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u.s. news Diahuebs 8 OctOber 2020

Stocks rise as Trump tweets on stimulus keep market spinning

(AP) – Stocks closed broad- "The big question is are we
ly higher on Wall Street going to see some signs of
Wednesday after President a shift to economic growth
Donald Trump appeared to beneficiaries."
backtrack on his decision to Smaller stocks also rose more
halt talks on another rescue than the rest of the market,
effort for the economy. an indication of rising opti-
The S&P 500 climbed 1.7% mism about the economy's
after Trump sent a series prospects. The Russell 2000
of tweets late Tuesday say- index of small-cap stocks
ing he's open to sending out climbed 33.75 points, or
$1,200 payments to Ameri- 2.1%, to 1,611.04.
cans, as well as limited pro- The 360-degree spin for Wall
grams to prop up the airline Street in less than 24 hours
industry and small business- is just the latest bump in its
es. shaky run since early last
The tweets came just hours month. After plunging nearly
after Trump sent the market points, or 1.9%, to 28,303.46. Tuesday to halt negotiations, than before. 34% early this year on wor-
into a sudden tailspin with The Nasdaq composite Federal Reserve Chair Je- Airlines jumped to some of ries about the coronavirus
his declaration that his rep- climbed 210 points, or 1.9%, rome Powell had asked Con- the day's bigger gains after pandemic and the recession
resentatives should halt talks to 11,364.60, despite a call by gress to come through with Trump singled out the indus- it would cause, the S&P 500
with Democrats on a broad Democratic lawmakers for more aid. He said that too try, asking Congress to "IM- rallied back to record heights
stimulus effort for the econ- Congress to rein in the Big little support "would lead to MEDIATELY" approve $25 thanks to tremendous aid
omy until after the election, Tech companies that domi- a weak recovery, creating un- billion for them. Last week, from the Federal Reserve and
saying House Speaker Nancy nate it and other indexes. necessary hardship." Pelosi had told airline execu- Congress, along with signs of
Pelosi had been negotiating The proposal, which follows Some analysts characterized tives to halt the furloughs of strengthening in the econo-
in bad faith. The stakes are a 15-month investigation by a Trump's move as likely a ne- tens of thousands of workers my.
high, as economists, investors House Judiciary Committee gotiating ploy. with the promise that aid for It's been struggling since set-
and the chair of the Federal panel, could make it harder "I do not believe hopes of a them was imminent, though ting an all-time high in early
Reserve all say the economy for Amazon, Apple, Facebook stimulus deal are now gone a proposal by House Demo- September on a range of
needs another dose of sup- and Google's parent company forever," said Jeffrey Halley crats to give the airline in- worries. Besides the clouded
port following the expiration to acquire others and impose of trading and research firm dustry $28.8 billion failed to prospects for more stimulus
of weekly jobless benefits and new rules to safeguard com- Oanda. "One of Mr. Trump's advance. from a bitterly divided Con-
other stimulus Congress ap- petition. favorite negotiating tactics, United Airlines Hold- gress when parts of the econ-
proved earlier this year. Amazon rose 3.1%, and Ap- judging by past actions, is to ings and American Airlines omy have begun to slow, in-
"What we've seen over the ple climbed 1.7%. Google's walk away from the negoti- Group climbed 4.3%. Delta vestors are also worried about
last 24 hours is just confirma- parent company added 0.6%, ating table abruptly. The in- Air Lines pulled 3.5% higher. whether the continuing pan-
tion that the market is really and Facebook slipped 0.2%. tention being to frighten the The S&P 500 rose broadly, demic will lead governments
addicted to stimulus from the Still, much of the market's at- other side into concessions." with technology stocks mak- to put more restrictions on
government," said Sal Bruno, tention remains fixed on the In the longer term, many ing the biggest gains. Other businesses. Tensions between
chief investment officer at prospects for more stimulus investors say a big stimulus areas that would benefit the United States and Chi-
IndexIQ. "When it thinks it's for the economy from Wash- package may still be possible most from a strengthening na are still simmering, and
not getting it, it sells off, and ington. Wednesday's gains regardless of what Trump economy were also climbing, stocks still look too expensive
when it looks like there's a helped the S&P 500 recoup says. A Democratic sweep including retailers and travel- in the eyes of some critics de-
possibility for that it rises, as all of its loss from the day of the upcoming elections related companies. spite their recent pullback.
we've seen today." before, when Trump's tweets would likely clear the way for "The market's just been re- The yield on the 10-year
The S&P 500 index rose suddenly sent it from a 0.7% a big government program lentlessly led by long-dura- Treasury rose to 0.78% from
58.50 points to 3,419.45, gain to a 1.4% loss. after the transfer of power, tion growth stocks," said Bar- 0.76% late Tuesday. Europe-
while the Dow Jones Indus- Just a few hours before Trump and Wall Street has begun to ry Bannister, head of institu- an and Asian markets ended
trial Average gained 530.70 made his announcement on see a blue wave as more likely tional equity strategy at Stifel. mixed.

8,800 part-time workers in Florida part of Disney layoffs

(AP) — About 8,800 part- union layoffs already an- layoffs involved part-time and entertainment offerings, ney is facing are extremely
time union workers at Walt nounced brings the Disney- workers and they ranged but is now trying to recover difficult for 1,000s of Cast
Disney World in Florida will related job losses in Florida from salaried employees to after the coronavirus pan- Members."
be part of the 28,000 layoffs to more than 15,000 workers. hourly workers. demic pummeled many of its No fulltime workers, also
in Disney's parks division in Disney officials announced Disney's parks closed last businesses. It was hit by sev- called cast members, will be
California and Florida, union last week that it was laying spring as the pandemic began eral months of its parks and laid off under the deal the
officials said Wednesday. off 28,000 workers because spreading in the U.S. The stores being closed, cruise unions negotiated with Dis-
The addition of the union of the coronavirus pandemic. Florida parks reopened this ships idled, movie releases ney. Over the next two years,
workers to nearly 6,500 non- Two-thirds of the planned summer, but the California postponed and a halt in film workers who have been laid
parks have yet to reopen as and video production. off will get priority when
the company awaits guidance The layoffs of the part-time Disney starts hiring again,
from the state of California. union workers were an- and they will retain their se-
In a letter to employees, Josh nounced by the Service niority and pay rate.
D'Amaro, chairman of Dis- Trades Council Union, a According to the deal with
ney Parks, Experience and coalition of six unions that the unions, full-time work-
Product, said California's represents 43,000 workers at ers whose positions aren't
"unwillingness to lift restric- Disney World. needed by the company can
tions that would allow Dis- "These are unprecedented transfer to another position.
neyland to reopen" exacer- times," the Service Trades But if they don't agree to the
bated the situation for the Council Union said in a transfers, they can be laid off.
company. statement. "It is unfortunate Those workers who are laid
Disney has soared to success anytime a worker is laid off off will receive two months
with the breadth of its media and the mass layoffs that Dis- pay.