The New York Times - USA (2020-08-07)

B2 N THE NEW YORK TIMES BUSINESSFRIDAY, AUGUST 7, 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

Communication services %

Information technology

Utilities

Consumer discretionary

Industrials

Real estate

Consumer staples

Financials

Materials

Health care

Energy

+2.5

+1.5

+0.5

+0.5

+0.3

+0.1

+0.02

–0.2

–0.4

–0.6

–0.7

1. Vanguard Total Bond Market Index Adm(VBTLX) +9.0% +4.5% $119.8


2. Dodge & Cox Income(DODIX) +9.7 +5.3 64.2


3. Fidelity US Bond Index(FXNAX) +9.0 +4.5 54.0


4. Metropolitan West Total Return Bd I(MWTIX) +9.6 +4.7 50.7


5. DoubleLine Total Return Bond I(DBLTX) +3.8 +3.5 45.2


6. Fidelity Series Investment Grade Bond(FSIGX) +10.1 +5.3 34.1


7. American Funds Bond Fund of Amer A(ABNDX) +11.2 +4.7 27.6


8. Baird Aggregate Bond Inst(BAGIX) +9.6 +5.0 27.5


9. Baird Core Plus Bond Inst(BCOIX) +9.5 +5.2 24.8


10. Vanguard GNMA Adm(VFIJX) +4.7 +3.0 19.3


11. American Airl (AAL) $13.04 +3.8% 130.4


12. Carnivl (CCL) 13.78 –1.7 85.0


13. GE (GE) 6.33 –1.1 69.8


14. AMD (AMD) 86.71 +1.6 53.9


15. BofAML (BAC) 25.47 +0.3 51.7


16. United Arlns (UAL) 34.40 +2.0 51.1


17. A p p l e ( A A P L ) 4 5 5. 6 1 + 3. 5 5 0 .1


18. Ford Motor (F) 6.93 –0.4 48.6


19. Facebook (FB) 265.28 +6.5 45.2


20. Wells Fargo (WFC) 24.24 –0.7 44.6


21. Western Digit (WDC) $37.30 –16.1%


22. Resmed (RMD) 175.52 –13.5


23. FLIR Sys (FLIR) 37.46 –12.5


24. Corteva (CTVA) 25.42 –11.0


25. Huntington US (HII) 162.80 –8.9


26. BD (BDX) 259.61 –8.4


27. LNC (LNC) 35.92 –7.9


28. Cardinal Heal (CAH) 53.11 –7.8


29. Dentsply Sir (XRAY) 43.26 –7.7


30. Albemarle (ALB) 83.34 –5.9


31. MGM Resorts I (MGM) $18.46 +10.4%


32. Sealed Air (SEE) 39.85 +8.8


33. AES Corp (AES) 16.55 +7.5


34. Howmet (HWM) 17.28 +7.5


35. Wynn Resorts (WYNN) 76.57 +7.4


36. CenturyLink (CTL) 10.56 +7.3


37. CenterPnt Ene (CNP) 20.27 +6.6


38. Facebook (FB) 265.28 +6.5


39. Quanta Servic (PWR) 45.43 +6.2


40. Welltower (WELL) 56.41 +6.1

+20%

+15%

+10%

+ 5%

0%

• 5%

2,800

3,000

3,200

3,400

3,600

June July

+20%

+15%

+10%

+ 5%

0%

• 5%

9,000

9,500

10,000

10,500

11,000

June July

+20%

+15%

+10%

+ 5%

0%

• 5%

24,000

26,000

28,000

30,000

June July

3349.16 0.6% 11108.07 1.0% 27386.98 0.7%

Shanghai +0.3%

Tokyo –0.4%

Frankfurt –0.5%

London –1.3%

Toronto + 0.5%

New York +0.6%

$1 = 105.55

$1.1878 Unemployment Rate

New-home sales

Consumer confidence

Industrial production

Long- and intermediate-term

government 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

Fed Funds2-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

Stocks rose on Wall Street Thurs-

day after a report showed the pace

of layoffs across the country is

slowing, though it remains incred-

ibly high.

The S&P 500 rose 21.39, or 0.64

percent, to 3,349.16, as investors

also waited for Congress and the

White House to reach a hoped-for

deal on more aid for the economy.

It was the fifth straight gain for

the index, which now hangs just

1.1 percent below its record set in

February. Early in the spring,

when panic about the pandemic

was at its height, the S&P 500 had

been down nearly 34 percent.

The Dow Jones industrial aver-

age climbed 185.46, or 0.68 per-

cent, to 27,386.98 after it and other

indexes waffled between smaller

gains and losses for much of the

day. The Nasdaq composite rose

109.67, or 1 percent, to 11,108.07

and set another record.

Nearly 1.2 million workers ap-

plied for unemployment benefits

last week, which, would have been

an astounding number before the

coronavirus pandemic leveled the

economy. But it’s a slight slow-

down from the prior week’s tally,

and it was also not as bad as econ-

omists were expecting.

It was also the first drop in job-

less claims after two weeks of in-

creases. But the threat of more

business closures due to the con-

tinuing pandemic means the path

remains treacherous.

Investors have been pushing

stocks higher despite such wor-

ries, in part on expectations that

Washington will work through

partisan disagreements and

strike a deal on more assistance

for out-of-work Americans, along

with other measures.

Investors say it’s crucial that

the aid comes, and quickly, after

$600 weekly in jobless benefits

from the U.S. government re-

cently expired. The economy has

shown signs of improvement

since the spring, but it’s still hob-

bling, and worries are high that it

may backtrack amid a resurgence

in coronavirus counts.

