The New York Times - USA (2020-07-31)

B2 Y THE NEW YORK TIMES BUSINESS FRIDAY, JULY 31, 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

+1.5

+1.0

+0.5

0.0

–0.5

–1.0

–1.5

–2.0

–2.5

–3.0

–3.5

–4.0

–4.5

Information technology %

Communication services

Consumer discretionary

Consumer staples

Utilities

Health care

Real estate

Industrials

Financials

Materials

Energy

+0.5

+0.3

+0.1

0.0

–0.02

–0.8

–0.8

–1.0

–1.8

–2.0

–4.1

1. Vanguard Interm-Term Tx-Ex Adm(VWIUX) +4.9% +3.8% $71.4


2. Vanguard Ltd-Term Tx-Ex Adm(VMLUX) +3.2 +2.2 29.2


3. Vanguard Short-Term Tx-Ex Adm(VWSUX) +2.1 +1.5 16.6


4. Vanguard CA Interm-Term Tax-Exempt Adm(VCADX) +4.7 +3.8 15.0


5. Vanguard Long-Term Tax-Exempt Adm(VWLUX) +5.9 +4.8 13.7


6. Vanguard High-Yield Tax-Exempt Adm(VWALX) +4.3 +5.0 13.0


7. American Funds Tax-Exempt Bond A(AFTEX) +4.2 +3.8 12.2


8. Franklin CA Tax Free Income A1(FKTFX) +5.5 +4.6 11.4


9. Nuveen High Yield Municipal Bond I(NHMRX) NA +5.6 9.4


10. Nuveen Intermediate Duration Muni Bd I(NUVBX) +3.7 +3.8 8.3


11. GE (GE) $6.26 –5.0% 126.7


12. AMD (AMD) 78.20 +2.8 79.9


13. BofAML (BAC) 24.84 –1.7 61.6


14. Ford Motor (F) 6.74 –2.6 57.0


15. Wells Fargo (WFC) 24.65 –4.4 50.8


16. Qualcomm (QCOM) 107.19 +15.2 42.0


17. American Airl (AAL) 11.18 –1.9 40.2


18. Intel (INTC) 47.99 –0.2 39.4


19. Apple (AAPL) 384.76 +1.2 36.6


20. United Arlns (UAL) 31.74 –2.6 31.4


21. A O Smith (AOS) $48.46 –9.1%


22. Occidental (OXY) 15.77 –7.4


23. Westrck (WRK) 28.26 –6.6


24. ConocoPhillip (COP) 37.64 –5.8


25. Harley Davids (HOG) 26.62 –5.7


26. Unum Group (UNM) 17.16 –5.7


27. Valero Energy (VLO) 56.33 –5.6


28. Lilly (LLY) 153.00 –5.4


29. Baxter Intl (BAX) 86.01 –5.2


30. L Brands (LB) 24.54 –5.2


31. Apache (APA) $16.01 +17.3%


32. Qualcomm (QCOM) 107.19 +15.2


33. UPS (UPS) 141.46 +14.4


34. Qorvo (QRVO) 128.67 +11.6


35. Hologic (HOLX) 69.71 +8.9


36. Cognizant Te (CTSH) 69.18 +6.8


37. O R e i l l y A u t o ( O R LY ) 4 8 0. 5 2 + 5. 4


38. Lam Research (LRCX) 378.54 +4.9


39. PayPal Hldg (PYPL) 192.51 +4.3


40. Skyworks Sol (SWKS) 142.19 +4.2

+20%

+15%

+10%

+ 5%

2,800 0%

3,000

3,200

3,400

May June July

+20%

+15%

+10%

+ 5%

8,500 0%

9,000

9,500

10,000

10,500

May June July

+20%

+15%

+10%

+ 5%

0%

23,000

24,000

25,000

26,000

27,000

28,000

29,000

30,000

May June July

3246.22 0.4% 10587.81 0.4% 26313.65 0.9%

Shanghai –0.2%

Tok yo – 0.3%

Frankfurt –3.5%

London –2.3%

Toronto + 0.0%

New York –0.4%

$1 = 104.73

$1.1848 Unemployment Rate

New-home sales

Consumer confidence

Industrial production

Municipal bond funds

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

2-year Treas.

Fed Funds

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

Most of Wall Street stumbled

Thursday, but yet another rise for

big technology stocks helped keep

the market’s losses in check.

The S&P 500 dropped 12.22

points, or 0.4 percent, to 3,246.22,

with nearly three out of four

stocks in the index falling. Among

the hardest-hit were oil

producers, banks and other com-

panies that most need the econ-

omy to pull out of its recession.

Treasury yields also sank in a sign

of increased pessimism about the

economy.

The Dow Jones industrial aver-

age lost 225.92 points, or 0.9 per-

cent, to 26,313.65. Earlier in the

morning, though, the market had

seemed set for a much steeper fall.

The Dow was down as many as

547 points, while the S&P 500 tum-

bled 1.7 percent within the first

hour of trading.

Stronger-than-expected profit

reports from UPS and other com-

panies helped the market trim its

losses through the day. So did

steadying prices for Amazon and

other big tech-oriented stocks,

which reported their own results

after the day’s trading ended. An-

ticipation for their reports, which

proved to be even better than Wall

Street expected, helped the Nas-

daq composite completely erase

its early loss and climb 44.87, or

0.4 percent, to end the day at

10,587.81.

The jumbled trading came after

a report showed that layoffs are

continuing at their stubborn pace

across the country, denting hopes

that the economy can recover

nearly as quickly as it plummeted

into recession. A separate report

on Thursday showed that the U.S.

economy contracted at a nearly 33

percent annual rate in the spring,

the worst quarter on record.

Thursday was the busiest day

for profit reports among S&P 500

companies within the busiest

week this earnings season.

