This article is from the source 'nytimes' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.

You can find the current article at its original source at https://www.nytimes.com/2020/04/10/business/stock-market-today-coronavirus.html

The article has changed 39 times. There is an RSS feed of changes available.

Version 13 Version 14
Apple and Google Are Building a Virus Tracking Tool for Phones: Live Updates To Prod Mexico, Trump Offers to Cut U.S. Oil Output: Live Updates
(about 1 hour later)
President Trump said Friday that he had offered to cut U.S. oil production to help advance an agreement between the Organization of the Petroleum Exporting Countries, Russia and other countries. But it was not clear what exactly he had promised and whether it would even work.
As the coronavirus pandemic has led to the shutdown of large swaths of the global economy, oil prices have plunged, jeopardizing companies and jobs and forcing the largest producers to consider drastic cuts in how much crude they put on the world market.
In a highly unusual move, Mr. Trump said he had told President Andrés Manuel López Obrador of Mexico that he would cut U.S. oil production by 250,000 barrels a day so that Mexico would cut its output by only 100,000 barrels a day. Mexico’s reluctance to cut output was a key sticking point in a Thursday conference call between OPEC and other oil producers.
“We are trying to get Mexico, as the expression goes, over the barrel. And Mexico is committing to do 100,000 fewer barrels,” Mr. Trump said at a White House news conference.
“The United States will help Mexico along,” he continued, “and they will reimburse us at a later date when they’re prepared to do so.”
But Mr. Trump added that he was not sure his deal with Mexico would be “acceptable to the other oil-producing nations.”
American oil executives said it was not clear to them how the president would cut production. The federal government controls permitting on federal lands and offshore, but drilling for oil is done by private companies and it would be highly unusual for the federal government to force them to cut production.
In addition to the meeting between OPEC, Russia and other oil producers on Thursday, energy ministers from the Group of 20 countries were talking on a teleconference on Friday to discuss ways to stabilize oil markets.
On Thursday night, Russia and all but one member of OPEC reached an agreement to cut 10 million barrels a day in production, which amounts to a 23 percent reduction from the group’s baseline of about 44 million barrels a day.
The deal was held up by Mexico, a member of the so-called OPEC Plus group. The country’s energy minister, Rocío Nahle, rejected OPEC’s proposal that it cut production by 400,000 barrels a day, proposing a cut of one-quarter of that amount instead, according to a message on her Twitter account. The agreement was contingent on Mexico’s approval, according to a statement on OPEC’s website.
The terms of the deal and the late-developing snag disappointed the oil markets, which had surged from two-decade lows in late March on the prospect of collective actions being taken to bolster prices and rescue the industry. West Texas Intermediate, the benchmark U.S. crude, ended the day down more than 9 percent to $22.76 a barrel on Thursday.
Analysts and traders had hoped for a bigger reduction to prevent the buildup of a glut of oil as demand for energy is expected to continue as the global economy contracts.
Oil markets were closed on Friday for the Good Friday holiday.
The coronavirus-related economic downturn has led to pay cuts, layoffs and shutdowns at many news outlets, from weeklies like Seven Days in Burlington, Vt., to Gannett, the nation’s largest newspaper chain.The coronavirus-related economic downturn has led to pay cuts, layoffs and shutdowns at many news outlets, from weeklies like Seven Days in Burlington, Vt., to Gannett, the nation’s largest newspaper chain.
Finding a sizable audience has not been a problem for publishers. Hunger for news in a time of crisis has sent droves of readers to many publications. But with businesses paused or closed — and no longer willing or able to pay for advertisements — a crucial part of the industry’s support system has cracked.Finding a sizable audience has not been a problem for publishers. Hunger for news in a time of crisis has sent droves of readers to many publications. But with businesses paused or closed — and no longer willing or able to pay for advertisements — a crucial part of the industry’s support system has cracked.
“The traffic numbers are still way up,” said David Chavern, the president and chief executive of the News Media Alliance. “The digital subscriptions are hanging in there.”“The traffic numbers are still way up,” said David Chavern, the president and chief executive of the News Media Alliance. “The digital subscriptions are hanging in there.”
