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Share rally as reopening remains in focus: live updates

Stocks rose on Wednesday, the fourth consecutive day Wall Street made gains as investors continued to focus on the economic outlook as they looked beyond other risks.

The S & P 500 rose 1.4 percent and European stocks were significantly higher.

On Wednesday, a private payroll report showing that job cuts could slow down helped boost US stocks. According to the ADP Research Institute, wages and salaries have dropped by 2.76 million last month. The Bureau of Labor Statistics (BLS) will release official May payslips on Friday.

“The ADP report is not always a reliable predictor of BLS data, but it does indicate that the pace of job loss slowed noticeably between April and May,” wrote JPMorgan economist Daniel Silver on Wednesday Message to customers. “This is a message that broadly agrees with some other related signals, and the job market has likely benefited from the relaxation of activity restrictions in many places in recent weeks.”

Companies with the biggest increases when the Americans spend money again were among the best companies. The cheesecake factory rose more than 15 percent after the company announced that the reopened restaurants have recovered to about 75 percent of their sales compared to the previous year. The operator of the shopping center Simon Property Group was the best performing stock in the S&P 500.

Shares of ford and General Motors climbed after other automakers including Toyota reported an increase in sales from April to May. The major American automakers are now reporting quarterly sales.

Investors have shaken off a number of risks – from long-term economic damage from the coronavirus pandemic to increasing tensions between the US and China to growing turmoil in the US – to sell stocks higher for weeks as steps were cheered by the Federal Washington’s reserve and budgetary expenditures should help minimize the damage from the pandemic.

The S&P 500 has grown nearly 40 percent since March 23, when the Federal Reserve signaled its willingness to do anything to stabilize financial markets. It is now less than 10 percent below its pre-pandemic high.

Quibi’s difficult situation continues as top leaders cut wages.

The Quibi video app made an unfavorable debut on April 6. Now their top executives are cutting salaries.

Quibis leader, Jeffrey Katzenberg and Meg Whitman, who had raised $ 1.75 billion to create the short-form video app, informed employees in a memo on Wednesday of the salary cuts.

“Nothing has changed since our last company meeting two weeks ago,” the memo says. “Quibi is financially well positioned. As we said in this meeting, we will look for ways to tighten our belts. We do not fire employees as part of cost-cutting measures. We recently added a dozen new Quibi employees.

“And when it came to tightening our belts,” they added, “our management team volunteered to cut their salary by 10 percent because that’s the right thing to do.”

Quibi, which offers entertainment and news shows in five to ten minutes, has been downloaded 4.5 million times and has 1.6 million active users. In an interview with the New York Times last month, Katzenberg blamed the coronavirus pandemic for the slow start, saying Quibi was designed for viewing on the go, but came out during a nationwide ban.

Executive salary cuts were first reported by the Wall Street Journal.

According to Treasury, economic stimulus payments of $ 267 billion are just around the corner.

The Internal Revenue Service has distributed 159 million stimulus packages totaling $ 267 billion in the past two months, the finance department said on Wednesday.

The stimulus money was included in the $ 2 trillion economic aid package approved in March. Payments are approximately $ 1,200 per adult and $ 500 per child, although the amounts are lower for people with higher incomes.

The I.R.S. Treasury said 120 million payments were made by direct deposit, 35 million by check, and 4 million by prepaid debit card.

The money goes to taxpayers, whose information is available from the I.R.S. and the Treasury Department said that households that have not yet received payments, such as those that do not file tax returns, can continue to submit their bank details and receive their payments until the end of the year. Others can claim it by submitting their 2020 tax return.

The White House and Congress have discussed whether additional incentive payments should be made in future economic relief legislation, but no decisions have been made.

AMC Theaters says it has “significant doubts” that it can stay in business.

AMC theater, the world’s largest theater operator, said in a financial file on Wednesday that “due to the disruption caused by the coronavirus pandemic, there are serious doubts about our ability to continue for a reasonable period of time”.

Cinema attendance across the country has essentially ceased as most of the multiplexes have been closed since March and new releases from major studios are being delayed. All AMC theaters worldwide are closed.

“We have practically no income during this time,” the company said. Net loss for the first quarter is estimated at $ 2.1-2.4 billion, compared to a loss of $ 130.2 million in the same period last year.

In April, AMC raised new debt of $ 500 million and increased it to $ 5.3 billion, which would enable it to survive closings around the world into November.

In its submission, it said it believed it had enough cash to start operations “this summer or later”. Attention was drawn to the fact that factors such as the failure to generate the required revenue even when the business opened and the business to be shut down could result in additional funding being sought.

The pandemic closed when the theaters felt pressured by the increasing popularity of streaming. Since the cinemas have closed, some studios have released new films about video services. In April, Universal In this way, the “Trolls World Tour” was successfully launched and it was planned to make more films available for home viewers – without exclusive cinema runs – even if the theaters reopen. AMC replied that it would no longer book the studio film.

