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| Stocks Wobble as Apple Says It Will Close Stores Again: Live Updates | |
| (32 minutes later) | |
| Apple said it was temporarily closing 11 retail stores across four states amid a surge in the number of coronavirus cases in those areas. | |
| Stores will be closed in Arizona, Florida, North Carolina and South Carolina “with an abundance of caution,” Apple said in a statement. The closings come about one month after Apple started reopening outlets in the United States. The company closed most of its stores globally in mid-March when the pandemic started to take hold in the United States. | |
| Earlier this week, Apple said it was going to reopen 10 stores in New York. The stores are open “by appointment” for customers to pick up purchases or for repairs. Apple said more than 200 of its 271 U.S. retail stores have reopened. | |
| The decision comes amid growing outbreaks in much of the South and West. Officials in Arizona, California, Florida and Oklahoma all reported their highest daily case number yet on Thursday. And Texas became the sixth state in the nation to surpass 100,000 cases, according to a New York Times database. Cases there have doubled over the past month. | |
| As in much of the Sun Belt, testing in South Carolina has increased, but that alone does not account for the surge. About 14 percent of people being tested for the virus in South Carolina are positive, up from about 5 percent a month ago. | |
| AMC Entertainment has reversed course on its mask policy, saying that it will now require patrons to wear face coverings at all times when its movie theaters reopen next month. | AMC Entertainment has reversed course on its mask policy, saying that it will now require patrons to wear face coverings at all times when its movie theaters reopen next month. |
| The reversal comes after Adam Aron, chief executive of AMC, faced intense criticism on social media on Thursday after saying that the company would not require moviegoers to wear masks or be subject to temperature checks at the company’s theaters. Mr. Aron said the company did not want to be “drawn into a political controversy.” | The reversal comes after Adam Aron, chief executive of AMC, faced intense criticism on social media on Thursday after saying that the company would not require moviegoers to wear masks or be subject to temperature checks at the company’s theaters. Mr. Aron said the company did not want to be “drawn into a political controversy.” |
| “This announcement prompted an intense and immediate outcry from our customers, and it is clear from this response that we did not go far enough on the usage of masks,” the company said in a statement. “At AMC Theatres, we think it is absolutely crucial that we listen to our guests. Accordingly, and with the full support of our scientific advisors, we are reversing course and are changing our guest mask policy.” | “This announcement prompted an intense and immediate outcry from our customers, and it is clear from this response that we did not go far enough on the usage of masks,” the company said in a statement. “At AMC Theatres, we think it is absolutely crucial that we listen to our guests. Accordingly, and with the full support of our scientific advisors, we are reversing course and are changing our guest mask policy.” |
| The movie theater chain said that guests who were unwilling to wear a mask would not be admitted or permitted to stay. | The movie theater chain said that guests who were unwilling to wear a mask would not be admitted or permitted to stay. |
| Alamo Drafthouse Cinema said on Friday that it would require face masks in its theaters, saying the safety of patrons and workers could not be compromised. “This is not political,” the theater chain said in a tweet. | Alamo Drafthouse Cinema said on Friday that it would require face masks in its theaters, saying the safety of patrons and workers could not be compromised. “This is not political,” the theater chain said in a tweet. |
| Regal Entertainment Group joined AMC and Alamo Friday afternoon in stating that all movie theater employees and patrons would be required to wear masks. The chain, which had previously said it would require masks be worn only in cities that required them, said that disposable masks would be made available to customers who needed them. | |
| But a rival chain, Cinemark, began reopening some theaters in Texas on Friday without requiring face masks. “It’s a big country out there,” Mark Zoradi, Cinemark’s chief executive, told the entertainment news site Deadline on Wednesday. “There are places that may require it. California may be one. If it’s required in California, we’ll abide by it. There are other places like Texas where it’s not required. In those cases, we’ll highly recommend, but not require it.” | |
| All week long, two competing narratives faced off on Wall Street. | |
| Investors were encouraged by signs that the reopening of businesses is having an immediate positive effect on the economy. But they were battered by worry over a growing number of coronavirus infections around the country. | |
| The tug of war between the two views made for a turbulent week, and Friday was no exception. The S&P 500 fell as much as 1 percent in the afternoon, after having started the day with a solid gain. | |
| The reversal came after Apple said it would temporarily close some stores in Arizona, Florida, North Carolina and South Carolina after the number of new coronavirus cases increased in those states. The number of new cases is increasing in at least 20 states, an analysis by The New York Times found. | |