He added, “The ad contraction is brutal and continuing.”He added, “The ad contraction is brutal and continuing.”
All told, 28,000 workers in the news media industry have been laid off, furloughed or had their pay reduced, a New York Times survey of the industry has found.All told, 28,000 workers in the news media industry have been laid off, furloughed or had their pay reduced, a New York Times survey of the industry has found.
Executives like Jonah Peretti of BuzzFeed and Ben Lerer of Group Nine Media are forgoing their salaries. Publications like The Stranger, a weekly in Seattle, and the fashion magazine W have suspended publication. Tribune Publishing, the publicly traded company behind The Chicago Tribune and The New York Daily News has cut the salaries of those making more than $67,000.Executives like Jonah Peretti of BuzzFeed and Ben Lerer of Group Nine Media are forgoing their salaries. Publications like The Stranger, a weekly in Seattle, and the fashion magazine W have suspended publication. Tribune Publishing, the publicly traded company behind The Chicago Tribune and The New York Daily News has cut the salaries of those making more than $67,000.
Raises have been put on hold at Condé Nast, the publisher of Vogue, Vanity Fair and The New Yorker. A hiring slowdown has also gone into effect. And company leaders are considering layoffs for staff members and pay cuts for executives, according to two people with knowledge of discussions. In a March 27 staff memo, Roger J. Lynch, the chief executive, acknowledged the difficulties for a company dependent on the luxury industry: “Overall, we’re seeing many advertisers shift their investments with us to the second half of the year,” he wrote. “Others are decreasing or pausing their spend.”Raises have been put on hold at Condé Nast, the publisher of Vogue, Vanity Fair and The New Yorker. A hiring slowdown has also gone into effect. And company leaders are considering layoffs for staff members and pay cuts for executives, according to two people with knowledge of discussions. In a March 27 staff memo, Roger J. Lynch, the chief executive, acknowledged the difficulties for a company dependent on the luxury industry: “Overall, we’re seeing many advertisers shift their investments with us to the second half of the year,” he wrote. “Others are decreasing or pausing their spend.”
In one of the most far-ranging attempts to halt the spread of the coronavirus, Apple and Google said they were building software into smartphones that would tell people if they were in recent contact with someone who was infected with the virus.In one of the most far-ranging attempts to halt the spread of the coronavirus, Apple and Google said they were building software into smartphones that would tell people if they were in recent contact with someone who was infected with the virus.
The technology giants said they were teaming up to release the tool within several months, building it into the operating systems of the billions of iPhones and Android devices around the world. That would enable the smartphones to constantly log other devices they get close to, enabling “contact tracing” of the disease.The technology giants said they were teaming up to release the tool within several months, building it into the operating systems of the billions of iPhones and Android devices around the world. That would enable the smartphones to constantly log other devices they get close to, enabling “contact tracing” of the disease.
With the tool, infected people would notify a public health app that they have the coronavirus, which would then alert phones that had recently come into proximity with that infected person’s device.With the tool, infected people would notify a public health app that they have the coronavirus, which would then alert phones that had recently come into proximity with that infected person’s device.
The effort could raise questions about the reach that these companies have in individuals’ lives, especially because Google in particular has faced scrutiny for collecting data for online advertising.The effort could raise questions about the reach that these companies have in individuals’ lives, especially because Google in particular has faced scrutiny for collecting data for online advertising.
“It could be a useful tool but it raises privacy issues,” said Dr. Mike Reid, an assistant professor of medicine and infectious diseases at the University of California, San Francisco, who is helping San Francisco officials with contact tracing. “It’s not going to be the sole solution, but as part of a robust sophisticated response, it has a role to play.”
Google and Apple said the tool would protect the privacy of smartphone users and that people would have to opt in to use it.Google and Apple said the tool would protect the privacy of smartphone users and that people would have to opt in to use it.
What on earth is the stock market doing?What on earth is the stock market doing?
