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Stock Markets Unsteady After Early Rally Fades: Live Updates Stock Markets Unsteady After Early Rally Fades: Live Updates
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Stocks on Wall Street struggled to hold onto early gains Tuesday, and an early rebound from the stock market’s worst day in more than a decade quickly faded. Stocks on Wall Street struggled to hold onto gains on Tuesday, with an early rebound from the stock market’s worst day in more than a decade quickly fading as investors looked to Washington to bolster the economy as the coronavirus spreads.
Investors had been somewhat buoyed after President Trump said on Monday night that he would work with Congress on measures, including a payroll tax cut, to help the economy amid signs of a worsening outbreak in the United States. He is also considering using the Federal Emergency Management Agency as a vehicle for delivering funds to stimulate the economy, a move that wouldn’t require approval from Congress. President Trump had said on Monday night that he would work with Congress on measures, including a payroll tax cut, to help the economy amid signs of a worsening outbreak in the United States. He is also considering using the Federal Emergency Management Agency as a vehicle for delivering funds to stimulate the economy, a move that wouldn’t require approval from Congress.
But Washington hasn’t announced any specific plans, and traders and analysts said markets remained fragile. Increased testing for the coronavirus is expected to generate rising numbers of new infections in the coming weeks, which could be a new challenge for investors’ nerves. But the White House hasn’t announced any specific plans, and traders and analysts said markets remained fragile. Increased testing for the coronavirus is expected to generate rising numbers of new infections in the coming weeks, which could be a new challenge for investors’ nerves.
After rising more than 3 percent in early trading, the S&P 500 fell into negative territory before climbing again. Shares in Europe, which had also climbed earlier in the day, also fell.After rising more than 3 percent in early trading, the S&P 500 fell into negative territory before climbing again. Shares in Europe, which had also climbed earlier in the day, also fell.
Monday’s global plunge saw the S&P 500 fall nearly 8 percent, its sharpest daily decline since December 2008 and a tumble so swift that trading in the United States had to be halted for 15 minutes early in the day. In Asia and Europe, some of the biggest financial exchanges flirted with or crossed into bear market territory — a decline of more than 20 percent from their highs. Through Monday, the S&P 500 was down about 19 percent.Monday’s global plunge saw the S&P 500 fall nearly 8 percent, its sharpest daily decline since December 2008 and a tumble so swift that trading in the United States had to be halted for 15 minutes early in the day. In Asia and Europe, some of the biggest financial exchanges flirted with or crossed into bear market territory — a decline of more than 20 percent from their highs. Through Monday, the S&P 500 was down about 19 percent.
The price of oil, which had slumped by a quarter on Monday, rose more than 7 percent on Tuesday, with futures tracking the price of Brent crude trading at about $36.85 a barrel. But oil prices remain down more than 45 percent this year.The price of oil, which had slumped by a quarter on Monday, rose more than 7 percent on Tuesday, with futures tracking the price of Brent crude trading at about $36.85 a barrel. But oil prices remain down more than 45 percent this year.
President Trump plans to meet with senior executives from the country’s biggest banks, along with community bankers, at the White House on Wednesday afternoon.President Trump plans to meet with senior executives from the country’s biggest banks, along with community bankers, at the White House on Wednesday afternoon.
The meeting, which is scheduled for 3 p.m., is expected to be attended by the chief executives David Solomon of Goldman Sachs; Brian Moynihan of Bank of America; Charles Scharf of Wells Fargo; and Gordon Smith, the co-president and chief operating officer of JPMorgan Chase, according to bank officials who have been briefed on the plans.The meeting, which is scheduled for 3 p.m., is expected to be attended by the chief executives David Solomon of Goldman Sachs; Brian Moynihan of Bank of America; Charles Scharf of Wells Fargo; and Gordon Smith, the co-president and chief operating officer of JPMorgan Chase, according to bank officials who have been briefed on the plans.
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Details of the meeting’s agenda, which has not been formally announced, are not clear. But Mr. Trump is expected to attend, and the bank executives are preparing to answer questions on their views of the recent trading activity and their own economic outlooks, said some of the officials.Details of the meeting’s agenda, which has not been formally announced, are not clear. But Mr. Trump is expected to attend, and the bank executives are preparing to answer questions on their views of the recent trading activity and their own economic outlooks, said some of the officials.
“We’ll be talking to them about what they can do to help small businesses and companies that are impacted,” Treasury Secretary Steven Mnuchin said on Monday.“We’ll be talking to them about what they can do to help small businesses and companies that are impacted,” Treasury Secretary Steven Mnuchin said on Monday.