Earnings reports have mostly

been better than Wall Street’s ex-

pectations so far, but they’ve been

far below year-ago levels. The big

companies in the S&P 500 are on

track to report a nearly 38 percent

drop for the second quarter from a

year earlier, according to FactSet.

Energy stocks had some of the

market's sharpest losses, drop-

ping in concert with oil prices

amid worries about a weaker

economy. Exxon Mobil dropped

4.9 percent, and ConocoPhillips

lost 5.8 percent.

Financial stocks were also

weak, hurt by a drop in interest

rates that reins in the profits to be

made from lending. JPMorgan

Chase fell 2.7 percent, and Citi-

group lost 3.1 percent.

On the winning end was UPS,

which jumped 14.4 percent to a

record high after reporting reve-

nue and profits for the spring that

blew past analysts' expectations.

It benefited from more people get-

ting deliveries at home amid the

pandemic.

Qualcomm rose 15.2 percent af-

ter it also reported stronger-than-

expected quarterly results while

announcing it had resolved a dis-

pute with Huawei and signed a

new license agreement.

Shortly after trading ended,

Amazon, Apple, Facebook and

Google’s parent company all re-

ported bigger profits for the latest

quarter than Wall Street had fore-

cast. Apple also announced a 4-

for-1 stock split.

Expectations were already high

for each of the giants. Their stocks

are all up at least 14 percent this

year when the S&P 500 is up just

0.5 percent. Amazon is up more

than 65 percent.

Thursday’s loss for the S&P 500

gave back some of its big gain

from the day before when the Fed-

eral Reserve pledged to keep in-

terest rates at their record low but

highlighted how uncertain the

path is for the economy because of

the pandemic.

The yield on the 10-year Treas-

ury fell to 0.55 percent from 0.58

percent late Wednesday.

Benchmark U.S. crude dropped

$1.35 to settle at $39.32 per barrel.

Brent crude, the international

standard, fell 81 cents to $42.94 a

barrel.

Tech Companies’ Earnings Buoy Indexes

By The Associated Press

The S& P 500 Index

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

Source: Reuters THE NEW YORK TIMES

3,200

3,260

3,240

3,220

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

Previous close

3,258.44

Source: Labor Department,

via Reuters THE NEW YORK TIMES

Jobless Claims

Weekly number of people who

have filed for unemployment

benefits for the first time.

2

0

7milllion

1

4

3

5

6

FMAM JJ

4-week moving

average

STOCKS & BONDS

10-YEAR TREASURY YIELD

0.55%

–0.03 points

CRUDE OIL (U.S.)

$39.92

–$1.35

S&P 500 INDEX

–0.38%

3,246.22

DOW JONES INDUSTRIALS

–0.85%

NASDAQ COMPOSITE INDEX

+0.43%

10,587.81

GOLD (N.Y.)

$1,942.30

–$10.30

COMPANIES

UPS Shipping Volumes

Surged in 2nd Quarter

UPS said Thursday that ship-
ments from businesses to Ameri-
can consumers soared 65 percent
in the second quarter, helping lift
the delivery giant to a $1.77 billion
profit.
In April, UPS executives
thought that online shopping
would slow after the early days of
the pandemic.
“Instead, we saw just the oppo-
site,” said the company’s new

chief executive, Carol Tomé.

Consumer online spending

surged as stores closed, people

sheltered at home, and the gov-

ernment sent them checks, she

said on a call with analysts.

The company’s volume jumped

23 percent to more than 21 million

packages a day, and revenue

climbed more than 13 percent.

But while stay-at-home orders

and other restrictions to slow the

spread of the new coronavirus

have meant more business for the

delivery companies, it has also

strained their networks and

threatened to drive up costs.

ASSOCIATED PRESS

AUTOMOBILES

Sales Tumble, but Ford

Reports $1.1 Billion Profit

For said Thursday that it earned
$1.1 billion in the second quarter
as a large one-time gain in the val-
ue of its investment in an autono-
mous driving company more than
offset losses in its main business.
Without the gain, from its stake
in Argo AI, Ford lost $1.9 billion,
excluding interest and taxes. The
result was better than its forecast
of a pretax loss of $5 billion.
The coronavirus pandemic
forced Ford and other automakers
to close factories for nearly two
months starting in March.
Ford said in a statement that it
expected “no further significant
coronavirus-related disruptions
to production” in the second half of
the year. But the company also
said it was not expecting “mean-

ingful change in the current eco-

nomic conditions.”

The automaker forecast that it

would earn $500 million to $1.5 bil-

lion on a pretax basis in the third

quarter, amid weaker demand for

new vehicles, parts and services.

Ford’s deliveries of new vehi-

cles fell by half to 645,000 in the

second quarter largely because of

the pandemic. NEAL E. BOUDETTE

TELECOM

Huawei Said to Overtake

Samsung in Phone Sales

A technology research firm says
Huawei has overtaken Samsung
to become the world’s biggest
smartphone seller, as its home
market in China emerged from the
coronavirus pandemic better off
than other economies.
Analysts at Canalys said Thurs-
day that Huawei shipped 55.8 mil-
lion devices in the second quarter
of 2020.
While the figure was down 5

percent compared with a year

ago, it was a smaller decline than

rival Samsung, which saw smart-

phone sales slide 30 percent, to

53.7 million.

Huawei still faces American

sanctions restricting its interna-

tional business, but it has come to

dominate its domestic Chinese

market, said Canalys, which esti-

mated that the company’s ship-

ments in China rose 8 percent in

the April-June period.

“If it wasn’t for COVID-19, it

wouldn’t have happened,” Ben

Stanton, a senior analyst at Ca-

nalys, said. ASSOCIATED PRESS

DAVID ZALUBOWSKI/ASSOCIATED PRESS

BD