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The New York Times - USA (2020-10-15)

(Antfer) #1

B2 Y THE NEW YORK TIMES BUSINESSTHURSDAY, OCTOBER 15, 2020


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

+1.0

+0.5

0.0

–0.5

–1.0

Industrials %

Materials

Energy

Utilities

Consumer staples

Information technology

Health care

Financials

Real estate

Communication services

Consumer discretionary

+0.5

+0.4

+0.3

–0.2

–0.5

–0.6

–0.7

–1.1

–1.2

–1.2

–1.4


  1. Vanguard Health Care Adm(VGHAX) +29.9% +9.9% $40.4

  2. Vanguard Real Estate Index Admiral(VGSLX) –9.8 +5.0 18.5

  3. T. Rowe Price Health Sciences(PRHSX) +43.1 +13.9 13.9

  4. Fidelity Select Software & IT Svcs Port(FSCSX) +47.3 +26.1 11.0

  5. Fidelity Select Technology(FSPTX) +67.2 +29.1 10.0

  6. T. Rowe Price Comm & Tech Investor(PRMTX) +58.1 +23.9 9.4

  7. Fidelity Select Health Care(FSPHX) +47.0 +15.1 9.2

  8. Calamos Market Neutral Income I(CMNIX) +4.7 +4.5 9.0

  9. DFA Real Estate Securities I(DFREX) –10.4 +5.7 8.6

  10. Fidelity Select Biotechnology(FBIOX) +53.3 +10.4 7.4

  11. Apple Inc (A APL) $121.19 +0.1% 150.6

  12. Bank of Ameri (BAC) 23.62 –5.3 127.4

  13. General Electr (GE) 6.82 +1.5 97.9

  14. Wells Fargo & (WFC) 23.25 –6.0 75.4

  15. Ford Motor Co (F) 7.57 –2.4 57.7

  16. AT&T Inc (T) 27.49 –0.9 48.4

  17. A d v a n c e d M i c r ( A M D ) 8 4. 2 1 –1. 3 4 0. 4

  18. American Airl (AAL) 12.36 +1.1 37.5

  19. Carnival Corp (CCL) 13.97 –0.4 34.4

  20. Citigroup Inc (C) 43.03 –1.5 30.3

  21. Wells Fargo & (WFC) $23.25 –6.0%

  22. Bank of Ameri (BAC) 23.62 –5.3

  23. Illumina Inc (ILMN) 330.12 –4.4

  24. T-Mobile US (TMUS) 116.67 –4.0

  25. Incyte Corp (INCY) 93.35 –3.8

  26. West Pharmace (WST) 288.15 –3.8

  27. United Rental (URI) 188.13 –3.2

  28. Discovery I (DISCA) 20.93 –3.0

  29. Discovery I (DISCA) 18.78 –2.9

  30. UnitedHealth (UNH) 321.85 –2.9

  31. Concho Resour (CXO) $48.66 +10.2%

  32. Vontier Corp (VNT) 28.01 +4.7

  33. HollyFrontier (HFC) 20.51 +3.3

  34. Newell Brands (NWL) 18.27 +3.3

  35. Sysco Corp (SYY) 66.90 +2.8

  36. Kinder Morgan (KMI) 12.96 +2.8

  37. P o o l C o r p ( P O O L ) 3 6 0. 31 +2. 4

  38. Howmet Aerosp (HWM) 18.26 +2.3

  39. Baker Hughes (BKR) 13.15 +2.3

  40. Pioneer Natur (PXD) 90.09 +2.2


+15%

+10%

+ 5%

3,200 0%

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%

0%

26,000

27,000

28,000

29,000

30,000

31,000

Aug. Sept.

3488.67 0.7% 11768.73 0.8% 28514.00 0.6%

Shanghai –0.6%

Tok yo + 0.1%

Frankfurt +0.1%

London –0.6%

Toronto – 0.3%

New York –0.7%

$1 = 105.16

$1.1748 Unemployment Rate

New-home sales

Consumer confidence

Industrial production

Specialized stock funds

and commodities

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


Stocks gave up early gains and

closed lower Wednesday, adding

to Wall Street’s losses from a day

earlier.

