The New York Times - USA (2020-10-10)

B2 Y THE NEW YORK TIMES BUSINESSSATURDAY, OCTOBER 10, 2020 K

Months

36 2510 30 Years

220

240

260

’16 ’18 ’20

400

600

800

1000 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

’15 ’16 ’17 ’18 ’19 ’20

0

1

2

3%

0

1

2

3%

’19 ’20

+3.5

+3.0

+2.5

+2.0 +1.5

+1.0

+0.5

+0.0

–0.5 –1.0

Information technology % Consumer discretionary Health care Consumer staples Communication services Materials Industrials Financials Utilities Real estate Energy

+1.5 +1.5 +0.9 +0.8 +0.8 +0.7 +0.4 +0.1 –0.0 –0.3 –1.6

Vanguard Interm-Term Tx-Ex Adm(VWIUX) +3.1% +3.5% $74.7

Vanguard Ltd-Term Tx-Ex Adm(VMLUX) +2.8 +2.1 31.0

Vanguard Short-Term Tx-Ex Adm(VWSUX) +1.9 +1.5 18.3

Vanguard CA Interm-Term Tax-Exempt Adm(VCADX) +3.0 +3.4 15.6

Vanguard Long-Term Tax-Exempt Adm(VWLUX) +3.1 +4.4 14.5

Vanguard High-Yield Tax-Exempt Adm(VWALX) +2.0 +4.7 13.7

American Funds Tax-Exempt Bond A(AFTEX) +2.1 +3.5 12.8

Franklin CA Tax Free Income A1(FKTFX) +1.8 +4.1 11.3

Nuveen High Yield Municipal Bond I(NHMRX) –2.0 +5.3 9.5

Nuveen Intermediate Duration Muni Bd I(NUVBX) +2.1 +3.5 8.2

General Electr (GE) $6.84 +2.9% 171.1

Apple Inc (A APL) 116.97 +1.7 99.7

Advanced Micr (AMD) 83.10 –3.9 80.2

American Airl (AAL) 13.20 +0.3 65.0

Ford Motor Co (F) 7.25 –1.4 50.9

Bank of Ameri (BAC) 25.36 +0.5 44.4

Carnival Corp (CCL) 15.69 +0.5 33.7

AT&T Inc (T) 28.32 –1.0 32.7

Exxon Mobil C (XOM) 34.74 –1.5 29.2

Wells Fargo & (WFC) 25.30 0.0 28.2

Nielsen Hold (NLSN) $13.75 –4.8%

Apache Corp (APA) 9.67 –4.6

Mohawk Indust (MHK) 104.24 –4.4

Advanced Micr (AMD) 83.10 –3.9

Simon Propert (SPG) 67.72 –3.4

Kimco Realty (KIM) 11.62 –3.3

O c c i d e n t a l P e ( O X Y ) 10. 8 2 – 3. 2

Marathon Petr (MPC) 30.12 –3.2

Vornado Realt (VNO) 35.52 –3.1

Weyerhaeuser C (WY) 29.32 –3.1

Xilinx Inc (XLNX) $120.94 +14.1%

eBay Inc (EBAY) 55.45 +6.5

ETSY Inc (ETSY) 146.67 +5.1

Teradyne Inc (TER) 86.10 +4.4

Fortinet Inc (FTNT) 126.18 +3.7

Corteva Inc (CTVA) 33.43 +3.4

I n c y t e C o r p ( I N C Y ) 9 5 .74 + 3. 2

Amazon.com I (AMZN) 3286.65 +3.0

Norwegian Cr (NCLH) 18.73 +2.9

Citrix Syste (CTXS) 139.43 +2.9

+15%

+10%

+ 5%

0% 3,100

3,200

3,300

3,400

3,500

3,600

3,700

Aug. Sept.

+15%

+10%

+ 5%

0%

10,500

11,000

11,500

12,000

Aug. Sept.

