The Washington Post - 19.03.2020

THURSDAy, MARCH 19 , 2020. THE WASHINGTON POST eZ re A21

the coronavirus outbreak

tHe MArKets

6 monitor your investments at washingtonpost.com/markets Data and graphics by

MAMJJASONDJFM

6,800

8,300

9,900

'19

S&P 500 Industry Group Snapshot

Industry Group

Daily %

Chg

-55.9% Chg % 1Yr +55.9%

Water Utilities 16.6

Communications Equipment 3.5

Air Freight & Logistics 2.5

Food & Staples Retailing 1.6

Internet & Catalog Retail 0.1

Auto Components -25.4

Airlines -20.1

Consumer Finance -17.4

Power Prodct & Enrgy Trdr -17.3

Distributors -15.6

$1000 invested over 1 Month

Britain £

0.86

Bloomberg

MAMJJASONDJFM

19,650

24,600

29,560

'19

Futures Close 1D % Chg
Copper 2.15 -7.0
Crude Oil 20.37 -24.4
Gold 1477.90 -3.1
Natural Gas 1.60 -7.2
Orange Juice 0.97 -3.8

Futures Close 1D % Chg

Silver 11.77 -5.8

Sugar 10.67 -2.0

Soybean 8.26 0.2

Wheat 5.08 1.8

Corn 3.35 -2.5

Currency Exchange

2-yr note

Yield:

0.53%

Bank Prime

3.25%

Exchange-Traded
(Ticker) 1D % Chg
$380 $1122

Coffee (COFF.L) 3.0
Copper (COPA.L) -6.8
Corn (CORN.L) -3.2
Cotton (COTN.L) -3.9
Crude Oil (CRUD.L) -20.2
Gasoline (UGAS.L) -9.9
Gold (BULL.L) -2.8
Natural Gas (NGAS.L) -9.6
Silver (SLVR.L) -4.1

Close

6,989.84

1D % Change

-5.2%

LIBOR 3-Month

1.05%

Consumer Rates

1D % Change

-4.7%

Money Market Natl

0.38

1-Yr ARM

3.34%

Gainers and Losers from the S&P 1500 Index

Company Close

1D %

Chg

Addus HomeCare Corp 65.57 35.5

SpartanNash Co 13.50 20.8

United Natural Foods 11.93 19.2

Amer States Water Co 93.03 18.6

Glu Mobile Inc 5.82 11.7

BJ's Wholesale Club 30.13 11.6

Cheesecake Factory 20.85 11.4

FTI Consulting Inc 131.69 11.2

Granite Construction 11.21 11.0

Tupperware Brands 1.52 10.9

HMS Holdings Corp 21.88 9.8

Akamai Technologies 97.10 9.8

FreshDelMonteProduce 36.67 9.7

Allscripts Hlth Sol 5.50 9.6

Amer Public Edu 26.32 9.4

ArcBest Corp 21.09 9.4

Greif Inc 32.03 8.5

Dorman Products Inc 62.10 8.2

HawaiianElectrIndst 53.32 8.1

OraSure Technologies 6.79 7.9

Company Close

1D %

Chg

Chefs' Warehouse Inc 3.60 -53.1

Penn Virginia Corp 1.13 -48.6

Gannett Co Inc 1.25 -46.8

SkyWest Inc 12.07 -44.8

Archrock Inc 2.10 -44.4

Dine Brands Global 17.00 -44.2

RE/MAX Holdings Inc 14.41 -43.2

Summit Hotel Prop 2.61 -42.8

Myers Industries Inc 7.25 -40.2

Genesco Inc 8.84 -40.1

MarriottVacationsWw 36.81 -39.7

Encore Capital Group 18.72 -38.7

Matrix Service Co 7.46 -38.7

ATN International 38.51 -38.6

G-III Apparel Group 4.50 -38.5

Penn National Gaming 4.52 -38.3

BJ's Restaurants Inc 6.54 -38.2

CBL & Assc Prop 0.28 -38.1

Guess? Inc 3.92 -38.1

ChathamLodgingTrust 3.76 -38.0

5Yr CD Natl

1.09

5-yr note

Yield:

