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Wall Street Rallies as the Fed Promises to Shore Up the Economy Wall Street Rallies as the Fed Promises to Shore Up the Economy
(about 20 hours later)
This briefing is no longer updating. Read the latest developments in the coronavirus outbreak here.This briefing is no longer updating. Read the latest developments in the coronavirus outbreak here.
Stocks rallied on Wednesday, bolstered by indications that a drug being tested as a possible treatment for Covid-19 could be showing progress, and as investors pinned their hopes on the gradual reopening of the world’s major economies.Stocks rallied on Wednesday, bolstered by indications that a drug being tested as a possible treatment for Covid-19 could be showing progress, and as investors pinned their hopes on the gradual reopening of the world’s major economies.
The S&P 500 gained nearly 3 percent, while shares in Europe were also sharply higher.The S&P 500 gained nearly 3 percent, while shares in Europe were also sharply higher.
The rally came despite data that showed the U.S. economy shrank in the first quarter of the year by the most since 2008. Earnings reports from Volkswagen, Samsung, Airbus, Boeing and other giant businesses were also grim.The rally came despite data that showed the U.S. economy shrank in the first quarter of the year by the most since 2008. Earnings reports from Volkswagen, Samsung, Airbus, Boeing and other giant businesses were also grim.
But investors have been shaking off bad news on the economy for weeks as they focus on progress on efforts to contain the coronavirus pandemic. A steady climb has lifted the S&P 500 by more than 31 percent since its March 23 low. With nearly half that gain coming in April, the month is on track to be the best for stocks since 1974, according to data from Howard Silverblatt, senior index analyst for S&P Dow Jones Indices.But investors have been shaking off bad news on the economy for weeks as they focus on progress on efforts to contain the coronavirus pandemic. A steady climb has lifted the S&P 500 by more than 31 percent since its March 23 low. With nearly half that gain coming in April, the month is on track to be the best for stocks since 1974, according to data from Howard Silverblatt, senior index analyst for S&P Dow Jones Indices.
The trading on Wednesday had all the hallmarks of a rally fueled by hopes of a return to normal, with shares of airlines and cruise operators — both industries that are dependent on the end of restrictions and the return of travelers — among the best-performing stocks in the S&P 500. Oil producers also rallied as the price of crude oil surged.The trading on Wednesday had all the hallmarks of a rally fueled by hopes of a return to normal, with shares of airlines and cruise operators — both industries that are dependent on the end of restrictions and the return of travelers — among the best-performing stocks in the S&P 500. Oil producers also rallied as the price of crude oil surged.
A rally in the stocks of large technology companies, which have an outsize impact on the overall market, also helped. Alphabet rose nearly 9 percent the day after it reported quarterly results that were better than expected, and Facebook was more than 6 percent higher.A rally in the stocks of large technology companies, which have an outsize impact on the overall market, also helped. Alphabet rose nearly 9 percent the day after it reported quarterly results that were better than expected, and Facebook was more than 6 percent higher.
Before trading began Wednesday, the drugmaker Gilead Sciences said it was “aware of positive data” emerging from a trial of its antiviral drug being conducted by the National Institute of Allergy and Infectious Diseases. The drug, remdesivir, is being tested as a treatment for Covid-19, the illness caused by the coronavirus.Before trading began Wednesday, the drugmaker Gilead Sciences said it was “aware of positive data” emerging from a trial of its antiviral drug being conducted by the National Institute of Allergy and Infectious Diseases. The drug, remdesivir, is being tested as a treatment for Covid-19, the illness caused by the coronavirus.
Tesla on Wednesday reported a steep drop in net income in the first quarter compared with the previous quarter, as the coronavirus pandemic disrupted the electric-car maker’s operations in the United States and China, its two largest markets.Tesla on Wednesday reported a steep drop in net income in the first quarter compared with the previous quarter, as the coronavirus pandemic disrupted the electric-car maker’s operations in the United States and China, its two largest markets.
Elon Musk, the company’s chief executive, said the company would continue to face difficulties as long as it was forced to keep its plant in Fremont, Calif., closed under the state’s stay-at-home order.Elon Musk, the company’s chief executive, said the company would continue to face difficulties as long as it was forced to keep its plant in Fremont, Calif., closed under the state’s stay-at-home order.
