This article is from the source 'nytimes' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at https://www.nytimes.com/2020/07/01/business/stock-market-today-coronavirus.html
The article has changed 20 times. There is an RSS feed of changes available.
| Version 0 | Version 1 |
|---|---|
| Stock Markets Edge Lower: Live Business Updates | Stock Markets Edge Lower: Live Business Updates |
| (32 minutes later) | |
| U.S. stock futures edged downward on Wednesday as investors started a new quarter on a cautious note, balancing tentative signs of economic resilience and a steady climb in coronavirus cases in the United States. | |
| European markets were modestly lower, following a mixed day in Asia. U.S. Treasuries drifted lower, a cautionary sign from investors, and gold continued its steady rise over recent weeks as a safe haven. But futures for crude oil were rising, which could signal expectations of rising demand as economies reopen. | |
| Markets on Tuesday completed a topsy-turvy first half of 2020. Over the course of six months, stocks on Wall Street experienced their biggest quarter-to-quarter swing in more than 80 years, propelled by the global pandemic and economic shutdowns, followed by extra big helpings of fiscal stimulus by central banks. | Markets on Tuesday completed a topsy-turvy first half of 2020. Over the course of six months, stocks on Wall Street experienced their biggest quarter-to-quarter swing in more than 80 years, propelled by the global pandemic and economic shutdowns, followed by extra big helpings of fiscal stimulus by central banks. |
| In the three months that just ended, the S&P 500 rose nearly 20 percent, the best calendar quarter for the broad market index since 1998. | In the three months that just ended, the S&P 500 rose nearly 20 percent, the best calendar quarter for the broad market index since 1998. |
| What’s ahead is anyone’s call. In the United States, the world’s largest economy, more than 48,000 coronavirus cases were announced on Tuesday, the most of any day of the pandemic. Dr. Anthony S. Fauci, the United States’ top infectious disease expert, said that virus’s march across states in the South and the West “puts the entire country at risk.” | What’s ahead is anyone’s call. In the United States, the world’s largest economy, more than 48,000 coronavirus cases were announced on Tuesday, the most of any day of the pandemic. Dr. Anthony S. Fauci, the United States’ top infectious disease expert, said that virus’s march across states in the South and the West “puts the entire country at risk.” |
| Lawmakers continue to look for ways to respond to the crisis, and the U.S. Senate on Tuesday agreed to extend the application period for a relief program for small businesses, granting five additional weeks for the remaining money left in the program to be spent. The program still has about $130 billion available. | Lawmakers continue to look for ways to respond to the crisis, and the U.S. Senate on Tuesday agreed to extend the application period for a relief program for small businesses, granting five additional weeks for the remaining money left in the program to be spent. The program still has about $130 billion available. |
| Germany on Wednesday reported a small increase in unemployment, but the overall figure — 6.2 percent in May — suggested that efforts to keep people on payrolls through government support schemes, a strategy used in several European countries, may be dampening the chance of widespread joblessness. | Germany on Wednesday reported a small increase in unemployment, but the overall figure — 6.2 percent in May — suggested that efforts to keep people on payrolls through government support schemes, a strategy used in several European countries, may be dampening the chance of widespread joblessness. |
| The Senate on Tuesday evening approved extending the application period for a relief program for small businesses, granting five additional weeks for the remaining money left in the program to be used. | The Senate on Tuesday evening approved extending the application period for a relief program for small businesses, granting five additional weeks for the remaining money left in the program to be used. |
| Less than four hours before the Paycheck Protection Program was scheduled to close with $130 billion still available for loans to small businesses seeking to maintain their payrolls, the Senate approved extending the application period and allowing small businesses to receive aid until Aug. 8. | Less than four hours before the Paycheck Protection Program was scheduled to close with $130 billion still available for loans to small businesses seeking to maintain their payrolls, the Senate approved extending the application period and allowing small businesses to receive aid until Aug. 8. |
