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U.S. Stocks Have Their Best Month Since 1987 U.S. Stocks Have Their Best Month Since 1987
(7 days later)
This briefing has ended. Read the latest developments in the coronavirus outbreak here.This briefing has ended. Read the latest developments in the coronavirus outbreak here.
Stocks fell on Thursday, giving up some of their gains from the day before, after reports that showed millions more Americans applied for weekly unemployment benefits and consumer spending collapsed.Stocks fell on Thursday, giving up some of their gains from the day before, after reports that showed millions more Americans applied for weekly unemployment benefits and consumer spending collapsed.
The S&P 500 closed down nearly 1 percent, but it was a small retreat in an otherwise strong month for Wall Street. Even with the decline on Thursday factored in, the S&P 500 had its best month since January 1987, a gain that came even as it became increasingly clear that the coronavirus crisis was pushing the United States into a dire economic downturn.The S&P 500 closed down nearly 1 percent, but it was a small retreat in an otherwise strong month for Wall Street. Even with the decline on Thursday factored in, the S&P 500 had its best month since January 1987, a gain that came even as it became increasingly clear that the coronavirus crisis was pushing the United States into a dire economic downturn.
The nearly 13 percent gain this month means the S&P 500 is now up roughly 30 percent from its March 23 low. It’s a rally that has surprised even the most ardent bulls.The nearly 13 percent gain this month means the S&P 500 is now up roughly 30 percent from its March 23 low. It’s a rally that has surprised even the most ardent bulls.
“Frankly, I’m shocked by the speed of the rally,” said Julian Emanuel, chief equity and derivatives strategist at the brokerage firm BTIG, who has been expecting a rebound since before the rally began.“Frankly, I’m shocked by the speed of the rally,” said Julian Emanuel, chief equity and derivatives strategist at the brokerage firm BTIG, who has been expecting a rebound since before the rally began.
The rally, even in the face of crushing economic data, highlights investors’ confidence that things will return to normal sooner than they thought when stocks were collapsing in late February and early March.The rally, even in the face of crushing economic data, highlights investors’ confidence that things will return to normal sooner than they thought when stocks were collapsing in late February and early March.
Both the Federal government and the central bank have pumped trillions of dollars into the economy and financial markets, lockdown measures appear to be having some success in reducing rates of infection, and some states are laying out the conditions for reopening.Both the Federal government and the central bank have pumped trillions of dollars into the economy and financial markets, lockdown measures appear to be having some success in reducing rates of infection, and some states are laying out the conditions for reopening.
That does not mean the economy is suddenly going to be back on track.That does not mean the economy is suddenly going to be back on track.
Markets tend to rebound long before any actual improvement in economic fundamentals is apparent, as investors buy shares based on expectations for what will happen later in the year, rather than the current climate. During the last recession, the stock market bottomed in March 2009. But the unemployment rate didn’t begin to drop until October of that year.Markets tend to rebound long before any actual improvement in economic fundamentals is apparent, as investors buy shares based on expectations for what will happen later in the year, rather than the current climate. During the last recession, the stock market bottomed in March 2009. But the unemployment rate didn’t begin to drop until October of that year.
Top Wall Street economists expect the second-quarter economic data to look, well, cataclysmic. J.P. Morgan economists, for example, believe the American economy will shrink at a previously unthinkable 40 percent annual rate in the second quarter. The Congressional Budget Office thinks unemployment could hit 16 percent by the third quarter.Top Wall Street economists expect the second-quarter economic data to look, well, cataclysmic. J.P. Morgan economists, for example, believe the American economy will shrink at a previously unthinkable 40 percent annual rate in the second quarter. The Congressional Budget Office thinks unemployment could hit 16 percent by the third quarter.
It’s also important to recognize that the current rally has been relatively narrow, with an outsize part of the gains for the S&P 500 index attributable to a handful of giant technology companies — Microsoft, Apple, Amazon, Alphabet and Facebook. In April, these companies grew to account for roughly 20 percent of the total value of the S&P.It’s also important to recognize that the current rally has been relatively narrow, with an outsize part of the gains for the S&P 500 index attributable to a handful of giant technology companies — Microsoft, Apple, Amazon, Alphabet and Facebook. In April, these companies grew to account for roughly 20 percent of the total value of the S&P.
