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business Wednesday 15 april 2020
Stocks rise as traders see hopeful signs on opening economy

By ALEX VEIGA, STAN CHOE all the uncertainties about
and DAMIAN J. TROISE when economies may re-
AP Business Writers open, many companies
Stocks moved mostly high- have simply pulled their
er on Wall Street Tuesday as profit and sales forecasts
investors reviewed earnings for the year altogether.
reports from big companies Given how big and un-
and welcomed signs that precedented the corona-
government officials are virus shock to the econo-
considering how to gradu- my has been, analysts are
ally reopen the economy. struggling to guess how
President Donald Trump has bad corporate earnings
been discussing with senior will get hit. At Deutsche
aides how to roll back fed- Bank, Chief Global Strate-
eral social distancing rec- gist Binky Chadha said his
ommendations that expire usual methods of forecast-
at the end of the month. ing earnings based on eco-
And governors around the nomic growth or surveys
U.S. have begun collabo- measuring business activity
rating on plans to reopen "are essentially broken."
their economies in what is "It's incredibly hard during
likely to be a drawn-out, normal times to have an
step-by-step process to economic forecast, but
prevent the coronavirus A man with a protective mask stands in the rain in front of an electronic stock board showing today, you're kind of flying
from rebounding with disas- Japan's Nikkei 225 index at a securities firm in Tokyo Monday, April 13, 2020. blind," said Brent Schutte,
trous results. Associated Press. chief investment strate-
The discussions follow some omy," said Sam Stovall, climbed 4.8% after report- the outbreak has begun to gist at Northwestern Mu-
signs that the outbreak chief investment strategist, ing a stronger profit for the plateau in some areas plus tual Wealth Management.
may be leveling off in some CFRA. first three months of the unprecedented infusions of "What companies have to
of the hardest-hit areas. In The S&P 500 was up 3% as year than Wall Street ex- support from the Federal say will be incredibly impor-
Italy, Spain and other plac- of 2:56 p.m. Eastern time, pected. It also raised its div- Reserve and the govern- tant."
es around Europe where recovering all of its losses idend, bucking a broader ment have helped drive Across Wall Street, analysts
infections and deaths from a day earlier. The trend as companies try to stocks higher this month. are forecasting a drop of
have begun stabilizing, the benchmark index surged conserve cash. But this week stocks could roughly 10% in earnings per
process of reopening the 12% last week, though it re- JPMorgan Chase and Wells be in for more volatility as share for S&P 500 compa-
economy is already under- mains about 16% below its Fargo led bank stocks low- companies serve up their nies for the first quarter and
way, with certain business- all-time high set in February. er after reporting disap- first-quarter results. 21% for the second quarter.
es and industries allowed The Dow Jones Industrial pointing results. Both banks While Wall Street expects It's going to be a tough
to reopen in a calibrated Average moved 543 points set aside large amounts profits will be down for most couple of quarters for cor-
effort aimed at balancing higher, or 2.3%, to 23,930. of reserves as they girded companies in the S&P 500, porate America as the
public health against their The Nasdaq climbed 4%. for losses on loans go- the focus is on what man- economy will likely take
countries' economic well- Technology stocks pow- ing unpaid as millions of agement teams have to "two steps forward and
being. ered much of the rally. Mi- Americans became unem- say about what their pros- one step back" as it recov-
"Wall Street is encouraged crosoft climbed 4.9% and ployed due to the corona- pects for profits look like for ers, said Jeff Buchbinder,
simply by the conversation Apple rose 5.3%. virus pandemic. the rest of the year. That equity strategist for LPL
of a reopening of the econ- Johnson & Johnson Tentative optimism that might prove difficult. With Financial.q

Adidas cleared for 3 billion euros in rescue loans

FRANKFURT, Germany ed syndicated revolving statement that it would
(AP) — Sports apparel and loan comprises a com- forgo short- and long-
shoe company Adidas mitment of 2.4 billion eu- term bonuses for the year,
says it has been approved ros from the state-owned equalling 65% of target
by the German govern- development bank KfW annual compensation for
ment for a 3 billion-euro and 600 million euros in top management.
( $3.3 billion) emergency loan commitments at Long-term bonuses for the
loan to help the company customary market condi- next level of management
get through a period of tions from a consortium would also be forfeited.
lost business due to the vi- of the company's part- "The further develop-
rus outbreak. ner banks, including Uni- ment of the coronavirus
The company based in Credit, Bank of America, outbreak and its impact
Herzogenaurach, Ger- Citibank, Deutsche Bank, on the company's busi-
many, said Tuesday that it HSBC Mizuho Bank and ness cannot be predicted
was suspending dividends, Standard Chartered Bank. at this point in time," the
share buybacks and 2020 Adidas said it agrees to re- company said.
executive bonuses as a pay any unused portion of "As a result, adidas is still
condition of getting the the money including inter- not able to provide an In this file photo dated Wednesday, Dec. 25, 2019, New Orleans
loan "to bridge this un- est and fees, as quickly as outlook for the full year Pelicans forward Derrick Favors wears Christmas-themed
Adidas Pro Model Superstars shoes in the first half of an NBA
precedented situation." possible. 2020 that includes this basketball game Wednesday, Dec. 25, 2019, in Denver, USA.
The yet to be conclud- The company said in a impact."q Associated Press.