Business Highlights
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Stocks jump after Trump promises to 'go big' on virus aid
NEW YORK (AP) — Stocks rallied Tuesday as President Donald Trump promised he's “going big” with plans to prop up the staggering economy through the coronavirus outbreak. Besides the White House’s proposal, which could approach $1 trillion, the Federal Reserve also announced its latest emergency move to get markets running more smoothly. The S&P 500 climbed 6% to claw back a little less than half of its historic loss from the day before. Even a 5% move used to be extremely rare, but it’s become the norm this month as investors see a recession as increasingly likely, if not already here.
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Panic buying leaves retailers scrambling to restock
NEW YORK (AP) — Grocers big and small are hiring more workers, paying overtime and limiting purchases on certain high demand items as they scramble to restock shelves that have been wiped out by panic shopping in response to the global viral pandemic. Amazon said Tuesday that it will only accept shipments from suppliers of cleaning equipment, medical supplies and household goods at its warehouses for the next three weeks to fill surging demand. It is hiring 100,000 people across the U.S. to keep up with a crush of orders as more people stay at home and shop online. It will also temporarily raise pay by $2 an hour through the end of April for hourly employees.
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Trump's economic aid could approach $1T, senators say
WASHINGTON (AP) — President Donald Trump is asking Congress to unleash a torrent of emergency economic aid — including direct checks to Americans — in an extraordinary effort to shore up households and the economy in the coronavirus crisis. As part of a proposed economic rescue not seen since the Great Recession in 2008, Trump wants checks sent to the public within two weeks as part of a package that officials said could approach a cost of $1 trillion. Congressional leaders vowed swift action. Treasury Secretary Steven Mnuchin appeared on Capitol Hill to brief Senate Republicans as state and local officials acted more forcefully to restrict gatherings and mobility in the face of growing sickness.
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Fed to try to ease flow of credit with new lending facility
WASHINGTON (AP) — In its latest emergency action, the Federal Reserve is establishing a lending facility to try to ease the flow of short-term credit to banks and businesses as the economy grinds to a halt from the viral outbreak. The Fed announced Tuesday that it's reviving a program it first used during the 2008 financial crisis to unclog a short-term lending market for what is known as “commercial paper.” Large businesses issue commercial paper, which is essentially IOUs, to raise cash to meet payrolls and cover other short-term costs. “An improved commercial paper market will enhance the ability of businesses to maintain employment and investment as the nation deals with the coronavirus outbreak,” the Fed said in a statement.
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Administration announces 90-day delay for many tax payments
WASHINGTON (AP) — The Trump administration says individuals and businesses will be allowed to delay paying their 2019 tax bills for 90 days past the usual April 15 deadline. The extension announced Tuesday is an effort to inject up to $300 billion into the economy at a time when the coronavirus appears on the verge of causing a recession. Treasury Secretary Steven Mnuchin said individuals will be able to delay paying up to $1 million in payments. Corporations will be able to defer payment on up to $10 million. Taxpayers will still have to file their tax returns by the April 15 deadline.
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Cinemas close nationwide, Disney postpones 'Black Widow'
NEW YORK (AP) — U.S. movie theaters have closed nationwide due to the coronavirus pandemic, turning dark nearly all of the country's 40,000-plus screens in an unprecedented shutdown. With most of Hollywood's March and April releases already postponed, the Walt Disney Co. on Tuesday also cleared out its May releases as well, including Marvel's “Black Widow.” The largest chains had tried to remain open even as Hollywood postponed its upcoming release plans and guidelines for social distancing steadily diminished the recommended size of crowds. But after President Donald Trump on Monday urged against gatherings of more than 10 people, AMC Theaters, the nation's largest chain, said Tuesday its theaters would close altogether.
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Airbnb, hotels seek US government aid as demand flattens
WASHINGTON (AP) — U.S. hotel companies are seeking $150 billion in direct aid for their workers for what they say is an unprecedented fall-off in demand because of the new coronavirus. CEOs of Marriott, Hilton, Hyatt and other chains met Tuesday with President Donald Trump to describe the impact and seek help. Hilton CEO Christopher Nassetta told the president Hilton has had to close some hotels for the first time in 100 years; worldwide, the company's hotels are only 10% to 15% occupied. Marriott said it's reducing workers' hours and starting to furlough what could eventually become tens of thousands of workers. Workers will retain their health benefits, the company said.
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The S&P 500 index gained 143.06 points, or 6%, to 2529.19. The Dow Jones Industrial Average jumped 1,048.86 points, or 5.2%, to 21,237.38. The Nasdaq added 430.19 points, or 6.2%, to 7,334.78. The Russell 2000 index of smaller-company stocks finished up 69.27 points, or 6.7%, at 1,106.68.