+15%

+10%

+ 5%

26,000 0%

27,000

28,000

29,000

30,000

Aug. Sept.

3477.13 0.9% 11579.94 1.4% 28586.90 0.6%

Shanghai +1.7%

Tok yo – 0.1% Frankfurt +0.1%

London +0.7%

Toronto + 0.2%

New York +0.9%

$1 = 105.62

$1.1832 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

Wall Street closed out its best week in three months on Friday as investors drew encouragement from ongoing negotiations on Capitol Hill aimed at delivering more aid to the ailing U.S. economy.

The S&P 500 rose 0.9 percent, its third straight gain. The bench- mark index ended the week with a 3.8 percent gain, its strongest rally since early July. Much of this week’s focus has been on Washington, where Presi- dent Trump sent markets on a sudden skid on Tuesday after he halted negotiations on a support package for the economy until after the Nov. 3 presidential election. He appeared to change his mind a few hours later, however. On Friday, Mr. Trump was cheer- leading the prospect of a deal, de- claring on Twitter that talks on a new aid package are “moving along. Go Big!” The market’s solid finish fol- lows a weekslong run of mostly shaky trading over worries that Congress and the White House won’t deliver more support for the economy as it reels from the impact of the pandemic and con- cerns that stock prices simply got too high during the summer. The S&P 500 rose 30.31 points to 3,477.14. The Dow Jones industrial average gained 161.39 points, or 0.6 percent, to 28,586.90. The gain nudged the Dow into positive ter- ritory for the year. The Nasdaq composite climbed 158.96 points, or 1.4 percent, to 11,579.94. Small-company stocks added to their solid gains this week. The Russell 2000 index picked up 9 points, or 0.6 percent, to 1,637.55. The index jumped 6.4 percent this week. Investors have been clamoring for more federal aid since the expiration of extra benefits for laid-off workers and other stimulus for the economy that Congress ap- proved earlier this year. Econo- mists say the outlook is grim with- out such support, and the chair of the Federal Reserve has said re- peatedly that it will likely be nec- essary. Still, the prospects for a new

deal on more aid have been shaky, especially this week. Mr. Trump said that House Speaker Nancy Pelosi was negoti- ating in bad faith when he called off the talks on Tuesday. But within a couple hours, he appeared to backtrack, and said that he would back more limited pro- grams that would send $1,200 pay- ments to Americans and support the airline industry and small businesses specifically. On Friday, the White House in- creased its offer to $1.8 trillion, up from $1.6 trillion, according to a Republican aide familiar with the plan. Ms. Pelosi’s most recent public proposal was about $2.2 trillion, though that included a business tax increase that Repub- licans won’t go for. Ms. Pelosi and Treasury Secre- tary Steven Mnuchin spoke on the phone for 30 minutes on Friday, but nothing concrete appeared to immediately emerge from the dis- cussion. Senate Majority Leader Mitch McConnell said he doubted that a deal would happen before the election. This week’s roller coaster — where the S&P 500 swung at least 1.4 percent for three straight days — is just the latest bout of volatili- ty for a market that has been nota- bly rocky for weeks. Regardless of whether Wash- ington can strike a deal before the election, some investors are get- ting more optimistic about the chances for a big support package

in 2021. If the Democrats sweep the White House, Senate and House of Representatives, the thinking is that they would likely approve stimulus for the economy. That could help offset the higher tax rates and tighter regulations on businesses that investors also expect from a Democratic-con- trolled Washington. Wall Street is seeing a Democratic sweep as more likely than before. Still, other challenges remain for the market. Chief among them is the still-spreading coronavirus pandemic, highlighted by Mr. Trump’s own Covid-19 diagnosis. Some areas of the economy are slowing following the expiration of Congress’s last round of aid, stocks still look too expensive in the eyes of some critics and ten- sions continue to simmer between the United States and China. Technology stocks and companies that rely on consumer spend- ing drove much of Friday’s rally. Utilities, real estate and energy stocks fell. Despite the market’s gains, trading underneath the surface continued to be unsettled. Airline stocks climbed at the start of trading, only to drop quickly and then rise again. United Airlines rose 0.3 percent, American Airlines gained 0.3 percent and Delta Air Lines rose 0.4 percent. The yield on the 10-year Treas- ury held steady at 0.78 percent. European markets rose, while Asian indexes ended mixed.