0.79%

RATES

NASDAQ COMPOSITE INDEX

$1000 invested over 1 Year

6Mo CD Natl

0.60

Japan ¥

108.08

Mexico $

23.85

MAMJJASONDJFM

2,370

2,880

3,390

'19

YTD % Change

-22.1%

Close

19,898.92

New Car Loan Natl

4.39

Asia Pacific -29.3% +29.3%

S&P/ASX 200 INDEX 4953.20 -6.4

CSI 300 INDEX 3636.26 -2.0

HANG SENG INDEX 22291.82 -4.2

NIKKEI 225 16726.55 -1.7

Europe -37.2% +37.2%

STXE 600 (EUR) Pr 279.66 -3.9

CAC 40 INDEX 3754.84 -5.9

DAX INDEX 8441.71 -5.6

FTSE 100 INDEX 5080.58 -4.0

10-yr note

Yield:

1.17%

Close

2,398.10

Dow Jones 30 Industrials

Company Close 1D %Chg Chg %YTD

3M Co 137.02 1.9 -22.0
AmerExpCo 73.75 -14.8 -40.0
Apple Inc 246.67 -2.4 -17.1
Boeing 101.89 -17.9 -68.7
Caterpillr 100.12 -0.1 -32.2
Chevron 55.05 -22.1 -53.2
Cisco Sys 37.12 4.6 -23.2
Coca-Cola 44.85 -4.9 -19.4
Dow Inc 26.44 -0.6 -51.7
ExxonMobil 33.12 -10.0 -52.4
Gldman Schs 140.02 -11.8 -38.8
Home Depot 155.63 -10.4 -29.2
IBM 103.55 -2.9 -23.0
Intel Corp 47.61 -4.9 -23.5
J&J 134.96 -1.2 -8.0

Company Close 1D %Chg Chg %YTD

JPMorgan 83.89 -10.5 -40.7

McDonald's 137.30 -7.0 -30.1

Merck & Co 71.63 -3.8 -21.7

Microsoft 140.40 -4.2 -11.3

NIKE Inc 68.04 -2.6 -33.5

Pfizer Inc 32.36 0.6 -17.4

Prcter& Gmbl 117.45 -0.7 -5.7

Travelers Cos I 81.69 -15.3 -40.0

UnitedTech 79.40 -14.5 -46.7

UntdHlthGr 217.06 -11.1 -25.6

Verzn Comm 54.32 0.0 -11.3

Visa Inc 148.48 -6.0 -21.6

Walgreens 52.81 6.5 -11.6

Walmart 122.58 2.8 3.1

Walt Disney 88.80 -5.1 -38.6

1Yr CD Natl

0.86

30-Yr Fixed mtge

4.00%

COMMODITIES EU €

0.92

INTERNATIONAL STOCK MARKETS

6-month bill

Yield:

0.06%

YTD % Change

-25.8%

15-Yr Fixed mtge

3.20%

Canada $

1.45

1D % Change

-6.3%

Note: Bank prime is from 10 major banks. Federal Funds rate is the market

rate, which can vary from the federal target rate. LIBOR is the London

Interbank Offered Rate. Consumer rates are from Bankrate. All figures as of

4:30 p.m. New York time.

Federal Funds

0.25%

Markets YTD % Chg

Americas Close

Daily

% Chg

-42.2% +42.2%

BRAZIL IBOVESPA INDEX 66894.90 -10.3

S&P/TSX COMPOSITE INDEX 11721.42 -7.6

S&P/BMV IPC 35532.74 -3.6

Home Equity Loan Natl

6.25

STANDARD & POOR'S

Data and graphics by:

DOW JONES

'19

Brazil R$

5.12

YTD % Change

-30.3%

BY DAVID J. LYNCH

AND JEFF STEIN

Less than two hours after Presi-
dent Trump finished speaking at
the White House on Tuesday
about his plan to bail out indus-
tries reeling from the coronavirus
pandemic, Democrats made it
clear they had t heir own priorities.
While the president spoke
about helping airlines and cruise
operators — and even individual
companies such as Boeing —
prominent Democrats insisted
that any crisis aid must include
plenty of conditions designed to
benefit workers. The sharp reac-
tion was a reminder t hat the p olit-
ical wounds from the govern-
ment’s r esponse to the 2 008 global
financial crisis remain fresh.
“Let me be clear: We’re not do-
ing no-strings-attached bailouts
that enrich shareholders or pay
CEO bonuses. Period,” Sen. Eliza-
beth Warren (D-Mass.) tweeted.
From progressives such as Sen.
Sherrod Brown (Ohio) to busi-
ness-friendly figures such as Sen.
Mark R. Warner (Va.), Democrats
insisted that any corporate rescue
include restrictions on stock buy-
backs and executive compensa-
tion along with provisions for paid
sick leave, including for informal
“gig economy” w orkers.
In a sign of the election-year
stakes, Senate Minority Leader
Charles E. Schumer (D-N.Y.) said
the emerging debate offered a
clear contrast “between us and
our R epublican f riends.”
Trump, who once criticized
President Barack Obama’s bailout
of the U.S. auto industry as “ruin-
ing American industry,” now con-
fronts the toxic politics of crisis-
fighting. As his two most recent
predecessors discovered in 2008
and 2009, battling an economic
emergency involves balancing
competing imperatives: time and

justice.

With businesses and jobs hang-

ing in the balance, the federal

government must act fast and

with force to rescue the economy.

But as Washington races to avert

disaster, i t faces d emands to avoid

rewarding the undeserving or

worsening societal ills such as in-

come and w ealth inequality.

The president — who promised

Tuesday that “we’re going big” —

appears to have embraced the first

lesson. But he is struggling with the

second. His plan to provide $50 bil-

lion to the airline industry, p art of a

$1 trillion package that includes

cash payments to individual Amer-

icans, is rviving the debate about

public bailouts of private business-

es that has roiled national politics

foer more than a decade.

“Every industry is affected. Ev-

ery restaurant is a ffected. How are

you going to draw the line be-

tween who gets government aid

and w ho doesn’t?” s aid one p erson

briefed on internal White House

deliberations, who was not autho-

rized to speak to reporters. “It

becomes a real corporate welfare

scramble.”

The administration’s request

would put limits on “increases in

executive c ompensation” u ntil the

loans are repaid by the airlines,

according to a Treasury Depart-

ment document obtained by The

Washington Post.

The package also includes

$150 billion in “secured l ending o r

loan guarantees” for industries

facing “severe financial distress”

from the pandemic, but the docu-

ment does not specify how that

money w ould b e used.

The $21 trillion U.S. economy

has arrived at the brink of sudden

collapse with astonishing speed.

Just l ast month, forecasters antici-

pated s teady economic growth for

the rest of this year, and the Dow

Jones industrial average was at a

record high. It has fallen 9,000

points i n the p ast month.

Now, a s many as 3 million work-

ers c ould lose t heir jobs b y the e nd

of the summer, said Josh Bivens,

an economist at t he E conomic Pol-

icy Institute.

Ye t it’s not just Democrats who

are uneasy about the rush to

throw money at the problem.

Prominent Republicans such as

Sen. Rick Scott and Rep. Matt

Gaetz, both of Florida, said they

oppose c orporate bailouts.

The administration’s sales

pitch reflects the sensitivities. In

congressional testimony this

month, Treasury Secretary Steven

Mnuchin declined on four occa-

sions to use the word “bailout” to

describe t he p lanned help.

“This is not a bailout. This is

considering providing certain

things for certain industries,” he

said.

The airlines are just the first in

the line. A growing list of other

industries, including hotels, casi-

nos, cruise ships, restaurants and

retailers, face s imilar l osses.

The U.S. Travel Association on

Tuesday asked Trump for $150 bil-

lion in a ssistance. Boeing weighed

in with its own request for $60 b il-

lion in public and private cash,

including loan guarantees, for

aerospace manufacturers.

