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Stocks Crater as Economic Warnings Rattle Confidence: Live Updates Economic Warnings Rattle Markets
(about 8 hours later)
This briefing is no longer updating. The latest developments can be found here.
Stocks suffered their sharpest daily decline in three months on Thursday, as grim economic forecasts and a worrisome uptick in new coronavirus cases rattled investors’ confidence.Stocks suffered their sharpest daily decline in three months on Thursday, as grim economic forecasts and a worrisome uptick in new coronavirus cases rattled investors’ confidence.
The S&P 500 fell nearly 6 percent, and the Dow Jones industrial average fell by nearly 7 percent. Oil prices also cratered, reflecting the sudden unease that swept across financial markets.The S&P 500 fell nearly 6 percent, and the Dow Jones industrial average fell by nearly 7 percent. Oil prices also cratered, reflecting the sudden unease that swept across financial markets.
Stocks had been on an upward trajectory for weeks, a rally that stood in stark contrast to a collapse in economic activity but showed that investors had been betting on a quick recovery as businesses reopened and states lifted stay-at-home restrictions. By Monday, the S&P 500 had climbed about 45 percent from its lows in late March and recouped all of its losses for the year.Stocks had been on an upward trajectory for weeks, a rally that stood in stark contrast to a collapse in economic activity but showed that investors had been betting on a quick recovery as businesses reopened and states lifted stay-at-home restrictions. By Monday, the S&P 500 had climbed about 45 percent from its lows in late March and recouped all of its losses for the year.
After such a fast rally — the gains had been the quickest rebound from a low since 1933 — a reversal was to be expected, and a dour reading on the state of the economy from the Federal Reserve on Wednesday seemed to provide the trigger. The central bank forecast that the unemployment rate could stay above 9 percent this year and would be high for the next several years.After such a fast rally — the gains had been the quickest rebound from a low since 1933 — a reversal was to be expected, and a dour reading on the state of the economy from the Federal Reserve on Wednesday seemed to provide the trigger. The central bank forecast that the unemployment rate could stay above 9 percent this year and would be high for the next several years.
At the news conference that followed that announcement, the Federal Reserve chair, Jerome H. Powell, warned that the depth of the downturn and pace of the recovery remained “extraordinarily uncertain.”At the news conference that followed that announcement, the Federal Reserve chair, Jerome H. Powell, warned that the depth of the downturn and pace of the recovery remained “extraordinarily uncertain.”
Other economic updates continue to confirm that the economy remains in dire shape. On Thursday, the U.S. government reported that another 1.5 million people filed for state unemployment claims last week.Other economic updates continue to confirm that the economy remains in dire shape. On Thursday, the U.S. government reported that another 1.5 million people filed for state unemployment claims last week.
“The market was very overbought and ripe for a pull back,” wrote Matt Maley, chief market strategist at Miller Tabak, an asset management firm on Thursday. “Powell’s comments yesterday and concerns over a second wave have caused the decline to take place more quickly than we thought.”“The market was very overbought and ripe for a pull back,” wrote Matt Maley, chief market strategist at Miller Tabak, an asset management firm on Thursday. “Powell’s comments yesterday and concerns over a second wave have caused the decline to take place more quickly than we thought.”
Wall Street analysts have long cautioned that another wave of coronavirus cases that lead to a new round of stay-at-home restrictions and more layoffs could startle investors, who have recently seemed unconcerned that prices for stocks have grown untethered from the bleak economic fundamentals facing consumers and companies.Wall Street analysts have long cautioned that another wave of coronavirus cases that lead to a new round of stay-at-home restrictions and more layoffs could startle investors, who have recently seemed unconcerned that prices for stocks have grown untethered from the bleak economic fundamentals facing consumers and companies.
Public health officials have warned that despite efforts to loosen virus-related restrictions that have curtailed economic activity, the pandemic is far from finished. Coronavirus infections were rising in 21 states on Thursday, as cases in the United States topped two million.Public health officials have warned that despite efforts to loosen virus-related restrictions that have curtailed economic activity, the pandemic is far from finished. Coronavirus infections were rising in 21 states on Thursday, as cases in the United States topped two million.
