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FINANCIAL MARKETS
Wall Street pulls back after companies detail virus fallout
NEW YORK (AP) — Stocks are falling on Wall Street after Amazon and other big companies laid out how the coronavirus pandemic is hitting their bottom lines. The major indexes were off more than 2.5% in early afternoon trading.
Amazon sank after its profits fell because of a sharp increase in costs related to providing deliveries safely during the pandemic, despite a big increase in revenue.
Bond yields held steady and the price of oil rose slightly. Many world markets were closed for the May Day holiday.
ECONOMY-MANUFACTURING
US manufacturing falls in April as virus ravages economy
WASHINGTON (AP) — U.S. manufacturing retreated again in April, a victim of economic fallout from the coronavirus outbreak. The Institute for Supply Management, an association of purchasing managers, says its manufacturing index dropped to 41.5 last month from 49.1 in March. Anything below 50 signals contraction. The news was bad across the board: Production, new orders, hiring and export orders all fell faster in April than they did in March. But economists had expected an even bigger drop.
CONSTRUCTION SPENDING
US construction spending increases 0.9% in March
WASHINGTON (AP) — U.S. construction spending edged up 0.9% in March as building activity escaped the early impacts of the coronavirus shutdowns. The Commerce Department says the increase followed a 2.5% drop in spending in February. While the overall figure did not decline in March, analysts believe big drops in activity will start showing up in the April report given the impacts already seen in other parts of the economy. For March, residential construction rose up 2.3% as strength in apartment construction offset a drop in single-family homes. Nonresidential construction fell 1.3%, with spending for hotels and office buildings both declining.
US STEEL-LAYOFFS
US Steel expects to lay off 2,700 as virus reduces demand
PITTSBURGH (AP) — U.S. Steel expects to lay off roughly 2,700 employees as the demand for iron and steel drops during the coronavirus pandemic, the company said.
The Pittsburgh-based steelmaker, one of the nation's largest, announced its plans in a filing Thursday, the same day it reported a first-quarter loss of $391 million. The company said that it sent notices of plans for layoffs to 6,500 employees but that it expects the actual number affected to be about 2,700.
The company did not say where the layoffs would be but said it will also temporarily idle two blast facilities, one in Gary, Indiana, and one outside Pittsburgh. Overall, the company has idled seven of its 10 blast furnaces in the U.S.
The company had about 27,500 employees as of Dec. 31.
VIRUS OUTBREAK-AIRLINES
Boeing says it won't seek government aid
UNDATED (AP) — Boeing says that because it raised $25 billion from a sale of bonds it doesn’t plan to ask the federal government for a loan. The company announced this week it will cut 10% of its 161,000-person work force through attrition, early-out offers and layoffs.
The incoming CEO of United Airlines, Scott Kirby, said that if air travel remains very low on Oct. 1, the company will have to lay off workers and further cut the hours of other employees. United got $5 billion in federal aid to help cover payroll costs through September.
Southwest Airlines and Alaska Airlines said Friday they will soon require that passengers cover their faces during flights. With those announcements, all of the six largest U.S. airlines will begin recovering face masks or coverings, some starting on Monday. JetBlue Airways was the first to announce such a policy on Monday. Delta, American and United followed suit on Thursday.
The Transportation Security Administration screened 154,695 people at airports on Thursday, its busiest day since March 29. That was still down 94% from the same Thursday a year ago, however. Airline executives say they are seeing a very slight increase in bookings, mostly for flights at least 90 days from now.
EXXON-RESULTS
Exxon profits drop as most of world stays home, forgoes fuel
NEW YORK (AP) — Profits fell at Exxon Mobil as the global pandemic began to erode oil demand.
The Irving, Texas oil giant lost $610 million in the first quarter, down 126% from the same time last year. Revenue was $56.16 billion, down 12% year over year.
Despite plummeting demand, Exxon’s produced 4 million barrels per day of oil, up 2% from the same time last year.
The price of U.S. benchmark crude has fallen nearly 70% since the start of the year, forcing oil companies to reign in drilling plans.
CHEVRON-RESULTS
Chevron turns a profit but warns of pain ahead
NEW YORK (AP) — Chevron turned a profit in the first quarter. But the company warned its financial picture is likely to be depressed in the future because of reduced demand caused by the coronavirus.
The San Ramon, California-based oil producer brought in $3.6 billion in profits, up 36% from the same time last year. CEO Michael Wirth says the growth was driven by margins in its refining business and increased production in the Permian Basin. But the boost was also driven by the sale of upstream assets in the Philippines, favorable tax items and foreign currency effects which together totaled $1.2 billion.
Revenues were down 10% to $31.5 billion.
VIRUS OUTBREAK-KILLING HOGS
Healthy pigs being killed as meatpacking backlog hits farms
DES MOINES, Iowa (AP) — As the coronavirus pandemic continues to force the closure of meatpacking plants across the country, hog farmers have had to respond quickly to a rapidly growing backlog of animals in their barns by killing and disposing of pigs. Many large-scale hog farmers have little choice once barns reach full capacity. Officials estimate about 700,000 pigs across the nation can’t be processed each week and will be euthanized if plants don't resume operations. To help farmers, the USDA has set up a center that can supply the tools needed to euthanize hogs. That includes captive bolt guns and cartridges that can be shot into the heads of larger animals as well as chutes, trailers and personal protective equipment.