President Trump’s top economic advisers are heading to Capitol Hill on Tuesday to brief lawmakers on the White House’s fiscal stimulus proposals, setting up tense negotiations with Congress about the response to the coronavirus. President Trump plans to brief Senate Republicans on Tuesday on his ideas for an economic stimulus package to respond to the coronavirus, including a payroll tax cut. But the idea of a payroll tax reduction is running into bipartisan opposition on Capitol Hill, where Democrats are openly hostile to the idea and some Republicans — including Senator Mitch McConnell — are skeptical.
Larry Kudlow, the director of the National Economic Council, and Treasury Secretary Steven Mnuchin will brief Senate Republicans at their weekly lunch. Among the items to be discussed: a payroll tax cut, financial help for workers who don’t get paid sick leave, and targeted relief for industries battered by the virus, including cruise lines, airlines and hotels. Mr. Trump has suggested the tax cut as part of an array of measures to boost the economy, which some experts fear is headed into a recession amid the global coronavirus outbreak. But Mr. McConnell has privately discouraged discussion of the idea, according to people familiar with his thinking.
The idea of a payroll tax cut has divided Mr. Trump’s advisers, with Mr. Mnuchin and Mr. Kudlow skeptical of the idea. But Peter Navarro, Mr. Trump’s trade adviser, has been a proponent and Mr. Trump has been pushing for it to be included in a package of options. Two other top Republicans — Senators John Cornyn of Texas and Charles E. Grassley of Iowa — have said they do not think a stimulus package is necessary at this point. Mr. Trump is expected to discuss the coronavirus response with Senate Republicans at their policy luncheon on Tuesday, along with Steven Mnuchin, his treasury secretary, and Larry Kudlow, his top economic adviser.
Democrats insist that any government response be tailored narrowly to the needs of patients and workers directly affected by the virus. They want enhanced unemployment benefits for those who lose their jobs, paid sick leave for people who must miss work and affordable testing and treatment for those who get sick.
The root of Monday’s financial market meltdown was the start of an oil-price war between Saudi Arabia and Russia over the weekend, when the Saudis slashed their prices after Russia refused to join OPEC in production cuts.The root of Monday’s financial market meltdown was the start of an oil-price war between Saudi Arabia and Russia over the weekend, when the Saudis slashed their prices after Russia refused to join OPEC in production cuts.
On Tuesday, Saudi Aramco, the national oil company, said that it would produce 12.3 million barrels a day of crude oil in April, a significant jump from its average of 9.7 million barrels a day.On Tuesday, Saudi Aramco, the national oil company, said that it would produce 12.3 million barrels a day of crude oil in April, a significant jump from its average of 9.7 million barrels a day.
Although it is not clear how much of this oil would come from storage, the company will likely sharply increase production. Although it is not clear how much of this oil would come from storage, the company will likely sharply increase production. Saudi officials have said that they need to sell more oil to compensate for lower prices, and Aramco is offering deep discounts on its oil to win over buyers.
Saudi officials have said that they need to sell more oil to compensate for lower prices, and Aramco is offering deep discounts on its oil to win over buyers.
The sudden upheaval in the oil markets may take months to assess, but the impact on the American economy is bound to be considerable, especially in Texas and other states where oil drives much of the job market.The sudden upheaval in the oil markets may take months to assess, but the impact on the American economy is bound to be considerable, especially in Texas and other states where oil drives much of the job market.
Even if Russia and Saudi Arabia resolve their differences a global oil glut could keep prices low for years.Even if Russia and Saudi Arabia resolve their differences a global oil glut could keep prices low for years.
Many smaller American oil companies could face bankruptcy if the price pressure goes on for more than a few weeks, while larger ones will be challenged to protect their dividend payments. Thousands of oil workers are about to receive pink slips.Many smaller American oil companies could face bankruptcy if the price pressure goes on for more than a few weeks, while larger ones will be challenged to protect their dividend payments. Thousands of oil workers are about to receive pink slips.
On Tuesday, Occidental Petroleum said it would slash its quarterly dividend and capital spending plan in response to the drop in oil prices.
Shares of those oil companies rebounded on Tuesday, but many of them — including Apache Corp., Diamondback Energy and Marathon Oil — are still down about 50 percent this week as investors worry about their future with oil prices where they are now.Shares of those oil companies rebounded on Tuesday, but many of them — including Apache Corp., Diamondback Energy and Marathon Oil — are still down about 50 percent this week as investors worry about their future with oil prices where they are now.
Several U.S. airlines on Tuesday said they were further slashing service and costs — including a cut to at least one chief executive’s salary — in response to the dramatic decline in bookings caused by fear over the coronavirus. Several U.S. airlines on Tuesday said they were further slashing service and costs in response to the dramatic decline in bookings caused by fear over the coronavirus.