“We are a bit worried about when we will be able to resume production in the Bay Area,” Mr. Musk said on a conference call with reporters.“We are a bit worried about when we will be able to resume production in the Bay Area,” Mr. Musk said on a conference call with reporters.
He went on to say the stay-at-home order was “fascist” and amounted to “forcibly imprisoning people in their homes against all their constitutional rights.”He went on to say the stay-at-home order was “fascist” and amounted to “forcibly imprisoning people in their homes against all their constitutional rights.”
“They’re breaking people’s freedoms in ways that are wrong and are not why people came here or built this country,” he said.“They’re breaking people’s freedoms in ways that are wrong and are not why people came here or built this country,” he said.
California imposed the lockdown in March and required all nonessential businesses to close. But Tesla told employees at the Freemont plant to report to work unless they were sick, or to take vacation days if they stayed at home. The local sheriff’s office forced the company to obey the state order and close the plant.California imposed the lockdown in March and required all nonessential businesses to close. But Tesla told employees at the Freemont plant to report to work unless they were sick, or to take vacation days if they stayed at home. The local sheriff’s office forced the company to obey the state order and close the plant.
Tesla’s plant in Shanghai has resumed production.Tesla’s plant in Shanghai has resumed production.
On Wednesday, the company reported $16 million in net income for the first three months of the year, a drop of 85 percent compared with the fourth quarter. Revenue in the quarter totaled $6 billion, a 20 percent drop from the previous quarter.On Wednesday, the company reported $16 million in net income for the first three months of the year, a drop of 85 percent compared with the fourth quarter. Revenue in the quarter totaled $6 billion, a 20 percent drop from the previous quarter.
Tesla declined to offer guidance for the second quarter because of the uncertain economic and public health outlook. The company’s shares surged 10 percent after the market closed.Tesla declined to offer guidance for the second quarter because of the uncertain economic and public health outlook. The company’s shares surged 10 percent after the market closed.
The Federal Reserve said on Wednesday that it would take whatever steps it could to insulate the economy as coronavirus lockdowns take a severe toll on economic growth, making clear that the central bank will use all its tools to help hasten a recovery.The Federal Reserve said on Wednesday that it would take whatever steps it could to insulate the economy as coronavirus lockdowns take a severe toll on economic growth, making clear that the central bank will use all its tools to help hasten a recovery.
The Fed, which had already slashed interest rates to near zero at two emergency meetings, left its benchmark rate unchanged and signaled it had no plans to raise rates anytime soon.The Fed, which had already slashed interest rates to near zero at two emergency meetings, left its benchmark rate unchanged and signaled it had no plans to raise rates anytime soon.
The Fed chair, Jerome H. Powell, speaking at a news conference immediately after its two-day policy meeting, said the economy was suffering from the “forceful” steps the country had taken to slow the spread of the virus, and said it remained unclear how long the economic stress would continue, Jeanna Smialek reports.The Fed chair, Jerome H. Powell, speaking at a news conference immediately after its two-day policy meeting, said the economy was suffering from the “forceful” steps the country had taken to slow the spread of the virus, and said it remained unclear how long the economic stress would continue, Jeanna Smialek reports.
“The depth and the duration of the economic downturn are unknown,” Mr. Powell said, adding that “the burdens are falling most heavily on those least able to carry them.”“The depth and the duration of the economic downturn are unknown,” Mr. Powell said, adding that “the burdens are falling most heavily on those least able to carry them.”
The central bank has already taken a series of aggressive steps to try to backstop the economy, including buying enormous quantities of government and mortgage-backed debt. The Fed has also unveiled a spate of emergency programs that either buy debt or loan money into critical sectors.The central bank has already taken a series of aggressive steps to try to backstop the economy, including buying enormous quantities of government and mortgage-backed debt. The Fed has also unveiled a spate of emergency programs that either buy debt or loan money into critical sectors.
