The New York Times - USA (2020-08-06)

B2 Y THE NEW YORK TIMES BUSINESSTHURSDAY, AUGUST 6, 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 ’ ’16 ’18 ’20 14

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

–1.0

–1.5

Industrials %

Materials

Financials

Consumer discretionary

Energy

Health care

Information technology

Communication services

Consumer staples

Real estate

Utilities

+2.0

+1.5

+1.5

+1.4

+1.1

+0.5

+0.4

+0.3

–0.2

–0.6

–1.3

1. Vanguard Total Intl Stock Index Inv(VGTSX) +8.7% +3.9% $156.9


2. American Funds Capital Income Bldr A(CAIBX) +3.8 +4.0 59.8


3. American Funds Capital World Gr&Inc A(CWGIX) +13.8 +7.0 50.7


4. American Funds New Perspective A(ANWPX) +26.4 +11.6 48.8


5. Vanguard International Growth Adm(VWILX) +50.0 +14.8 42.6


6. Dodge & Cox International Stock(DODFX) –0.6 NA 37.1


7. American Funds SMALLCAP World A(SMCWX) +24.9 +10.2 26.7


8. Fidelity International Index(FSPSX) +5.5 +2.8 25.9


9. DFA International Core Equity I(DFIEX) +4.1 +2.8 25.4


10. American Funds Europacific Growth A(AEPGX) +17.9 +6.2 23.9


11. American Airl (AAL) $12.56 +9.5% 112.8


12. GE (GE) 6.40 +4.2 106.1


13. Ford Motor (F) 6.96 +1.5 82.2


14. AMD (AMD) 85.31 +0.3 65.6


15. Walt Disney (DIS) 127.61 +8.8 53.0


16. BofAML (BAC) 25.39 +1.5 51.4


17. United Arlns (UAL) 33.73 +4.5 48.0


18. Boeing (BA) 174.28 +5.6 46.2


19. Freeport Mcmo (FCX) 13.97 +7.9 36.7


20. Nrwn Crs Ln (NCLH) 13.72 +1.2 33.5


21. Arista Netwo (ANET) $235.13 –10.9%


22. Microchip Te (MCHP) 98.50 –8.2


23. Fox (FOXA) 24.73 –7.3


24. Fox (FOX) 24.85 –7.0


25. Perrigo Comp (PRGO) 51.98 –5.7


26. Western Union (WU) 22.88 –5.4


27. D i s c o v e r y I ( D I S C A ) 2 1 .1 2 – 4. 0


28. Regeneron Ph (REGN) 624.52 –3.7


29. Evergy (EVRG) 53.53 –3.4


30. Tyson Foods (TSN) 62.93 –3.4


31. Assurant (AIZ) $122.31 +14.2%


32. Arconic (ARNC) 19.64 +12.5


33. Capri Holdin (CPRI) 15.64 +11.4


34. American Airl (AAL) 12.56 +9.5


35. Walt Disney (DIS) 127.61 +8.8


36. Devon Energy (DVN) 12.04 +8.6


37. Freeport Mcmo (FCX) 13.97 +7.9


38. Nordstrom (JWN) 15.65 +7.5


39. PVH (PVH) 51.18 +7.3


40. Howmet (HWM) 16.08 +7.1

+20%

+15%

+10%

+ 5%

0%

2,800

3,000

3,200

3,400

June July

+20%

+15%

+10%

+ 5%

0%

9,000

9,500

10,000

10,500

11,000

June July

+20%

+15%

+10%

+ 5%

0%

23,000

24,000

25,000

26,000

27,000

28,000

29,000

June July

3327.77 0.6% 10998.40 0.5% 27201.52 1.4%

Shanghai +0.2%

Tok yo – 0.3%

Frankfurt +0.5%

London +1.1%

Toronto + 0.8%

New York +0.6%

$1 = 105.6

$1.1864 Unemployment Rate

New-home sales

Consumer confidence

Industrial production

World Stocks

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

Wall Street’s big rally keeps

rolling, and the S&P 500-stock in-

dex rose for a fourth straight day

Wednesday to sit just 1.7 percent

below its record.