Death and despair are all around. The number of people filing for unemployment benefits each of the last two weeks was about 10 times the previous record — and is probably being artificially held back by overloaded government systems. Vast swaths of American business are shuttered indefinitely. The economic quarter now underway is likely to feature Great Depression-caliber shrinkage in economic activity.Death and despair are all around. The number of people filing for unemployment benefits each of the last two weeks was about 10 times the previous record — and is probably being artificially held back by overloaded government systems. Vast swaths of American business are shuttered indefinitely. The economic quarter now underway is likely to feature Great Depression-caliber shrinkage in economic activity.
Yet at the close of the market on Thursday, the S&P 500 was up 25 percent from its recent low on March 23. It is down only about 14 percent this year — and is up from its levels of just 11 months ago.Yet at the close of the market on Thursday, the S&P 500 was up 25 percent from its recent low on March 23. It is down only about 14 percent this year — and is up from its levels of just 11 months ago.
Two powerful forces are pushing in opposite directions. Commerce is being disrupted to a degree that seemed impossible just weeks ago. But simultaneously, stock investors are betting that powerful interventions out of Washington — including an additional $2.3 trillion in lending programs from the Federal Reserve announced on Thursday — will be enough to enable major companies to emerge with little damage to their long-term profitability.Two powerful forces are pushing in opposite directions. Commerce is being disrupted to a degree that seemed impossible just weeks ago. But simultaneously, stock investors are betting that powerful interventions out of Washington — including an additional $2.3 trillion in lending programs from the Federal Reserve announced on Thursday — will be enough to enable major companies to emerge with little damage to their long-term profitability.
It’s a battle between collapsing economic activity and the federal government’s money printer going “brrr.” In the stock market, at least, the revving of the money printer is winning.It’s a battle between collapsing economic activity and the federal government’s money printer going “brrr.” In the stock market, at least, the revving of the money printer is winning.
The coronavirus’s economic fallout looks more like the aftershock of a massive hurricane — like Katrina, which devastated Louisiana in 2005 — than that of a recession, analysts at the Federal Reserve Bank of New York wrote in a new analysis.The coronavirus’s economic fallout looks more like the aftershock of a massive hurricane — like Katrina, which devastated Louisiana in 2005 — than that of a recession, analysts at the Federal Reserve Bank of New York wrote in a new analysis.
“The recent surge in jobless claims has tracked the pattern observed in post-Katrina Louisiana fairly closely,” the analysts, Jason Bram and Richard Deitz, wrote — except that the pain is scaled up about 78 times to cover the entire nation, so that jobless claims could look far more striking. “If the overall U.S. economy were to follow the same pattern today, we could see more than 27 million pandemic-related claims by the end of May.”“The recent surge in jobless claims has tracked the pattern observed in post-Katrina Louisiana fairly closely,” the analysts, Jason Bram and Richard Deitz, wrote — except that the pain is scaled up about 78 times to cover the entire nation, so that jobless claims could look far more striking. “If the overall U.S. economy were to follow the same pattern today, we could see more than 27 million pandemic-related claims by the end of May.”
The researchers note that neither the Great Recession nor Hurricane Katrina was a perfect comparison for the pandemic. During the recession, job losses happened much more slowly. The storm wiped out New Orleans’ infrastructure and caused an exodus from the area. Both of those factors hampered the recovery and are not true of the pandemic.The researchers note that neither the Great Recession nor Hurricane Katrina was a perfect comparison for the pandemic. During the recession, job losses happened much more slowly. The storm wiped out New Orleans’ infrastructure and caused an exodus from the area. Both of those factors hampered the recovery and are not true of the pandemic.
But the storm was also a short-lived event: Recovery efforts began fairly immediately. It is still not clear when the crawl back from coronavirus will start.But the storm was also a short-lived event: Recovery efforts began fairly immediately. It is still not clear when the crawl back from coronavirus will start.
With freelancers, independent contractors and gig workers among the millions of Americans losing their jobs as the coronavirus chokes the economy, new and expanded benefits are offering them a way to cope.
