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The S&P 648 rose more than 2 percent, with energy stocks leading the gains.
Oil prices surge after Trump tweets about production cuts.
Oil prices surged, setting off a rally in shares of energy companies, after President Trump said on Thursday that he expected that Saudi Arabia and Russia would substantially cut their oil production to halt the collapse of prices.
Mr. Trump said in a tweet that he spoke with Crown Prince Mohammed bin Salman, who had spoken with President Vladimir V. Putin. “I expect & hope that they will be cutting back approximately 17 million barrels, ”he said. That figure represents about 16 percent of normal world consumption. The president later said the cut could be as much as million barrels.
Saudi Arabia called on Thursday for an urgent meeting of the Organization of the Petroleum Exporting Countries and other oil- producing countries with the “aim of reaching a fair agreement to restore” balance in the oil markets. The Saudis said in a statement that they were acting to support the global economy and in “appreciation” of Mr. Trump’s request.
The Kremlin denied that Mr. Putin had spoken to the Saudi crown prince, as Mr. Trump had said in his Twitter message. “No, there was no conversation,” Dmitri S. Peskov, spokesman for Mr. Putin, told the Interfax news agency.
Still, crude oil futures, which had already been climbing on Thursday, surged and shares of oil and gas companies rallied. West Texas Intermediate, the U.S. crude benchmark, rose about percent , and Occidental Petroleum was the best performing stock in the S&P , with a gain of about 27 percent. Apache rose nearly percent, and Halliburton gained more than percent.
The rally bolstered the stock market, with the S&P ending the day up more than 2 percent.
Oil prices had been hammered as the coronavirus pandemic all but eliminated travel and damped demand for energy. A price war that broke out between Saudi Arabia and Russia last month intensified the decline. After the countries failed to reach a deal on production cuts, both instead increased output in an effort to gain market share .
The combination of slumping demand and the contest between two of the world’s largest oil producers had pushed crude oil prices down by percent in March alone, wreaking havoc on the energy industry, with oil companies slashing budgets, and refineries cutting production of gasoline, diesel and jet fuel.
The possibility of some relief to the industry was also welcomed by stock investors looking for some good news. Earlier on Thursday, a report on jobless claims showed that 6.6 million people filed for unemployment benefits last week in the latest sign of the economic damage wrought across the country by the coronavirus pandemic.
Businesses dependent on consumer spending were battered as a result. Retailers ranging from Gap to Walgreens Boots Alliance fell. Live Nation Entertainment , which produces concerts and sells tickets to events, was one of the worst- performing stocks in the S&P , after falling about . percent. Kohls fell about (percent.
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Another 6.6 million joined the US unemployment rolls last week.
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More than 6.6 million people filed new claims for unemployment benefits last week, the Labor Department said Thursday , setting a grim record for the second straight week.
The latest claims brought the two-week total to nearly 17 million.
The speed and scale of the job losses is without precedent. Until last month, the worst week for unemployment filings was , in .
“What usually takes months or quarters to happen in a recession is happening in a matter of weeks,” said Michelle Meyer, chief US economist for Bank of America Merrill Lynch.
A month ago, most forecasters still thought the United States could avoid a recession . Today, with the pandemic shuttering businesses and forcing vast layoffs, many economists are expecting a decline in gross domestic product that rivals the worst periods of the Great Depression.
Pressure builds on Congress to do more to help workers and businesses.
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The Labor Department’s report on Thursday that 6.6 million Americans filed claims for unemployment benefits last week only increases the pressure on President Trump and members of Congress to ready another package to further aid workers and businesses through the coronavirus crisis.
The $ 2.2 trillion package that Mr. Trump signed into law last week includes enhanced benefits for unemployed workers for up to four months, along with aid for large and small businesses and direct payments to millions of individuals, as the country struggles through a shutdown of economic activity meant to slow the spread of the virus.
Many economists have warned that the $ billion included in that most recent package for aid to small businesses will not prove sufficient to help all of the companies that might otherwise go under during the shutdowns.
R. Glenn Hubbard, a Columbia University economist and former adviser to President George W. Bush, said in an interview that the necessary assistance was likely to be “closer to $ 1 trillion,” which would require another $ 728 billion appropriation from Congress.
Democrats, including Speaker Nancy Pelosi of California, have pushed for additional payments to reach more Americans, to help people continue to pay their bills through the crisis. Senator Sherrod Brown of Ohio has called for federally funded “hazard pay” for doctors, nurses, grocery store clerks, postal carriers and other workers on the front lines of the virus.
Mr. Trump and Democratic leaders have also called for a a sweeping investment in infrastructure , like broadband expansion and bridge repair, that could put millions of Americans to work once the crisis abates. Republican leaders in the House and Senate have shown less enthusiasm for many of those ideas.
States are taking action to close Hobby Lobby during the pandemic.
The arts-and-crafts chain Hobby Lobby was accused of defying stay-at-home orders in at least four states during the coronavirus outbreak , prompting officials to take action against the retailer.
