The daily business briefing: May 1, 2020
Another 3.8 million Americans file jobless claims, Amazon vows to spend 2nd quarter profits on coronavirus response, and more
1. Jobless claims rise above 30 million over 6 weeks
Another 3.8 million U.S. workers filed new claims for unemployment benefits last week, the Labor Department reported Thursday. The new figures bring the total over six weeks to more than 30 million as the coronavirus crisis continues to shut down businesses. The once unthinkable total could even be an undercount, economists say, as many states have been overwhelmed by the rush of applications for unemployment benefits, which Congress have extended to include self-employed taxpayers. A study by the Economic Policy Institute found that about 50 percent more people than were counted might have been eligible but found the process too daunting. "The problem is even bigger than the data suggest," said Elise Gould, a senior economist with the left-leaning research institute.
2. Amazon to spend quarterly profit on virus response
Amazon on Thursday announced that it would spend its second quarter profits, estimated around $4 billion, on responding to the coronavirus crisis. The online retail giant said it would spend hundreds of millions of dollars on COVID-19 tests for workers and improving its delivery network to handle a surge in online shopping under stay-at-home orders. Some of the money will go toward higher wages and personal protection equipment for workers. The company reported first quarter earnings of $5.01 per share, falling below expectations of $6.25 per share. Its revenue came in at $75.45 billion, beating forecasts of $73.61 billion. The company also said its employees who can work from home may do so until at least Oct. 2.
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.
Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
3. Stock futures fall after best month in decades
Stock futures dropped by about 2 percent early Friday, after Wall Street finished its best month in decades after a rebound from a March plunge triggered by coronavirus lockdowns. U.S. stock indexes got a lift from several surging technology powerhouses, including Apple, which gained 15.3 percent in April, and Amazon, which climbed by nearly 27 percent as consumers under coronavirus stay-at-home orders increased their online purchases. The surging large companies lifted the S&P 500 from late-March lows, but broader problems linger as states start slowly lifting coronavirus restrictions. "Dependency on a handful of stocks has masked broadly based weakness in the past, and if they falter, could obscure broadly based improvements going forward," said Willie Delwiche, investment strategist at Baird, in a note.
4. Macy's announces plan to reopen 775 stores within 8 weeks
Macy's announced Thursday that it plans to reopen all of its 775 Macy's, Bloomingdale's, and Bluemercury stores over the next six to eight weeks. The news came more than a month after the department store chain closed the stores due to the coronavirus pandemic. The company said it would only reopen in areas where state and local governments have lifted restrictions on nonessential businesses. It plans to start with 68 stores in Georgia, Oklahoma, South Carolina, Tennessee, and Texas on Monday. There will be social distancing guidelines, and employees will have to wear masks. Beauty counters will not be able to give consultations or have testers out, and a limited number of fitting rooms will be open.
5. Global poverty rate to rise for 1st time in 2 decades
Global poverty rates are forecast to rise in 2020 for the first time since 1998, largely due to the coronavirus pandemic, The New York Times reported Thursday, citing World Bank forecasts. As many as a half a billion people, or 8 percent of the world's population, could become destitute by the end of the year, according to United Nations estimates. "The garment factory helped me and my family to get out of poverty," said Shahida Khatun, who was laid off in March at a Bangladesh garment factory. "But the coronavirus has pushed me back in." The job losses from the coronavirus crisis have wiped out two decades of gains in a few months.
Create an account with the same email registered to your subscription to unlock access.
Sign up for Today's Best Articles in your inbox
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
Harold Maass is a contributing editor at The Week. He has been writing for The Week since the 2001 debut of the U.S. print edition and served as editor of TheWeek.com when it launched in 2008. Harold started his career as a newspaper reporter in South Florida and Haiti. He has previously worked for a variety of news outlets, including The Miami Herald, ABC News and Fox News, and for several years wrote a daily roundup of financial news for The Week and Yahoo Finance.
-
'Is the death penalty racist? Of course it is.'
Instant Opinion Opinion, comment and editorials of the day
By Harold Maass, The Week US Published
-
Today's political cartoons - May 8, 2024
Cartoons Wednesday's cartoons - social media guilt, gag orders, and more
By The Week US Published
-
Boy Scouts changes name to Scouting America
Speed Read The organization is rebranding, citing inclusivity
By Peter Weber, The Week US Published
-
The daily business briefing: January 24, 2024
Business Briefing The S&P 500 sets a third straight record, Netflix adds more subscribers than expected, and more
By Harold Maass, The Week US Published
-
The daily business briefing: January 23, 2024
Business Briefing The Dow and S&P 500 set fresh records, Bitcoin falls as ETF enthusiasm fades, and more
By Harold Maass, The Week US Published
-
The daily business briefing: January 22, 2024
Business Briefing FAA recommends inspections of a second Boeing 737 model, Macy's rejects Arkhouse bid, and more
By Harold Maass, The Week US Published
-
Geopolitics and the economy in 2024
Talking Point The West is banking on a year of falling inflation. Don't rule out a shock
By The Week UK Published
-
The daily business briefing: January 19, 2024
Business Briefing Macy's to cut 2,350 jobs, Congress averts a government shutdown, and more
By Harold Maass, The Week US Published
-
The daily business briefing: January 18, 2024
Business Briefing Shell suspends shipments in the Red Sea, December retail sales beat expectations, and more
By Harold Maass, The Week US Published
-
The daily business briefing: January 17, 2024
Business Briefing Judge blocks JetBlue-Spirit merger plan, Goldman Sachs beats expectations with wealth-management boost, and more
By Harold Maass, The Week US Published
-
The daily business briefing: January 16, 2024
Business Briefing Boeing steps up inspections on 737 Max 9 jets, Zelenskyy fights for world leaders' attention at Davos, and more
By Harold Maass, The Week US Published