VIRUS OUTBREAK-MEAT PLANTS
Union: South Dakota Smithfield pork plant will reopen Monday
SIOUX FALLS, S.D. (AP) — A union representing employees at a South Dakota pork processing plant says it will partially reopen Monday after shuttering more than two weeks ago because of a coronavirus outbreak that infected hundreds of employees. The United Food and Commercial Workers local chapter said Friday that about 250 employees have been asked to report to the Smithfield Foods plant to staff two departments, ground seasoned pork and night cleanup. The union was informed on Thursday about the partial reopening. Virginia-based Smithfield Foods did not immediately return a request for comment. More than 800 employees of the plant have confirmed infections.
VIRUS OUTBREAK-BRINGING BACK WORKERS
Back to work, owners make changes so workers feel safe
NEW YORK (AP) — As small and midsize businesses rehire laid-off employees and get back to work, owners are making substantial changes to their operations to protect staffers from the coronavirus. Many owners realize that supplying masks and gloves won’t be enough to raise safety levels in their firms. So they’re redoing floor plans and operations to minimize contact. They’re also staggering work hours and shifts to cut the number of people onsite. But as they undertake these changes, owners understand they need to consider employees’ feelings; many staffers are anxious about increased contact with others that could make them more vulnerable to catching the virus.
VIRUS OUTBREAK-WAGE GARNISHMENT
DeVos not enforcing pause on wage garnishments, lawsuit says
WASHINGTON (AP) — A new lawsuit accuses the U.S. Education Department of garnishing wages from workers who are behind on student loan payments even after Congress ordered the agency to suspend the practice during the coronavirus pandemic. The federal suit was filed Thursday in Washington on behalf of Elizabeth Barber, a home health aide in New York, and any other workers whose pay has been withheld. Congress ordered the department to suspend wage garnishments through Sept. 30 in a rescue package that was approved on March 27. But Barber said her pay is still getting docked by 12%, leaving her struggling to meet basic needs. The Education Department declined to comment on the lawsuit but said it has taken immediate actions to halt garnishments.
CONGRESS-ANTITRUST-BEZOS
House panel wants Bezos to testify in antitrust probe
WASHINGTON (AP) — House lawmakers investigating the market dominance of Big Tech are asking Amazon CEO Jeff Bezos to testify to address possible misleading statements by the company on its competition practices. In a letter to Bezos, leaders of the House Judiciary Committee are holding out the threat of a subpoena if he doesn't agree voluntarily to appear. Amazon used sensitive information about sellers on its marketplace, their products and transactions to develop its own competing products, according to a recent Wall Street Journal report. An Amazon executive denied such a practice in statements at a committee hearing last July, saying the company has a formal policy against it.
VIRUS OUTBREAK-AMAZON NOISE
Captive neighbors seek relief from Amazon construction noise
ARLINGTON, Va. (AP) — For residents of a northern Virginia neighborhood where Amazon is building a new headquarters, the loudest construction work is occurring at the worst possible time. The relentless bang and clang of piledriving work has been going for weeks now as the neighbors are stuck at home. All day long, they hear the rhythmic pounding, more than 40 times a minute. One neighbor has started a petition asking that the piledriving be delayed until stay-at-home orders for the coronavirus pandemic are lifted. County officials did persuade the Clark Construction company to delay the start of the noise until 8 a.m. each day, but say they can't make it stop.
ASTRONAUTS-HOME LAUNCH
NASA plea: Stay home for 1st home astronaut launch in years
CAPE CANAVERAL, Fla. (AP) — NASA and SpaceX are urging everyone to stay home for the first home launch of astronauts in nearly a decade because of the coronavirus pandemic. Top officials warned the public Friday against traveling to Florida for this month's launch of two NASA astronauts aboard a SpaceX rocket. It will be the first launch of astronauts from NASA's Kennedy Space Center in nine years, and the first anywhere by a private company. NASA Administrator Jim Bridenstine says while it saddens him to keep people away, the priority is to keep everyone safe. He said hundreds of thousands of people used to descend on the area to watch space shuttle launches.
VIRUS OUTBREAK-ASIA
Asia Today: Japan debuts robots at hotels for virus patients
BANGKOK (AP) — Robot staff are debuting at a Tokyo hotel used for mildly sick coronavirus patients under a new plan to free up beds at hospitals overburdened with more severe cases. Pepper, a talking robot, greets new guests at the lobby, while Whiz, a cleaning robot, operates in areas where patients pick up meals and other daily necessities to reduce infection risks for human staff. Pepper, wearing a white surgical mask, greeted Tokyo Gov. Yuriko Koike as she walked into the hotel during Friday’s demonstration. Pepper also reminds patients to check their temperature and rest well.
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