U.S. gross domestic product, the broadest measure of goods and services produced in the economy, fell at a 4.8 percent annual rate in the first quarter of the year, the Commerce Department said Wednesday. That is the first decline since 2014, and the worst quarterly contraction since the country was in a deep recession more than a decade ago.U.S. gross domestic product, the broadest measure of goods and services produced in the economy, fell at a 4.8 percent annual rate in the first quarter of the year, the Commerce Department said Wednesday. That is the first decline since 2014, and the worst quarterly contraction since the country was in a deep recession more than a decade ago.
Even so, most of the quarter came before the coronavirus pandemic forced widespread shutdowns and layoffs. Economists expect figures from the current quarter to show G.D.P. contracting at an annual rate of 30 percent or more.Even so, most of the quarter came before the coronavirus pandemic forced widespread shutdowns and layoffs. Economists expect figures from the current quarter to show G.D.P. contracting at an annual rate of 30 percent or more.
“They’re going to be the worst in our lifetime,” said Dan North, chief economist for the credit insurance company Euler Hermes North America.“They’re going to be the worst in our lifetime,” said Dan North, chief economist for the credit insurance company Euler Hermes North America.
Treasury Secretary Steven Mnuchin said this week that the economy should “really bounce back” this summer as states lift stay-home orders and trillions of dollars in federal emergency spending reaches businesses and households. Most independent economists are much less optimistic.Treasury Secretary Steven Mnuchin said this week that the economy should “really bounce back” this summer as states lift stay-home orders and trillions of dollars in federal emergency spending reaches businesses and households. Most independent economists are much less optimistic.
The estimates made public on Wednesday are preliminary and based on incomplete data, particularly for March. Some economists expect final figures, due later this spring, to show an even bigger decline.The estimates made public on Wednesday are preliminary and based on incomplete data, particularly for March. Some economists expect final figures, due later this spring, to show an even bigger decline.
Hertz Global Holdings said in a regulatory filing Wednesday that it had missed a monthly payment on the lease it used to procure cars for its rental-car fleet.Hertz Global Holdings said in a regulatory filing Wednesday that it had missed a monthly payment on the lease it used to procure cars for its rental-car fleet.
The company said its business had been battered by the global pandemic, and it had skipped Monday’s payment to preserve cash for its core operations.The company said its business had been battered by the global pandemic, and it had skipped Monday’s payment to preserve cash for its core operations.
Updated June 2, 2020 Updated June 5, 2020
The unemployment rate fell to 13.3 percent in May, the Labor Department said on June 5, an unexpected improvement in the nation’s job market as hiring rebounded faster than economists expected. Economists had forecast the unemployment rate to increase to as much as 20 percent, after it hit 14.7 percent in April, which was the highest since the government began keeping official statistics after World War II. But the unemployment rate dipped instead, with employers adding 2.5 million jobs, after more than 20 million jobs were lost in April.
Mass protests against police brutality that have brought thousands of people onto the streets in cities across America are raising the specter of new coronavirus outbreaks, prompting political leaders, physicians and public health experts to warn that the crowds could cause a surge in cases. While many political leaders affirmed the right of protesters to express themselves, they urged the demonstrators to wear face masks and maintain social distancing, both to protect themselves and to prevent further community spread of the virus. Some infectious disease experts were reassured by the fact that the protests were held outdoors, saying the open air settings could mitigate the risk of transmission.Mass protests against police brutality that have brought thousands of people onto the streets in cities across America are raising the specter of new coronavirus outbreaks, prompting political leaders, physicians and public health experts to warn that the crowds could cause a surge in cases. While many political leaders affirmed the right of protesters to express themselves, they urged the demonstrators to wear face masks and maintain social distancing, both to protect themselves and to prevent further community spread of the virus. Some infectious disease experts were reassured by the fact that the protests were held outdoors, saying the open air settings could mitigate the risk of transmission.