The rebound in shares of technology companies — in part because their businesses are seen as benefiting in various ways from stay-at-home orders — has been most evident in the Nasdaq composite, which has nearly erased all of its losses for 2020.The rebound in shares of technology companies — in part because their businesses are seen as benefiting in various ways from stay-at-home orders — has been most evident in the Nasdaq composite, which has nearly erased all of its losses for 2020.
With most of the nation on lockdown, technology companies like Amazon and Apple benefited as consumers found other ways to spend their money.With most of the nation on lockdown, technology companies like Amazon and Apple benefited as consumers found other ways to spend their money.
Apple said on Thursday that its revenue grew by nearly 1 percent in the first three months of the year as the company was able to make up for sales declines in China, which was locked down for much of the quarter because of the coronavirus.Apple said on Thursday that its revenue grew by nearly 1 percent in the first three months of the year as the company was able to make up for sales declines in China, which was locked down for much of the quarter because of the coronavirus.
The company’s income was bolstered by surging sales of its internet services and the Apple Watch and AirPods.The company’s income was bolstered by surging sales of its internet services and the Apple Watch and AirPods.
Apple typically forecasts its sales for the next quarter but declined to do so on Thursday. Analysts expect the current quarter to be much uglier because of virus-related shutdowns around the world.Apple typically forecasts its sales for the next quarter but declined to do so on Thursday. Analysts expect the current quarter to be much uglier because of virus-related shutdowns around the world.
Apple showed confidence in its financial footing though by announcing another $50 billion in stock buybacks.Apple showed confidence in its financial footing though by announcing another $50 billion in stock buybacks.
The spread of the coronavirus played right into the hands of Amazon’s core businesses, as consumers shopped more online and companies spent more on cloud computing. Those two pillars of Amazon’s business drove sales to their highest on record outside of the holiday shopping season, the company said on Thursday.The spread of the coronavirus played right into the hands of Amazon’s core businesses, as consumers shopped more online and companies spent more on cloud computing. Those two pillars of Amazon’s business drove sales to their highest on record outside of the holiday shopping season, the company said on Thursday.
Amazon reported that it had $75.5 billion in sales in the latest quarter, up 26 percent from a year earlier, surpassing analyst expectations. Profit fell about 29 percent, to $2.5 billion, because it cost more to meet the increased customer demand.Amazon reported that it had $75.5 billion in sales in the latest quarter, up 26 percent from a year earlier, surpassing analyst expectations. Profit fell about 29 percent, to $2.5 billion, because it cost more to meet the increased customer demand.
Amazon’s chief executive, Jeff Bezos, signaled that profit may continue to fall in the near future. The company would typically expect to make around $4 billion in operating profit in the next quarter, but “we expect to spend the entirety of that $4 billion, and perhaps a bit more, on Covid-related expenses getting products to customers and keeping employees safe,” he said in a statement.Amazon’s chief executive, Jeff Bezos, signaled that profit may continue to fall in the near future. The company would typically expect to make around $4 billion in operating profit in the next quarter, but “we expect to spend the entirety of that $4 billion, and perhaps a bit more, on Covid-related expenses getting products to customers and keeping employees safe,” he said in a statement.
City officials in Worcester, Mass., ordered the closure of a local Walmart store on Wednesday after it was discovered that a number of the workers had tested positive for the virus.City officials in Worcester, Mass., ordered the closure of a local Walmart store on Wednesday after it was discovered that a number of the workers had tested positive for the virus.
The city said Walmart was complying with the order. The store cannot reopen until all 400 of the workers have been tested and the city’s medical director reviews the results.The city said Walmart was complying with the order. The store cannot reopen until all 400 of the workers have been tested and the city’s medical director reviews the results.
It is the second Walmart to be closed in less than a week. On Friday, a Walmart store in Aurora, Colo., was ordered closed by local health officials after employees and shoppers complained of a lack of social distancing, crowding and employees not wearing face masks.It is the second Walmart to be closed in less than a week. On Friday, a Walmart store in Aurora, Colo., was ordered closed by local health officials after employees and shoppers complained of a lack of social distancing, crowding and employees not wearing face masks.
