The daily business briefing: June 15, 2020

1. Dallas Fed leader: Systemic racism restricts economy

Systemic racism and high minority unemployment hold back the economy, Dallas Federal Reserve President Robert Kaplan said Sunday. "A more inclusive economy where everyone has an opportunity will mean faster workforce growth, faster productivity growth, and will grow faster," Kaplan said on CBS's Face the Nation. Raphael Bostic, president of the Atlanta Federal Reserve Bank and the Fed's first African-American regional bank leader, on Friday declared his support for people protesting systemic racism, and proposed ways the Fed can help push for social justice. The comments came after weeks of protests against racism and police brutality in the wake of the killing of George Floyd, an unarmed black man, in Minneapolis police custody.

Reuters

2. 24 Hour Fitness to permanently close 100 gyms

24 Hour Fitness Worldwide announced on its website that it had permanently closed 100 of its gyms. The company had more than 400 locations in 14 states before it started cutting back due to the impact of the coronavirus crisis. About a third of the gyms it closed were in California. The company also had to lay off workers in several states ahead of the closures. The Wall Street Journal reported last week that 24 Hour Fitness was trying to line up financing to help it avoid having to file for bankruptcy protection. The company said last week it aimed to have half of its gyms reopened this month.

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MarketWatch

3. Stock futures fall further as coronavirus 2nd wave looms

U.S. stock index futures fell early Monday as concerns about a second wave of coronavirus infections continued. Futures for the Dow Jones Industrial Average and the S&P 500 were down by more than 2 percent several hours before the opening bell. Nasdaq futures fell by nearly 2 percent. The losses came after all three of the main U.S. indexes dropped last week in their worst week since March 20. Rising fears of a resurgence of COVID-19 ended a market comeback that had been fueled by hopes of a quick economic recovery as states gradually lifted lockdown orders and allowed businesses to reopen. "The melt up may need to take a break," Ed Yardeni, president and chief investment strategist at Yardeni Research, said in a note.

CNBC

4. H&M says quarterly sales down by 50 percent

Swedish clothing company H&M said Monday that its net sales for the three months through the end of May fell by 50 percent compared to the same period last year. The fall to $3.1 billion was not quite as big as analysts had expected, according to Refinitiv. Online sales in the same period rose by 36 percent. H&M, the world's second largest fashion retailer, temporarily closed about 80 percent of its 5,058 stores due to the coronavirus pandemic, but started reopening them in late April. About 18 percent remain closed. "The pace of the sales recovery varies largely between markets," the company said. H&M shares fell by 2 percent in early trade. The stock is down by 26 percent so far in 2020. The company reports full quarterly results June 26.

Reuters

5. Gas prices rise for 6th straight week

The national average price for a gallon of gasoline rose for the sixth straight week, reaching $2.10 per gallon on Sunday, according to AAA. Gas prices dropped to a low of $1.74 per gallon in April but have risen steadily as states ease coronavirus lockdowns. "It's no surprise that gasoline prices have increased for the sixth straight week as gasoline demand has hit its highest level since early March as Americans are returning to the roads," said Patrick DeHaan, head of petroleum analysis for GasBuddy, in a June 8 blog post. Industry analyst Trilby Lundberg of the Lundberg Survey said rising crude oil costs have pushed prices up at the pump. Experts expect gas prices to rise further through the summer.

USA Today