Exercise researchers and physicians have some blunt advice for those of us aiming to return to regular exercise now: Start slowly and then rev up your workouts, also slowly. American adults tended to be about 12 percent less active after the stay-at-home mandates began in March than they were in January. But there are steps you can take to ease your way back into regular exercise safely. First, “start at no more than 50 percent of the exercise you were doing before Covid,” says Dr. Monica Rho, the chief of musculoskeletal medicine at the Shirley Ryan AbilityLab in Chicago. Thread in some preparatory squats, too, she advises. “When you haven’t been exercising, you lose muscle mass.” Expect some muscle twinges after these preliminary, post-lockdown sessions, especially a day or two later. But sudden or increasing pain during exercise is a clarion call to stop and return home.Exercise researchers and physicians have some blunt advice for those of us aiming to return to regular exercise now: Start slowly and then rev up your workouts, also slowly. American adults tended to be about 12 percent less active after the stay-at-home mandates began in March than they were in January. But there are steps you can take to ease your way back into regular exercise safely. First, “start at no more than 50 percent of the exercise you were doing before Covid,” says Dr. Monica Rho, the chief of musculoskeletal medicine at the Shirley Ryan AbilityLab in Chicago. Thread in some preparatory squats, too, she advises. “When you haven’t been exercising, you lose muscle mass.” Expect some muscle twinges after these preliminary, post-lockdown sessions, especially a day or two later. But sudden or increasing pain during exercise is a clarion call to stop and return home.
States are reopening bit by bit. This means that more public spaces are available for use and more and more businesses are being allowed to open again. The federal government is largely leaving the decision up to states, and some state leaders are leaving the decision up to local authorities. Even if you aren’t being told to stay at home, it’s still a good idea to limit trips outside and your interaction with other people.States are reopening bit by bit. This means that more public spaces are available for use and more and more businesses are being allowed to open again. The federal government is largely leaving the decision up to states, and some state leaders are leaving the decision up to local authorities. Even if you aren’t being told to stay at home, it’s still a good idea to limit trips outside and your interaction with other people.
Touching contaminated objects and then infecting ourselves with the germs is not typically how the virus spreads. But it can happen. A number of studies of flu, rhinovirus, coronavirus and other microbes have shown that respiratory illnesses, including the new coronavirus, can spread by touching contaminated surfaces, particularly in places like day care centers, offices and hospitals. But a long chain of events has to happen for the disease to spread that way. The best way to protect yourself from coronavirus — whether it’s surface transmission or close human contact — is still social distancing, washing your hands, not touching your face and wearing masks.Touching contaminated objects and then infecting ourselves with the germs is not typically how the virus spreads. But it can happen. A number of studies of flu, rhinovirus, coronavirus and other microbes have shown that respiratory illnesses, including the new coronavirus, can spread by touching contaminated surfaces, particularly in places like day care centers, offices and hospitals. But a long chain of events has to happen for the disease to spread that way. The best way to protect yourself from coronavirus — whether it’s surface transmission or close human contact — is still social distancing, washing your hands, not touching your face and wearing masks.
Common symptoms include fever, a dry cough, fatigue and difficulty breathing or shortness of breath. Some of these symptoms overlap with those of the flu, making detection difficult, but runny noses and stuffy sinuses are less common. The C.D.C. has also added chills, muscle pain, sore throat, headache and a new loss of the sense of taste or smell as symptoms to look out for. Most people fall ill five to seven days after exposure, but symptoms may appear in as few as two days or as many as 14 days.Common symptoms include fever, a dry cough, fatigue and difficulty breathing or shortness of breath. Some of these symptoms overlap with those of the flu, making detection difficult, but runny noses and stuffy sinuses are less common. The C.D.C. has also added chills, muscle pain, sore throat, headache and a new loss of the sense of taste or smell as symptoms to look out for. Most people fall ill five to seven days after exposure, but symptoms may appear in as few as two days or as many as 14 days.