One employee of the store, an employee’s family member and a third-party contractor had died of the virus, according to the Tri-County Health Department in Colorado. Eleven additional confirmed cases were linked to the outbreak at the store.One employee of the store, an employee’s family member and a third-party contractor had died of the virus, according to the Tri-County Health Department in Colorado. Eleven additional confirmed cases were linked to the outbreak at the store.
The store was reopened on Sunday after a deep cleaning. The agency said Walmart had “enhanced metering of shoppers into the store” and employee screening for illness, using tools supplied by the health department.The store was reopened on Sunday after a deep cleaning. The agency said Walmart had “enhanced metering of shoppers into the store” and employee screening for illness, using tools supplied by the health department.
Mark Zuckerberg said last month that it would remove posts promoting bleach as a cure for the coronavirus, and Twitter last month announced it would delete virus tweets “that could potentially cause harm.” But Facebook, Twitter and YouTube have declined to remove statements by President Trump suggesting disinfectants and ultraviolet light as possible treatments.Mark Zuckerberg said last month that it would remove posts promoting bleach as a cure for the coronavirus, and Twitter last month announced it would delete virus tweets “that could potentially cause harm.” But Facebook, Twitter and YouTube have declined to remove statements by President Trump suggesting disinfectants and ultraviolet light as possible treatments.
By Friday, the day after Mr. Trump’s comments at a White House briefing, mentions of a disinfectant cure on social media and television broadcasts surged to 1.2 million, up from roughly 400,000 on Thursday, according to Zignal Labs, a media insights company. A New York Times analysis found 768 Facebook groups, 277 Facebook pages, nine Instagram accounts and thousands of tweets pushing UV light therapies that were posted after Mr. Trump’s comments and that remained on the sites as of Wednesday.By Friday, the day after Mr. Trump’s comments at a White House briefing, mentions of a disinfectant cure on social media and television broadcasts surged to 1.2 million, up from roughly 400,000 on Thursday, according to Zignal Labs, a media insights company. A New York Times analysis found 768 Facebook groups, 277 Facebook pages, nine Instagram accounts and thousands of tweets pushing UV light therapies that were posted after Mr. Trump’s comments and that remained on the sites as of Wednesday.
The social media companies have always tread delicately when it comes to Mr. Trump. Yet their inaction on posts echoing his remarks on UV lights and disinfectants stands out because the companies have said for weeks that they would not permit false information about the coronavirus to proliferate.The social media companies have always tread delicately when it comes to Mr. Trump. Yet their inaction on posts echoing his remarks on UV lights and disinfectants stands out because the companies have said for weeks that they would not permit false information about the coronavirus to proliferate.
Most of the tech companies developed health misinformation policies “with the expectation that there would be a competent government and reputable health authority to point to,” said Renee DiResta, a technical research manager who studies misinformation at the Stanford Internet Observatory. Given that false information is coming from the White House, the companies have been thrown for a loop, she said.Most of the tech companies developed health misinformation policies “with the expectation that there would be a competent government and reputable health authority to point to,” said Renee DiResta, a technical research manager who studies misinformation at the Stanford Internet Observatory. Given that false information is coming from the White House, the companies have been thrown for a loop, she said.
YouTube said Mr. Trump’s comments did not violate its misinformation policy. Twitter said satire and discussions of Mr. Trump’s remarks that do not include a call to action, as well as Mr. Trump’s comments themselves, did not violate its policies. Facebook, which owns Instagram and WhatsApp, did not respond to requests for comment.YouTube said Mr. Trump’s comments did not violate its misinformation policy. Twitter said satire and discussions of Mr. Trump’s remarks that do not include a call to action, as well as Mr. Trump’s comments themselves, did not violate its policies. Facebook, which owns Instagram and WhatsApp, did not respond to requests for comment.
The Justice Department is looking to root out fraud in the Trump administration’s signature economic rescue program, the Paycheck Protection Program, and has requested access to data from the Small Business Administration and more than a dozen of the largest lenders, the department said Thursday.The Justice Department is looking to root out fraud in the Trump administration’s signature economic rescue program, the Paycheck Protection Program, and has requested access to data from the Small Business Administration and more than a dozen of the largest lenders, the department said Thursday.
The $660 billion program, which provides forgivable loans for small businesses that meet certain requirements, has been riddled with problems from its inception, as the government tried to quickly funnel billions of dollars to small businesses through banks.The $660 billion program, which provides forgivable loans for small businesses that meet certain requirements, has been riddled with problems from its inception, as the government tried to quickly funnel billions of dollars to small businesses through banks.