The S&P 500 fell 0.7 percent af-

ter spending the morning sway-

ing between small gains and

losses. Companies that rely on

consumer spending, banks and

technology and communication

stocks bore the brunt of the sell-

ing. Trading in stock markets

overseas was subdued as corona-

virus counts climb around the

world, raising the risk of more

government restrictions on busi-

nesses. Treasury yields fell, while

prices for crude oil and gold rose.

The decline came as talks be-

tween Democrats and Republi-

cans in Washington over another

economic stimulus package con-

tinued to drag on, dimming invest-

ors’ hopes for a deal that can de-

liver more aid for the U.S. econ-

omy in the near term.

Treasury Secretary Steven

Mnuchin and House Speaker

Nancy Pelosi spoke by phone

again Wednesday morning but

didn’t reach an agreement, an

aide to Ms. Pelosi, Drew Hammill,

tweeted, adding that the two plan

to speak again Thursday. Mr.

Mnuchin said at a conference

sponsored by the Milken Institute

that it would be “difficult” to get a

deal done before the presidential

election next month.

The S&P 500 fell 23.26 points to

3,488.67. The benchmark index

broke a strong four-day winning

streak on Monday. The Dow Jones

industrial average lost 165.81

points, or 0.6 percent, to 28,514.

The pullback knocked the Dow

back into the red for the year. The

Nasdaq composite slid 95.17

points, or 0.8 percent, to 11,768.73.

At one point it had been up 0.6 per-

cent.

Despite the market’s two-day

slide, stocks have been mostly

pushing higher this month. About

halfway through October, the ma-

jor stock indexes have recouped

most of their losses from last

month’s market swoon.

Even so, this week’s kickoff to

earnings reporting season is

painting a mixed picture for in-

vestors.

Big banks are traditionally the

first companies to tell investors

how much profit they made in the

prior quarter, and Bank of Amer-

ica and Wells Fargo fell following

the release of their reports, post-

ing the biggest losses in the S&P


  1. Bank of America sank 5.3 per-
    cent after its revenue fell short of
    analysts’ forecast, while Wells
    Fargo dropped 6 percent after its
    earnings were lower than Wall
    Street expected.
    Goldman Sachs rose 0.2 percent
    after reporting stronger profit
    than analysts expected. U.S. Ban-
    corp was fell 0.4 percent after giv-
    ing up an early gain following its


earnings report, which was also

stronger than analysts expected.

The sharpest profit drops for

the quarter are expected to come

from energy stocks, but the sector

rose Wednesday to some of the

biggest gains among the 11 that

make up the S&P 500 index. A 2.1

percent rise for crude oil prices

helped. So did a report that Cono-

coPhillips is in talks to buy Concho

Resources. Concho jumped 10.2

percent, the biggest gainer in the

S&P 500, following the report

from Bloomberg News.

Tech stocks fell, weighing down

the broader S&P 500. Amazon fell

2.3 percent, and Microsoft slid 0.9

percent. Apple bounced back from

an early slide and eked out a 0.1

percent gain.

The yield on the 10-year Treas-

ury note fell to 0.73 percent from

0.74 percent late Tuesday despite

a report showing that inflation at

the wholesale level strengthened

more than economists expected

last month.

Hopes are fading that Congress

and the White House can agree on

another round of support any time

soon.

“The cold reality that markets

have refused to countenance is

that even if an agreement was

reached, its chances of being en-

acted before the November elec-

tion are about zero,” said Jeffrey

Halley of Oanda. “Still, this is

2020, the year where markets

never let reality get in the way of a

good story.”