“This market rebounded so far, so fast — as if all the issues related to the pandemic were behind us,” wrote Doug Rivelli, president of institutional brokerage firm Abel Noser in New York. “So any data to counter that view was bound to hit the markets.”“This market rebounded so far, so fast — as if all the issues related to the pandemic were behind us,” wrote Doug Rivelli, president of institutional brokerage firm Abel Noser in New York. “So any data to counter that view was bound to hit the markets.”
Nearly every stock in the S&P 500 was lower Thursday, with energy companies, airlines and retailers all faring poorly — trading that highlighted the sudden shift in sentiment among investors. Here are the standouts:Nearly every stock in the S&P 500 was lower Thursday, with energy companies, airlines and retailers all faring poorly — trading that highlighted the sudden shift in sentiment among investors. Here are the standouts:
Cruise ship operators and airlines have something of a barometer of optimism about a return to normal, rising sharply in recent weeks as travel began to tick higher. On Thursday, Norwegian Cruise Line, Carnival, United Airlines and American Airlines all fell sharply. Aircraft maker Boeing, which has an outsize influence on the Dow Jones industrial average, also plunged.Cruise ship operators and airlines have something of a barometer of optimism about a return to normal, rising sharply in recent weeks as travel began to tick higher. On Thursday, Norwegian Cruise Line, Carnival, United Airlines and American Airlines all fell sharply. Aircraft maker Boeing, which has an outsize influence on the Dow Jones industrial average, also plunged.
The mall operator Simon Property Group was also down. Simon Property’s shares had rallied recently as state governments allowed stores to reopen, and some retailers said they were seeing a quick bounce-back in demand.The mall operator Simon Property Group was also down. Simon Property’s shares had rallied recently as state governments allowed stores to reopen, and some retailers said they were seeing a quick bounce-back in demand.
With crude oil falling more than 8 percent, reflecting a resurgence of concerns about the economy, energy companies — like Halliburton and Occidental Petroleum — were sharply lower.With crude oil falling more than 8 percent, reflecting a resurgence of concerns about the economy, energy companies — like Halliburton and Occidental Petroleum — were sharply lower.
Target, Walmart, and Netflix fared better, but were still slightly lower by Thursday afternoon. All three had done well during the first round of pandemic-related closures, with consumers shopping for staples online and signing up for streaming subscriptions as they stayed home.Target, Walmart, and Netflix fared better, but were still slightly lower by Thursday afternoon. All three had done well during the first round of pandemic-related closures, with consumers shopping for staples online and signing up for streaming subscriptions as they stayed home.
The Russell 2000 fell more than 7 percent. The companies in the Russell 2000 are smaller and less global in nature, making the index especially sensitive to the outlook for the economy.The Russell 2000 fell more than 7 percent. The companies in the Russell 2000 are smaller and less global in nature, making the index especially sensitive to the outlook for the economy.
The Labor Department said Thursday that 1.5 million Americans filed new state unemployment claims last week — the lowest number since the coronavirus pandemic shut down much of the economy in March, but far above normal levels.The Labor Department said Thursday that 1.5 million Americans filed new state unemployment claims last week — the lowest number since the coronavirus pandemic shut down much of the economy in March, but far above normal levels.
The weekly report on unemployment claims comes after the government reported that jobs rebounded last month and that the unemployment rate fell unexpectedly to 13.3 percent. Correcting for a classification error, the actual rate was closer to 16.4 percent — still lower than in April, but higher than at any other point since the Great Depression.The weekly report on unemployment claims comes after the government reported that jobs rebounded last month and that the unemployment rate fell unexpectedly to 13.3 percent. Correcting for a classification error, the actual rate was closer to 16.4 percent — still lower than in April, but higher than at any other point since the Great Depression.
A further 700,000 workers who were self-employed or otherwise ineligible for state jobless benefits filed new claims for Pandemic Unemployment Assistance, a federal aid program.A further 700,000 workers who were self-employed or otherwise ineligible for state jobless benefits filed new claims for Pandemic Unemployment Assistance, a federal aid program.
