The daily business briefing: March 11, 2020

1. Trump pitches stimulus to counter coronavirus fallout

President Trump on Tuesday met with Republican lawmakers on Capitol Hill to propose an economic stimulus package to counter fallout from the coronavirus outbreak. Trump's plan includes temporarily slashing payroll taxes to zero, and providing relief to hard-hit industries, including tourism. Some Republicans reportedly reacted coolly to the idea of cutting payroll taxes. Trump said "there's great unity within the Republican Party," but he conceded that there was no immediate consensus on the specific actions needed to support the economy. "Be calm, it's really working out," Trump said. Democrats have criticized Trump for not acting more quickly in response to the outbreak. Some analysts said it could be hard in a divided Congress to get Trump's proposals passed.

The New York Times CNBC

2. Saudi Aramco announces plan to hike oil production

Saudi Aramco said Wednesday that it would increase its oil production capacity by a million barrels per day to 13 million. The move by Saudi Arabia's majority state-owned oil company was ordered by the Saudi Energy Ministry under the country's push to increase its market share as the coronavirus outbreak cuts into demand. Saudi Arabia had been shouldering the bulk of cuts agreed to by OPEC and other major producers, but it reversed its policy over the weekend and started a price war after Russia refused to cooperate on extending production cuts to boost crude prices. The shift over the weekend triggered a 25 percent price drop on Monday, although the price of international benchmark Brent crude rebounded partially on Tuesday.

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The Associated Press

3. Stock futures drop as volatility continues on Wall Street

U.S. stock index futures fell by about 2 percent early Wednesday as volatility continued on Wall Street. Markets soared on Tuesday, with the Dow Jones Industrial Average jumping 1,167 points, or 4.89 percent, and the S&P 500 gaining 4.94 percent to partially regain their massive losses from the day before. Such a turnaround is typical after such a sharp plunge. Bespoke Investment Group strategists noted that, on average, the S&P 500 gained 4.2 percent the day after the 10 previous 5 percent drops since 1952. Tuesday's rebound was fueled by President Trump's proposal to counter economic damage from the outbreak with a payroll tax cut and other measures. U.S. markets have swung wildly in recent weeks as the virus spread and forced many businesses to curb operations.

CNBC MarketWatch

4. United says domestic bookings down 70 percent due to coronavirus fears

United Airlines reported Tuesday that its domestic net bookings, which cover reservations minus cancellations, had dropped by 70 percent over the last few days as Americans avoid traveling due to coronavirus fears. "We're planning for the public concern about the virus to get worse before it gets better," said airline president Scott Kirby, who is scheduled to take over as CEO from Oscar Munoz in May. American, the world's largest airline, announced plans to cut 7.5 percent of its domestic flights in April, and reduce international capacity by 10 percent in the summer travel season. Delta Air Lines said it would cut domestic flights by up to 15 percent. "Should the environment get worse, we can go deeper," said Delta CEO Ed Bastian.

CNBC CNN

5. Dick's Sporting Goods steps up push to end gun sales

Dick's Sporting Goods on Tuesday announced that it would stop selling guns at 440 more stores. The company started phasing out firearms in February 2018 when it said it would stop selling semi-automatic weapons in response to the Parkland, Florida, school shooting. The company halted all gun sales in 10 stores a few months later as a test. After total sales increased at those locations, the company removed firearms from 125 more stores in March 2019. Dick's, the largest U.S. sporting goods retailer, has 827 stores across the country. The company reported Tuesday that it had $2.6 billion in net sales in the fourth quarter, up by 4.7 percent over the same period last year. The company's shares jumped by 13 percent after the announcement.

CNN