Updated June 16, 2020 Updated June 22, 2020
A commentary published this month on the website of the British Journal of Sports Medicine points out that covering your face during exercise “comes with issues of potential breathing restriction and discomfort” and requires “balancing benefits versus possible adverse events.” Masks do alter exercise, says Cedric X. Bryant, the president and chief science officer of the American Council on Exercise, a nonprofit organization that funds exercise research and certifies fitness professionals. “In my personal experience,” he says, “heart rates are higher at the same relative intensity when you wear a mask.” Some people also could experience lightheadedness during familiar workouts while masked, says Len Kravitz, a professor of exercise science at the University of New Mexico.
The steroid, dexamethasone, is the first treatment shown to reduce mortality in severely ill patients, according to scientists in Britain. The drug appears to reduce inflammation caused by the immune system, protecting the tissues. In the study, dexamethasone reduced deaths of patients on ventilators by one-third, and deaths of patients on oxygen by one-fifth.The steroid, dexamethasone, is the first treatment shown to reduce mortality in severely ill patients, according to scientists in Britain. The drug appears to reduce inflammation caused by the immune system, protecting the tissues. In the study, dexamethasone reduced deaths of patients on ventilators by one-third, and deaths of patients on oxygen by one-fifth.
The coronavirus emergency relief package gives many American workers paid leave if they need to take time off because of the virus. It gives qualified workers two weeks of paid sick leave if they are ill, quarantined or seeking diagnosis or preventive care for coronavirus, or if they are caring for sick family members. It gives 12 weeks of paid leave to people caring for children whose schools are closed or whose child care provider is unavailable because of the coronavirus. It is the first time the United States has had widespread federally mandated paid leave, and includes people who don’t typically get such benefits, like part-time and gig economy workers. But the measure excludes at least half of private-sector workers, including those at the country’s largest employers, and gives small employers significant leeway to deny leave.The coronavirus emergency relief package gives many American workers paid leave if they need to take time off because of the virus. It gives qualified workers two weeks of paid sick leave if they are ill, quarantined or seeking diagnosis or preventive care for coronavirus, or if they are caring for sick family members. It gives 12 weeks of paid leave to people caring for children whose schools are closed or whose child care provider is unavailable because of the coronavirus. It is the first time the United States has had widespread federally mandated paid leave, and includes people who don’t typically get such benefits, like part-time and gig economy workers. But the measure excludes at least half of private-sector workers, including those at the country’s largest employers, and gives small employers significant leeway to deny leave.
So far, the evidence seems to show it does. A widely cited paper published in April suggests that people are most infectious about two days before the onset of coronavirus symptoms and estimated that 44 percent of new infections were a result of transmission from people who were not yet showing symptoms. Recently, a top expert at the World Health Organization stated that transmission of the coronavirus by people who did not have symptoms was “very rare,” but she later walked back that statement.So far, the evidence seems to show it does. A widely cited paper published in April suggests that people are most infectious about two days before the onset of coronavirus symptoms and estimated that 44 percent of new infections were a result of transmission from people who were not yet showing symptoms. Recently, a top expert at the World Health Organization stated that transmission of the coronavirus by people who did not have symptoms was “very rare,” but she later walked back that statement.
Touching contaminated objects and then infecting ourselves with the germs is not typically how the virus spreads. But it can happen. A number of studies of flu, rhinovirus, coronavirus and other microbes have shown that respiratory illnesses, including the new coronavirus, can spread by touching contaminated surfaces, particularly in places like day care centers, offices and hospitals. But a long chain of events has to happen for the disease to spread that way. The best way to protect yourself from coronavirus — whether it’s surface transmission or close human contact — is still social distancing, washing your hands, not touching your face and wearing masks.Touching contaminated objects and then infecting ourselves with the germs is not typically how the virus spreads. But it can happen. A number of studies of flu, rhinovirus, coronavirus and other microbes have shown that respiratory illnesses, including the new coronavirus, can spread by touching contaminated surfaces, particularly in places like day care centers, offices and hospitals. But a long chain of events has to happen for the disease to spread that way. The best way to protect yourself from coronavirus — whether it’s surface transmission or close human contact — is still social distancing, washing your hands, not touching your face and wearing masks.