| The decision by Apple had an immediate impact on the market, with shares of companies that are likely to benefit from a return to normal — airlines and retailers, for example — immediately giving up their gains. Oil prices also gave up their early gains. | |
| Investors also heard a warning from Eric Rosengren, the president of the Federal Reserve Bank of Boston and an influential policy maker within the central bank system, who cited the rising caseloads in South Carolina and Florida as he warned of the economic impact of states reopening before the coronavirus was under control. | |
| In remarks prepared for delivery on Friday, Mr. Rosengren said that because of the virus’s continued spread “and the acceleration of new cases in many states, I expect the economic rebound in the second half of the year to be less than was hoped for at the outset of the pandemic.” | |
| The push and pull this week has come amid mixed reports on the economy. A Labor Department report Thursday showed that another 1.5 million workers had filed for state unemployment benefits. The pace of layoffs has slowed in recent weeks but remains elevated. On Tuesday, the Commerce Department said that retail sales rebounded sharply in May, as stores reopened and governments lifted some restrictions. But there is growing uncertainty about the economic picture going forward. | The push and pull this week has come amid mixed reports on the economy. A Labor Department report Thursday showed that another 1.5 million workers had filed for state unemployment benefits. The pace of layoffs has slowed in recent weeks but remains elevated. On Tuesday, the Commerce Department said that retail sales rebounded sharply in May, as stores reopened and governments lifted some restrictions. But there is growing uncertainty about the economic picture going forward. |
| Concerns about another wave of infections put a stop to a market rally from late March to early June, during which the S&P 500 climbed some 45 percent. Many economists expect governments will now make new plans to bolster business in the face of rising coronavirus cases. | Concerns about another wave of infections put a stop to a market rally from late March to early June, during which the S&P 500 climbed some 45 percent. Many economists expect governments will now make new plans to bolster business in the face of rising coronavirus cases. |
| The president of the Federal Reserve Bank of Boston, Eric Rosengren, said that the Fed had registered 200 banks, large and small, for its emergency credit program that will offer loans to small and midsize businesses. | The president of the Federal Reserve Bank of Boston, Eric Rosengren, said that the Fed had registered 200 banks, large and small, for its emergency credit program that will offer loans to small and midsize businesses. |
| The Fed’s so-called Main Street lending program, which is meant to offer companies access to cheap loans through banks, opened for lender registrations on Monday. The program offers loans with a five-year term, with no principal due for the first two years and interest deferred in the first year. The Fed will buy 95 percent of the lending from bank balance sheets, allowing the lenders to make origination fees while retaining only a slice of the risk. | The Fed’s so-called Main Street lending program, which is meant to offer companies access to cheap loans through banks, opened for lender registrations on Monday. The program offers loans with a five-year term, with no principal due for the first two years and interest deferred in the first year. The Fed will buy 95 percent of the lending from bank balance sheets, allowing the lenders to make origination fees while retaining only a slice of the risk. |
| “These are still early days in the program, and we are seeing a steady stream of interest,” Mr. Rosengren said in a speech released Friday. The regional Fed branch he leads is charged with administering the program. | “These are still early days in the program, and we are seeing a steady stream of interest,” Mr. Rosengren said in a speech released Friday. The regional Fed branch he leads is charged with administering the program. |
| There have been questions about how effective the program will be at stoking lending and borrowing, and the Fed has revised its terms to make it more attractive based on feedback. Still, there have been reports that awareness of the program is lagging. | There have been questions about how effective the program will be at stoking lending and borrowing, and the Fed has revised its terms to make it more attractive based on feedback. Still, there have been reports that awareness of the program is lagging. |
| In the same set of remarks, he warned about the outlook for the economy as some states reopen before the coronavirus is under control. | In the same set of remarks, he warned about the outlook for the economy as some states reopen before the coronavirus is under control. |
| Because of the continued spread of the disease “and the acceleration of new cases in many states, I expect the economic rebound in the second half of the year to be less than was hoped for at the outset of the pandemic,” Mr. Rosengren said. “With low inflation and high unemployment through this year and next, I believe additional policy stimulus is necessary.” | Because of the continued spread of the disease “and the acceleration of new cases in many states, I expect the economic rebound in the second half of the year to be less than was hoped for at the outset of the pandemic,” Mr. Rosengren said. “With low inflation and high unemployment through this year and next, I believe additional policy stimulus is necessary.” |
| As China tries to stifle a new outbreak in Beijing, it is applying something often alien to the instincts of the country’s rulers: restraint. | As China tries to stifle a new outbreak in Beijing, it is applying something often alien to the instincts of the country’s rulers: restraint. |