The two emergency legislative packages passed in recent weeks, along with other rule changes aimed at workers who prefer to be their own boss, offer a number of benefits, from paid sick leave and family leave to health and unemployment insurance.
PAID SICK LEAVE AND FAMILY LEAVE It’s not quite as straight ahead as a traditional sick day, but if you’re self-employed you now have the equivalent of paid sick leave, in the form of a tax credit that can reduce your tax burden or result in a refund.
UNEMPLOYMENT INSURANCE Self-employed workers can draw from an additional pot of money through the so-called pandemic unemployment assistance program, which will be administered through the states.
TAXES New rules allow workers to avoid having to pay half of the Social Security portion now. They can wait and pay it in two installments, half at the end of 2021 and the remainder at the end of 2022.
HEALTH INSURANCE Eleven states and the District of Columbia have established special enrollment periods to allow people to obtain new insurance coverage under the Affordable Care Act. If your income has dwindled to almost nothing, you will most likely be eligible for the federal-state health insurance program known as Medicaid in 36 states and the District of Columbia.
The United States, which has played a critical and unusual role in pushing for an agreement between the Organization of the Petroleum Exporting Countries and Russia, appears to have intervened again to overcome a problem with Mexico.
On Friday, President Andrés Manuel López Obrador of Mexico said that he had struck an agreement with President Trump whereby the United States would cut American oil output by an additional 250,000 barrels per day and Mexico would cut its output by 100,000 barrels.
Mr. Trump committed to the additional cuts “for Mexico, in order to compensate,” Mr. López Obrador said, speaking at his regular morning news conference in Mexico City. It was not immediately clear how Washington would provide this commitment on extra cuts.
Talks to finalize an ambitious but tentative deal to stabilize oil markets from the ravages of the coronavirus pandemic are expected to resume on Friday as energy ministers from the Group of 20 nations hold a teleconference.
On Thursday night, Russia and all but one member of OPEC reached an agreement to cut 10 million barrels a day in production, which amounts to a 23 percent reduction from the group’s baseline of about 44 million barrels a day.
The deal was held up by Mexico, a member of the so-called OPEC Plus group. The country’s energy minister, Rocío Nahle, rejected OPEC’s proposal that it cut production by 400,000 barrels a day, proposing a cut of one-quarter of that amount instead, according to a message on her Twitter account. The agreement is contingent on Mexico’s approval, according to a statement on OPEC’s website.
The terms of the deal and the late-developing snag disappointed the oil markets, which had surged from two-decade lows in late March on the prospect of collective actions being taken to bolster prices and rescue the industry. West Texas Intermediate, the benchmark U.S. crude, ended the day down more than 9 percent to $22.76 a barrel on Thursday.
Oil markets were closed on Friday for the Good Friday holiday.
There are substantial incentives for going ahead with the agreement even if Mexico declines to go along. The cuts are likely to win the approval of the Trump administration, which has been pressuring Saudi Arabia and Russia to cut production to protect the U.S. energy industry.
With global demand forecast to fall by about 25 percent, production will have to fall anyway. No one will buy all the oil, and storage tanks are filling rapidly.
“All producers including Saudi Arabia and Russia will be forced to cut back production regardless, and by codifying the market driven cuts, they get the U.S. off their backs politically,” said Amrita Sen, chief oil analyst at Energy Aspects, a market research firm.
Before the coronavirus pandemic, automation had been gradually replacing human work in a range of jobs, from call centers to warehouses and grocery stores, as companies looked to cut labor costs and improve profit.Before the coronavirus pandemic, automation had been gradually replacing human work in a range of jobs, from call centers to warehouses and grocery stores, as companies looked to cut labor costs and improve profit.
Now, social-distancing directives are prompting more industries to accelerate their use of automation. And as the pandemic intensifies, long-simmering worries about job losses or a broad unease about having machines control vital aspects of daily life could dissipate.Now, social-distancing directives are prompting more industries to accelerate their use of automation. And as the pandemic intensifies, long-simmering worries about job losses or a broad unease about having machines control vital aspects of daily life could dissipate.