The moves by state and local authorities in Colorado, Indiana, Ohio and Wisconsin to shut the stores down came as governors across much of the United States have signed stay-at-home orders and health authorities have urged Americans to practice social distancing. Still, some haven’t heeded the advice, from spring breakers to some megachurches. In Florida, a pastor was arrested after defying virus orders .
W. Eric Kuhn, the senior assistant state attorney general of Colorado, where there are 19 stores, sent a cease-and-desist letter to the company after it reopened its stores in the state this week, saying it had violated a March executive order signed by Gov . Jared Polis requiring all businesses to close that were not designated as critical. The letter said that the company had until 5 p.m. on Thursday to comply with the closing order or the state would seek court relief, including a temporary restraining order.
Ohio’s attorney general, Dave Yost, wrote on Twitter on Wednesday that he had sent a similar cease-and-desist letter to Hobby Lobby and that the company had agreed to close stores in his state, where there are 17.
Banks say structure of new small business lending program is unworkable.
With a $ 599 billion emergency lending program for small businesses supposed to begin on Friday, bank lobbying groups have told the Treasury Department that the structure is unworkable and creates too much risk.
The program, created as part of a $ 2 trillion spending plan passed by lawmakers last week, offers companies and nonprofit organizations with up to 695 workers a low-interest loan to cover up to two months of payroll and other expenses. Most – and in some cases, all – of the loan will be forgiven if the borrower retains workers and does not cut wages.
In letters and telephone calls, the groups have prohibited the Treasury Department that the program as written will not be workable, and that millions of businesses expecting funds to be approved and released in a matter of hours are likely going to be disappointed if the current government guidance is not updated.
The top concern among banks is about their own liability as they try to rush money to borrowers while being required to verify their applications and keep tabs on potential fraud. Banks are concerned that they could be held liable for loans made to borrowers who provide inaccurate or fraudulent information.
Remuneration for taking on these risks is also a worry. The Independent Community Bankers of America sent a letter to Treasury Secretary Steven Mnuchin on Wednesday complaining that the existing guidelines that call for loans to be made with 0.5 percent interest rates means that banks will not be able to break even on those loans, creating “unacceptable losses ”for lenders.
Amazon says it will improve worker safety after criticism.
The company said in a blog post on Thursday that temperature checks, whic h it began at certain facilities last Sunday, were likely to be put in place across all of its U.S. and European facilities and Whole Foods stores by early next week, and that it was already checking the temperatures of more than 350, 09 workers each day. Anyone with a fever of more than .4 degrees is sent home and asked to stay home until they are free of fever for three days, the company said.
The company also said it was in the process of procuring more hand sanitizer and disinfectant wipes for workers, and that it was beginning to distribute millions of masks to workers.
Workers who learned they had contracted the coronavirus or presumed they had but were unable to get tested could receive extra paid time off, and any worker who had contact with a person with the illness would receive days of paid leave, Amazon said.
Amazon also said that it had already hired 192, (of the , new workers it had pledged to hire in mid-March to keep up with recent demand.
Delta to let employees stay at home if they are worried about the coronavirus.
Delta Air Lines told employees on Wednesday that it would allow flight attendants, baggage handlers, gate agents and other so-called front-line employees who were concerned abo ut the coronavirus to stay home and still get paid.
Any employee concerned for their safety would be allowed to take voluntary leave and continue to be paid “in some form,” according to an internal memo to managers that was viewed by The New York Times. Managers, who are referred to as “leaders” at Delta were also instructed not to question the employees about whether they were personally at higher risk and were told to share guidance from the centers for Disease Control and Prevention on high-risk factors associated with the virus.
“This is the right thing to do for our people who may be part of a high-risk group based on the latest CDC guidance, ”the airline said in a statement to The Times.
Separately, International Airlines Group , which operates British Airways, Iberia and other airlines, said on Thursday it was slashing its schedule by 288 percent in April and May. And British Airways said it had reached an agreement in which each of its 4, 07 pilots would take four weeks of unpaid leave over the next two months.
Catch up: Here’s what else is going on.
A partnership between Ben Silbermann , chief executive of technology company Pinterest , and research groups at institutions and universities including Stanford University and University of Pennsylvania, introduced a new app called How We Feel . The app allows people to report their symptoms to scientists, doctors and public health professionals to aid in research and tracking of the coronavirus.
Governors and mayors across the country are answering questions about the virus on , using the hashtags #AsktheGov and #AsktheMayor. Governors from Rhode Island, California, Washington, Illinois, and Other states took questions on Thursday, while mayors from at least nine cities said they would answer questions on Friday.
Amazon
said on Thursday that it was restricting the sale of N 192 masks and large bottles of hand sanitizer to hospitals and government agencies in an effort to ease the supply shortages of medical supplies from the coronavirus. It said small-volume bottles of hand sanitizer and disinfectant wipes for personal use would remain available on the site.