| The brunt of the government’s measures has been borne by food traders at markets that were sealed off after cases were found, and by the residents of more than four dozen apartment complexes placed under lockdown. But in many other Beijing neighborhoods, the shops, restaurants and even hair salons are still operating. Traffic is a little lighter than usual, but plenty of cars are still on the road. City sidewalks remain busy. | The brunt of the government’s measures has been borne by food traders at markets that were sealed off after cases were found, and by the residents of more than four dozen apartment complexes placed under lockdown. But in many other Beijing neighborhoods, the shops, restaurants and even hair salons are still operating. Traffic is a little lighter than usual, but plenty of cars are still on the road. City sidewalks remain busy. |
| Beijing’s leaders are trying to stamp out the latest outbreak, now at 183 infections after 25 more were announced Friday morning. But they are not crushing the entire city, and its nascent economic revival, with heavy-handed restrictions. | Beijing’s leaders are trying to stamp out the latest outbreak, now at 183 infections after 25 more were announced Friday morning. But they are not crushing the entire city, and its nascent economic revival, with heavy-handed restrictions. |
| The approach contrasts with China’s earlier efforts to contain the virus in the central province of Hubei and its capital city, Wuhan, where the epidemic broke out late last year. For over two months, the city of 11 million was under a tight lockdown that required support from tens of thousands of doctors, party officials and security personnel. The lockdown helped control the outbreak but also stalled the economy. | The approach contrasts with China’s earlier efforts to contain the virus in the central province of Hubei and its capital city, Wuhan, where the epidemic broke out late last year. For over two months, the city of 11 million was under a tight lockdown that required support from tens of thousands of doctors, party officials and security personnel. The lockdown helped control the outbreak but also stalled the economy. |
| If successful, the new approach being taken in Beijing could be a bellwether for how China may handle future outbreaks, which many experts say are almost certain. | If successful, the new approach being taken in Beijing could be a bellwether for how China may handle future outbreaks, which many experts say are almost certain. |
| “You cannot expect people to accept the pain for too long,” said Yanzhong Huang, a senior fellow for global health at the Council on Foreign Relations who has closely followed China’s response to the coronavirus pandemic. “Because then you have unemployment problems and even emotional stresses that could all have huge implications for social and political stability.” | “You cannot expect people to accept the pain for too long,” said Yanzhong Huang, a senior fellow for global health at the Council on Foreign Relations who has closely followed China’s response to the coronavirus pandemic. “Because then you have unemployment problems and even emotional stresses that could all have huge implications for social and political stability.” |
| The employment-based health insurance system in the United States could become another liability in the country’s fight to contain the coronavirus. | The employment-based health insurance system in the United States could become another liability in the country’s fight to contain the coronavirus. |
| Consider Patti Hanks, 62, who recently had ovarian cancer treatment. With her immunity low, she was nervous about returning to her workplace, a store where she would be drawing up financing plans and taking cash payments from customers. The cancer makes her particularly susceptible to severe complications should she contract the virus. | Consider Patti Hanks, 62, who recently had ovarian cancer treatment. With her immunity low, she was nervous about returning to her workplace, a store where she would be drawing up financing plans and taking cash payments from customers. The cancer makes her particularly susceptible to severe complications should she contract the virus. |
| But Ms. Hanks was even more worried about losing her health coverage if she did not go back. Finding a job with health benefits that allowed her to work from home felt like a pipe dream given the economic downturn. | But Ms. Hanks was even more worried about losing her health coverage if she did not go back. Finding a job with health benefits that allowed her to work from home felt like a pipe dream given the economic downturn. |
| So despite her reservations, she returned to work. She wears a mask and makes sure customers sit a good distance away at an L-shaped desk. | So despite her reservations, she returned to work. She wears a mask and makes sure customers sit a good distance away at an L-shaped desk. |
| Pre-existing conditions may motivate other workers like Ms. Hanks to return to work especially fast. Those people need coverage to treat the conditions that make them vulnerable in the first place. In the United States, 61 percent of working-age adults get health insurance through work. | Pre-existing conditions may motivate other workers like Ms. Hanks to return to work especially fast. Those people need coverage to treat the conditions that make them vulnerable in the first place. In the United States, 61 percent of working-age adults get health insurance through work. |