The S&P 500 climbed 21.26

points, or 0.6 percent, to 3,327.77,

echoing gains for stocks across

Europe and Asia. If the U.S. mar-

ket has just a few more days like

that, it will erase the last of the his-

toric losses it has taken since Feb-

ruary because of the coronavirus

pandemic and the recession it

caused.

The Dow Jones industrial aver-

age rose 373.05, or 1.4 percent, to

27,201.52, and the Nasdaq com-

posite added 57.23, or 0.5 percent,

to set another record at 10,998.40.

Much of Wall Street’s focus this

week has been on Washington,

where Congress and White House

officials are negotiating on more

aid for an economy that has

shown some improvement but is

still hobbling. Investors say such

a package is crucial and needs to

arrive quickly, with millions of

Americans still out of work and

$600 in weekly unemployment

benefits from the U.S. government

having recently expired.

The pressure on Washington to

act quickly is mounting. A report

on Wednesday suggested that hir-

ing was far weaker last month

than economists expected. Pri-

vate employers added just 167,000

jobs, according to a survey by pay-

roll processor ADP, well below the

1.2 million that economists had

forecast.

Investors across the stock mar-

ket seem to be assuming that Con-

gress will reach a deal sooner

rather than later, as well as that

the economy will continue to im-

prove despite the pandemic, said

Willie Delwiche, investment strat-

egist at Baird.

“If either one of those gets chal-

lenged, then you could see more

volatility in stocks,” he said.

The Walt Disney Company rose

8.8 percent for one of the biggest

gains in the S&P 500 after the me-

dia giant reported a profit for the

spring that beat Wall Street’s ex-

pectations, even if it was down

sharply from a year earlier.

Prudential Financial rose 6.2

percent, helping to drive the fi-

nancial sector to one of the mar-

ket’s bigger gains, after it likewise

reported results that weren’t as

bad as analysts had forecast.

That has been the trend across

much of the market this reporting

season. Stocks have continued to

climb even though S&P 500 com-

panies appear to be on track to re-

port a roughly 34 percent drop in

earnings per share from a year

earlier, according to FactSet.

That’s in part because investors

had prepared for an even steeper

drop.

“The overall theme from earn-

ings has been ‘not as bad as we

feared,’ ” Mr. Delwiche said.

Investors are betting that the

plunge in profits will prove to be

only temporary and that earnings

will recover as economies reopen

and a vaccine for the new coro-

navirus gets developed to help the

world return to normal.

Shares of biotech company No-

vavax jumped 10.4 percent after it

reported data on its vaccine candi-

date for Covid-19.

A better-than-expected reading

on the nation’s services sector

also added to the mixed picture on

the economy. The services sector

includes retail, health care and

transportation, and it makes up

the bulk of the U.S. economy. It

grew in July for the second

straight month, according to a

survey by the Institute for Supply

Management, and accelerated

when economists were expecting

a slight slowdown.

Treasury yields rose, reclaim-

ing some of their lost ground from

a day before when they sank to a

nearly five-month low. The yield

on the 10-year Treasury climbed

to 0.55 percent from 0.52 percent

late Tuesday.

Gold rose even further into

record territory, continuing its

strong climb since the spring

amid nervousness about the econ-

omy and super-low interest rates.

Gold for delivery in December

rose $28.30 to settle at $2,049.30

per ounce.

Benchmark U.S. crude rose 49

cents to settle at $42.19 per barrel.

Rally Has S&P 500 Closing In on Record

By The Associated Press

The S& P 500 Index

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

Source: Reuters THE NEW YORK TIMES

3,305

3,330

3,325

3,315

3,310

3,320

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

Previous close

3,306.51

THE NEW YORK TIMES

Source: Commerce Department

June 2020

$208.94

158.25

–$50.69

billion

billion

Imports

Exports

Balance

140

260

$300billion

180

220

Balance of Trade

The deficit is the excess of imports

over exports for goods and

services.

