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/2020/04/07/business/stock-market-today-coronavirus.html

The article has changed 40 times. There is an RSS feed of changes available.

Version 0 Version 1
Stock Markets Rise, Extending U.S. Rally: Live Updates Global Stock Markets Rise, Extending U.S. Rally: Live Updates
(about 2 hours later)
Stock markets around the world on Tuesday maintained Wall Street’s Monday rally amid continued signs that the coronavirus outbreak may be peaking in a number of hard-hit places. Stock markets around the world on Tuesday maintained Wall Street’s rally from the day before, amid continued signs that the coronavirus outbreak may be peaking in a number of hard-hit places.
Major European markets opened significantly higher after Asian markets picked up steam later in their trading day. Futures markets were predicting a robust opening when trading begins in the United States. Major European markets were trading 2 to 4 percent higher after Asian markets picked up steam later in their trading day. Futures markets were predicting a robust opening when trading begins in the United States.
The global economy still faces daunting challenges before it can get back on track. But the two-day rally was fueled in part by signs of progress in the fight against the coronavirus outbreak in the United States and Europe.The global economy still faces daunting challenges before it can get back on track. But the two-day rally was fueled in part by signs of progress in the fight against the coronavirus outbreak in the United States and Europe.
Other markets signaled improved investor confidence as well. U.S. Treasury bond prices fell, signaling sharper appetite for riskier investments. Oil prices rose too on hopes that Russia and Saudi Arabia could reach a price war truce.Other markets signaled improved investor confidence as well. U.S. Treasury bond prices fell, signaling sharper appetite for riskier investments. Oil prices rose too on hopes that Russia and Saudi Arabia could reach a price war truce.
In Japan, the Nikkei 225 index ended 2 percent higher. Hong Kong’s Hang Seng index was up 2.1 percent. In mainland China, the Shanghai Composite index was up 2.1 percent. South Korea’s Kospi rose 1.8 percent.In Japan, the Nikkei 225 index ended 2 percent higher. Hong Kong’s Hang Seng index was up 2.1 percent. In mainland China, the Shanghai Composite index was up 2.1 percent. South Korea’s Kospi rose 1.8 percent.
In London, the FTSE 100 index was up 3.2 percent in early trading. France’s CAC 40 index was up 3.5 percent, while the DAX index in Germany rose 4.4 percent early.
Cruise ship companies have virtually no revenue. They have become symbols of deadly contagion. And despite assurances from President Trump, they were left out of the $2 trillion stimulus package Congress passed last month.Cruise ship companies have virtually no revenue. They have become symbols of deadly contagion. And despite assurances from President Trump, they were left out of the $2 trillion stimulus package Congress passed last month.
The Carnival Corporation, which serves nearly 11.5 million travelers a year, or roughly 50 percent of the global cruise market, is at the center of the crisis. Over the last couple of months, the company has had highly publicized outbreaks on several of its ships, including the Diamond Princess and the Zaandam, which has been trying to unload sick passengers in Florida.The Carnival Corporation, which serves nearly 11.5 million travelers a year, or roughly 50 percent of the global cruise market, is at the center of the crisis. Over the last couple of months, the company has had highly publicized outbreaks on several of its ships, including the Diamond Princess and the Zaandam, which has been trying to unload sick passengers in Florida.
Since the beginning of the year, the company’s share price has plummeted more than 80 percent, though it rose to $10.21 a share on Monday after Saudi Arabia’s state investment fund said it had acquired an 8 percent stake in the company. And last week, Carnival, which has already drawn on bank credit lines, began an attempt to raise $6 billion by selling stock, bonds and other securities. It was selling some of those bonds with a suggested 12.5 percent interest payment to investors, a strikingly high figure.Since the beginning of the year, the company’s share price has plummeted more than 80 percent, though it rose to $10.21 a share on Monday after Saudi Arabia’s state investment fund said it had acquired an 8 percent stake in the company. And last week, Carnival, which has already drawn on bank credit lines, began an attempt to raise $6 billion by selling stock, bonds and other securities. It was selling some of those bonds with a suggested 12.5 percent interest payment to investors, a strikingly high figure.
Carnival’s chief executive, Arnold Donald, said in interview that the sale would generate enough cash for the company to survive without revenue for the rest of the year and into 2021. Carnival’s chief executive, Arnold Donald, said in an interview that the sale would generate enough cash for the company to survive without revenue for the rest of the year and into 2021.
“If you run out of cash, you lose the company, and we can’t live with that,” Mr. Donald said. “So we want to make sure we’re prepared for an extreme case.”“If you run out of cash, you lose the company, and we can’t live with that,” Mr. Donald said. “So we want to make sure we’re prepared for an extreme case.”
The high interest rate on the debt deal “is absolutely going to be a challenge to us,” he said. “It’s not fun to be floating equity at the share price it is.”The high interest rate on the debt deal “is absolutely going to be a challenge to us,” he said. “It’s not fun to be floating equity at the share price it is.”
The two major cruise lines besides Carnival — Royal Caribbean and Norwegian Cruises — are also looking for cash. Norwegian has tapped an existing $1.55 billion credit line. In March, Royal Caribbean secured a $2.2 billion loan, using its ships as collateral — an unusual step for a cruise line. The two major cruise lines besides Carnival — Royal Caribbean and Norwegian Cruises — are also looking for cash. Norwegian has tapped an existing $1.55 billion credit line. In March, Royal Caribbean secured a $2.2 billion loan, using its ships as collateral, an unusual step for a cruise line.
Stocks rallied on Monday as investors seized on signals that the coronavirus outbreak may be peaking in some of the world’s worst-hit places. Stocks rallied on Monday as investors seized on signals that the coronavirus outbreak might be peaking in some of the world’s worst-hit places.