| “It is one of the many ways the U.S. health care system has made us so much more vulnerable to the effects of the pandemic than other countries,” said Larry Levitt, executive vice president for health policy at the Kaiser Family Foundation. “In other countries, you don’t hear about people losing health insurance when they lose their jobs.” | “It is one of the many ways the U.S. health care system has made us so much more vulnerable to the effects of the pandemic than other countries,” said Larry Levitt, executive vice president for health policy at the Kaiser Family Foundation. “In other countries, you don’t hear about people losing health insurance when they lose their jobs.” |
| It’s official: Hertz, the bankrupt car-rental company, has canceled its plan to sell $500 million in new stock. | It’s official: Hertz, the bankrupt car-rental company, has canceled its plan to sell $500 million in new stock. |
| The offering seemed like a good idea only a week ago. Some investors seemed keen to pour money into Hertz’s stock even after the company’s bankruptcy filing last month, so why not offer them more shares to buy? Hertz submitted a plan to a bankruptcy judge, who approved it on Friday. On Monday morning, the company said it was moving forward. But then it hit a snag. | The offering seemed like a good idea only a week ago. Some investors seemed keen to pour money into Hertz’s stock even after the company’s bankruptcy filing last month, so why not offer them more shares to buy? Hertz submitted a plan to a bankruptcy judge, who approved it on Friday. On Monday morning, the company said it was moving forward. But then it hit a snag. |
| The Securities and Exchange Commission told Hertz that it was reviewing the plan. “When you let a company know that the S.E.C. has comments on their disclosure, they do not go forward until those comments are resolved,” the commission’s chairman, Jay Clayton, told CNBC on Wednesday. | The Securities and Exchange Commission told Hertz that it was reviewing the plan. “When you let a company know that the S.E.C. has comments on their disclosure, they do not go forward until those comments are resolved,” the commission’s chairman, Jay Clayton, told CNBC on Wednesday. |
| Trading in the company’s shares was halted midday on Wednesday, and Hertz said in a filing that it had suspended the sale “pending further understanding of the nature and timing” of the S.E.C.’s review. On Thursday afternoon, Hertz said its board had decided that it was “in the best interests of the company” to scrap the sale altogether. | Trading in the company’s shares was halted midday on Wednesday, and Hertz said in a filing that it had suspended the sale “pending further understanding of the nature and timing” of the S.E.C.’s review. On Thursday afternoon, Hertz said its board had decided that it was “in the best interests of the company” to scrap the sale altogether. |
| That decision might end up protecting the very investors who would have bought the shares. After all, when Hertz announced the offering this week, it acknowledged that the new shares could become “worthless” — a common outcome in bankruptcies. | That decision might end up protecting the very investors who would have bought the shares. After all, when Hertz announced the offering this week, it acknowledged that the new shares could become “worthless” — a common outcome in bankruptcies. |
| Cruise lines won’t sail from U.S. ports until Sept. 15, the Cruise Lines International Association said, after its member cruise lines agreed to extend a suspension that expires on July 24. “Although we are confident that future cruises will be healthy and safe, and will fully reflect the latest protective measures, we also feel that it is appropriate to err on the side of caution to help ensure the best interests of our passengers and crewmembers,” the association said in a statement. | Cruise lines won’t sail from U.S. ports until Sept. 15, the Cruise Lines International Association said, after its member cruise lines agreed to extend a suspension that expires on July 24. “Although we are confident that future cruises will be healthy and safe, and will fully reflect the latest protective measures, we also feel that it is appropriate to err on the side of caution to help ensure the best interests of our passengers and crewmembers,” the association said in a statement. |
| The British government said Friday that the national debt, at 1.95 trillion pounds ($2.4 trillion), now exceeded the country’s gross domestic product, the first time this has happened in 57 years. The ratio of debt to G.D.P., which reached 100.9 percent at the end of May, has risen sharply as the government has borrowed heavily to finance programs to support the economy during the pandemic, and as the economy has contracted because of lockdowns to curb the spread of the virus. | The British government said Friday that the national debt, at 1.95 trillion pounds ($2.4 trillion), now exceeded the country’s gross domestic product, the first time this has happened in 57 years. The ratio of debt to G.D.P., which reached 100.9 percent at the end of May, has risen sharply as the government has borrowed heavily to finance programs to support the economy during the pandemic, and as the economy has contracted because of lockdowns to curb the spread of the virus. |
| Reporting was contributed by Katie Robertson, Mihir Zaveri, Gillian Friedman, Daisuke Wakabayashi, Jeanna Smialek, Keith Bradsher, Chris Buckley, Sarah Kliff, Mohammed Hadi, Niraj Chokshi, Jenny Gross, Mike Ives, Brooks Barnes, Gregory Schmidt and Kevin Granville. | Reporting was contributed by Katie Robertson, Mihir Zaveri, Gillian Friedman, Daisuke Wakabayashi, Jeanna Smialek, Keith Bradsher, Chris Buckley, Sarah Kliff, Mohammed Hadi, Niraj Chokshi, Jenny Gross, Mike Ives, Brooks Barnes, Gregory Schmidt and Kevin Granville. |