A study by European scientists is the first to document a strong statistical link between genetic variations and Covid-19, the illness caused by the coronavirus. Having Type A blood was linked to a 50 percent increase in the likelihood that a patient would need to get oxygen or to go on a ventilator, according to the new study.A study by European scientists is the first to document a strong statistical link between genetic variations and Covid-19, the illness caused by the coronavirus. Having Type A blood was linked to a 50 percent increase in the likelihood that a patient would need to get oxygen or to go on a ventilator, according to the new study.
The unemployment rate fell to 13.3 percent in May, the Labor Department said on June 5, an unexpected improvement in the nation’s job market as hiring rebounded faster than economists expected. Economists had forecast the unemployment rate to increase to as much as 20 percent, after it hit 14.7 percent in April, which was the highest since the government began keeping official statistics after World War II. But the unemployment rate dipped instead, with employers adding 2.5 million jobs, after more than 20 million jobs were lost in April.The unemployment rate fell to 13.3 percent in May, the Labor Department said on June 5, an unexpected improvement in the nation’s job market as hiring rebounded faster than economists expected. Economists had forecast the unemployment rate to increase to as much as 20 percent, after it hit 14.7 percent in April, which was the highest since the government began keeping official statistics after World War II. But the unemployment rate dipped instead, with employers adding 2.5 million jobs, after more than 20 million jobs were lost in April.
Mass protests against police brutality that have brought thousands of people onto the streets in cities across America are raising the specter of new coronavirus outbreaks, prompting political leaders, physicians and public health experts to warn that the crowds could cause a surge in cases. While many political leaders affirmed the right of protesters to express themselves, they urged the demonstrators to wear face masks and maintain social distancing, both to protect themselves and to prevent further community spread of the virus. Some infectious disease experts were reassured by the fact that the protests were held outdoors, saying the open air settings could mitigate the risk of transmission.
States are reopening bit by bit. This means that more public spaces are available for use and more and more businesses are being allowed to open again. The federal government is largely leaving the decision up to states, and some state leaders are leaving the decision up to local authorities. Even if you aren’t being told to stay at home, it’s still a good idea to limit trips outside and your interaction with other people.States are reopening bit by bit. This means that more public spaces are available for use and more and more businesses are being allowed to open again. The federal government is largely leaving the decision up to states, and some state leaders are leaving the decision up to local authorities. Even if you aren’t being told to stay at home, it’s still a good idea to limit trips outside and your interaction with other people.
Common symptoms include fever, a dry cough, fatigue and difficulty breathing or shortness of breath. Some of these symptoms overlap with those of the flu, making detection difficult, but runny noses and stuffy sinuses are less common. The C.D.C. has also added chills, muscle pain, sore throat, headache and a new loss of the sense of taste or smell as symptoms to look out for. Most people fall ill five to seven days after exposure, but symptoms may appear in as few as two days or as many as 14 days.Common symptoms include fever, a dry cough, fatigue and difficulty breathing or shortness of breath. Some of these symptoms overlap with those of the flu, making detection difficult, but runny noses and stuffy sinuses are less common. The C.D.C. has also added chills, muscle pain, sore throat, headache and a new loss of the sense of taste or smell as symptoms to look out for. Most people fall ill five to seven days after exposure, but symptoms may appear in as few as two days or as many as 14 days.
If air travel is unavoidable, there are some steps you can take to protect yourself. Most important: Wash your hands often, and stop touching your face. If possible, choose a window seat. A study from Emory University found that during flu season, the safest place to sit on a plane is by a window, as people sitting in window seats had less contact with potentially sick people. Disinfect hard surfaces. When you get to your seat and your hands are clean, use disinfecting wipes to clean the hard surfaces at your seat like the head and arm rest, the seatbelt buckle, the remote, screen, seat back pocket and the tray table. If the seat is hard and nonporous or leather or pleather, you can wipe that down, too. (Using wipes on upholstered seats could lead to a wet seat and spreading of germs rather than killing them.)If air travel is unavoidable, there are some steps you can take to protect yourself. Most important: Wash your hands often, and stop touching your face. If possible, choose a window seat. A study from Emory University found that during flu season, the safest place to sit on a plane is by a window, as people sitting in window seats had less contact with potentially sick people. Disinfect hard surfaces. When you get to your seat and your hands are clean, use disinfecting wipes to clean the hard surfaces at your seat like the head and arm rest, the seatbelt buckle, the remote, screen, seat back pocket and the tray table. If the seat is hard and nonporous or leather or pleather, you can wipe that down, too. (Using wipes on upholstered seats could lead to a wet seat and spreading of germs rather than killing them.)
