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Global Stocks Rally on Hopes of a U.S. Economic Deal: Live Updates Stocks Rally on Hopes of a U.S. Economic Deal: Live Updates
(about 1 hour later)
Global markets rose on Tuesday, rebounding from days of selling as investors sought solace in moves in Washington to stabilize America’s stricken economy. U.S. stock futures rallied and global markets rose on Tuesday, rebounding from days of selling as investors appeared encouraged by moves in Washington to stabilize America’s stricken economy.
European markets were led by a nearly 6 percent surge in Germany. The gains followed a similar performance in Asia, where major markets around the region posted increases that ranked among their biggest gains in weeks. Futures for the major U.S. benchmarks surged before the start of regular trading, hitting their upper trading limit of 5 percent, as lawmakers signaled they were nearing a deal for a $1.8 trillion economic stimulus package that would bail out companies and send checks of up to $1,200 to Americans.
Futures markets suggested Wall Street would open higher, as investors appeared to be expressing hope that lawmakers in the United States could bridge their differences and pass a $1.8 trillion economic stabilization package. The gains came even as investors were faced with more evidence of the economic toll of the outbreak. Companies, from General Motors to the Boeing supplier Spirit AeroSystems, detailed the impact of production shut downs on their business, and new survey of activity in Europe showed a plunge in business across the region.
But Tuesday’s rally was in part a rebound from a difficult stretch for stock investors. On Monday, the S&P 500 fell about 3 percent as Congress struggled to overcome differences on the aid bill and traders remained cautious about the Federal Reserve’s ability to cushion an economy in free-fall. Stocks are down more than 30 percent since their peak in February.In Europe, markets were led on Tuesday by a nearly 6 percent surge in Germany. The gains followed a similar performance in Asia, where major markets around the region posted increases that ranked among their biggest gains in weeks.
Other markets signaled improved investor confidence. Prices for futures based on the United States benchmark oil rose 4 percent. The price of the 10-year Treasury bond fell, sending yields higher.Other markets signaled improved investor confidence. Prices for futures based on the United States benchmark oil rose 4 percent. The price of the 10-year Treasury bond fell, sending yields higher.
In Asia, South Korea led the charge, with the Kospi index rising 8.6 percent. Tokyo’s Nikkei 225 index ended 7.1 percent higher.
The Shanghai Composite Index in mainland China rose 2.3 percent. Hong Kong’s Hang Seng Index was up 4.5 percent late in the trading day.
In Europe, Germany’s DAX index was up 5.8 percent. France’s CAC 40 rose 4.5 percent. London’s FTSE 100 index rose 3.9 percent.
Business activity in the eurozone plunged in March at unprecedented rates, according to surveys by IHS Markit.Business activity in the eurozone plunged in March at unprecedented rates, according to surveys by IHS Markit.
Provisional data for the countries using the euro showed that business activity collapsed, with the composite Purchasing Managers Index dropping to 31.4 points in March from 51.6 in February, the biggest monthly fall since data collection started in 1998. Numbers over 50 indicate an increase in activity and numbers below indicate a drop.Provisional data for the countries using the euro showed that business activity collapsed, with the composite Purchasing Managers Index dropping to 31.4 points in March from 51.6 in February, the biggest monthly fall since data collection started in 1998. Numbers over 50 indicate an increase in activity and numbers below indicate a drop.
“Business activity across the eurozone collapsed in March to an extent far exceeding that seen even at the height of the global financial crisis,” said Chris Williamson, the chief business economist at IHS Markit. He added that “there’s scope for the downturn to intensify further” if stricter lockdowns were to be put in place to deal with the virus.“Business activity across the eurozone collapsed in March to an extent far exceeding that seen even at the height of the global financial crisis,” said Chris Williamson, the chief business economist at IHS Markit. He added that “there’s scope for the downturn to intensify further” if stricter lockdowns were to be put in place to deal with the virus.
Business activity in Germany dived from 50.7 points in February to 37.2 in March, the lowest level since February 2009.Business activity in Germany dived from 50.7 points in February to 37.2 in March, the lowest level since February 2009.
The purchasing managers index in France plummeted from 51.9 in February to 30.2 in March, the lowest point in nearly 22 years.The purchasing managers index in France plummeted from 51.9 in February to 30.2 in March, the lowest point in nearly 22 years.
Britain’s index fell from 53 in February to 37.1, the lowest point since comparable figures have been available.Britain’s index fell from 53 in February to 37.1, the lowest point since comparable figures have been available.
SoftBank’s share price jumped by 19 percent in Tokyo on Tuesday after news that the company will sell up to $41 billion in assets to buy back $18 billion in stock and pay down debt. But as today’s DealBook newsletter asks, what’s next for the Japanese conglomerate?
SoftBank is selling assets in a chaotic market, potentially fetching poor prices. But provided it can raise the money, depressed asset values also allow it to buy back its own shares at a significant discount to their sum-of-the-parts valuation. Investors are happy with the trade-off, DealBook hears. The move suggests, however, a more defensive posture for the company known for ambitious deal-making, albeit in companies like Uber, WeWork and Oyo that are now vulnerable to the coronavirus-driven economic downturn.
The Japanese automaker Toyota plans to suspend production at five of its plants in Japan because of “the condition of overseas markets and demand,” the company said in a statement on Monday.The Japanese automaker Toyota plans to suspend production at five of its plants in Japan because of “the condition of overseas markets and demand,” the company said in a statement on Monday.