The Fed will extend the debt purchase program to a number of small towns and counties.

The Federal Reserve announced on Wednesday that it would expand its local government bond purchase program to allow two cities or counties in each state to sell their debt to the central bank regardless of their population.

The Fed program, which was first announced on April 9, has so far only been able to buy from cities with 250,000 or more inhabitants and counties with at least 500,000 inhabitants. These larger cities and districts, as well as some multi-state companies, are still authorized to sell bonds with a maturity of up to 36 months to the central bank.

Governors in each state can also designate two bond issuers whose revenue comes from operational government activities such as public transportation, airports, and toll facilities to use the program.

The Fed uses its emergency credit powers, which it can use in times of severe economic stress, to buy government and municipal debt to maintain normal market functioning. The purchases are protected against losses with support from the Treasury Department of $ 35 billion. This is part of a $ 454 billion pot congress designed to support Fed credit programs under the $ 2 trillion stimulus package.

The program, which can purchase communal banknotes worth up to $ 500 billion, went live on May 26.

The Trump administration plans to prevent Chinese airlines from flying to the United States.

The Trump administration said on Wednesday that it was It was planned to prevent Chinese airlines from flying to or from the US from June 16 after the Chinese government effectively prevented US airlines from resuming air traffic between countries.

The dispute stems from a decision by the Chinese aviation authorities on March 26 that foreign airlines were restricted to one flight a week based on the flight plans they had earlier this month. But all three US airlines that fly between China and the United States had stopped all flights to the country because of the coronavirus pandemic. As a result, the Chinese government effectively prohibited them from flying between the two countries. In contrast, Chinese airlines flew to American cities.

Delta Airlines and United Airlines had hoped to resume flights to China this month.

Both companies appealed to the Chinese Civil Aviation Authority, but received no response. The U.S. Department of Transportation also urged Chinese officials to allow flights by American companies during a call on May 14, arguing that China is violating an 1980 agreement that regulates flights between countries and is designed to ensure that the rules are “for all domestic.” and foreign airlines apply equally “in both countries.

Tensions between the United States and China have increased to levels not seen in the trade war as countries argue about the origin of the pandemic and China’s recent move to strengthen its authority over Hong Kong. With the presidential election just five months away, President Trump and his campaign team have taken a much tougher stance on the country, accusing China of pandemicising the corona virus and ruining the American economy.

In mid-May, the Trump administration expanded restrictions on Huawei, the Chinese telecommunications company, and prevented a state pension fund from investing in China. Last Friday, Mr. Trump announced that he would begin to end the US government’s special relationship with Hong Kong and that it would impose sanctions on officials responsible for Beijing’s restriction of freedoms on the territory.

As the ground zero of the pandemic, China was the first country in which aviation came to a standstill this year. In January, American and Chinese airlines operated approximately 325 weekly flights between the two countries. By mid-February there were only 20 left, all of which were operated by Chinese airlines.

Unemployment in Europe rose slightly in April, the second month after the introduction of coronavirus quarantines in most countries, as government-sponsored vacation programs to curb mass unemployment cushioned the blow of a devastating economic downturn.

However, many national financial support programs will soon expire, making it likely that unemployment in Europe will continue to increase in the coming months, economists said.

The unemployment rate in the euro area rose from 7.1 percent in March to 7.3 percent, although it fell from 7.6 percent in the previous year. Around 12 million people in the 19 countries using the euro have been registered as unemployed, a relatively small number compared to the United States, where more than 40 million people have applied for unemployment benefits since the pandemic began.

European governments have vowed to spend trillions of euros to partially employ people and support businesses in the coronavirus crisis. Since March, France, Germany, Denmark and other countries have effectively paid companies not to fire people and to keep them on standby when their economies reopen. According to a study by the European Trade Union Institute, around a third of all employees in Europe participated in short-time work programs at the end of April.

“As the recovery is likely to continue for some time, unemployment is likely to increase significantly, although short-time work will help production recover more quickly when demand returns,” wrote Bert Colijn, senior economist for the Eurozone at ING Bank in a note to customers.

Returning to business can force difficult decisions for working women.

When you think about buying an e-bike, you have to compromise, writes Brian Chen. On the one hand, the batteries and motors provide more volume. On the other hand, these magnificent bicycles can attract thieves.

The coverage was written by Alan Rapaport, Matt Phillips, Jeanna Smialek, Niraj Chokshi, Sapna Maheshwari, Connor Ennis, Patricia Cohen, Tiffany Hsu, Liz Alderman, Mohammed Hadi, Brian X. Chen, Kevin Williams, Neal E. Boudette and Kate Conger . Rich Barbieri and Gregory Schmidt.

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