Despite the gains, slightly more

stocks fell in the S&P 500 than

rose, with health care the heaviest

weight on the index. Becton Dick-

inson sank 8.4 percent after it

gave a forecast for earnings this

fiscal year that fell short of ana-

lysts' expectations.

Western Digital, which makes

hard disks and other storage for

electronics, slumped 16.1 percent

for the largest loss in the S&P 500

after it gave a profit forecast for

the current quarter that wasn't as

strong as Wall Street's.

More gains for Apple helped to

lift the market. The iPhone maker

reported profits for the spring a

week ago, and its stock has

climbed every day since. The

gains have been so strong that it

may become the country’s first

company to be worth $2 trillion.

After rising 3.5 percent Thursday,

it’s at roughly $1.93 trillion.

Sealed Air, the company behind

Bubble Wrap and Cryovac pack-

aging, rose 8.8 percent for one of

the biggest gains in the S&P 500

after it reported stronger earn-

ings for the latest quarter than an-

alysts forecast.

The yield on the 10-year Treas-

ury was unchanged at 0.55 per-

cent late Wednesday. It remains

very low amid worries about the

economy and as the Federal Re-

serve has pinned short-term rates

at nearly zero.

Some analysts have been con-

cerned about the disconnect be-

tween the bond market, which is

still showing so much caution, and

the stock market, which has ral-

lied back toward record heights.

Even though the stock market is

not the economy — it's increas-

ingly dominated by a handful of

Big Tech companies that can prof-

it even during a pandemic, and

profit is what drives stock prices

in the long run — critics say the

degree of the gap is concerning.

Gold also continued its record

run as investors looked for safety.

Gold for delivery in December

was $2,031.10 per ounce.

Benchmark U.S. crude oil

slipped 24 cents to settle at $41.95

a barrel. Brent crude, the interna-

tional standard, fell 8 cents to

$45.09 a barrel.

Shares Rise as S&P Nears Its Record High

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

3,310

3,350

3,340

3,320

3,330

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

Previous close

3,327.77

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

FMAMJ J

4-week moving

average

STOCKS & BONDS

10-YEAR TREASURY YIELD

0.55%

UNCH.

CRUDE OIL (U.S.)

$41.95

–$0.24

S&P 500 INDEX

+0.64%

3,349.16

DOW JONES INDUSTRIALS

+0.68%

27 ,386. 98

NASDAQ COMPOSITE INDEX

+1.00%

11,108.07

GOLD (N.Y.)

$2,031.10

UNCH.

BANKING

Capitol One Will Pay

$80 Million Over Hacks

Capitol One has agreed to pay $80
million to settle federal bank regu-
lators’ claims that it lacked proper
cybersecurity protocols, more
than a year after a Seattle-based
software engineer hacked into a
cloud server and stole customers’
social security numbers, bank ac-
count information and credit card
applications, regulators said
Thursday.
The Office of the Comptroller of
the Currency, which oversees
large American banks, said in a
regulatory filing that the bank had
failed to establish proper risk as-
sessment procedures in 2015 after

it began using cloud storage tech-

nology. Later, its board failed to

hold the managers in charge of the

area accountable for their neglect.

In addition to the civil penalty,

Capital One must come up with

plans to improve its security pro-

cedures within the next three

months, according to a separate

regulatory filing by the Federal

Reserve, which also has authority

over the bank.

The hacker, Paige Thompson, a

former Amazon employee, broke

into a server hosted by Amazon

and then boasted about it in sev-

eral internet forums. Prosecutors

say she stole data relating to more

than 100 million Capital One

customers, including 140,000 So-

cial Security numbers and 80,000

bank account numbers.

EMILY FLITTER

AUTOMOBILES

Toyota Reports a Profit,

But Its Smallest in Years

Toyota eked out its smallest quar-
terly profit in nine years as the co-
ronavirus pandemic halved its car
sales and nearly wiped out its bot-
tom line.
However, shares in Japan’s top
automaker rose 2.3 percent in a
weaker broader market as ana-
lysts had expected a loss.
Toyota’s operating profit
plunged 98 percent to 13.9 billion
yen, or $131.73 million, for the
three months that ended in June.
Toyota is weathering the coro-
navirus pandemic better than
many of its rivals. Most global au-

tomakers fell into the red in the

latest quarter, and many, includ-

ing Ford, Nissan and Mitsubishi,

are bracing for full-year operating

losses.REUTERS

MARKETS

Lukewarm Debut Greets

Quicken Loans’s Parent

Shares of Rocket, the parent com-
pany of Quicken Loans, rose 15
percent after its New York debut
on Thursday, a day after Quicken
Loans slashed the targeted size of
its initial public offering by over $1
billion.
Rocket shares were trading up
at $20.84 after they opened flat at
$18.00 a share, the same as its
I.P.O. price.
Rocket’s relatively lukewarm

flotation comes at a time when

U.S. capital markets are in the

middle of a stellar recovery after

the coronavirus pandemic put

several debuts on hold earlier this

year.

The I.P.O. pricing and deal size

suggests Rocket struggled to con-

vince investors its mortgage plat-

form business deserved the kind

of valuation that is usually handed

out to Silicon Valley tech unicorns.

The company sold 100 million

shares, down from 150 million it

had planned for the I.P.O., to raise

$1.8 billion, which valued the com-

pany at $36 billion. REUTERS

EUGENE HOSHIKO/ASSOCIATED PRESS