The overall number of workers collecting state benefits fell slightly in the most recent seasonally adjusted tally, to 20.9 million in the week that ended May 30, from a revised 21.3 million the previous week.The overall number of workers collecting state benefits fell slightly in the most recent seasonally adjusted tally, to 20.9 million in the week that ended May 30, from a revised 21.3 million the previous week.
Jerome H. Powell, the Federal Reserve chair, warned on Wednesday that the economic pain could last for years and that there would be “a significant chunk” — millions of workers — “who don’t get to go back to their old job, and there may not be a job in that industry for them for some time.”Jerome H. Powell, the Federal Reserve chair, warned on Wednesday that the economic pain could last for years and that there would be “a significant chunk” — millions of workers — “who don’t get to go back to their old job, and there may not be a job in that industry for them for some time.”
Mr. Powell said that “it’s possible Congress will need to do more,” but a divide has arisen on Capitol Hill over whether to extend a $600 weekly supplement to state unemployment benefits beyond July 31, as Democrats advocate, or to pare or halt it, possibly replacing it with government incentives to return to work, as some Republicans have proposed.Mr. Powell said that “it’s possible Congress will need to do more,” but a divide has arisen on Capitol Hill over whether to extend a $600 weekly supplement to state unemployment benefits beyond July 31, as Democrats advocate, or to pare or halt it, possibly replacing it with government incentives to return to work, as some Republicans have proposed.
Treasury Secretary Steven Mnuchin said on Thursday that he was “very seriously considering” backing another round of economic stimulus payments to Americans as part of another relief package.Treasury Secretary Steven Mnuchin said on Thursday that he was “very seriously considering” backing another round of economic stimulus payments to Americans as part of another relief package.
The Trump administration is considering a range of measures to inject more money into the economy, which is facing its deepest downturn since the Great Depression as a result of the coronavirus pandemic. The House of Representatives passed a $3 trillion pandemic relief bill last month, but Senate Republicans and the White House have dismissed that as dead on arrival.The Trump administration is considering a range of measures to inject more money into the economy, which is facing its deepest downturn since the Great Depression as a result of the coronavirus pandemic. The House of Representatives passed a $3 trillion pandemic relief bill last month, but Senate Republicans and the White House have dismissed that as dead on arrival.
Negotiations between the White House and lawmakers are expected to get underway next month. Mr. Mnuchin has said he would prefer additional stimulus to focus on specific industries that have been hit hardest by the pandemic, but direct payments to individuals would have the benefit of raising consumer spending more broadly.Negotiations between the White House and lawmakers are expected to get underway next month. Mr. Mnuchin has said he would prefer additional stimulus to focus on specific industries that have been hit hardest by the pandemic, but direct payments to individuals would have the benefit of raising consumer spending more broadly.
“It’s a very efficient way for us to deliver money into the economy,” Mr. Mnuchin said in a briefing with reporters on Thursday, noting that for people who still have jobs, the money is akin to a tax cut.“It’s a very efficient way for us to deliver money into the economy,” Mr. Mnuchin said in a briefing with reporters on Thursday, noting that for people who still have jobs, the money is akin to a tax cut.
Mr. Mnuchin said he remained optimistic that the economy would rebound during the second half of the year and he played down gloomy projections from the Federal Reserve this week that predicted that the unemployment rate could be close to 10 percent at the end of the year. The Treasury secretary said that traditional economic models are poorly equipped to predict the impact of a pandemic.Mr. Mnuchin said he remained optimistic that the economy would rebound during the second half of the year and he played down gloomy projections from the Federal Reserve this week that predicted that the unemployment rate could be close to 10 percent at the end of the year. The Treasury secretary said that traditional economic models are poorly equipped to predict the impact of a pandemic.
The Treasury secretary said he believed that it was unlikely that the economy would be shut down again if there was a second wave of the virus, but he acknowledged that there was more work to be done to get businesses back on track. He pointed to the need for additional incentives such as tax credits to get firms to hire workers and tax deductions that would entice workers to eat out at restaurants.The Treasury secretary said he believed that it was unlikely that the economy would be shut down again if there was a second wave of the virus, but he acknowledged that there was more work to be done to get businesses back on track. He pointed to the need for additional incentives such as tax credits to get firms to hire workers and tax deductions that would entice workers to eat out at restaurants.
