Live Stock Market Tracker – The New York Times

Live Stock Market Tracker – The New York Times

With the coronavirus pandemic all but eliminating travel, demand for energy is tumbling, and oil companies from Algeria to West Texas are slashing budgets. Refineries are cutting production of gasoline, diesel and jet fuel, and oil companies are dropping rigs, dismissing fracking crews and beginning to shutter wells.

As much as 20 percent, or 20 million barrels a day, of oil demand may be lost as the global economy slows, according to the International Energy Agency. That is roughly equivalent to eliminating all U.S. consumption. To make matters worse, Saudi Arabia and Russia are increasing oil production to regain market share from American oil companies that increased production and exports in recent years.

The Trump administration has been trying to convince Saudi Arabia and Russia that they should cut production to help stabilize the oil market; President Trump and President Vladimir Putin of Russia discussed energy markets in a call on Monday. But the energy demand destroyed by the virus now overshadows anything that Saudi Arabia or Russia could do to reduce exports.

Global oil benchmark prices hover around $20 a barrel — levels not seen in a generation — and regional prices in West Texas and North Dakota have fallen even further, to around $10 a barrel. That is about a quarter of the price that shale operators typically need to cover the costs of pulling oil out of the ground. If these prices persist, a big wave of bankruptcies is inevitable by the end of the year, experts say.

“We appear to be seeing improved sentiment,” wrote Yousef Abbasi, global market strategist at INTL FCStone, a financial services and brokerage firm, in a note to clients on Tuesday. “And when sentiment does start to improve around the virus and its ultimate economic impact — the market will find it difficult to ignore the size and scope of the fiscal and monetary stimulus that has been undertaken.”

But even as stocks rebounded well off their lowest point, following a surge last week, March is set to be the worst month for the S&P 500 since October 2008, when investors feared a collapse of the economy in the wake of the global financial crisis. The S&P 500 is down about 11 percent this month, and 18 percent so far this year.

As consumers stay home and factories shut down, millions of workers have lost their jobs. Wall Street economists and analysts continue to downgrade expectations for the economy.

Goldman Sachs, for example, now expects U.S. economic output to plunge at an annualized rate of 34 percent in the second quarter. The unemployment rate will hit 15 percent, the bank said in a research note on Tuesday.

Here’s how major benchmarks have done in March, through Monday:

  • ⬇️S&P 500 down 11 percent

  • ⬇️Dow Jones industrial average down 12 percent

  • ⬇️FTSE 100 in Britain down 15 percent

  • ⬇️Nikkei 225 in Japan down 10.5 percent

  • ⬇️Brent crude futures down 55 percent

Mr. Cuomo is “feeling well,” according to a memo distributed to CNN staff members, and he plans to continue hosting his prime-time program from a studio at his home. Mr. Cuomo confirmed the news himself on Twitter.

Mr. Cuomo, 49, is one of the most prominent members of the American news media so far to learn he has the coronavirus. His illness is also notable in part because of the outsize role his brother, Governor Cuomo, has played in leading the response to the virus in the hard-hit state of New York.

Governor Cuomo, when asked about his brother on Tuesday, said “he is going to be fine.”

“He’s young, in good shape, strong, not as strong as he thinks, but he will be fine. But there’s a lesson in this,” he said. “He’s an essential worker, a member of the press, so he’s been out there. If you go out there, the chance that you get infected is very high.”

The legislation that Congress passed last week included $25 billion of grant money for airline carriers and $4 billion for air cargo carriers. It also included another $29 billion in loans and loan guarantees.

The airline industry, which had substantial input in the crafting of the economic relief package, has been urging Treasury to disperse the funds quickly and warned that the 750,000 jobs that the sector supports could be at risk.

Also on Tuesday, the Transportation Department clarified a requirement under the law that airlines maintain minimum nationwide service. That rule applies only to places, not airports, and allows airlines to reduce the frequency of flights to those places, the agency said. Airlines can also request exemptions from serving destinations that “are not reasonable or practicable to serve,” the agency said.

Reporting was contributed by Michael M. Grynbaum, Clifford Krauss, Carlos Tejada, Ben Casselman, Alan Rappeport, Michael Corkery, John Koblin, Elizabeth Paton, Niraj Chokshi, Raymond Zhong, Peter Eavis, Davey Alba, Sheera Frenkel, Kevin McKenna, Mohammed Hadi, Geneva Abdul, Jonah Bromwich, Kate Conger, Ernesto Londono and Daniel Victor.

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