boudette, Carlos Tejada, Kate Conger, Jason Karaian, Heather Murphy, Matt Phillips, Jeanna Smialek, Jim Tankersley, Mohammed Hadi and Katie Robertson.