The New York Times - USA (2020-08-01)

B2 Y THE NEW YORK TIMES BUSINESSSATURDAY, AUGUST 1, 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 %

Consumer discretionary

Communication services

Utilities

Materials

Financials

Consumer staples

Real estate

Industrials

Health care

Energy

+2.5

+1.3

+0.8

+0.2

+0.1

+0.01

–0.1

–0.2

–0.4

–0.6

–0.7

1. Vanguard Total Intl Bd Idx Admiral(VTABX) +3.7% +4.4% $51.6


2. DFA Five-Year Global Fixed-Income I(DFGBX) +1.8 +2.2 13.6


3. American Funds Capital World Bond A(CWBFX) +7.5 +3.9 5.6


4. D FA Tw o -Ye a r G l o b a l F i x e d - I n c o m e I ( D F G F X ) +1.7 +1. 5 5. 3


5. Fidelity New Markets Income(FNMIX) –0.8 +4.6 3.6


6. BNY Mellon Global Fixed Income - I(SDGIX) +7.1 +3.8 2.5


7. Hartford World Bond I(HWDIX) +1.3 +2.6 2.1


8. PIMCO Emerging Markets Bond Instl(PEBIX) +3.7 +6.0 1.9


9. T. Rowe Price Emerging Markets Bond(PREMX) –2.3 +4.5 1.6


10. DFA World ex US Government Fxd Inc I(DWFIX) +4.3 +5.2 1.5


11. GE (GE) $6.07 –3.0% 142.4


12. Ford Motor (F) 6.61 –1.9 115.2


13. Apple (AAPL) 425.04 +10.5 93.3


14. AMD (AMD) 77.43 –1.0 71.6


15. BofAML (BAC) 24.88 +0.2 61.9


16. Facebook (FB) 253.67 +8.2 53.0


17. American Airl (AAL) 11.12 –0.5 51.6


18. Microsoft (MSFT) 205.01 +0.5 50.8


19. Intel (INTC) 47.73 –0.5 46.3


20. Wells Fargo (WFC) 24.26 –1.6 45.5


21. Fluor (FLR) $10.19 –10.1%


22. Under Armour (UAA) 10.52 –8.1


23. Newell Brands (NWL) 16.40 –7.5


24. Flowserve (FLS) 27.87 –6.9


25. Under Armour (UA) 9.49 –6.8


26. Macerich (MAC) 7.63 –6.5


27. Wynn Resorts (WYNN) 72.43 –5.2


28. Westrck (WRK) 26.86 –5.0


29. Nektar (NKTR) 22.16 –4.8


30. expedia grou (EXPE) 81.01 –4.6


31. Apple (A APL) $425.04 +10.5%


32. KC Southern (KSU) 171.85 +9.7


33. Facebook (FB) 253.67 +8.2


34. Church & Dwig (CHD) 96.33 +7.0


35. PSEG (PEG) 55.94 +6.8


36. IDEXX Labs (IDXX) 397.75 +6.3


37. Newmont. (NEM) 69.20 +5.4


38. Hartford Fin (HIG) 42.32 +4.5


39. Mettler-Toled (MTD) 935.00 +4.5


40. Arista Netwo (ANET) 259.77 +4.2

+20%

+15%

+10%

+ 5%

2,800 0%

3,000

3,200

3,400

June July

+20%

+15%

+10%

+ 5%

0%

8,500

9,000

9,500

10,000

10,500

June July

+20%

+15%

+10%

+ 5%

0%

23,000

24,000

25,000

26,000

27,000

28,000

29,000

June July

3271.12 0.8% 10745.28 1.5% 26428.32 0.4%

Shanghai +0.7%

Tok yo –2.8%

Frankfurt –0.5%

London –1.5%

Toronto – 0.8%

New York +0.8%

$1 = 105.84

$1.1781 Unemployment Rate

New-home sales

Consumer confidence

Industrial production

International bonds

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

Big Tech continues to steamroll

through the pandemic, and strong

gains for some of the market’s

most influential companies on Fri-

day helped Wall Street close out

its fourth straight winning month.

The S&P 500 rose 24.90 points,

or 0.8 percent, to 3,271.12 following

blowout profit reports from Apple

and several other tech titans. The

gains didn’t come easily, though,

and the stock market flipped up

and down through the day amid

worries about the economy and

whether Congress can find agree-

ment on more aid for it.

The Dow Jones industrial aver-

age was down as many as 300

points before finishing the day up

114.67, or 0.4 percent, at 26,428.32.

The Nasdaq composite jumped

157.64, or 1.5 percent, to 10,745.28

on the strength for tech stocks,

which also accelerated in the last

hour of trading.

Despite the gains, caution was

clearly present across markets as

the pandemic continues to cloud

the economy’s prospects. The 10-

year Treasury yield touched its

lowest level since it dropped to a

record low in March. Gold also

continued its record-setting run

as investors searched for safety,

while the majority of stocks in the

S&P 500 sank.

Among the laggards were com-

panies that most need the econ-

omy to get back to “normal” and

the pandemic to subside, includ-

ing many in the travel industry.

Expedia Group slumped 4.6

percent after it reported weaker

results for the latest quarter than

Wall Street expected. The compa-

ny’s chief executive, Peter Kern,

called it “likely the worst quarter

the travel industry has seen in

modern history.”

Energy companies were also

weak as the pandemic hurt de-

mand for oil. Chevron dropped 2.7

percent after it reported a worse

loss for its latest quarter than Wall

Street expected.