“High unemployment is unacceptable,” Mr. Mnuchin said. “We have more work to do.”“High unemployment is unacceptable,” Mr. Mnuchin said. “We have more work to do.”
Instacart, a grocery delivery start-up based in San Francisco, on Thursday raised $225 million in new funding and nearly doubled its valuation to $13.7 billion, as it benefits from a surge in demand during the pandemic.Instacart, a grocery delivery start-up based in San Francisco, on Thursday raised $225 million in new funding and nearly doubled its valuation to $13.7 billion, as it benefits from a surge in demand during the pandemic.
Apoorva Mehta, Instacart’s founder and chief executive, said in a statement that the virus had led to major changes in the way that people shopped for food.Apoorva Mehta, Instacart’s founder and chief executive, said in a statement that the virus had led to major changes in the way that people shopped for food.
“This pandemic has fundamentally reshaped the way people think about grocery and e-commerce,” he said.“This pandemic has fundamentally reshaped the way people think about grocery and e-commerce,” he said.
Instacart’s new funding, led by DST Global and General Catalyst, reflects an overnight shift in the fortunes of delivery start-ups. Instacart, DoorDash and Postmates have faced skepticism over whether they could turn a profit and their business models, which rely on armies of contract workers, have been subject to regulatory scrutiny and worker complaints.Instacart’s new funding, led by DST Global and General Catalyst, reflects an overnight shift in the fortunes of delivery start-ups. Instacart, DoorDash and Postmates have faced skepticism over whether they could turn a profit and their business models, which rely on armies of contract workers, have been subject to regulatory scrutiny and worker complaints.
Updated June 5, 2020
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.
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.
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.
Exercise researchers and physicians have some blunt advice for those of us aiming to return to regular exercise now: Start slowly and then rev up your workouts, also slowly. American adults tended to be about 12 percent less active after the stay-at-home mandates began in March than they were in January. But there are steps you can take to ease your way back into regular exercise safely. First, “start at no more than 50 percent of the exercise you were doing before Covid,” says Dr. Monica Rho, the chief of musculoskeletal medicine at the Shirley Ryan AbilityLab in Chicago. Thread in some preparatory squats, too, she advises. “When you haven’t been exercising, you lose muscle mass.” Expect some muscle twinges after these preliminary, post-lockdown sessions, especially a day or two later. But sudden or increasing pain during exercise is a clarion call to stop and return home.
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.
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.
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.)
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’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.
Instacart’s grocery shoppers have protested the company’s practices, including its lack of hazard pay and protective gear during the pandemic. Last year, the start-up laid off employees after a partnership with Whole Foods ended.Instacart’s grocery shoppers have protested the company’s practices, including its lack of hazard pay and protective gear during the pandemic. Last year, the start-up laid off employees after a partnership with Whole Foods ended.
In March, when Americans began to quarantine at home, Instacart usage exploded. Order volume in the last three months increased fivefold compared with last year, the company said. Instacart hired 300,000 workers to meet the demand and thousands of new stores. It also added bonuses and paid sick leave for workers diagnosed with the virus.In March, when Americans began to quarantine at home, Instacart usage exploded. Order volume in the last three months increased fivefold compared with last year, the company said. Instacart hired 300,000 workers to meet the demand and thousands of new stores. It also added bonuses and paid sick leave for workers diagnosed with the virus.
The coronavirus is threatening countless places that people loved and that made their communities special — like the Hatch, in Oakland, Calif.The coronavirus is threatening countless places that people loved and that made their communities special — like the Hatch, in Oakland, Calif.
The night before the lockdown started in California, Times reporter Jack Nicas persuaded the staff of his local watering hole to share their finances and lives over the next two months.The night before the lockdown started in California, Times reporter Jack Nicas persuaded the staff of his local watering hole to share their finances and lives over the next two months.
Kenny Bloom, a bartender, was fairly zen as the staff served one last night of drinks. “Am I worried? Of course I’m worried. Is it the end of the world, though? No,” he said. “If society crashes, whatever. We’ll rebuild it.”Kenny Bloom, a bartender, was fairly zen as the staff served one last night of drinks. “Am I worried? Of course I’m worried. Is it the end of the world, though? No,” he said. “If society crashes, whatever. We’ll rebuild it.”