Taking one’s temperature to look for signs of fever is not as easy as it sounds, as “normal” temperature numbers can vary, but generally, keep an eye out for a temperature of 100.5 degrees Fahrenheit or higher. If you don’t have a thermometer (they can be pricey these days), there are other ways to figure out if you have a fever, or are at risk of Covid-19 complications.
The C.D.C. has recommended that all Americans wear cloth masks if they go out in public. This is a shift in federal guidance reflecting new concerns that the coronavirus is being spread by infected people who have no symptoms. Until now, the C.D.C., like the W.H.O., has advised that ordinary people don’t need to wear masks unless they are sick and coughing. Part of the reason was to preserve medical-grade masks for health care workers who desperately need them at a time when they are in continuously short supply. Masks don’t replace hand washing and social distancing.
If you’ve been exposed to the coronavirus or think you have, and have a fever or symptoms like a cough or difficulty breathing, call a doctor. They should give you advice on whether you should be tested, how to get tested, and how to seek medical treatment without potentially infecting or exposing others.If you’ve been exposed to the coronavirus or think you have, and have a fever or symptoms like a cough or difficulty breathing, call a doctor. They should give you advice on whether you should be tested, how to get tested, and how to seek medical treatment without potentially infecting or exposing others.
If you’re sick and you think you’ve been exposed to the new coronavirus, the C.D.C. recommends that you call your healthcare provider and explain your symptoms and fears. They will decide if you need to be tested. Keep in mind that there’s a chance — because of a lack of testing kits or because you’re asymptomatic, for instance — you won’t be able to get tested.If you’re sick and you think you’ve been exposed to the new coronavirus, the C.D.C. recommends that you call your healthcare provider and explain your symptoms and fears. They will decide if you need to be tested. Keep in mind that there’s a chance — because of a lack of testing kits or because you’re asymptomatic, for instance — you won’t be able to get tested.
The program is supposed to help small businesses with fewer than 500 employees keep workers on the payroll, but big companies, including some publicly traded firms, have received loans. Some, including restaurant chains like Ruth’s Chris and Shake Shack, agreed to return their loans after a public outcry.The program is supposed to help small businesses with fewer than 500 employees keep workers on the payroll, but big companies, including some publicly traded firms, have received loans. Some, including restaurant chains like Ruth’s Chris and Shake Shack, agreed to return their loans after a public outcry.
But dozens of large companies with financial or legal problems have also received large payouts under the program, according to an analysis of the more than 200 publicly traded companies that have disclosed receiving a total of more than $750 million in bailout loans.But dozens of large companies with financial or legal problems have also received large payouts under the program, according to an analysis of the more than 200 publicly traded companies that have disclosed receiving a total of more than $750 million in bailout loans.
The Treasury Department, which is overseeing terms of the program, has vowed to recoup money from companies and has threatened to hold firms that did not meet the program’s criteria criminally liable.The Treasury Department, which is overseeing terms of the program, has vowed to recoup money from companies and has threatened to hold firms that did not meet the program’s criteria criminally liable.
The Justice Department hopes to use data analytics to identify unusual behavior that could possibly indicate fraudulent applications. The effort is modeled after the type of data analytics work that the department already uses to crack down on health care fraud. Prosecutors have long monitored health data, like billing receipts, to root out potential Medicare fraud.The Justice Department hopes to use data analytics to identify unusual behavior that could possibly indicate fraudulent applications. The effort is modeled after the type of data analytics work that the department already uses to crack down on health care fraud. Prosecutors have long monitored health data, like billing receipts, to root out potential Medicare fraud.
News of the Justice Department’s efforts was first reported by Bloomberg News.News of the Justice Department’s efforts was first reported by Bloomberg News.
The American economy continues to stagger under the weight of the coronavirus pandemic, with another 3.8 million workers filing for unemployment benefits last week.The American economy continues to stagger under the weight of the coronavirus pandemic, with another 3.8 million workers filing for unemployment benefits last week.
