Business Highlights
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Stocks soar on plans for more stimulus measures, Biden wins
NEW YORK (AP) — The Dow Jones Industrial Average soared more than 1,100 points, or 4.5%, Wednesday as governments and central banks around the globe took more aggressive measures to fight the virus outbreak and its effects on the economy. The gains more than recouped the market's big losses from a day earlier as Wall Street's wild, virus-fueled swings extend into a third week. Stocks rose sharply from the get-go, led by big gains for health care stocks after Joe Biden solidified his contender status for the Democratic presidential nomination. Investors see him as a more business-friendly alternative to Bernie Sanders.
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Fed's Powell faces a puzzling crisis with no simple solution
WASHINGTON (AP) — Jerome Powell is confronting his stiffest test as head of the Federal Reserve in an atmosphere vastly altered from what his predecessors faced. It makes an uncertain situation even more challenging. Powell announced a surprise half-point interest rate cut that shrank the Fed's key rate to a range of just 1% to 1.25%. The unusual action the Fed took Tuesday was a direct response to economic fears and dizzying stock market plunges unnervingly reminiscent of the crisis that nearly toppled the financial system in 2008. But in many ways, the circumstances are radically different.
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Virus hammers business travel as wary companies nix trips
NEW YORK (AP) — A steep drop in business trips is dealing a gut punch to a travel industry already reeling from the virus outbreak. Amazon has told its nearly 800,000 workers to postpone any non-essential travel. Swiss food giant Nestle told its 291,000 employees to limit domestic business travel and halt international travel until March 15. Industry events like the Geneva Motor Show have been canceled, and companies including Twitter have told employees to work at home. The changes will be costly for airlines and hotels. One analyst says airlines depend on business travel for 55% of their revenue. The Global Business Travel Association estimates the virus is costing the business travel industry $47 billion per month.
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Twitter preps ephemeral tweets, starts testing in Brazil
SAN FRANCISCO (AP) — Twitter is starting to test tweets that disappear after 24 hours, although initially only in Brazil. The company says the ephemeral tweets, which it calls “fleets” because of their fleeting nature, are designed to allay the concerns of new users who might be turned off by the public and permanent nature of normal tweets. Fleets can't be retweeted and they won't have “likes.” The new feature is reminiscent of Instagram and Facebook “stories” and Snapchat's snaps, which let users post short-lived photos and messages. Twitter says it may bring the feature to other countries depending on how the Brazil test goes.
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Publisher Simon & Schuster for sale, not 'core' to ViacomCBS
NEW YORK (AP) — Simon & Schuster, the publisher of such authors as Stephen King and Bob Woodward, is up for sale. ViacomCBS, fresh off a recent merger, is looking to sell its book publishing business as it tries to pay down debt and please its shareholders with dividends and stock buybacks. Simon & Schuster is a major publisher. But ViacomCBS CEO Bob Bakish says it's not a “core asset” of the company since it isn't video. The company has been trying to navigate consumers' shift from watching live TV on a television set to streaming shows and movies on the internet.
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Fed survey finds coronavirus impacting parts of US economy
WASHINGTON (AP) — The Federal Reserve’s latest nationwide survey of business conditions has found that the coronavirus outbreak has begun to depress tourism and disrupt manufacturing chains in parts of the United States. The survey of the Fed’s 12 regions released Wednesday found that growth through late February continued at a moderate pace. But it found concerns were rising about how the virus that began in China might impact the U.S. economy.
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United is first to cut US flying due to virus outbreak
CHICAGO (AP) — United Airlines is cutting back on flights both internationally and within the United States as it grapples with lower travel demand because of the new virus outbreak. United is also asking employees to volunteer for unpaid time off. The news on Wednesday is the clearest yet of the damage that the coronavirus outbreak is having on the U.S. airline industry. The CEOs of several airlines went to the White House to discuss the impact of the outbreak on travel. The administration is seeking the airlines' help in tracing travelers who might have come in contact with people ill with COVID-19.
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GM shows 13 electric vehicles as it tries to run with Tesla
DETROIT (AP) — General Motors, trying to refashion itself as a futuristic company with technology to compete against Tesla, rolled out plans Wednesday for 13 new electric vehicles during the next five years. The company touted an exclusive new battery technology that could propel some of the vehicles as far as 400 miles (644 kilometers) on a single charge as it tries to capture electric vehicle enthusiasm that has brought wild growth to rival Tesla's share price.
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The S&P 500 rose 126.75 points, or 4.2%, to 3,130.12. The Dow gained 1,173.45 points to 27,090.86. The Nasdaq climbed 334 points, or 3.8%, to 9,018.09. The Russell 2000 index of smaller company stocks rose 45.11 points, or 3%, to 1,531.20.