Antoine Towers, the bouncer, was more fatalistic. He forecast riots. “Three weeks of not making any money?” he said, standing outside the bar. “People are going to do what they have to do.”Antoine Towers, the bouncer, was more fatalistic. He forecast riots. “Three weeks of not making any money?” he said, standing outside the bar. “People are going to do what they have to do.”
Santos, a Guatemalan immigrant, pressed burgers to the grill. He and his six children in the Bay Area had all received word that day that they no longer had jobs. He planned to return to the three-bedroom house on the outskirts of Oakland that he shared with 11 family members and stay put.Santos, a Guatemalan immigrant, pressed burgers to the grill. He and his six children in the Bay Area had all received word that day that they no longer had jobs. He planned to return to the three-bedroom house on the outskirts of Oakland that he shared with 11 family members and stay put.
“I want to respect the law,” he said in Spanish. “But my worry is my rent, food.”“I want to respect the law,” he said in Spanish. “But my worry is my rent, food.”
By early April, weeks into joblessness, he was still optimistic. He had begun taking morning walks in the hills and leading nightly family prayer circles. “Almost every day, we are praying that God takes control,” said Santos, who asked to be identified only by his first name because of his family’s immigration status.By early April, weeks into joblessness, he was still optimistic. He had begun taking morning walks in the hills and leading nightly family prayer circles. “Almost every day, we are praying that God takes control,” said Santos, who asked to be identified only by his first name because of his family’s immigration status.
Standing in the driveway, amid scattered children’s toys and bags of empty cans collected from the Hatch, he said the family had just barely made their $2,860 rent for March, plus about $500 more for utilities. He and his children had applied for jobs at a recycling plant and a tortilla-chip factory, but were turned away. “We are OK right now, assuming this ends in a week or two,” he said. “But if this goes on longer, then it really worries me.”Standing in the driveway, amid scattered children’s toys and bags of empty cans collected from the Hatch, he said the family had just barely made their $2,860 rent for March, plus about $500 more for utilities. He and his children had applied for jobs at a recycling plant and a tortilla-chip factory, but were turned away. “We are OK right now, assuming this ends in a week or two,” he said. “But if this goes on longer, then it really worries me.”
The coronavirus pandemic has sent economies into recession and reduced government revenue, so some countries are taking a politically perilous path: removing restraints on electricity and petroleum prices.The coronavirus pandemic has sent economies into recession and reduced government revenue, so some countries are taking a politically perilous path: removing restraints on electricity and petroleum prices.
Nigeria and Tunisia have lowered fuel subsidies in recent weeks, and India has raised taxes on gasoline and diesel fuel. Sudanese officials plan to replace some subsidies with direct cash payments to the poor. Venezuela, where the economy was collapsing before the pandemic, has partly reversed decades of gasoline subsidies. And the state-owned electric utility in Dubai is seeking to raise rates for the first time in a generation.Nigeria and Tunisia have lowered fuel subsidies in recent weeks, and India has raised taxes on gasoline and diesel fuel. Sudanese officials plan to replace some subsidies with direct cash payments to the poor. Venezuela, where the economy was collapsing before the pandemic, has partly reversed decades of gasoline subsidies. And the state-owned electric utility in Dubai is seeking to raise rates for the first time in a generation.
In contrast to the recent past, elected leaders are facing little political blowback for taking away subsidies and raising taxes. That’s because the prices of oil, natural gas and other fuels have collapsed in recent months. In addition, driving, flying and industrial activity have dropped off sharply.In contrast to the recent past, elected leaders are facing little political blowback for taking away subsidies and raising taxes. That’s because the prices of oil, natural gas and other fuels have collapsed in recent months. In addition, driving, flying and industrial activity have dropped off sharply.
But that could change once world energy prices shake off the pandemic’s effects. Energy subsidies are often taken for granted outside the halls of power. But they constitute vital policy choices that weigh on government budgets and economic development.But that could change once world energy prices shake off the pandemic’s effects. Energy subsidies are often taken for granted outside the halls of power. But they constitute vital policy choices that weigh on government budgets and economic development.