If air travel is unavoidable, there are some steps you can take to protect yourself. Most important: Wash your hands often, and stop touching your face. If possible, choose a window seat. A study from Emory University found that during flu season, the safest place to sit on a plane is by a window, as people sitting in window seats had less contact with potentially sick people. Disinfect hard surfaces. When you get to your seat and your hands are clean, use disinfecting wipes to clean the hard surfaces at your seat like the head and arm rest, the seatbelt buckle, the remote, screen, seat back pocket and the tray table. If the seat is hard and nonporous or leather or pleather, you can wipe that down, too. (Using wipes on upholstered seats could lead to a wet seat and spreading of germs rather than killing them.)If air travel is unavoidable, there are some steps you can take to protect yourself. Most important: Wash your hands often, and stop touching your face. If possible, choose a window seat. A study from Emory University found that during flu season, the safest place to sit on a plane is by a window, as people sitting in window seats had less contact with potentially sick people. Disinfect hard surfaces. When you get to your seat and your hands are clean, use disinfecting wipes to clean the hard surfaces at your seat like the head and arm rest, the seatbelt buckle, the remote, screen, seat back pocket and the tray table. If the seat is hard and nonporous or leather or pleather, you can wipe that down, too. (Using wipes on upholstered seats could lead to a wet seat and spreading of germs rather than killing them.)
More than 40 million people — the equivalent of 1 in 4 U.S. workers — have filed for unemployment benefits since the pandemic took hold. One in five who were working in February reported losing a job or being furloughed in March or the beginning of April, data from a Federal Reserve survey released on May 14 showed, and that pain was highly concentrated among low earners. Fully 39 percent of former workers living in a household earning $40,000 or less lost work, compared with 13 percent in those making more than $100,000, a Fed official said.
Taking one’s temperature to look for signs of fever is not as easy as it sounds, as “normal” temperature numbers can vary, but generally, keep an eye out for a temperature of 100.5 degrees Fahrenheit or higher. If you don’t have a thermometer (they can be pricey these days), there are other ways to figure out if you have a fever, or are at risk of Covid-19 complications.Taking one’s temperature to look for signs of fever is not as easy as it sounds, as “normal” temperature numbers can vary, but generally, keep an eye out for a temperature of 100.5 degrees Fahrenheit or higher. If you don’t have a thermometer (they can be pricey these days), there are other ways to figure out if you have a fever, or are at risk of Covid-19 complications.
The C.D.C. has recommended that all Americans wear cloth masks if they go out in public. This is a shift in federal guidance reflecting new concerns that the coronavirus is being spread by infected people who have no symptoms. Until now, the C.D.C., like the W.H.O., has advised that ordinary people don’t need to wear masks unless they are sick and coughing. Part of the reason was to preserve medical-grade masks for health care workers who desperately need them at a time when they are in continuously short supply. Masks don’t replace hand washing and social distancing.The C.D.C. has recommended that all Americans wear cloth masks if they go out in public. This is a shift in federal guidance reflecting new concerns that the coronavirus is being spread by infected people who have no symptoms. Until now, the C.D.C., like the W.H.O., has advised that ordinary people don’t need to wear masks unless they are sick and coughing. Part of the reason was to preserve medical-grade masks for health care workers who desperately need them at a time when they are in continuously short supply. Masks don’t replace hand washing and social distancing.
If you’ve been exposed to the coronavirus or think you have, and have a fever or symptoms like a cough or difficulty breathing, call a doctor. They should give you advice on whether you should be tested, how to get tested, and how to seek medical treatment without potentially infecting or exposing others.If you’ve been exposed to the coronavirus or think you have, and have a fever or symptoms like a cough or difficulty breathing, call a doctor. They should give you advice on whether you should be tested, how to get tested, and how to seek medical treatment without potentially infecting or exposing others.
If you’re sick and you think you’ve been exposed to the new coronavirus, the C.D.C. recommends that you call your healthcare provider and explain your symptoms and fears. They will decide if you need to be tested. Keep in mind that there’s a chance — because of a lack of testing kits or because you’re asymptomatic, for instance — you won’t be able to get tested.If you’re sick and you think you’ve been exposed to the new coronavirus, the C.D.C. recommends that you call your healthcare provider and explain your symptoms and fears. They will decide if you need to be tested. Keep in mind that there’s a chance — because of a lack of testing kits or because you’re asymptomatic, for instance — you won’t be able to get tested.
Hertz did not disclose the amount of the missed payment, but said it was in a grace period that would end on May 4.Hertz did not disclose the amount of the missed payment, but said it was in a grace period that would end on May 4.
