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Stocks Rally as Trump Flags Deal on Oil Production: Live Updates Stocks Rally as Trump Flags Deal on Oil Production: Live Updates
(32 minutes later)
Oil spiked, triggering a rally in shares of energy companies, after President Trump said on Thursday that he expected that Saudi Arabia and Russia would substantially cut their oil production to halt the collapse of prices.Oil spiked, triggering a rally in shares of energy companies, after President Trump said on Thursday that he expected that Saudi Arabia and Russia would substantially cut their oil production to halt the collapse of prices.
Mr. Trump said in a tweet that he spoke with Crown Prince Mohammed bin Salman, who had spoken with President Vladimir V. Putin, and “I expect & hope that they will be cutting back approximately 10 million barrels,” That figure represents about 10 percent of normal world consumption. The president later said the cut could be as much as 15 million barrels.Mr. Trump said in a tweet that he spoke with Crown Prince Mohammed bin Salman, who had spoken with President Vladimir V. Putin, and “I expect & hope that they will be cutting back approximately 10 million barrels,” That figure represents about 10 percent of normal world consumption. The president later said the cut could be as much as 15 million barrels.
Saudi Arabia called on Thursday for an urgent meeting of the Organization of the Petroleum Exporting Countries and other oil producing countries with the “aim of reaching a fair agreement to restore” balance in the oil markets, according to a statement carried by the official Saudi press agency on Thursday. The statement said that the Saudis were acting to support the global economy and in “appreciation” of Mr. Trump’s request. Saudi Arabia called on Thursday for an urgent meeting of the Organization of the Petroleum Exporting Countries and other oil producing countries with the “aim of reaching a fair agreement to restore” balance in the oil markets. The statement said that the Saudis were acting to support the global economy and in “appreciation” of Mr. Trump’s request.
The Kremlin denied that Mr. Putin had spoken to the Saudi crown prince, as Mr. Trump had said in his Twitter message. “No, there was no conversation,” Dmitri S. Peskov, spokesman for Mr. Putin, told the Interfax news agency.The Kremlin denied that Mr. Putin had spoken to the Saudi crown prince, as Mr. Trump had said in his Twitter message. “No, there was no conversation,” Dmitri S. Peskov, spokesman for Mr. Putin, told the Interfax news agency.
Still, crude oil futures, which had already been climbing on Thursday, surged by more than 20 percent.Still, crude oil futures, which had already been climbing on Thursday, surged by more than 20 percent.
Mr. Trump’s message also gave other financial markets a boost, with shares of oil and gas companies leading the gains in the stock market. Exxon Mobil was up 9 percent, and smaller producers posted even bigger jumps.Mr. Trump’s message also gave other financial markets a boost, with shares of oil and gas companies leading the gains in the stock market. Exxon Mobil was up 9 percent, and smaller producers posted even bigger jumps.
Oil prices had been hammered as the coronavirus pandemic all but eliminated travel and dampened demand for energy. A price war that broke out between Saudi Arabia and Russia last month intensified the decline. After the countries failed to reach a deal on production cuts, both instead increased output in an effort to gain market share.Oil prices had been hammered as the coronavirus pandemic all but eliminated travel and dampened demand for energy. A price war that broke out between Saudi Arabia and Russia last month intensified the decline. After the countries failed to reach a deal on production cuts, both instead increased output in an effort to gain market share.
Data from satellite images showed loadings of oil onto tankers in Saudi Arabia reached as high as 14.8 million barrels on Wednesday, roughly double the kingdom’s average daily export of about 7.4 million barrels a day in January and February, according to Alex Booth, head of market research at Kpler, which tracks oil flows.Data from satellite images showed loadings of oil onto tankers in Saudi Arabia reached as high as 14.8 million barrels on Wednesday, roughly double the kingdom’s average daily export of about 7.4 million barrels a day in January and February, according to Alex Booth, head of market research at Kpler, which tracks oil flows.
The flood of oil had pushed crude oil prices down by 55 percent in March alone, wreaking havoc on the energy industry, with oil companies from Algeria to West Texas slashing budgets, and refineries cutting production of gasoline, diesel and jet fuel.The flood of oil had pushed crude oil prices down by 55 percent in March alone, wreaking havoc on the energy industry, with oil companies from Algeria to West Texas slashing budgets, and refineries cutting production of gasoline, diesel and jet fuel.