“Governments are caught in a dilemma,” said Jim Krane, an energy expert at Rice University who has studied subsidies. “Do they want to protect the poor who may have lost their jobs and incomes, or do they want to take action against the pernicious long-term cost to their budgets?”“Governments are caught in a dilemma,” said Jim Krane, an energy expert at Rice University who has studied subsidies. “Do they want to protect the poor who may have lost their jobs and incomes, or do they want to take action against the pernicious long-term cost to their budgets?”
Lululemon, the premium athleisure brand, said on Thursday that its sales in the first quarter fell 17 percent to $652 million, showing that not even makers of comfortable, stretchy clothing have been spared during the pandemic. The company said that as of June 10, 295 of its 489 stores had reopened, and that e-commerce sales made up more than half of its first quarter revenue, compared with 27 percent in the same period last year. Still, unlike most other retailers, it managed to post a profit of $28.6 million.Lululemon, the premium athleisure brand, said on Thursday that its sales in the first quarter fell 17 percent to $652 million, showing that not even makers of comfortable, stretchy clothing have been spared during the pandemic. The company said that as of June 10, 295 of its 489 stores had reopened, and that e-commerce sales made up more than half of its first quarter revenue, compared with 27 percent in the same period last year. Still, unlike most other retailers, it managed to post a profit of $28.6 million.
Boeing has asked a major supplier of parts for its troubled 737 Max jet to stop work on four Max fuselages and not to start work on 16 more, which were planned for delivery this year, according to the supplier, Spirit AeroSystems. Based on that request and further correspondence with Boeing, Spirit said it expected to cut back work it had planned on 125 of the jets and would furlough some employees on the project for three weeks starting Monday.Boeing has asked a major supplier of parts for its troubled 737 Max jet to stop work on four Max fuselages and not to start work on 16 more, which were planned for delivery this year, according to the supplier, Spirit AeroSystems. Based on that request and further correspondence with Boeing, Spirit said it expected to cut back work it had planned on 125 of the jets and would furlough some employees on the project for three weeks starting Monday.
Rose Marcario, the chief executive of Patagonia for 12 years, is stepping down effective June 12, the outdoors brand said on Wednesday evening. It did not give a reason for her departure. Patagonia’s sales have dropped 50 percent in North America because of the coronavirus pandemic. The company’s transition will be led by Doug Freeman, its chief operating officer.Rose Marcario, the chief executive of Patagonia for 12 years, is stepping down effective June 12, the outdoors brand said on Wednesday evening. It did not give a reason for her departure. Patagonia’s sales have dropped 50 percent in North America because of the coronavirus pandemic. The company’s transition will be led by Doug Freeman, its chief operating officer.
Just Eat Takeaway said on Wednesday that it had agreed to buy Grubhub for $7.3 billion, a deal that would give the European company a foothold in the United States. Uber had been in talks to buy Grubhub, but those discussions foundered over price and regulatory concerns, said people with knowledge of the discussions, who were not authorized to speak publicly.Just Eat Takeaway said on Wednesday that it had agreed to buy Grubhub for $7.3 billion, a deal that would give the European company a foothold in the United States. Uber had been in talks to buy Grubhub, but those discussions foundered over price and regulatory concerns, said people with knowledge of the discussions, who were not authorized to speak publicly.
Reporting was contributed by Sapna Maheshwari, Alan Rappeport, Niraj Chokshi, Tiffany Hsu, Clifford Krauss, Erin Griffith, Jack Nicas, Li Yuan, Mohammed Hadi, Kate Conger, Adam Satariano, Michael J. de la Merced, Brooks Barnes, Carlos Tejada and Nicole Sperling.Reporting was contributed by Sapna Maheshwari, Alan Rappeport, Niraj Chokshi, Tiffany Hsu, Clifford Krauss, Erin Griffith, Jack Nicas, Li Yuan, Mohammed Hadi, Kate Conger, Adam Satariano, Michael J. de la Merced, Brooks Barnes, Carlos Tejada and Nicole Sperling.