The company was dealing with a significant decline in travel demand, said Lauren Luster, a Hertz spokeswoman. “Conversations with our lenders are ongoing and we remain in discussions with the U.S. Treasury for support,” she said.The company was dealing with a significant decline in travel demand, said Lauren Luster, a Hertz spokeswoman. “Conversations with our lenders are ongoing and we remain in discussions with the U.S. Treasury for support,” she said.
In its filing, the company said it was talking with two groups of lenders about temporarily reducing the lease payments. One group of lenders, the holders of its vehicle-financing subsidiary’s notes, had already agreed to such a reduction, the company said. But the other group, described as its senior credit facility lenders, had not.In its filing, the company said it was talking with two groups of lenders about temporarily reducing the lease payments. One group of lenders, the holders of its vehicle-financing subsidiary’s notes, had already agreed to such a reduction, the company said. But the other group, described as its senior credit facility lenders, had not.
If Hertz cannot reach an agreement with the second group by May 4, the company could be forced into bankruptcy.If Hertz cannot reach an agreement with the second group by May 4, the company could be forced into bankruptcy.
Treasury Secretary Steven Mnuchin said on Wednesday that he hoped to not lose money on the Federal Reserve lending facilities that the Treasury is supporting with its $454 billion bailout fund.Treasury Secretary Steven Mnuchin said on Wednesday that he hoped to not lose money on the Federal Reserve lending facilities that the Treasury is supporting with its $454 billion bailout fund.
If the economic recovery plays out as he expects, the federal government will not suffer deep losses on the loans.If the economic recovery plays out as he expects, the federal government will not suffer deep losses on the loans.
Mr. Mnuchin has faced criticism from some businesses for not working with the Federal Reserve to deploy the bailout fund more aggressively and for having an aversion to taking credit losses. In a virtual briefing with reporters on Zoom, Mr. Mnuchin said that he was reserving about half of the money so that he had ammunition to stabilize markets if necessary in the coming months.Mr. Mnuchin has faced criticism from some businesses for not working with the Federal Reserve to deploy the bailout fund more aggressively and for having an aversion to taking credit losses. In a virtual briefing with reporters on Zoom, Mr. Mnuchin said that he was reserving about half of the money so that he had ammunition to stabilize markets if necessary in the coming months.
“I think it’s pretty clear if Congress wanted me to lose all of the money, that money would have been designed as subsidies and grants as opposed to credit support,” Mr. Mnuchin said.“I think it’s pretty clear if Congress wanted me to lose all of the money, that money would have been designed as subsidies and grants as opposed to credit support,” Mr. Mnuchin said.
The Treasury secretary said that he was not looking at the loans from the perspective of a pension or private equity fund seeking high return, but that in the best-case scenario, the government would recover its money from the loans. However, he said there was considerable uncertainty.The Treasury secretary said that he was not looking at the loans from the perspective of a pension or private equity fund seeking high return, but that in the best-case scenario, the government would recover its money from the loans. However, he said there was considerable uncertainty.
“There’s plenty of scenarios where we lose all of our money,” he said. “There also could be scenarios where the world turns out better and we make money.”“There’s plenty of scenarios where we lose all of our money,” he said. “There also could be scenarios where the world turns out better and we make money.”
The deluge of first-quarter reports this week is giving investors a detailed look at how the start of the coronavirus crisis affected businesses. Of course, second-quarter earnings this year may well be even more grim.The deluge of first-quarter reports this week is giving investors a detailed look at how the start of the coronavirus crisis affected businesses. Of course, second-quarter earnings this year may well be even more grim.
Facebook cautioned Wall Street that it could face intensifying difficulties in its advertising business as the spread of the coronavirus ripples through the global economy, although the falloff in spending has stabilized. The company’s revenue in the first quarter rose 18 percent to $17.74 billion from a year earlier, while profit more than doubled to $4.9 billion, surpassing Wall Street estimates. A year earlier, Facebook had taken a $3 billion charge to pay for a privacy settlement with the Federal Trade Commission.Facebook cautioned Wall Street that it could face intensifying difficulties in its advertising business as the spread of the coronavirus ripples through the global economy, although the falloff in spending has stabilized. The company’s revenue in the first quarter rose 18 percent to $17.74 billion from a year earlier, while profit more than doubled to $4.9 billion, surpassing Wall Street estimates. A year earlier, Facebook had taken a $3 billion charge to pay for a privacy settlement with the Federal Trade Commission.