The figures announced Thursday by the Labor Department bring the number of workers joining the official jobless ranks in the last six weeks to more than 30 million, and underscore just how dire economic conditions remain.The figures announced Thursday by the Labor Department bring the number of workers joining the official jobless ranks in the last six weeks to more than 30 million, and underscore just how dire economic conditions remain.
Many state agencies still find themselves overwhelmed by the flood of claims, leaving perhaps millions with dwindling resources to pay the rent or put food on the table.Many state agencies still find themselves overwhelmed by the flood of claims, leaving perhaps millions with dwindling resources to pay the rent or put food on the table.
If anything, according to many economists, the job losses may be far worse than government figures indicate. A study by the Economic Policy Institute found that roughly 50 percent more people than counted as filing claims in a recent four-week period may have qualified for benefits but were stymied in applying or did not even try because they found the process too formidable.If anything, according to many economists, the job losses may be far worse than government figures indicate. A study by the Economic Policy Institute found that roughly 50 percent more people than counted as filing claims in a recent four-week period may have qualified for benefits but were stymied in applying or did not even try because they found the process too formidable.
“The problem is even bigger than the data suggest,” said Elise Gould, a senior economist with the institute, a left-leaning research group. “We’re undercounting the economic pain.”“The problem is even bigger than the data suggest,” said Elise Gould, a senior economist with the institute, a left-leaning research group. “We’re undercounting the economic pain.”
American Airlines reported a loss of $2.2 billion in the first quarter of the year, a damaging but expected blow in an industry rocked by the pandemic. The company ended the quarter with $6.8 billion in cash on hand and planned to increase that to $11 billion by the end of June, a recognition that the downturn will be prolonged.American Airlines reported a loss of $2.2 billion in the first quarter of the year, a damaging but expected blow in an industry rocked by the pandemic. The company ended the quarter with $6.8 billion in cash on hand and planned to increase that to $11 billion by the end of June, a recognition that the downturn will be prolonged.
“Never before has our airline, or our industry, faced such a significant challenge,” the company’s chief executive, Doug Parker, said in a statement.“Never before has our airline, or our industry, faced such a significant challenge,” the company’s chief executive, Doug Parker, said in a statement.
Here are the other big companies that reported earnings on Thursday:Here are the other big companies that reported earnings on Thursday:
Twitter said it had an unprofitable quarter for the first time in more than two years, even as more users rushed to the platform. The company lost $8.3 million in the first quarter, breaking a profitability streak that started at the end of 2017. Advertising revenue dropped by 27 percent from March 11 to March 31.Twitter said it had an unprofitable quarter for the first time in more than two years, even as more users rushed to the platform. The company lost $8.3 million in the first quarter, breaking a profitability streak that started at the end of 2017. Advertising revenue dropped by 27 percent from March 11 to March 31.
ConocoPhillips said it was cutting production by 35 percent after posting $1.7 billion loss in the first quarter. The company, the largest independent producer of oil and natural gas in the United States, generated $1.6 billion in cash from its operations in the quarter and was in better financial shape than other oil companies.ConocoPhillips said it was cutting production by 35 percent after posting $1.7 billion loss in the first quarter. The company, the largest independent producer of oil and natural gas in the United States, generated $1.6 billion in cash from its operations in the quarter and was in better financial shape than other oil companies.
Comcast saw its biggest jump in broadband subscribers and now has nearly 27 million internet customers. But it also saw one of its biggest declines in video, with more than 388,000 people cutting their TV subscriptions. Advertising, which includes its NBCUniversal division, dropped more than 2 percent, and its theme parks business plummeted 27 percent.Comcast saw its biggest jump in broadband subscribers and now has nearly 27 million internet customers. But it also saw one of its biggest declines in video, with more than 388,000 people cutting their TV subscriptions. Advertising, which includes its NBCUniversal division, dropped more than 2 percent, and its theme parks business plummeted 27 percent.
Kraft Heinz, which has struggled in recent years as consumers steered clear of its packaged foods, reported on Thursday that first-quarter sales surged 3.3 percent to $6.2 billion as shoppers stocked up on Kraft Macaroni & Cheese, Heinz ketchup and Planters nuts.Kraft Heinz, which has struggled in recent years as consumers steered clear of its packaged foods, reported on Thursday that first-quarter sales surged 3.3 percent to $6.2 billion as shoppers stocked up on Kraft Macaroni & Cheese, Heinz ketchup and Planters nuts.