| The legislation now heads to the House, and will require President Trump’s signature for the program to continue. “The resources are there,” said Senator Benjamin L. Cardin, Democrat of Maryland and one of the architects of the program. “The need is there. We just need to change the date.” | The legislation now heads to the House, and will require President Trump’s signature for the program to continue. “The resources are there,” said Senator Benjamin L. Cardin, Democrat of Maryland and one of the architects of the program. “The need is there. We just need to change the date.” |
| The unexpected approval of the extension, which required agreement from all 100 senators, came as lawmakers began to debate the contours of another coronavirus relief package. With multiple parts of the $2.2 trillion stimulus law set to expire at the end of July and new outbreaks forcing many states to slow efforts to reopen their economies, lawmakers widely recognize that another measure will be necessary. — Emily Cochrane | The unexpected approval of the extension, which required agreement from all 100 senators, came as lawmakers began to debate the contours of another coronavirus relief package. With multiple parts of the $2.2 trillion stimulus law set to expire at the end of July and new outbreaks forcing many states to slow efforts to reopen their economies, lawmakers widely recognize that another measure will be necessary. — Emily Cochrane |
| The pandemic’s effect on boardroom confidence put mergers and acquisitions in a deep freeze in the first half of the year, notes today’s DealBook newsletter. | |
| At the halfway point of the year, nearly $1.2 trillion worth of deals have been announced, down 42 percent from the same time a year ago. It was the slowest first half for M.&A. since 2013, according to Refinitiv. | |
| The drop in activity was even more noticeable for larger transactions: The overall value of deals worth more than $5 billion was down 53 percent year-on-year. That’s despite some notable transactions being announced in the first half, including Willis Towers Watson’s $30 billion acquisition of Aon and Just Eat’s $7.3 billion takeover of Grubhub. | |
| If anything, deal makers are just as busy trying to undo acquisitions agreed on before the pandemic. Among them are the mall operator Simon Property’s effort to end its takeover of rival Taubman Centers and the private equity group Sycamore Partners successfully backing out of a deal to buy control of Victoria’s Secret. — Michael J. de la Merced | |
| In the first six months of the year, stocks experienced their biggest quarter-to-quarter swing in more than 80 years. | In the first six months of the year, stocks experienced their biggest quarter-to-quarter swing in more than 80 years. |
| First, the coronavirus pandemic and a shutdown of the economy sent stocks on one of the fastest declines on record. Then, a giant government stimulus not only stopped the sell-off but sent stocks charging to their best quarterly performance in more than two decades. | First, the coronavirus pandemic and a shutdown of the economy sent stocks on one of the fastest declines on record. Then, a giant government stimulus not only stopped the sell-off but sent stocks charging to their best quarterly performance in more than two decades. |
| Where they go next is a mystery. There’s so much uncertainty about the coronavirus crisis that roughly 40 percent of the S&P 500, about 200 companies, have withdrawn their customary forecasts about how their businesses will perform in the months ahead, according to data from S&P Capital IQ. | Where they go next is a mystery. There’s so much uncertainty about the coronavirus crisis that roughly 40 percent of the S&P 500, about 200 companies, have withdrawn their customary forecasts about how their businesses will perform in the months ahead, according to data from S&P Capital IQ. |
| The companies’ silence has unnerved analysts, who have already axed their expectations for profit growth substantially. They’re now expecting that second-quarter profits will fall more than 40 percent, according to numbers compiled by the data provider FactSet. | The companies’ silence has unnerved analysts, who have already axed their expectations for profit growth substantially. They’re now expecting that second-quarter profits will fall more than 40 percent, according to numbers compiled by the data provider FactSet. |
| That’s an ugly forecast, but investors face a crucial question: Is it ugly enough? | That’s an ugly forecast, but investors face a crucial question: Is it ugly enough? |
| “The numbers are sort of all over the place,” Lori Calvasina, head of U.S. equity strategy at RBC Capital Markets, said of analysts’ predictions. — Matt Phillips | “The numbers are sort of all over the place,” Lori Calvasina, head of U.S. equity strategy at RBC Capital Markets, said of analysts’ predictions. — Matt Phillips |
| Germany’s federal employment office reported Wednesday that an additional 40,000 workers lost their jobs in May from the month before, for an overall unemployment rate of 6.2 percent. | Germany’s federal employment office reported Wednesday that an additional 40,000 workers lost their jobs in May from the month before, for an overall unemployment rate of 6.2 percent. |