So the possibility of some relief to the industry was also welcomed by stock investors: Six of the 10 best performing sectors in the S&P 500 Thursday were oil and gas related.So the possibility of some relief to the industry was also welcomed by stock investors: Six of the 10 best performing sectors in the S&P 500 Thursday were oil and gas related.
The rally in energy companies on Thursday lifted the broader market, with the S&P 500 rising more than 1 percent. Stocks had been unsteady after a report on jobless claims showed that 6.6 million people filed for unemployment benefits last week in the latest sign of the economic damage wrought across the country by the coronavirus pandemic.The rally in energy companies on Thursday lifted the broader market, with the S&P 500 rising more than 1 percent. Stocks had been unsteady after a report on jobless claims showed that 6.6 million people filed for unemployment benefits last week in the latest sign of the economic damage wrought across the country by the coronavirus pandemic.
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More than 6.6 million people filed new claims for unemployment benefits last week, the Labor Department said Thursday, setting a grim record for the second straight week.More than 6.6 million people filed new claims for unemployment benefits last week, the Labor Department said Thursday, setting a grim record for the second straight week.
The latest claims brought the two-week total to nearly 10 million.The latest claims brought the two-week total to nearly 10 million.
The speed and scale of the job losses is without precedent. Until last month, the worst week for unemployment filings was 695,000 in 1982.The speed and scale of the job losses is without precedent. Until last month, the worst week for unemployment filings was 695,000 in 1982.
“What usually takes months or quarters to happen in a recession is happening in a matter of weeks,” said Michelle Meyer, chief U.S. economist for Bank of America Merrill Lynch.“What usually takes months or quarters to happen in a recession is happening in a matter of weeks,” said Michelle Meyer, chief U.S. economist for Bank of America Merrill Lynch.
A month ago, most forecasters still thought the United States could avoid a recession. Today, with the pandemic shuttering businesses and forcing vast layoffs, many economists are expecting a decline in gross domestic product that rivals the worst periods of the Great Depression.A month ago, most forecasters still thought the United States could avoid a recession. Today, with the pandemic shuttering businesses and forcing vast layoffs, many economists are expecting a decline in gross domestic product that rivals the worst periods of the Great Depression.
The Labor Department’s report on Thursday that 6.6 million Americans filed claims for unemployment benefits last week only increases the pressure on President Trump and members of Congress to ready another package to further aid workers and businesses through the coronavirus crisis.The Labor Department’s report on Thursday that 6.6 million Americans filed claims for unemployment benefits last week only increases the pressure on President Trump and members of Congress to ready another package to further aid workers and businesses through the coronavirus crisis.
The $2.2 trillion package that Mr. Trump signed into law last week includes enhanced benefits for unemployed workers for up to four months, along with aid for large and small businesses and direct payments to millions of individuals, as the country struggles through a shutdown of economic activity meant to slow the spread of the virus.The $2.2 trillion package that Mr. Trump signed into law last week includes enhanced benefits for unemployed workers for up to four months, along with aid for large and small businesses and direct payments to millions of individuals, as the country struggles through a shutdown of economic activity meant to slow the spread of the virus.
Many economists have warned that the $350 billion included in that most recent package for aid to small businesses will not prove sufficient to help all of the companies that might otherwise go under during the shutdowns.Many economists have warned that the $350 billion included in that most recent package for aid to small businesses will not prove sufficient to help all of the companies that might otherwise go under during the shutdowns.
R. Glenn Hubbard, a Columbia University economist and former adviser to President George W. Bush, said in an interview that the necessary assistance is likely “closer to $1 trillion,” which would require another $650 billion appropriation from Congress.R. Glenn Hubbard, a Columbia University economist and former adviser to President George W. Bush, said in an interview that the necessary assistance is likely “closer to $1 trillion,” which would require another $650 billion appropriation from Congress.
Democrats, including Speaker Nancy Pelosi of California, have pushed for additional payments to reach more Americans, to help people continue to pay their bills through the crisis. Senator Sherrod Brown of Ohio has called for federally funded “hazard pay” for doctors, nurses, grocery store clerks, postal carriers and other workers on the front lines of the virus.Democrats, including Speaker Nancy Pelosi of California, have pushed for additional payments to reach more Americans, to help people continue to pay their bills through the crisis. Senator Sherrod Brown of Ohio has called for federally funded “hazard pay” for doctors, nurses, grocery store clerks, postal carriers and other workers on the front lines of the virus.