The maker of Lysol, Reckitt Benckiser, reported a surge in sales for the first quarter of 2020. Revenue was up 13 percent over the period a year earlier. The company also said it saw strong demand for its Mucinex and Norofen cold and pain relief medicines.The maker of Lysol, Reckitt Benckiser, reported a surge in sales for the first quarter of 2020. Revenue was up 13 percent over the period a year earlier. The company also said it saw strong demand for its Mucinex and Norofen cold and pain relief medicines.
Dunkin’ Brands, one of the world’s largest fast-food restaurant companies, reported that sales plunged 19 percent at Dunkin’ Donuts and 23 percent at Baskin-Robbins in the last three weeks of March.Dunkin’ Brands, one of the world’s largest fast-food restaurant companies, reported that sales plunged 19 percent at Dunkin’ Donuts and 23 percent at Baskin-Robbins in the last three weeks of March.
Royal Dutch Shell, Europe’s largest oil company, said on Thursday that it would cut its dividend for the first time since World War II as the company reported a loss of $24 million for the quarter compared with $6 billion in profit in the period a year earlier.Royal Dutch Shell, Europe’s largest oil company, said on Thursday that it would cut its dividend for the first time since World War II as the company reported a loss of $24 million for the quarter compared with $6 billion in profit in the period a year earlier.
Macy’s, one of the biggest department store chains in the United States, announced a plan on Thursday to reopen all of its 775 locations, including Bloomingdales and Bluemercury, in the next six to eight weeks, the latest sign of how eager the nation’s largest retailers are to return to business.Macy’s, one of the biggest department store chains in the United States, announced a plan on Thursday to reopen all of its 775 locations, including Bloomingdales and Bluemercury, in the next six to eight weeks, the latest sign of how eager the nation’s largest retailers are to return to business.
Boeing said on Thursday that it had raised $25 billion in a bond offering in an effort to inject liquidity into its business. As a result, the aerospace giant said, it would not seek additional funding through capital markets or aid from the federal government.Boeing said on Thursday that it had raised $25 billion in a bond offering in an effort to inject liquidity into its business. As a result, the aerospace giant said, it would not seek additional funding through capital markets or aid from the federal government.
United Airlines reported a net loss of $1.7 billion in the first quarter and said it had about $9.6 billion in cash on hand to weather the crisis. The airline expects to burn through cash in the second quarter at an average daily rate of $40 to $45 million, on par with its peers.United Airlines reported a net loss of $1.7 billion in the first quarter and said it had about $9.6 billion in cash on hand to weather the crisis. The airline expects to burn through cash in the second quarter at an average daily rate of $40 to $45 million, on par with its peers.
Tapestry, the company that owns the brands Coach and Kate Spade, said it would open about 40 of its stores in North America on Friday for “contactless curbside or storefront pickup.”Tapestry, the company that owns the brands Coach and Kate Spade, said it would open about 40 of its stores in North America on Friday for “contactless curbside or storefront pickup.”
Reporting was contributed by Sheera Frenkel, Davey Alba, Gregory Schmidt, Michael Corkery, Karen Weise, Jack Nicas, Clifford Krauss, Jack Ewing, Stanley Reed, Kate Conger, Ben Dooley, Nelson D. Schwartz, Alexandra Stevenson, Sapna Maheshwari, David McCabe, Edmund Lee, Mohammed Hadi, Matt Phillips, Ben Casselman, Jason Karaian, Niraj Chokshi, Neal E. Boudette, Steve Lohr and Mike Isaac.Reporting was contributed by Sheera Frenkel, Davey Alba, Gregory Schmidt, Michael Corkery, Karen Weise, Jack Nicas, Clifford Krauss, Jack Ewing, Stanley Reed, Kate Conger, Ben Dooley, Nelson D. Schwartz, Alexandra Stevenson, Sapna Maheshwari, David McCabe, Edmund Lee, Mohammed Hadi, Matt Phillips, Ben Casselman, Jason Karaian, Niraj Chokshi, Neal E. Boudette, Steve Lohr and Mike Isaac.