| The relatively low figure — the U.S. unemployment rate is 13.3 percent — despite the economic lockdown to curb the pandemic reflects the widely-used program of “Kurzarbeit,” a federal scheme that temporarily helps pay workers’ wages to prevent layoffs or reduced hours. Since the shutdown in March, more than 12 million German workers have received wages through the program. | The relatively low figure — the U.S. unemployment rate is 13.3 percent — despite the economic lockdown to curb the pandemic reflects the widely-used program of “Kurzarbeit,” a federal scheme that temporarily helps pay workers’ wages to prevent layoffs or reduced hours. Since the shutdown in March, more than 12 million German workers have received wages through the program. |
| In response to the pandemic, Chancellor Angela Merkel’s government has spent more than 130 billion euros in stimulus money. One effort starts Wednesday: a reduction on a value-added sales tax of up to 3 percent, designed to bolster consumer spending. | In response to the pandemic, Chancellor Angela Merkel’s government has spent more than 130 billion euros in stimulus money. One effort starts Wednesday: a reduction on a value-added sales tax of up to 3 percent, designed to bolster consumer spending. |
| By law, VAT must be added by merchants and service providers in the advertised price, meaning that the new VAT rules have lowered sticker prices on everything from food to new cars. When she announced the program last month, Ms. Merkel insisted that the program would not be extended past six months. — Christopher F. Schuetze | By law, VAT must be added by merchants and service providers in the advertised price, meaning that the new VAT rules have lowered sticker prices on everything from food to new cars. When she announced the program last month, Ms. Merkel insisted that the program would not be extended past six months. — Christopher F. Schuetze |
| The coronavirus pandemic continued to wreak havoc on global aviation as the aerospace giant Airbus announced Tuesday it would cut 15,000 jobs across its global work force, the largest downsizing in the history of the company. | The coronavirus pandemic continued to wreak havoc on global aviation as the aerospace giant Airbus announced Tuesday it would cut 15,000 jobs across its global work force, the largest downsizing in the history of the company. |
| Citing a 40 percent slump in commercial aircraft business activity and an “unprecedented crisis” facing the airline industry, the company said it would slash around 10 percent of its 135,000 employees worldwide, with layoffs hitting plants in Britain, France, Germany and Spain. | Citing a 40 percent slump in commercial aircraft business activity and an “unprecedented crisis” facing the airline industry, the company said it would slash around 10 percent of its 135,000 employees worldwide, with layoffs hitting plants in Britain, France, Germany and Spain. |
| Airbus’s chief executive, Guillaume Faury, had been preparing employees for hard times in a series of recent memos warning it would be necessary to adapt to a “lasting decline” in the demand for airliners. The company said it doesn’t expect air travel to return to pre-pandemic levels before 2023 at the earliest and potentially not until 2025. — Liz Alderman | Airbus’s chief executive, Guillaume Faury, had been preparing employees for hard times in a series of recent memos warning it would be necessary to adapt to a “lasting decline” in the demand for airliners. The company said it doesn’t expect air travel to return to pre-pandemic levels before 2023 at the earliest and potentially not until 2025. — Liz Alderman |
| FedEx on Tuesday reported a loss of $334 million in its fourth quarter, compared with a loss of $1.97 billion in the same period a year ago, as a surge in deliveries during the pandemic and lower fuel costs helped offset increased costs. The results were better than expected, and the delivery company’s shares climbed 9 percent in after-hours trading. The company did not provide guidance for its 2021 fiscal year, but “FedEx is well positioned to support and benefit from the reopening of the global economy,” said Frederick W. Smith, the company’s chairman and chief executive. | FedEx on Tuesday reported a loss of $334 million in its fourth quarter, compared with a loss of $1.97 billion in the same period a year ago, as a surge in deliveries during the pandemic and lower fuel costs helped offset increased costs. The results were better than expected, and the delivery company’s shares climbed 9 percent in after-hours trading. The company did not provide guidance for its 2021 fiscal year, but “FedEx is well positioned to support and benefit from the reopening of the global economy,” said Frederick W. Smith, the company’s chairman and chief executive. |
| Reporting was contributed by Matt Phillips, Liz Alderman, Christopher F. Schuetze, Emily Cochrane, Michael J. de la Merced and Gregory Schmidt. |