Hotel industry representatives

met with Trump and Vice Presi-

dent Pence at the White House

and warned of a “catastrophic”

toll. As if to prove the point, Mar-

riott, the world’s largest hotel

company, on Tuesday began fur-

loughing o r laying off tens of t hou-

sands of workers.

“The impact to our industry is

already more severe than any-

thing we’ve seen before, including

September 11th and the Great Re-

cession of 2008 combined,” said

Chip Rogers, president of the

American Hotel & Lodging Asso-

ciation.

Although the incandescent an-

ger Americans felt toward the big

banks in 2008 is now absent,

many Democrats want any com-

pany receiving taxpayer money to

devote it to workers’ pay and to

refrain from stock buybacks or

lavish executive pay. Some ana-

lysts said corporations should be

barred f rom re-pricing executives’

stock options to make it easier for

them to profit from an economic

recovery.

Asked Tuesday whether the

bailouts would carry any restric-

tions, the president looked to the

vice president, saying: “I t hink I’m

going to ask Mike. Answer that

question, please.”

Pence parried, saying only the

industry aid package is “a work in

progress.”

U.S. officials insist this time is

different. In 2008, millions of vot-

ers blamed the big banks for

wrecking the U.S. economy by

making reckless investments.

This time, the culprit behind the

economic trauma is a natural

force — the virus — and the com-

panies are blameless.

“This is not their fault. We have

to help them,” Trump s aid.

Ye t many Democrats are reluc-

tant to write a check for corpora-

tions, which received a windfall

from $1.5 trillion tax cut legisla-

tion in 2017.

The airlines, in particular, used

much of the cash they generated

during the long economic expan-

sion to buy back their stock from

investors. That typically pushes

stock prices higher, which benefits

executives whose c ompensation is

tied to share prices.

United Airlines chief executive

Oscar Muñoz, for example, e arned

total compensation of $10.5 mil-

lion, according to the company’s

most recent securities filing.

Four airlines — A merican, U nit-

ed, Delta and Southwest — collec-

tively spent more than $39 billion

over the past five years on stock

buybacks, said Howard Silverb-

latt, an analyst with S&P Global.

Some of the lawmakers who will

consider the airlines’ requests for

help want limits on such practices.

“If there i s so much as a DIME o f

corporate bailout money in the

next relief package, it should in-

clude a reinstated ban on stock

buybacks,” Rep. Alexandria Oca-

sio-Cortez (D-N.Y.) tweeted Tues-

day.

The politics of any coronavirus

bailout reflect the lessons of the

2008 Wall Street rescue, which

began as a bipartisan venture only

to sour into a source of polariza-

tion.

The George W. Bush and

Obama administrations’ $700 bil-

lion effort to rescue the financial

system t riggered m assive political

protests by the left and the right,

fueling an anti-establishment

wave that ultimately lifted a reali-

ty t elevision star from N ew York to

the White House.

By 2009, as Obama and con-

gressional Democrats sought to

use public money to rescue

wounded financial institutions,

their actions were opposed by

many Republicans, who advocat-

ed letting the m arket sort out win-

ners and l osers.

When the banks that were

saved in 2008 paid out $140 bil-

lion in executive bonuses in 2009,

voters o n both sides erupted.

To day, Democrats — who lost

the House in 2010 amid a conser-

vative rebellion over bailouts —

demand strict conditions on aid.

And many Republicans, i ncluding

National Economic C ouncil Direc-

tor Larry Kudlow — who wrote in

2008 that such programs make “a

mockery of free-market capital-

ism” — have ditched their objec-

tions.

“The bailouts in 2008 were not

the p roblem. The problem was the

terms, conditions and recipients,”

said Dennis Kelleher, head of the

nonpartisan group Better Mar-

kets. “It created the tea party on

the right, Occupy Wall Street on

the left and ultimately delivered

us President Trump.”

da [email protected]

[email protected]

Stimulus plan plunges Trump into the toxic politics of industry bailouts

KeVIn DIetscH/BlOOmBerg

Tourism industry executives such as Elie Maalouf, who oversees a

major hotel conglomerate, met this week with President Trump.

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