The economy cratered to its

worst quarterly performance on

record during the spring, and wor-

ries are high that continuing

waves of coronavirus infections

may halt what had been a budding

recovery. An extra $600 in weekly

unemployment benefits from the

U.S. government is expiring with

July’s end, and Congress contin-

ues to argue about how to provide

more support for the economy.

The S&P 500 made its final leg

back into positive territory for the

day as top Democrats announced

a meeting with White House rep-

resentatives for Saturday morn-

ing to continue talks.

Also helping to prop up the S&P

500 was the power of big tech-ori-

ented stocks. Amazon, Apple and

Facebook each reported stronger

profit for the latest quarter than

Wall Street had expected late

Thursday, and each rose at least

3.7 percent in their first trading

following the reports. They are

three of the biggest companies in

the world, making up nearly 13

percent of the S&P 500 them-

selves, so their movements hold

great sway over indexes.

The strength for tech is one of

the reasons the S&P 500 rose 5.5

percent in July, its best month

since April. Continued, massive

amounts of aid from the Federal

Reserve has been another linch-

pin. The index has climbed back

within 3.4 percent of its record set

in February after earlier being

down nearly 34 percent.

The gains came even though

companies have broadly been re-

porting sharp declines in their

profits, as investors hope that a

vaccine can be developed in the

next year to corral the pandemic

and soothe the economy.

Other markets have not shown

as much exuberance, though. The

yield on the 10-year Treasury re-

mained unchanged on Friday at

0.55 percent. The yield tends to

move with investors’ expectations

for the economy and inflation.

Gold for delivery in December,

the most actively traded contract,

rose $20.50 to settle at $1,962.80

per ounce after earlier climbing as

high as $2,005.40.

Benchmark U.S. crude oil rose

35 cents to settle at $40.27 a barrel

on Friday. Brent crude rose 37

cents to $43.31 a barrel.

Big Tech Buoys Wall St.’s Gains for Month

By The Associated Press

The S& P 500 Index

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

Source: Reuters THE NEW YORK TIMES

3,220

3,280

3,260

3,240

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

Previous close

3,246.22

Source: Commerce

Department

Personal Income and Spending

In trillions

JUNE

$19.88

13.85

CHANGE

FROM MAY

–1.1%

+5.6

Income

Consumption

’19 ’20

THE NEW YORK TIMES

14

18

20

16

$22 trillion

Total personal income before

taxes, at a seasonally adjusted

annual pace.

Personal Income

STOCKS & BONDS

10-YEAR TREASURY YIELD

0.55%

UNCH.

CRUDE OIL (U.S.)

$40.27

+$0.35

S&P 500 INDEX

+0.77%

3,271.12

DOW JONES INDUSTRIALS

+0.44%

26,428.3 2

NASDAQ COMPOSITE INDEX

+1.49%

10,745.28

GOLD (N.Y.)

$1,962.80

+$20.50

EARNINGS

Pinterest Revenue Surges

On Advertising Rebound

Pinterest said that advertising de-
mand began to improve in May as
it reported better-than-expected
quarterly results, sending its
shares nearly 28 percent higher.
More people turned to Pinter-
est’s platform for content to keep
themselves entertained during
the pandemic lockdowns, leading
to a 39 percent jump in monthly
active users to 416 million in the
quarter, beating estimates of 372.7
million.
Pinterest, which had with-
drawn its full-year outlook in

April, now expects current-quar-

ter revenue to increase in the

mid-30 percent range year-over-

year, with revenue growth of

about 50 percent for this month

through July 29.

The company cut total ex-

penses by about 74 percent, help-

ing it narrow its net loss to $100.7

million in the quarter ended June

30, from a loss of $1.16 billion last

year.

Excluding items, Pinterest re-

ported a loss of 7 cents per share,

smaller than an estimate of 14

cents.

Total revenue rose 4 percent to

$272 million, beating analysts’ es-

timate of $251.2 million, according

to Refinitiv IBES data. REUTERS

EARNINGS

Caterpillar Expects Sales

To Remain Depressed

Caterpillar on Friday predicted no
improvement in equipment sales,
an outlook that sent its shares
down after second-quarter earn-
ings sank during a crippling re-
cession sparked by the coro-
navirus pandemic, which made
customers wary of big purchases.
The heavy-equipment maker
reported a 23 percent drop in re-
tail sales in the second quarter
and predicted a similar decline in
the quarter through September.
Caterpillar’s outlook was bleaker
than other industrial companies
that have predicted the lifting of
pandemic shutdowns will im-
prove sales, and its shares ended
down nearly 3 percent at $132.88.

Revenue in the latest quarter

was down an annual 31 percent,

with a double-digit decline in

equipment sales across all re-

gions. Cost cuts cushioned the hit

on profit, which came in at 84

cents per share, down 70 percent

year-on-year. REUTERS

AUTOMAKERS

Ford to Defer Payments

On Energy Dept. Loan

Ford Motor said on Friday that,
due to the pandemic, it had won
approval to defer some quarterly
payments due on its U.S. Energy
Department retooling loan, but
added that it would repay the loan
on time by June 2022.
In September 2009, Ford was
awarded a $5.9 billion low-cost
government loan, an important
source of liquidity in the after-
math of the financial crisis.

The second-largest U.S. au-

tomaker said its loan was modi-

fied in June to reduce its quarterly

principal payments from $148 mil-

lion to $37 million. Ford said it has

$1.26 billion of remaining princi-

pal left on the loan.

The company noted that if it

opted to pay a dividend, repur-

chase shares above a certain

threshold, or provide security to

other lenders, it would have to re-

vert to the original payment

schedule.

Ford shares were down slightly,

2 percent to $6.61. REUTERS

ERIC VIDAL/REUTERS