Mr. Trump and Democratic leaders have also called for a sweeping investment in infrastructure, like broadband expansion and bridge repair, that could put millions of Americans to work once the crisis abates. Republican leaders in the House and Senate have shown less enthusiasm for many of those ideas.Mr. Trump and Democratic leaders have also called for a sweeping investment in infrastructure, like broadband expansion and bridge repair, that could put millions of Americans to work once the crisis abates. Republican leaders in the House and Senate have shown less enthusiasm for many of those ideas.
Pension programs have taken huge hits to their investment portfolios over the past month as the markets collapsed. The outbreak has also set off widespread job losses and business closures that threaten to wipe out state and local tax revenue.Pension programs have taken huge hits to their investment portfolios over the past month as the markets collapsed. The outbreak has also set off widespread job losses and business closures that threaten to wipe out state and local tax revenue.
That one-two punch has staggered these funds, which were already chronically underfunded. Most are required by law to keep sending checks every month to about 11 million Americans.That one-two punch has staggered these funds, which were already chronically underfunded. Most are required by law to keep sending checks every month to about 11 million Americans.
Even before the pandemic gut-punched the economy, Maria Pappas, the treasurer of Cook County, Ill., counted a record 57,000 delinquent property-tax payers in her county, which includes Chicago. Property taxes feed more than 400 municipal pension funds in Cook County, including some that are cash-starved and close to hitting bottom.Even before the pandemic gut-punched the economy, Maria Pappas, the treasurer of Cook County, Ill., counted a record 57,000 delinquent property-tax payers in her county, which includes Chicago. Property taxes feed more than 400 municipal pension funds in Cook County, including some that are cash-starved and close to hitting bottom.
“The people have no money,” said Ms. Pappas.“The people have no money,” said Ms. Pappas.
Last week, Moody’s investors service estimated that state and local pension funds had lost $1 trillion in the market sell-off that began in February. The exact damage is hard to determine, though, because pension funds do not issue quarterly reports.Last week, Moody’s investors service estimated that state and local pension funds had lost $1 trillion in the market sell-off that began in February. The exact damage is hard to determine, though, because pension funds do not issue quarterly reports.
Pension funds that run out of money — something that happened in Prichard, Ala., Central Falls, R.I., and Puerto Rico — could tip cities and other local governments into bankruptcy. States would be in uncharted waters because there is no bankruptcy mechanism for them; the nearest analogy is a one-off law passed by Congress for Puerto Rico, which has resulted in years of federal oversight, austerity measures and reduced debt payments to bondholders.Pension funds that run out of money — something that happened in Prichard, Ala., Central Falls, R.I., and Puerto Rico — could tip cities and other local governments into bankruptcy. States would be in uncharted waters because there is no bankruptcy mechanism for them; the nearest analogy is a one-off law passed by Congress for Puerto Rico, which has resulted in years of federal oversight, austerity measures and reduced debt payments to bondholders.
Amazon, which has come under fire from employees and politicians for not taking sufficient steps to protect workers on the job during the pandemic, said it would ramp up safety efforts.Amazon, which has come under fire from employees and politicians for not taking sufficient steps to protect workers on the job during the pandemic, said it would ramp up safety efforts.
The company said in a blog post on Thursday that temperature checks, which it began at certain facilities last Sunday, would likely be implemented across all of its U.S. and European facilities and Whole Foods stores by early next week, and that it was already checking the temperatures of more than 100,000 workers each day. Anyone with a fever of more than 100.4 degrees is sent home and asked to stay home until they are free of fever for three days, the company said.The company said in a blog post on Thursday that temperature checks, which it began at certain facilities last Sunday, would likely be implemented across all of its U.S. and European facilities and Whole Foods stores by early next week, and that it was already checking the temperatures of more than 100,000 workers each day. Anyone with a fever of more than 100.4 degrees is sent home and asked to stay home until they are free of fever for three days, the company said.
The company also said it was in the process of procuring more hand sanitizer and disinfectant wipes for workers, and that it was beginning to distribute millions of masks to workers.The company also said it was in the process of procuring more hand sanitizer and disinfectant wipes for workers, and that it was beginning to distribute millions of masks to workers.
Workers who were diagnosed with Covid-19 or “presumptively diagnosed (but unable to get a test)” could receive extra paid time off, and any worker who had contact with a person diagnosed with the illness would receive 14 days of paid leave, Amazon said.Workers who were diagnosed with Covid-19 or “presumptively diagnosed (but unable to get a test)” could receive extra paid time off, and any worker who had contact with a person diagnosed with the illness would receive 14 days of paid leave, Amazon said.
Amazon also said that it had already hired 80,000 of the 100,000 new workers it had pledged to hire in mid-March to keep up with recent demand.