“Pre-pandemic, people might have thought we were automating too much,” said Richard Pak, a professor at Clemson University who researches the psychological factors around automation. “This event is going to push people to think what more should be automated.”“Pre-pandemic, people might have thought we were automating too much,” said Richard Pak, a professor at Clemson University who researches the psychological factors around automation. “This event is going to push people to think what more should be automated.”
At supermarkets like Giant Eagle, robots are freeing up employees who previously spent time taking inventory to focus on disinfecting and sanitizing surfaces and processing deliveries to keep shelves stocked. And YouTube said in a blog post that with fewer people in its offices around the world, machines were doing more content moderation.At supermarkets like Giant Eagle, robots are freeing up employees who previously spent time taking inventory to focus on disinfecting and sanitizing surfaces and processing deliveries to keep shelves stocked. And YouTube said in a blog post that with fewer people in its offices around the world, machines were doing more content moderation.
At least 715 pilots at American Airlines have signed up for early retirement, according to the Allied Pilots Association union. Under the terms of the offering, the airline will continue to pay about half of their salaries until they reach the mandatory retirement age of 65. Nearly 4,800 more have signed up to take short-term leave.At least 715 pilots at American Airlines have signed up for early retirement, according to the Allied Pilots Association union. Under the terms of the offering, the airline will continue to pay about half of their salaries until they reach the mandatory retirement age of 65. Nearly 4,800 more have signed up to take short-term leave.
After closing lounges and scaling back food service in flight, airlines are starting to donate their huge stockpiles of food. Delta Air Lines said it was distributing more than 200,000 pounds of perishable food to various charities nationwide and American Airlines said it would donate about 81,000 pounds of food.After closing lounges and scaling back food service in flight, airlines are starting to donate their huge stockpiles of food. Delta Air Lines said it was distributing more than 200,000 pounds of perishable food to various charities nationwide and American Airlines said it would donate about 81,000 pounds of food.
European Union finance ministers agreed Thursday night to a plan calling for more than half a trillion euros worth of new measures to buttress their economies against the onslaught of the coronavirus, but dealt a blow to their worst-hit members, Italy and Spain, by sidestepping their pleas for the bloc to issue joint debt.European Union finance ministers agreed Thursday night to a plan calling for more than half a trillion euros worth of new measures to buttress their economies against the onslaught of the coronavirus, but dealt a blow to their worst-hit members, Italy and Spain, by sidestepping their pleas for the bloc to issue joint debt.
Lear Corporation, a global supplier of car seating and vehicle interiors, said Friday that it would temporarily cuts the salaries of its employees by 20 percent in response to the impact of the coronavirus outbreak. Its chief executive and president, Ray Scott, will have his salary reduced by a further 10 percent for the rest of 2020.Lear Corporation, a global supplier of car seating and vehicle interiors, said Friday that it would temporarily cuts the salaries of its employees by 20 percent in response to the impact of the coronavirus outbreak. Its chief executive and president, Ray Scott, will have his salary reduced by a further 10 percent for the rest of 2020.
Reporting was contributed by Jack Nicas, Daisuke Wakabayashi, Marc Tracy, Jeanna Smialek, Tara Siegel Bernard, Niraj Chokshi, Michael Corkery, David Gelles, Peter S. Goodman, Neil Irwin, Katie Thomas, Sui-Lee Wee, Jeffrey Gettleman, Clifford Krauss, Carlos Tejada, Stanley Reed, Katie Robertson and Daniel Victor. Reporting was contributed by Jack Nicas, Daisuke Wakabayashi, Marc Tracy, Jeanna Smialek, Tara Siegel Bernard, Niraj Chokshi, Michael Corkery, David Gelles, Peter S. Goodman, Neil Irwin, Katie Thomas, Michael Crowley, Kirk Semple, Sui-Lee Wee, Jeffrey Gettleman, Clifford Krauss, Carlos Tejada, Stanley Reed, Katie Robertson and Daniel Victor.