Markets Fall on Fading Chance of Stimulus


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

3,480

3,530

3,520

3,500

3,490

3,510

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

Previous close

3,511.93

Producer Prices


Index of finished goods prices and

services, 2009 =100, seasonally

adjusted.

’19 ’20

Source: Labor

Department THE NEW YORK TIMES

116

117

118

119

120

JULY

+0.6%

AUG.

+0.3%

SEPT.

+0.4%

STOCKS & BONDS

10-YEAR TREASURY YIELD

0.73%

–0.01 points

CRUDE OIL (U.S.)

$41.04

+$0.84

S&P 500 INDEX

–0.66%

3,488.67

DOW JONES INDUSTRIALS

–0.58%

28,514.0 0

NASDAQ COMPOSITE INDEX

–0.80%

11,768.73

GOLD (N.Y.)

$1,901.30

+$12.80

WORK FORCE


Starbucks Vows to Lift


Diversity Through Hiring


Starbucks announced new com-
mitments to inclusion, diversity
and equity on Wednesday, follow-
ing up on pledges the company
made to fight racism in June after
the killing of George Floyd in po-
lice custody.
The company said it would
achieve representation of Black,
Indigenous and people of color of
at least 30 percent at all corporate
levels and at least 40 percent at all
retail and manufacturing roles by



  1. Starbucks also released di-
    versity data that showed that its
    work force is 69 percent female
    and 47 percent Black, Indigenous
    and people of color.
    The coffee chain also said it
    would incorporate “meas-
    urements focused on building in-


clusive and diverse teams” into

executive compensation pro-

grams starting in 2021.

In 2018, two African-American

men were arrested at a Starbucks

in Philadelphia, leading the com-

pany to apologize in full-page

newspaper ads and to require

companywide anti-bias training.

GILLIAN FRIEDMAN

EXECUTIVES


Business Leaders Urge


‘Civility’ at Election Time


A group of tech, finance, media
and other executives are calling
on Americans to stay cool during a
heated election season. “The
health of our economy and mar-
kets depends on the strength of
our democracy,” the LinkedIn co-
founder Reid Hoffman said in a
statement signed by more than 50
business leaders, published first
in Wednesday’s DealBook news-
letter.
The group, convened by the
Leadership Now Project, also in-
cludes Eddie Fishman, the chief
operating officer of D.E. Shaw;
Seth Klarman, the chief executive
of Baupost Group; Lisa Lewin, the
chief executive of General Assem-
bly; Marissa Mayer, the former
Yahoo and Google executive; and
Alan Patricof, the founder of Apax
and Greycroft.
The executives expressed sup-
port for three principles:
■“Every vote will be counted,”
and election officials should “en-
courage patience” during poten-
tially protracted counts of absen-
tee ballot.
■The news media should “take
caution” and avoid calling the
election prematurely.
■Business leaders should “pro-
mote patience and civility among


employees, communities and the

American people.”

“America has successfully held

elections through previous chal-

lenges, like the Civil War, World

Wars I and II, and the 1918 flu pan-

demic,” the statement concludes.

“Now, it is our turn.”

The statement is a testament to

the times. “Nothing about 2020 is

usual,” said Michael Porter of

Harvard Business School, who ad-

vises the Leadership Now Project.

He said there was “an essential

role for business in addressing po-

litical dysfunction,” citing recent

data showing that political grid-

lock is causing a “disastrous de-

cline” in the United States’ com-

petitiveness.

A contested election is a big

worry for business. If recent mar-

ket moves are any indication,

businesses are making peace with

the possibility of higher taxes un-

der a Biden administration as a

trade-off for a definitive election

result. Some Wall Street advisers

have been preparing clients for

the possibility of a contested elec-

tion, as President Trump repeat-

edly casts doubt on mail-in ballots

and is noncommittal on what he

will do if he loses the vote.

That’s why some executives,

like the group putting their names

to the Leadership Now missive,

may feel the need to state what

was once obvious. EPHRAT LIVNI

ANDY WONG/ASSOCIATED PRESS
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