’19 ’20

Imports

Exports

STOCKS & BONDS

10-YEAR TREASURY YIELD

0.55%

+0.03 points

CRUDE OIL (U.S.)

$42.19

+$0.49

S&P 500 INDEX

+0.64%

3,327.77

DOW JONES INDUSTRIALS

+1.39%

NASDAQ COMPOSITE INDEX

+0.52%

10,998.40

GOLD (N.Y.)

$2,031.10

+$29.90

AIRLINES

16 G.O.P. Senators Back

An Extension of Aid

A group of 16 Republican senators
said Wednesday that they sup-
ported spending $25 billion to
forestall tens of thousands of lay-
offs by airlines in a big win for la-
bor unions that had been pushing
lawmakers to pass another bail-
out for the industry.
In March, Congress authorized
$25 billion to help passenger air-
lines pay salaries under the
CARES Act provided they re-
frained from cutting jobs. But with
those conditions going away at
the end of September and air trav-
el still depressed, airlines have
said they could cut tens of thou-
sands of jobs and reduce hours for
other workers starting on Oct. 1.
“For these reasons, we support
a clean extension of payroll sup-
port for passenger air carrier em-
ployees included in the CARES
Act to avoid furloughs and further
support those workers,” the sena-
tors said in a letter addressed to
the Senate majority leader, Mitch
McConnell, and Chuck Schumer,
the minority leader.

The senators said their pre-

ferred policy would protect airline

employees from mass job cuts

through March. A bipartisan ma-

jority in the House of Representa-

tives has already expressed sup-

port for a similar approach.

Among the senators are several

facing tough re-election cam-

paigns, including Susan Collins of

Maine, Cory Gardner of Colorado,

Martha McSally of Arizona and

Steve Daines of Montana.

In the weeks before the CARES

Act was passed, airline executives

and lobbyists met with lawmakers

in Washington to ask for help, suc-

ceeding not only in securing the

$25 billion in payroll funds, but an

additional $25 billion in low-inter-

est loans. This time, executives

have deferred to their unions in

asking for an extension of the pay-

roll funding, though they are lob-

bying behind the scenes.

Southwest Airlines has said

that it will not furlough staff for

the rest of the year, but United Air-

lines has warned it could furlough

as many as 36,000 employees, and

American Airlines has said it

could furlough as many as 20,000.

Delta Air Lines has warned nearly

2,600 pilots that they could be fur-

loughed, too. NIRAJ CHOKSHI

AUTOMOBILES

BMW and Honda Report

Pandemic-Fueled Losses

BMW and Honda reported quar-
terly losses Wednesday in the face
of global shutdowns over the
spread of the coronavirus.
BMW lost 212 million euros, or
$250 million, in the second quarter
as vehicle sales fell 25 percent in
the April-June period. The com-
pany saw a rebound in China, its
biggest market.
The net loss compared with a
profit of 1.48 billion euros in the
same period a year ago.
The company has since re-
started all of its factories and its
chief executive, Oliver Zipse, said
Wednesday that he was “cau-
tiously optimistic” about the sec-
ond half of the year, predicting a
profit.
Sales fell to 485,500 cars under
the BMW, Mini and Rolls-Royce
brands. Revenues fell 10 percent
to 43.2 billion euros. The company
stayed with its financial forecast

for the full year, saying that its

worldwide deliveries would be

“significantly lower” than last

year’s, and that its operating mar-

gin would be between zero and 3

percent.

Honda had an 80.8 billion yen,

or $765 million, fiscal first quarter

loss, a reversal from a 172 billion

yen profit a year earlier.

Honda’s quarterly sales

dropped 47 percent to 2.1 trillion

yen ($20 billion), the company

said. ASSOCIATED PRESS

GIULIA MARCHI FOR THE NEW YORK TIMES