The New York Times - USA (2020-07-22)

B2 N THE NEW YORK TIMES BUSINESSWEDNESDAY, JULY 22, 2020

Months

36 2510 30

Years

220

240

260

’16 ’18 ’20

400

500

600

700 thousand

’16 ’18 ’20

80

100

120

’16 ’18 ’20

0

5

10%

’16 ’18 ’20

0

2

4

$6 a bushel

’12 ’14 ’16 ’18 ’20

0

50

$100 a barrel

’12 ’14 ’16 ’18 ’20

0

1

2

3

4

5

6%

’10 ’15 ’20

90

100

110

120

’15 ’16 ’17 ’18 ’19 ’20

1.0

1.1

1.2

$1.3

’15 ’16 ’17 ’18 ’19 ’20

0

1

2

3%

0

1

2

3%

’19 ’20

+2.5

+2.0

+1.5

+1.0

+0.5

0.0

–0.5

Energy %

Financials

Industrials

Consumer staples

Materials

Utilities

Real estate

Health care

Consumer discretionary

Communication services

Information technology

+6.2

+1.9

+1.3

+1.0

+0.9

+0.5

+0.01

–0.1

–0.4

–0.4

–1.1

1. Vanguard Health Care Adm(VGHAX) +25.1% +7.1% $38.7


2. Vanguard Real Estate Index Admiral(VGSLX) –7.6 +4.2 18.7


3. T. Rowe Price Health Sciences(PRHSX) +24.0 +9.0 13.2


4. Fidelity Select Software & IT Svcs Port(FSCSX) +32.2 +22.7 10.0


5. Fidelity Select Health Care(FSPHX) +31.5 +10.1 8.9


6. DFA Real Estate Securities I(DFREX) –7.5 +5.1 8.8


7. Calamos Market Neutral Income I(CMNIX) +3.8 +3.8 8.3


8. Fidelity Select Technology(FSPTX) +45.1 +23.2 8.3


9. T. Rowe Price Comm & Tech Investor(PRMTX) +39.5 +19.9 8.0


10. Fidelity Select Biotechnology(FBIOX) +36.0 +3.1 7.7


11. BofAML (BAC) $24.42 +3.6% 75.3


12. GE (GE) 7.04 +2.5 69.8


13. American Airl (AAL) 11.47 0.0 64.3


14. Ford Motor (F) 6.68 +0.3 63.1


15. Wells Fargo (WFC) 26.20 +6.6 58.4


16. Nrwn Crs Ln (NCLH) 14.98 +0.6 50.5


17. United Arlns (UAL) 33.07 +2.3 45.5


18. AMD (AMD) 57.00 –0.8 44.7


19. Occidental (OXY) 17.41 +11.0 44.3


20. FirstEnergy (FE) 34.25 –17.0 40.9


21. FirstEnergy (FE) $34.25 –17.0%


22. Vertex Pharm (VRTX) 291.40 –3.9


23. Maxim Intg (MXIM) 69.00 –3.3


24. eBay (EBAY) 56.59 –3.2


25. Paycom Softw (PAYC) 293.90 –2.9


26. Incyte (INCY) 106.65 –2.8


27. S e r v i c e N o w ( N O W ) 4 3 7. 2 2 –2 .7


28. Autodesk (ADSK) 239.69 –2.6


29. Netflix (NFLX) 490.10 –2.5


30. Adobe (ADBE) 444.28 –2.4


31. Occidental (OXY) $17.41 +11.0%


32. Cimarex Energ (XEC) 27.25 +10.9


33. Devon Energy (DVN) 11.35 +10.5


34. Foot Locker (FL) 30.22 +9.7


35. Apache (APA) 14.90 +9.6


36. Diamondback (FANG) 42.11 +9.2


37. Helmerich (HP) 19.70 +9.0


38. Hess (HES) 52.26 +8.4


39. National Oilw (NOV) 12.27 +8.4


40. Baker Hughes (BKR) 16.31 +8.4

+20%

+15%

+10%

+ 5%

0%

2,800

3,000

3,200

3,400

May June July

+20%

+15%

+10%

+ 5%

0%

8,500

9,000

9,500

10,000

10,500

May June July

+20%

+15%

+10%

+ 5%

23,000 0%

24,000

25,000

26,000

27,000

28,000

29,000

30,000

May June July

3257.30 0.2% 10680.36 0.8% 26840.40 0.6%

Shanghai +0.2%

Tok yo + 0.7%

Frankfurt +1.0%

London +0.1%

Toronto – 0.1%

New York +0.2%

$1 = 106.8

$1.1529 Unemployment Rate

New-home sales

Consumer confidence

Industrial production

Specialized stock funds

and commodities

S&P 500 Nasdaq Composite Index Dow Jones industrials

Best performers Worst performers Most active

Sector performance

Bonds

Yield curve

Key rates

Borrowing rate

Crude oil

Corn

Savings rate

yen

10-year Treas.