Wall Street Has Its Best Week in 3 Months

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

3,440

3,490

3,460

3,450

3,480

3,470

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

Previous close 3,446.83

STOCKS & BONDS

10-YEAR TREASURY YIELD

0.79% +0.01 points

CRUDE OIL (U.S.)

$40.60 –$0.59

S&P 500 INDEX

+0.88% 3,477.13

DOW JONES INDUSTRIALS +0.57% 28,586.9 0

NASDAQ COMPOSITE INDEX +1.39% 11,579.94

GOLD (N.Y.)

$1,919.50 +$30.90

LABOR

More Companies Make

Remote Work Permanent

Microsoft will allow its employees
to work from home permanently,
as coronavirus cases continue to
climb in the United States and
companies struggle to figure out
how to arrange offices in a way
that keeps workers socially dis-
tanced and safe.
Microsoft this week issued
guidelines for its planned “hybrid
model” of working after pandemic
restrictions are lifted. Some em-
ployees could work from home
less than half the time and still re-
tain their company offices, the
company said in a staff memo. Op-
tions would include permanently
working from home and relocat-
ing to other states or countries.
The new guidelines, first re-
ported in The Verge, are “guided
by employee input, data, and our
commitment to support individual
work styles and business needs,”
Microsoft said in a statement.
Microsoft previously said that its

offices will not reopen until Janu- ary 2021 at the earliest. The news comes a day after Tar- get and Ford Motor said that they would allow employees to continue to work from home through June 2021. Target’s decision, announced in a letter to staff, applies just to employees at its headquarters in Minneapolis. The company said that a small number of employees who rely on the headquarter facili- ties would continue to work on- site. The retailer also said it was using this time as an opportunity to reimagine the role of its office in a post-pandemic era. Ford also said its decision would apply to its roughly 32,000 employees in North America who are already working remotely. The announcements by Micro- soft, Ford and Target come after several other companies, includ- ing Google, Uber and Slack, have decided that employees need not return to the office until at least next summer. GILLIAN FRIEDMAN and STEVE LOHR

TRADE

White House Levies

Tariffs on Aluminum

The Trump administration levied
tariffs on $1.96 billion of imported
aluminum sheet from 18 countries
on Friday, saying that foreign
producers were selling at unfairly
low prices and undercutting
American manufacturers.
In an interview on Fox Business
Network on Friday morning,
Wilbur Ross, the secretary of com-
merce, called the move “the larg-
est and most far-reaching case
that our department has brought
in more than 20 years.” He said
Germany would feel the largest
impact, followed by Bahrain.
Mr. Ross traced part of the prob-
lem back to China. He said China
was dumping its excess capacity
into other markets, which would
then find its way into the U.S. “The
net effect is a lot of dumping in the
U.S., and that’s what we’re clamp-
ing down on,” he said.
The U.S., which imported $15.9
billion of aluminum in 2019, has al-
ready imposed a 10 percent tariff
on imported aluminum from
many countries, though Canada,

Mexico and others have earned certain exemptions. Some Ameri- can aluminum makers support the tariffs, but the levies have an- gered many manufacturers that now will have to pay higher prices for their raw materials. The U.S. government typically brings dozens of trade cases against foreign countries every year for unfairly subsidizing and pricing their products. But the Trump administration has been particularly aggressive in pursu- ing such cases from various indus- tries, and has initiated 286 of them so far during its term. ANA SWANSON

ERIN SCOTT/REUTERS

The New York Times - USA (2020-10-10)

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