Toyota said it will pause seven of its vehicle production lines for two to nine days beginning on April 3.Toyota said it will pause seven of its vehicle production lines for two to nine days beginning on April 3.
Separately, the company said on Sunday that two factory workers at a plant in the central Japanese prefecture of Aichi have tested positive for the coronavirus, adding that it has temporarily closed the facility and asked an additional 33 workers to self-quarantine.Separately, the company said on Sunday that two factory workers at a plant in the central Japanese prefecture of Aichi have tested positive for the coronavirus, adding that it has temporarily closed the facility and asked an additional 33 workers to self-quarantine.
The pandemic has forced major automakers around the globe to change their production schedules because of concerns over worker health, slackening demand and regional lockdowns that have left workers stuck at home.The pandemic has forced major automakers around the globe to change their production schedules because of concerns over worker health, slackening demand and regional lockdowns that have left workers stuck at home.
China’s mobile carriers have been hit by a rare slump across the industry, a sign of the toll the pandemic has taken on people who can no longer pay for what they once saw as a necessity.
China Mobile, one of the world’s largest cellular providers, lost more than 8 million users throughout January and February, the company reported. China Unicom lost 7.8 million subscribers over the same period, while China Telecom lost 5.6 million subscribers in February, the companies reported.
The relentless user growth over the years has served as an economic barometer in China. The number of mobile users in the country is larger than its entire population, with many residents, especially migrant workers, keeping separate numbers for work and personal use.
The unusual drop in subscribers could indicate the scale to which China’s labor market has been pinched by the outbreak, analysts say.
“People lost their jobs, they have to stay home, they have to be quarantined and have nowhere to go,” said Dickie Wong, executive director of research at Kingston Securities Limited. “They have to cancel their mobile subscription services.”
The Federal Reserve unveiled a vast expansion of its efforts to shore up businesses and keep markets functioning. But the brief boost for Wall Street was soon wiped away as Washington lawmakers failed again to come together on a nearly $2 trillion rescue package.
Across the landscape of American business, grim news abounded Monday as the coronavirus pandemic paralyzed the country.
Boeing said it was temporarily idling 70,000 factory workers in Washington State after about 30 employees tested positive for Covid-19. Twitter said its revenue would take a hit as advertising has declined. Nordstrom, its cash diminished, drew down $800 million in credit. And General Electric said it would cut 10 percent of workers in its aviation unit.
The biggest factor again driving markets was Congress, which hit another wall in its attempt to push through a fiscal stimulus package.
Senate Democrats blocked the progress of the nearly $2 trillion government rescue package for a second time as they continued to negotiate for stronger protections for workers and restrictions for bailed-out businesses.
The S&P 500 fell about 3 percent Monday, adding to a 15 percent plunge last week as traders remained cautious about the Fed’s ability to shift the trajectory of an economy that appears to be in free-fall because of the coronavirus crisis.
In the first 10 days of March, some of the commentators on Fox News and Fox Business played down the threat of what would soon be recognized as a pandemic.In the first 10 days of March, some of the commentators on Fox News and Fox Business played down the threat of what would soon be recognized as a pandemic.
Many of the networks’ elderly, pro-Trump viewers responded to the coverage and the president’s public statements by taking the virus less seriously than others.Many of the networks’ elderly, pro-Trump viewers responded to the coverage and the president’s public statements by taking the virus less seriously than others.
But one elderly Fox News viewer, a crucial supporter of President Trump, took the threat seriously: The channel’s chairman, Rupert Murdoch, who was to celebrate his 89th birthday on March 11.But one elderly Fox News viewer, a crucial supporter of President Trump, took the threat seriously: The channel’s chairman, Rupert Murdoch, who was to celebrate his 89th birthday on March 11.
On March 8, as the virus was spreading, the Murdoch family called off a planned party out of concern for the patriarch’s health, according to a person familiar with the cancellation. There were about 20 people on the guest list.On March 8, as the virus was spreading, the Murdoch family called off a planned party out of concern for the patriarch’s health, according to a person familiar with the cancellation. There were about 20 people on the guest list.
The canceled party is perhaps the most glaring instance of the gap between the elite, globally minded family owners of Fox — who took the crisis seriously as reports emerged in January in their native Australia — and many of their nominal stars, who treated the virus as a political assault on Mr. Trump, before zigzagging, along with the president, toward a focus on the enormity of the public health risk.The canceled party is perhaps the most glaring instance of the gap between the elite, globally minded family owners of Fox — who took the crisis seriously as reports emerged in January in their native Australia — and many of their nominal stars, who treated the virus as a political assault on Mr. Trump, before zigzagging, along with the president, toward a focus on the enormity of the public health risk.
Reporting was contributed by Elaine Yu, Ben Dooley, Carlos Tejada and Daniel Victor. General Motors said it would draw down a $16 billion credit line as it “aggressively pursued austerity measures” to mitigate the business impact of the coronavirus.
China’s mobile carriers have been hit by a rare slump across the industry, a sign of the toll the pandemic has taken on people who can no longer pay for what they once saw as a necessity. China Mobile, one of the world’s largest cellular providers, lost more than 8 million users throughout January and February, the company reported.
Reporting was contributed by Elaine Yu, Ben Dooley, Jason Karaian, Carlos Tejada and Daniel Victor.