YESTERDAY

1-YE AR AGO

Fed Funds 2-year Treas.

Currencies Consumer rates Commodities Economy

How stock markets fared yesterday in Asia ... ... in Europe ... and in the Americas.

CLOSE

S&P 500 SECTORS

CLOSE CLOSE 1 YR 5 YRS

TOTAL RETURNASSETSTOTAL

CHANGE CHANGE CHANGE IN MIL. IN BIL.

VOLUME

POWERED BY

What Happened in Stock Markets Yesterday

What Is Happening in Other Markets and the Economy

Major stock market indexes

6 p.m. E.T. 8 10 12 a.m. 2 4 6 a.m. 8 10 12 p.m. 2 4 6 p.m.

Maturity

1-year CDs

30-year fixed mortgages

S&P 500 COMPANIES S&P 500 COMPANIES S&P 500 COMPANIES

Source: Morningstar

1 euro =

The Digest

Wall Street extended its recent

run of gains Tuesday, despite a

late stumble that nearly wiped out

the stock market’s gains for the

day.

The S&P 500 rose 0.2 percent af-

ter having been up 0.8 percent in

the early going. Banks and energy

companies led the gains, out-

weighing losses in technology

stocks, which pulled the Nasdaq

composite lower. Small company

stocks did better than the broader

market.

The latest gains followed

strength in markets overseas as

investors welcomed news that Eu-

ropean leaders have agreed on a

budget and coronavirus relief

fund worth more than $2 trillion.

The agreement came as pressure

is intensifying on Congress and

the White House to reach a deal on

another economic aid package be-

fore a temporary boost in aid for

unemployed Americans expires

at the end of the month.

Hope for more economic aid

from the government, following

Europe’s example, helped put in-

vestors in a buying mood Tuesday,

said Kristina Hooper, chief global

market strategist for Invesco.

“The U.S. does not have the

safety net that Europe has,” she

said. “This is an environment in

which there is going to be a need

for more fiscal stimulus or you

could see a real hit to consumers.”

The S&P 500 gained 5.46 points

to 3,257.30. It was the index’s

third-straight gain. The Dow

Jones industrial average rose

159.53 points, or 0.6 percent, to

26,840.40. The Nasdaq dropped

86.73 points, or 0.8 percent, to

10,680.36, a day after notching its

best day since the end of April and

its latest all-time high.

Small company stocks surged,

driving the Russell 2000 index up

19.56 points, or 1.3 percent, to

1,487.51. Indexes in Europe and

Asia closed higher.

In signs of continuing caution in

the market, Treasury yields were

mostly lower and the price of gold

rose 1.5 percent.

After following up a 20 percent

drop in the first three months of

the year with a nearly 20 percent

gain over the April-June quarter,

Wall Street has continued its win-

ning ways so far in July. The S&P

500 has notched a weekly gain the

past three weeks as investors

cheered improvements in hiring,

retail sales and other parts of the

economy, along with rising hopes

for a Covid-19 vaccine.

The Federal Reserve’s efforts to

support markets and expecta-

tions that Washington will deliver

more financial aid to help Ameri-

cans weather the economic down-

turn have been key in keeping

markets mostly pushing higher

since stocks plunged in March.

The overall S&P 500 index has

rallied back to within 3.9 percent

of its record set in February and is

back to where it was in early June.

Still, worries remain that rising

infections across much of the

country will derail efforts to re-

open businesses shut down be-

cause of the pandemic. That’s why

Wall Street is betting on Washing-

ton to deliver another trillion-dol-

lar round of economic aid.

“We still have areas of the U.S.

that have become hot spots, there

are localized lockdowns and we

expect the employment landscape

will not be able to heal until we

have the economy open com-

pletely,” said Quincy Krosby, chief

market strategist at Prudential

Financial. “The larger the (aid)

package, the more it will continue

to cushion the downside ramifica-

tions of the epidemic.”

Energy companies were the

biggest gainers among the 11 sec-

tors in the S&P 500, by far, as the

price of oil headed higher. Occi-

dental Petroleum led all other

stocks in the S&P 500, vaulting

nearly 11 percent. More than a

dozen other energy companies

also moved sharply higher.

Technology stocks and compa-

nies that rely on consumer spend-

ing, sectors that are up the most

this year, gave up some of their

gains after powering a rally a day

earlier.