Microsoft reported strong growth in sales and profits for the quarter ended in March, saying that the coronavirus outbreak had “minimal net impact” on its financial performance. Revenue rose 15 percent to $35 billion, compared with the analysts’ consensus forecast of $33.66 billion. Its operating earnings per share rose 23 percent to $1.40 a share in the quarter. That was well above the average estimate of Wall Street analysts of $1.26 a share, as compiled by Refinitiv, a research firm.Microsoft reported strong growth in sales and profits for the quarter ended in March, saying that the coronavirus outbreak had “minimal net impact” on its financial performance. Revenue rose 15 percent to $35 billion, compared with the analysts’ consensus forecast of $33.66 billion. Its operating earnings per share rose 23 percent to $1.40 a share in the quarter. That was well above the average estimate of Wall Street analysts of $1.26 a share, as compiled by Refinitiv, a research firm.
Boeing reported $16.9 billion of revenue in the first quarter of the year, a 26 percent decline from last year, as the aviation industry ground to a halt during the coronavirus pandemic. The company said Wednesday that it planned to cut its work force by about 10 percent, a reduction it hopes to achieve voluntarily, through buyouts and early retirement offers.Boeing reported $16.9 billion of revenue in the first quarter of the year, a 26 percent decline from last year, as the aviation industry ground to a halt during the coronavirus pandemic. The company said Wednesday that it planned to cut its work force by about 10 percent, a reduction it hopes to achieve voluntarily, through buyouts and early retirement offers.
General Electric said Wednesday that overall revenue fell 8 percent to $20.5 billion in the first quarter of the year. The coronavirus pandemic especially affected the aviation division, which saw a 13 percent decline. But the health care sector of the business, which doubled its production of ventilators and increased its manufacturing of other medical equipment used in the diagnosis and treatment of Covid-19, saw revenue increase by 7 percent, to $5.3 billion.General Electric said Wednesday that overall revenue fell 8 percent to $20.5 billion in the first quarter of the year. The coronavirus pandemic especially affected the aviation division, which saw a 13 percent decline. But the health care sector of the business, which doubled its production of ventilators and increased its manufacturing of other medical equipment used in the diagnosis and treatment of Covid-19, saw revenue increase by 7 percent, to $5.3 billion.
The restaurant giant Yum Brands said on Wednesday that same-store sales across its brands had dropped 7 percent in the first quarter. Sales at K.F.C. shrank 8 percent, while Pizza Hut sales dropped 11 percent. But sales at Taco Bell — which has been offering drive-through service throughout the pandemic — rose 1 percent.The restaurant giant Yum Brands said on Wednesday that same-store sales across its brands had dropped 7 percent in the first quarter. Sales at K.F.C. shrank 8 percent, while Pizza Hut sales dropped 11 percent. But sales at Taco Bell — which has been offering drive-through service throughout the pandemic — rose 1 percent.
Airbus, the European aircraft giant, reported on Wednesday a net loss of 481 million euros (about $522 million) in the first quarter of 2020, a reversal from a profit of 40 million euros in the same period a year ago. The company said that it delivered 122 commercial aircraft compared with 162 in the first quarter of 2019.Airbus, the European aircraft giant, reported on Wednesday a net loss of 481 million euros (about $522 million) in the first quarter of 2020, a reversal from a profit of 40 million euros in the same period a year ago. The company said that it delivered 122 commercial aircraft compared with 162 in the first quarter of 2019.
Volkswagen, the world’s largest carmaker, said that vehicle sales fell 25 percent in the first three months of the year, a vivid indication of the havoc that the coronavirus is causing throughout the auto industry. The company, based in Wolfsburg, Germany, said that it sold 1.9 million vehicles in the first quarter compared with 2.6 million in the first quarter of 2019. Profit also collapsed, falling more than 80 percent to 517 million euros, or $562 million.Volkswagen, the world’s largest carmaker, said that vehicle sales fell 25 percent in the first three months of the year, a vivid indication of the havoc that the coronavirus is causing throughout the auto industry. The company, based in Wolfsburg, Germany, said that it sold 1.9 million vehicles in the first quarter compared with 2.6 million in the first quarter of 2019. Profit also collapsed, falling more than 80 percent to 517 million euros, or $562 million.