Speaking at an investor conference hosted by JPMorgan on Tuesday, Ed Bastian, chief executive of Delta Air Lines, announced that the airline would cut domestic service by about 15 percent. Speaking at an investor conference on Tuesday, Ed Bastian, chief executive of Delta Air Lines, announced that the airline would cut domestic service by about 15 percent.
“Two weeks ago our revenue trajectory changed dramatically as the virus spread meaningfully outside of Asia,” Mr. Bastian said. “Since then, we have seen a 25 to 30 percent decline in net bookings and are prepared for it to get worse.”“Two weeks ago our revenue trajectory changed dramatically as the virus spread meaningfully outside of Asia,” Mr. Bastian said. “Since then, we have seen a 25 to 30 percent decline in net bookings and are prepared for it to get worse.”
The cuts include a 20 to 25 percent decline in international service. The airline also plans to freeze hiring, offer voluntary leave and defer some spending, all in an effort to build up its cash cushion.Mr. Bastian also said that regulators in some parts of the world may ease rules to help struggling airlines raise money across borders. Mr. Bastian also said that regulators in some parts of the world may ease rules to help struggling airlines raise money across borders.
“I think there’s no question we’re going to see government intervention globally,” he said, adding that such assistance will probably be needed “in a number of markets.” A spokesman later clarified that Mr. Bastian’s remarks excluded the United States.“I think there’s no question we’re going to see government intervention globally,” he said, adding that such assistance will probably be needed “in a number of markets.” A spokesman later clarified that Mr. Bastian’s remarks excluded the United States.
American Airlines said in a statement that it was slashing trans-Pacific flights by more than half, including suspending service to mainland China until October. It will also reduce domestic flights in April by 7.5 percent.American Airlines said in a statement that it was slashing trans-Pacific flights by more than half, including suspending service to mainland China until October. It will also reduce domestic flights in April by 7.5 percent.
United Airlines and JetBlue announced similar capacity cuts last week, but Southwest Airlines said it was managing costs in a different way: by cutting the salary of its chief executive, Gary C. Kelly. In an update to employees on Monday, Mr. Kelly said that he was reducing his pay by 10 percent. United Airlines and JetBlue announced similar capacity cuts last week, but Southwest Airlines said it was managing costs in a different way: by cutting the salary of its chief executive, Gary C. Kelly, by 10 percent.
The Securities and Exchange Commission, in response to a potential coronavirus case, on Monday required a part of its staff to stay away from the agency’s Washington headquarters and advised all other employees there to work from home as well, a person briefed on the matter said.The Securities and Exchange Commission, in response to a potential coronavirus case, on Monday required a part of its staff to stay away from the agency’s Washington headquarters and advised all other employees there to work from home as well, a person briefed on the matter said.
An employee at Point72, the hedge fund run by Steven A. Cohen, has tested positive for the novel coronavirus. Other workers based on the same floor of Point72’s Hudson Yards location on Manhattan’s west side have been asked to work at home for the next two weeks.An employee at Point72, the hedge fund run by Steven A. Cohen, has tested positive for the novel coronavirus. Other workers based on the same floor of Point72’s Hudson Yards location on Manhattan’s west side have been asked to work at home for the next two weeks.
An employee of the European Central Bank in Frankfurt has tested positive for the virus, the bank said late Monday. The employee, who was not identified, is receiving medical care and about 100 co-workers have been asked to work from home as a precaution, the bank said.An employee of the European Central Bank in Frankfurt has tested positive for the virus, the bank said late Monday. The employee, who was not identified, is receiving medical care and about 100 co-workers have been asked to work from home as a precaution, the bank said.
South Korean officials on Tuesday moved to protect shares of domestic companies by saying it would tighten a rule banning the short sale of stocks that meet certain daily trading criteria over the next three months. Short sellers borrow the stock of a company to sell in the hopes that they can buy it back at a lower price and pocket the difference.South Korean officials on Tuesday moved to protect shares of domestic companies by saying it would tighten a rule banning the short sale of stocks that meet certain daily trading criteria over the next three months. Short sellers borrow the stock of a company to sell in the hopes that they can buy it back at a lower price and pocket the difference.
Reporting and research were contributed by Alexandra Stevenson, Alan Rappeport, Jack Ewing, Kevin Granville, Kate Kelly, Matthew Goldstein, Brooks Barnes and Niraj Chokshi. Reporting and research were contributed by Alexandra Stevenson, Sheryl Gay Stolberg, Alan Rappeport, Jack Ewing, Kevin Granville, Kate Kelly, Matthew Goldstein, Brooks Barnes and Niraj Chokshi.