The number of new confirmed deaths and infections is slowing in parts of Europe, and the number of deaths in New York has been steady for two days. In Italy and Spain, the total number of patients continues to climb, but the rate of new infections is no longer rising.The number of new confirmed deaths and infections is slowing in parts of Europe, and the number of deaths in New York has been steady for two days. In Italy and Spain, the total number of patients continues to climb, but the rate of new infections is no longer rising.
Wall Street analysts have been closely tracking the growth path of infections, with some spotlighting recent news as an indication that the outbreak could be near a peak in the United States. Analysts highlighted the tentative deceleration of infections in New York as a good sign for other virus hot spots in the country, as well as for stock market sentiment.Wall Street analysts have been closely tracking the growth path of infections, with some spotlighting recent news as an indication that the outbreak could be near a peak in the United States. Analysts highlighted the tentative deceleration of infections in New York as a good sign for other virus hot spots in the country, as well as for stock market sentiment.
“This does not mean that the all clear is immediate, nor does it mean that the U.S. economy will quickly recover. But the light at the end of the tunnel is starting to emerge,” Dan Clifton, a partner at Strategas Research Partners, a financial and economic consulting firm, wrote in a note. “This does not mean that the all-clear is immediate, nor does it mean that the U.S. economy will quickly recover. But the light at the end of the tunnel is starting to emerge,” Dan Clifton, a partner at Strategas Research Partners, a financial and economic consulting firm, wrote in a note.
The optimism drove U.S. shares sharply higher. The S&P 500 rose 7 percent, its biggest gain since March 24, when it climbed more than 9 percent.The optimism drove U.S. shares sharply higher. The S&P 500 rose 7 percent, its biggest gain since March 24, when it climbed more than 9 percent.
Still, there was a strong defensive tilt to trading. The utilities sector — typically an area dominated by risk-averse investors — was one of the best performing in the S&P 500, with a gain of almost 8 percent.Still, there was a strong defensive tilt to trading. The utilities sector — typically an area dominated by risk-averse investors — was one of the best performing in the S&P 500, with a gain of almost 8 percent.
That suggests investors still see plenty of reason to be cautious.That suggests investors still see plenty of reason to be cautious.
Abercrombie & Fitch said on Monday that it would furlough its store employees in Africa, Europe, the Middle East and North America on April 12. The affected workers will still receive benefits. The retailer also announced it would cut the pay and work hours of some of its corporate employees and that its executive salaries would be reduced 10 percent to 33 percent. Industry executives and analysts expect the renewable energy business to continue growing in 2020 and next year even as the coronavirus outbreak has delayed some projects and as oil, gas and coal companies struggle financially or seek bankruptcy protection.
Samsung Electronics said it expects that its operating profit for the first quarter rose slightly, to $5.2 billion, compared with $5.1 billion a year earlier, with the coronavirus boosting the sale of chips for data centers and laptops used by workers forced to stay home. But the pandemic was expected to eat into demand for smartphones, televisions and other consumer electronics over the coming year. Renewable energy sources are set to account for nearly 21 percent of the electricity the United States uses this year, up from about 18 percent last year and 10 percent in 2010, according to one forecast published last week.
Reporting was contributed by David Yaffe-Bellany, Carlos Tejada, Daniel Victor and Austin Ramzy. In many parts of the world, including California and Texas, wind turbines and solar panels now produce electricity more cheaply than natural gas and coal. That has made them attractive to electric utilities and investors alike. It also helps that while oil prices have been more than halved since the pandemic forced most state governments to order people to stay home, natural gas and coal prices have not dropped nearly as much.
Even the decline in electricity use in recent weeks as businesses halted operations could help renewables, according to analysts at Raymond James & Associates. That’s because utilities, as revenue suffers, will try to get more electricity from wind and solar farms, which cost little to operate, and less from power plants fueled by fossil fuels.
“Renewables are on a growth trajectory today that I think isn’t going to be set back long term,” said Dan Reicher, the founding executive director of the Steyer-Taylor Center for Energy Policy and Finance at Stanford University and a former assistant energy secretary in the Clinton administration. “This will be a bump in the road.”
Everyone wants to know when we are going to be able to leave our homes and reopen the United States. That’s the wrong way to frame it.
The better question is: “How will we know when to reopen the country?”
Any date that is currently being thrown around is just a guess. It’s pulled out of the air.
To this point, Americans have been reacting, often too late, and rarely with data. Since the virus appears to be everywhere, we have to shut everything down. That’s unlikely to be the way we’ll exit, though.
Some cities or states will recover sooner than others. It’s helpful to have criteria by which cities or states could determine they’re ready.
A recent report by Scott Gottlieb, Caitlin Rivers, Mark B. McClellan, Lauren Silvis and Crystal Watson staked out some goal posts that involve the ability of hospitals to treat patients; the ability to test everyone who has symptoms; monitoring of confirmed cases; and a sustained reduction in cases.
Abercrombie & Fitch said on Monday that it would furlough its store employees in Africa, Europe, the Middle East and North America on April 12. The affected workers will still receive benefits. The retailer also announced that it would cut the pay and work hours of some of its corporate employees and that its executive salaries would be reduced 10 percent to 33 percent.
Samsung Electronics said it expected that its operating profit for the first quarter rose slightly, to $5.2 billion, compared with $5.1 billion a year earlier, with the coronavirus boosting the sale of chips for data centers and laptops used by workers forced to stay home. But the pandemic was expected to eat into demand for smartphones, televisions and other consumer electronics over the coming year.
Reporting was contributed by David Yaffe-Bellany, Ivan Penn, Aaron E. Carroll, Carlos Tejada, Daniel Victor, Kevin Granville and Austin Ramzy.