The daily business briefing: December 4, 2020

1. DOJ accuses Facebook of favoring immigrants over U.S. citizens

The Justice Department on Thursday filed a lawsuit against Facebook, accusing it of favoring foreign workers with visas over Americans in its hiring practices. The Trump administration's lawyers argued that Facebook "refused to recruit, consider, or hire qualified and available U.S. workers" for about 2,600 positions, with an average salary of $156,000, that went to immigrant visa holders. The complaint came after a two-year investigation into whether Facebook intentionally gave preferential treatment to H1-B visa holders and other temporary immigrant workers over U.S. workers. A Facebook spokesman said the company "has been cooperating with the DOJ in its review of this issue, and while we dispute the allegations in the complaint, we cannot comment further on pending litigation."

The New York Times

2. Stock futures rise ahead of jobs report

Stock index futures made modest gains early Friday ahead of a federal employment report expected to show that U.S. employers continued to add jobs, although the hiring pace was expected to have slowed compared to previous months as coronavirus infections, hospitalizations, and deaths surged. Futures for the Dow Jones Industrial Average and the Nasdaq were up by 0.4 percent several hours before the opening bell, while those of the S&P 500 gained 0.3 percent. Weekly first-time unemployment claims fell to 712,000 last week, fewer than expected and a pandemic-era low. But the Commerce Department is expected to announce Friday morning that the economy added 440,000 jobs in November, down from 638,000 in October, according to Dow Jones.

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CNBC

3. 3M cuts 2,900 jobs as demand for office, medical equipment drops

Industrial conglomerate 3M said Thursday that it would cut 3 percent of its workforce, about 2,900 jobs, due to a drop in demand for some of its key products, including office supplies and gear for basic health-care products. The St. Paul, Minnesota-based 3M has benefited from unprecedented demand for its N95 face masks needed for medical workers caring for COVID-19 patients, but the surge was more than offset by declining sales to dentists and doctors whose regular patients are staying away to avoid the risk of coronavirus infection. "The pandemic has advanced the pace of change and disrupted end markets around the world," Chief Executive Mike Roman said in a statement. Overall, 3M's sales through the first three quarters of 2020 were down by 1.8 percent compared to the same period last year.

CNN The Wall Street Journal

4. California issues stay-at-home orders to ease intensive-care overload

California will order new stay-at-home restrictions in areas where COVID-19 cases are overwhelming intensive-care facilities, Gov. Gavin Newsom (D) announced Thursday. The government is dividing the state into five regions, and imposing the limited lockdown rules in any region where ICU capacity drops below 15 percent. The restrictions require bars, wineries, personal services, hair salons, and barber shops to close temporarily. Schools meeting state health requirements would be allowed to remain open. Stores would be allowed to operate at 20 percent capacity, and restaurants restricted to take-out and delivery, Newsom said. None of the regions has fallen below 15 percent ICU capacity yet, but they could "as early as the next day or two," Newsom said. "The bottom line is if we don’t act now, our hospital system will be overwhelmed," he said.

CNBC

5. 2 coal companies file for bankruptcy protection

Falling coal demand led this week to bankruptcy filings by two more coal production companies, White Stallion Energy and Lighthouse Resources. Lighthouse filed for bankruptcy protection in Wilmington, Delaware, on Thursday, a day after White Stallion. The companies own mines in Illinois, Indiana, Montana, and Wyoming. They blamed the bankruptcies mostly on low thermal coal prices and falling coal consumption at U.S. power plants. The filings marked the last in a series of bankruptcies among U.S. coal companies, which were already struggling when the coronavirus pandemic hit. White Stallion said it had idled its mines and terminated its 260 employees before filing for Chapter 11, even though it had secured a $10 million COVID-19 relief loan.

The Wall Street Journal