In spite of market headwinds, overpriced apartments and legislative obstacles, New York’s residential real estate market was on an improbable upward swing for most of the first quarter.In spite of market headwinds, overpriced apartments and legislative obstacles, New York’s residential real estate market was on an improbable upward swing for most of the first quarter.
Then the coronavirus struck, stopping the rebound in its tracks. Now, the pandemic threatens to do the same in real estate markets nationwide during the peak of buying season.Then the coronavirus struck, stopping the rebound in its tracks. Now, the pandemic threatens to do the same in real estate markets nationwide during the peak of buying season.
What happened in the first two months of the year no longer matters, said Jonathan J. Miller, the president of Miller Samuel Real Estate Appraisers & Consultants. “All that matters to the housing market is what happens next.”What happened in the first two months of the year no longer matters, said Jonathan J. Miller, the president of Miller Samuel Real Estate Appraisers & Consultants. “All that matters to the housing market is what happens next.”
New York State’s stay-at-home order, and similar restrictions elsewhere, have effectively banned open houses and in-person property showings, and “most people are not going to make a big purchase without seeing it,” said Frederick Warburg Peters, the chief executive of Warburg Realty. Depending on the duration of the outbreak, he said, the number of new contracts in New York could drop by more than 70 percent in the second quarter, compared with the same period last year.New York State’s stay-at-home order, and similar restrictions elsewhere, have effectively banned open houses and in-person property showings, and “most people are not going to make a big purchase without seeing it,” said Frederick Warburg Peters, the chief executive of Warburg Realty. Depending on the duration of the outbreak, he said, the number of new contracts in New York could drop by more than 70 percent in the second quarter, compared with the same period last year.
Ford Motor said Thursday that first quarter sales of new vehicles fell 12 percent because of a steep drop in the second half of March.Ford Motor said Thursday that first quarter sales of new vehicles fell 12 percent because of a steep drop in the second half of March.
Boeing’s chief executive, Dave Calhoun, announced voluntary layoffs in a note to staff on Thursday, with details on eligibility and benefits to come in three to four weeks. “We’re in uncharted waters,” he said, adding that the layoffs would provide a bridge to recovery, provided “we’re not confronted with more unexpected challenges.”Boeing’s chief executive, Dave Calhoun, announced voluntary layoffs in a note to staff on Thursday, with details on eligibility and benefits to come in three to four weeks. “We’re in uncharted waters,” he said, adding that the layoffs would provide a bridge to recovery, provided “we’re not confronted with more unexpected challenges.”
Home Depot has ordered all 2,300 of its stores in North America to stop sales of N95 masks to try to free them up for those on the front lines of the coronavirus emergency response, the company said on Wednesday.Home Depot has ordered all 2,300 of its stores in North America to stop sales of N95 masks to try to free them up for those on the front lines of the coronavirus emergency response, the company said on Wednesday.
SoftBank has decided it will not buy $3 billion in WeWork stock, a board committee of the office space company said Wednesday, dealing a blow to shareholders who had hoped to cash out their shares. SoftBank, a dominant shareholder of WeWork that has poured billions of dollars into the company, could also hold back $1.1 billion of financing from WeWork, reducing the company’s access to cash as the downturn caused by the coronavirus hits the already stressed business.SoftBank has decided it will not buy $3 billion in WeWork stock, a board committee of the office space company said Wednesday, dealing a blow to shareholders who had hoped to cash out their shares. SoftBank, a dominant shareholder of WeWork that has poured billions of dollars into the company, could also hold back $1.1 billion of financing from WeWork, reducing the company’s access to cash as the downturn caused by the coronavirus hits the already stressed business.
Reporting was contributed by Jim Tankersley, Peter Eavis, Stanley Reed, Ben Casselman, Patricia Cohen, Clifford Krauss, Andrew E. Kramer, Mary Williams Walsh, Niraj Chokshi, Keith Bradsher, Neal E. Boudette, Stefanos Chen, Keith Collins, David Yaffe-Bellany, Mohammed Hadi, Carlos Tejada and Daniel Victor.Reporting was contributed by Jim Tankersley, Peter Eavis, Stanley Reed, Ben Casselman, Patricia Cohen, Clifford Krauss, Andrew E. Kramer, Mary Williams Walsh, Niraj Chokshi, Keith Bradsher, Neal E. Boudette, Stefanos Chen, Keith Collins, David Yaffe-Bellany, Mohammed Hadi, Carlos Tejada and Daniel Victor.