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Stock Markets Unsteady After Early Rally: Live Updates Stocks Climb as Investors Look to Washington: Live Markets Updates
(32 minutes later)
Shares on Wall Street rebounded on Tuesday as investors looked to Washington to bolster the economy as the coronavirus spreads, but stocks swung from gains to losses and back, moves that highlighted just how fragile the recovery was.Shares on Wall Street rebounded on Tuesday as investors looked to Washington to bolster the economy as the coronavirus spreads, but stocks swung from gains to losses and back, moves that highlighted just how fragile the recovery was.
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.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 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.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; Michael Corbat of Citigroup; 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; Michael Corbat of Citigroup; Andy Cecere of U.S. Bank; 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.
“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 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.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.
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.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.
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.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. Awkward ad placements have forced companies to reconsider how they try to reach customers while protecting their brands from becoming collateral damage in the growing coronavirus outbreak.
Cruise lines in particular have increased their spending on advertising this year, according to the advertising analytics platform Pathmatics. But many of the ads have ended up alongside unflattering reports about cruises, positioned next to stories about quarantines and government warnings.
Many companies are blocking their ads from appearing next to sensitive terms linked to coronavirus, creating keyword blacklists similar to the ones used to avoid stories about airplane crashes, mass shootings and impeachment proceedings.
As the coronavirus epidemic spreads around the world, companies are less worried about factory closures among their Chinese suppliers and more about a lack of customers in the United States.As the coronavirus epidemic spreads around the world, companies are less worried about factory closures among their Chinese suppliers and more about a lack of customers in the United States.
Some have already been forced to take action. Jay Foreman, the chief executive of toy company Basic Fun, said the coronavirus crisis had forced him to lay off 18 of the company’s 175 workers on Friday — 10 in the United States, six in Hong Kong and two in Europe.Some have already been forced to take action. Jay Foreman, the chief executive of toy company Basic Fun, said the coronavirus crisis had forced him to lay off 18 of the company’s 175 workers on Friday — 10 in the United States, six in Hong Kong and two in Europe.
“China is slowly starting to open up, so we’re getting shipments,” said Mr. Foreman, whose company makes Tonka Trucks, Lite-Brite and TinkerToy. “But now what I‘m worried about is a demand scenario in the United States, where people decide the only thing they’re buying is hand sanitizer and Wet Wipes and Campbell’s Soup, and they’re not spending any money.” “China is slowly starting to open up, so we’re getting shipments,” said Mr. Foreman, whose company makes Tonka Trucks, Lite-Brite and Tinkertoy. “But now what I‘m worried about is a demand scenario in the United States, where people decide the only thing they’re buying is hand sanitizer and Wet Wipes and Campbell’s Soup, and they’re not spending any money.”
Mr. Foreman said the toy business had been partially spared because March and April are among their slowest months. But he was still talking with his bankers every week about making payments on his loans — conversations that began during the trade war, but have now intensified.
“In the next few months there could be enough damage in this country that a tremendous amount of companies could go out of business,” he said. “The majority of small businesses can’t survive a three to six month interruption.”
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. 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.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.
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.
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.On Tuesday, Occidental Petroleum said it would slash its quarterly dividend and capital spending plan in response to the drop in oil prices.
Several airlines on Tuesday announced the temporary suspension of all flights to and from Italy, a day after the country announced a nationwide lockdown to combat the coronavirus outbreak.Several airlines on Tuesday announced the temporary suspension of all flights to and from Italy, a day after the country announced a nationwide lockdown to combat the coronavirus outbreak.
Spanish authorities banned all airlines from Spain, including Iberia and Vueling, from operating either inbound or outbound Italian flights, while British Airways announced the immediate suspension of flights until April 4 and Ryanair said that it would suspend all of its domestic flights in Italy and international flights to Italy.Spanish authorities banned all airlines from Spain, including Iberia and Vueling, from operating either inbound or outbound Italian flights, while British Airways announced the immediate suspension of flights until April 4 and Ryanair said that it would suspend all of its domestic flights in Italy and international flights to Italy.
Alitalia, Italy’s flagship carrier, said it would continue services but gave the passengers the option to rebook or reroute their flight free-of-charge. Alitalia, Italy’s flagship carrier, said it would continue services but gave the passengers the option to rebook or reroute their flight free of charge.
The cancellations came after some countries imposed fresh travel restrictions on Tuesday, including Austria, which said it would bar travelers from Italy unless they have a health certificate.
Airlines in the United States also said on Tuesday that they were further slashing service and costs in response to the dramatic decline in bookings caused by fear over the coronavirus.Airlines in the United States also said on Tuesday that 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 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 Food and Drug Administration said on Tuesday that it would stop routine inspections of food, drugs and medical devices overseas through April, citing the worldwide spread of the coronavirus.
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.
President Trump on Tuesday called the Federal Reserve “pathetic,” saying it failed to cut interest rates fast enough and renewing a regular gripe. “Our pathetic, slow moving Federal Reserve, headed by Jay Powell, who raised rates too fast and lowered too late, should get our Fed Rate down to the levels of our competitor nations,” he tweeted on Monday.President Trump on Tuesday called the Federal Reserve “pathetic,” saying it failed to cut interest rates fast enough and renewing a regular gripe. “Our pathetic, slow moving Federal Reserve, headed by Jay Powell, who raised rates too fast and lowered too late, should get our Fed Rate down to the levels of our competitor nations,” he tweeted on Monday.
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.
Reporting and research were contributed by Jeanne Smialek, Alexandra Stevenson, Sheryl Gay Stolberg, Alan Rappeport, Jack Ewing, Stanley Reed, Kevin Granville, Kate Kelly, Matthew Goldstein, Brooks Barnes, Iliana Magra and Niraj Chokshi. Reporting and research were contributed by Jeanne Smialek, Alexandra Stevenson, Sheryl Gay Stolberg, Alan Rappeport, Jack Ewing, Stanley Reed, Kevin Granville, Tiffany Hsu, Kate Kelly, Matthew Goldstein, Brooks Barnes, Iliana Magra and Niraj Chokshi.