FedEx said on Wednesday that it would not take federal funds earmarked to pay employees under the CARES Act, one day after UPS announced the same. Lawmakers had set aside $25 billion in grants for passenger airlines and $4 billion for cargo carriers to pay workers, though the Treasury Department later classified a portion of the funds for airlines as a loan.FedEx said on Wednesday that it would not take federal funds earmarked to pay employees under the CARES Act, one day after UPS announced the same. Lawmakers had set aside $25 billion in grants for passenger airlines and $4 billion for cargo carriers to pay workers, though the Treasury Department later classified a portion of the funds for airlines as a loan.
Tyson Foods said on Wednesday that it was doubling bonuses, to a total of $120 million, for its 116,000 front-line workers and truck drivers in the United States. The company also said it was increasing short-term disability coverage for employees unable to work because of illness and putting additional health screening measures into place.Tyson Foods said on Wednesday that it was doubling bonuses, to a total of $120 million, for its 116,000 front-line workers and truck drivers in the United States. The company also said it was increasing short-term disability coverage for employees unable to work because of illness and putting additional health screening measures into place.
Lyft plans to lay off 17 percent of its employees, the company said in a regulatory filing, as the ride-hailing company struggles with a downturn caused by the coronavirus pandemic. The company told staff about the cuts in an email on Wednesday. Five percent of workers will be furloughed, and remaining employees will take a pay cut. Executive pay will be reduced 30 percent, pay for vice presidents will be reduced 20 percent, and pay for other workers will be reduced 10 percent.Lyft plans to lay off 17 percent of its employees, the company said in a regulatory filing, as the ride-hailing company struggles with a downturn caused by the coronavirus pandemic. The company told staff about the cuts in an email on Wednesday. Five percent of workers will be furloughed, and remaining employees will take a pay cut. Executive pay will be reduced 30 percent, pay for vice presidents will be reduced 20 percent, and pay for other workers will be reduced 10 percent.
Volkswagen said on Wednesday that it would not restart production at its plant in Chattanooga, Tenn., on May 3, a date it announced just a week earlier. The German automaker did not provide a new start date, and said in a statement that it would first “weigh the readiness of the supplier base, as well as market demand and the status of the Covid-19 outbreak.”Volkswagen said on Wednesday that it would not restart production at its plant in Chattanooga, Tenn., on May 3, a date it announced just a week earlier. The German automaker did not provide a new start date, and said in a statement that it would first “weigh the readiness of the supplier base, as well as market demand and the status of the Covid-19 outbreak.”
Reporting was contributed by Alan Rappeport, Mary Williams Walsh Steve Lohr, Taylor Lorenz, Ben Casselman, Jaclyn Peiser, Stanley Reed, Jack Ewing, Ben Dooley, Keith Bradsher, Alan Rappeport, Jeanna Smialek, David Yaffe-Bellany, Jason Karaian, Kate Conger, Mike Isaac, Tara Siegel-Bernard, Neal E. Boudette, Michael Corkery, Sapna Maheshwari, Gregory Schmidt, Mohammed Hadi, Katie Robertson, Carlos Tejada, Mike Ives and Kevin Granville.Reporting was contributed by Alan Rappeport, Mary Williams Walsh Steve Lohr, Taylor Lorenz, Ben Casselman, Jaclyn Peiser, Stanley Reed, Jack Ewing, Ben Dooley, Keith Bradsher, Alan Rappeport, Jeanna Smialek, David Yaffe-Bellany, Jason Karaian, Kate Conger, Mike Isaac, Tara Siegel-Bernard, Neal E. Boudette, Michael Corkery, Sapna Maheshwari, Gregory Schmidt, Mohammed Hadi, Katie Robertson, Carlos Tejada, Mike Ives and Kevin Granville.