The rise in financial, energy and

industrial stocks is a reversal in

the market’s prevailing trend

since the pandemic struck, which

has been to favor companies that

benefit from Americans being

stuck at home and increasingly re-

lying upon technology, digital

communication and e-commerce.

“Today you’re also seeing

small-cap names move up at the

expense of the tech names,” Ms.

Krosby said.

Investors also had their eye on

the latest batch of quarterly re-

ports. Coca-Cola rose 2.3 percent

and Philip Morris International

gained 4.2 percent after the com-

panies reported earnings that

beat analysts’ forecasts.

Among the other big companies

reporting results this week:

Microsoft and Tesla issue results

on Wednesday, Intel, AT&T and

Twitter report on Thursday and

Verizon Communications and

American Express report earn-

ings Friday.

European Deal Makes Investors Optimistic

By The Associated Press

The S& P 500 Index

Position of the S& P 500 index at 1-minute intervals on Tuesday.

Source: Reuters THE NEW YORK TIMES

3,250

3,280

3,260

3,270

10 a.m. Noon 2 p.m. 4 p.m.

Previous close

3,251.84

STOCKS & BONDS

10-YEAR TREASURY YIELD

0.61%

–0.01 points

CRUDE OIL (U.S.)

$41.76

+$0.95

S&P 500 INDEX

+0.17%

3,257.30

DOW JONES INDUSTRIALS

+0.60%

26,8 40 .4 0

NASDAQ COMPOSITE INDEX

–0.81%

10,680.36

GOLD (N.Y.)

$1,842.40

+$26.50

MEDIA

ABC News Official Ousted;

Racist Remarks Are Cited

The Walt Disney Company said
in an internal memo on Monday
that it had cut ties with a top ABC
News executive after an investi-
gation backed complaints that
she had made racist remarks in
the workplace.
The executive, Barbara Fedida,
52, had worked at ABC for most
of her roughly two-decade career,
save for a five-year stint as the
head of talent development at
CBS News from 2006 to 2011. As
the senior vice president of talent
relations and business affairs at
ABC News, she had a hand in se-
lecting on-air talent for programs
like “Good Morning America,”
“ABC World News Tonight With
David Muir” and “Nightline.”
Last month HuffPost reported
that Ms. Fedida had made insen-
sitive statements, including racist
comments, at work. During a sal-
ary negotiation with the “Good
Morning America” anchor Robin
Roberts, who is Black, Ms. Fedida
said the company was not asking
her to “pick cotton,” according to
the article.

Disney, the owner of ABC, put

Ms. Fedida on administrative

leave soon after the article was

published and hired the law firm

Proskauer Rose to conduct an in-

vestigation. On Monday, Peter

Rice, the chairman of Walt Disney

Television, informed the staff of

her departure in a memo that was

reviewed by The New York Times.

“The investigation substantiat-

ed that Ms. Fedida did make some

of the unacceptable racially insen-

sitive comments attributed to

her,” Mr. Rice said in the memo. “It

also substantiated that Ms. Fe-

dida managed in a rough manner

and, on occasion, used crass and

inappropriate language.”

Mr. Rice said the law firm’s in-

vestigation had found “no basis”

for claims in the HuffPost article

that Ms. Fedida’s conduct had led

to more than a dozen human re-

sources complaints and millions

of dollars in confidential settle-

ments.

A representative for Ms. Fedida

declined to comment. She denied

the accusations when they sur-

faced in June, calling them “in-

credibly misleading.” She said she

had championed diversity during

her tenure. RACHEL ABRAMS

AVIATION

United Airlines’ Revenue

For Quarter Falls 87%

United Airlines Tuesday said its
operating revenue fell 87 percent,
to $1.5 billion, in the second quar-
ter compared with a year ago.
United said it lost $1.6 billion in
the quarter, compared with a $1
billion profit during the same
three months in 2019. The steep
drop was the result of the pan-
demic’s catastrophic toll.
As of Monday, United had about
$15 billion of cash on hand, which
it expects to increase to $18 billion
by the end of September. United
lost an average of $40 million a
day in April, May and June and
aims to reduce that to $25 million a
day in the third quarter.
In the second quarter, the num-
ber of people flying decreased as
much as 96 percent on some days
in April compared with last year.
On Monday, the number of people
screened at airport checkpoints
was down 74 percent compared

with last year.

United and other airlines have

scaled back schedules for August.

The airline now expects to fly

about 35 percent as many flights

next month as it did last August

and says the rest of the year will

probably be much the same. “We

expect that air travel is not likely

to get back to normal until we’re

closer to a widely administered

vaccine,” Scott Kirby, United’s

chief executive, said in a state-

ment. NIRAJ CHOKSHI

TERESA CRAWFORD/ASSOCIATED PRESS