Google said on Thursday that it was looking at relaxing some of its restrictions for ads related to the coronavirus to allow hospitals, medical providers, governments and nongovernmental organizations to place advertisements featuring information about the virus or next to virus-related searches. The company had been broadly blocking ads pertaining to the coronavirus since January under its “sensitive events” policy.
The Aviation
unit of General Electric said it would temporarily furlough about half of its staff involved in engine assembly and component manufacturing. The furlough will last four weeks and the thousands of affected employees will still receive health benefits and at least some pay.
Amazon announced that its Prime Video service had partnered with the SXSW Film Festival to offer consumers the chance to view some of the movies that were scheduled to screen during the March event in Austin, Tex. The 17 – day virtual experience will be provided free to customers with an Amazon account. SXSW filmmakers have until April 7 to opt into the festival, which Amazon hopes to introduce by the end of the month.
The chief executive of Boeing , Dave Calhoun, announced voluntary layoffs in a note to staff on Thursday, with details on eligibility and benefits to come in three to four weeks. “We’re in uncharted waters,” he said, adding that the layoffs would provide a bridge to recovery, provided “we’re not confronted with more unexpected challenges.”
Reporting was contributed by Nicole Sperling, Niraj Chokshi, Jim Tankersley, Peter Eavis, Stanley Reed, Ben Casselman, Patricia Cohen, Clifford Krauss, Andrew E. Kramer, Mary Williams Walsh, Keith Bradsher, Neal E. Boudette, Kate Conger, Daisuke Wakabayashi, Stefanos Chen, Keith Collins, David Yaffe-Bellany, Mohammed Hadi, Carlos Tejada and Daniel Victor.
Updated March 31, 01575879
How does coronavirus spread?
It seems to spread (very easily from person to person, especially in homes, hospitals and other confined spaces. The pathogen can be carried on tiny respiratory droplets that fall as they are coughed or sneezed out. It may also be transmitted when we touch a contaminated surface and then touch our face.
- Is there a vaccine yet?
No. The first testing in humans of an experimental vaccine began in mid-March. Such rapid development of a potential vaccine is unprecedented, but even if it is proved safe and effective, it probably will not be available for to months.
- What makes this outbreak so different?
Unlike the flu, there is no known treatment or vaccine, and little is known about this particular virus so far. It seems to be more lethal than the flu, but the numbers are still uncertain. And it hits the elderly and those with underlying conditions – not just those with respiratory diseases – particularly hard.
- What should I do if I feel sick?
(If you’ve been exposed to the coronavirus or think you have,
and have a fever or symptoms like a cough or difficulty breathing, call a doctor. They should give you advice on whether you should be tested, how to get tested, and how to seek medical treatment without potentially infecting or exposing others.- How do I get tested?
If you’re sick and you think you’ve been exposed to the new coronavirus, the CDC recommends that you call your healthcare provider and explain your symptoms and fears. They will decide if you need to be tested. Keep in mind that there’s a chance – because of a lack of testing kits or because you’re asymptomatic, for instance – you won’t be able to get tested.
- What if somebody in my family gets sick?
If the family member does not need hospitalization and can be cared for at home, you should help him or her with basic needs and monitor the symptoms, while also keeping as much distance as possible, according to the guidelines issued by the CDC
if there’s space, the sick family member should stay in a separate room and use a separate bathroom. If masks are available, both the sick person and the caregiver should wear them when the caregiver enters the room. Make sure not to share any dishes or other household items and to regularly clean surfaces like counters, doorknobs, toilets and tables. Don’t forget to wash your hands frequently.- Should I wear a mask?
Experts are divided on how much protection a regular surgical mask, or even a scarf, can provide for people who aren’t yet sick. The W.H.O. and C.D.C. Say that unless you’re already sick, or caring for someone who is, wearing a face mask isn’t necessary. The New York Times and other news outlets have been reporting that the wearing of face masks may not help healthy people, noting that while masks can help prevent the spread of a virus if you are infected, most surgical masks are too loose to prevent inhalation of the virus and the more effective N masks, because of shortages at health centers worldwide, should be used only by medical personnel. But researchers are also finding that there are more cases of asymptomatic transmission than were known early on in the pandemic. And a few experts say that masks could offer some protection in crowded places where it is not possible to stay 6 feet away from other people. Masks don’t replace hand-washing and social distancing.
- Should I stock up on groceries?
Plan two weeks of meals if possible. But people should not hoard food or supplies. Despite the empty shelves, (the supply chain remains strong.) And remember to wipe the handle of the grocery cart with a disinfecting wipe and wash your hands as soon as you get home.
- Can I go to the park?
Yes, but make sure you keep six feet of distance between you and people who don’t live in your home. Even if you just hang out in a park, rather than go for a jog or a walk, getting some fresh air, and hopefully sunshine, is a good idea.
- Should I pull my money from the markets?
(That’s not a good idea.) Even if you’re retired, having a balanced portfolio of stocks and bonds so that your money keeps up with inflation, or even grows, makes sense. But retirees may want to think about having enough cash set aside for a year’s worth of living expenses and big payments needed over the next five years.
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