Businesses Trip Over Virus Surge
This week, we talk about how a new surge in coronavirus cases is hitting businesses in the U.S.
Welcome to our weekly chat about the environmental and social issues that influence the way we work, spend our money and live our lives. We're your hosts, Dieter Holger and Dave Sebastian. Want to get our newsletter every Wednesday? Hit the subscribe button in the upper right corner and please share with your friends!
Hi, Dieter! I’m off this week so I’d like to introduce Dave Sebastian who is filling in for me.
Hi! Thanks for having me, Maitane and Dieter. I’ve been covering breaking business news in New York for about a year, and for the past six months I’ve also been writing about travel and hospitality (think cruises, hotels, theme parks and more). I’m excited to be joining your chat!
Enjoy your time off, Maitane! And great to have you, Dave. In the U.S., you’ve probably seen that coronavirus cases are surging again in parts of the country. As of Wednesday, there were 2,636,538 confirmed cases and 127,425 deaths in the U.S. The virus is forcing businesses to get creative in how they serve customers, while others have closed down again because of the recent surge. New Jersey has delayed its reopening indefinitely, and Florida and Texas rolled back some reopening measures. The European Union has even excluded the U.S. from a list of countries whose citizens are allowed to travel to the bloc starting July 1.
Texas was among the last states to shut down and the earliest to lift lockdown measures, with some companies bringing back office workers in May or early June. It now serves as a warning to other states as it faces a surge in virus cases and hospitalizations. Employees at big companies like LyondellBasell Industries and Shell Oil are now working from home again as a result. For employees in New York and other states that have recently taken the next step to reopen, going back to work is both exciting and unnerving.
The surge has also made bars, restaurants and casinos rethink things. Bars in California, Texas and Florida that had reopened are now closing again after seeing virus flare-ups. In New York, outdoor dining has made chefs reinvent their menus: Plates have become lighter so salads, sandwiches and grilled food have grown more popular in the summer heat. Casinos are even looking to go cashless to prevent spreading the virus though paper bills. Last Thursday, Nevada’s gambling authority cleared the way for cashless wagering in Las Vegas.
Wearing face masks is another way to contain the virus, but enforcing that hasn’t been easy. The chief health officer in Orange County, Calif., stepped down after receiving death threats for requiring masks outside. In Europe, many people feel strange wearing masks, leading to low acceptance, according to a German study. U.S. officials also initially argued against the widespread use of masks outside hospitals, with the surgeon general tweeting “Seriously people—STOP BUYING MASKS!” in late February. This contrasts with Asia, where many people voluntarily wear face coverings.
What’s the latest in the markets, Dieter?
The U.S. stock market saw its biggest gains this week in decades. Three months after the pandemic brought the longest-ever upward trend to an end, U.S. stocks were wrapping up their best quarter in more than 20 years on Tuesday. The Nasdaq Composite, which includes tech heavyweights such as Apple and Microsoft, was up 31% in the past three months. The S&P 500 closed the second quarter up 20% and the Dow Jones Industrial Average up 18%. The economy is not doing so well though: Nearly 20 million jobs have been lost since February, on top of the risk of a second wave of coronavirus cases.
What am I looking at? The chart above shows the performance over the first six months of 2020 of three key market benchmarks--the tech-heavy NASDAQ Composite Index, the Dow Jones Industrial Average and the S&P 500--that contain hundreds of stocks. These serve as bellwethers for how investors feel about the outlook of companies.
Anything else to watch, Dave?
Clorox, Ford Motor, Verizon Communications, Unilever, Starbucks and Coca-Cola are among companies that are pausing ad spending on Facebook, citing how the social-media giant has handled speech. Civil rights groups have encouraged big advertisers to pull spending from the platform over what they said was the company’s failure to stop hate speech and misinformation. A spokeswoman said the company has banned 250 white-supremacist organizations from Facebook and Instagram. On Friday, CEO Mark Zuckerberg said Facebook made some changes, including adding labels to political posts that violate its policies.
Facebook said the decision wasn’t in response to pressure and had already been in the works, though. Now let’s open it up to our readers: Have you been back to your office or out to a restaurant and what was your experience like?
Share your thoughts below or catch us on Twitter. Your words could appear in our next edition! Have a great weekend and remember to wash your hands. 👋
Meet the team:
Elevate the Conversation is produced by the editorial teams of The Wall Street Journal and Dow Jones Newswires. Here's a little bit more about us, along with our contact information. We'd love to hear from you.
Dieter Holger, Reporter: I have a knack for uncovering values-based investing trends and I’m obsessed with spreadsheets and charts. I really enjoy ‘80s music, skateboarding and yoga (but I’m bad at both). dieter.holger@wsj.com @dieterholger
Maitane Sardon, Reporter: I have a passion for amplifying the voices of those at the center of stories. I love running on Barcelona’s beaches and binging on chocolate ice-cream to compensate (it’s all about balance). maitane.sardon@wsj.com @sardomaitane
Dave Sebastian, Reporter: I'm interested in covering the intersection of business and economic trends—and the people behind them. In my free time, I like to check out dim sum spots in New York, and I can't wait to venture out again after the pandemic. dave.sebastian@wsj.com @depsebastian
Catherine Lindsay, Editor: I like breaking down complex ideas and explaining them. On the weekend, you’ll find me wandering the city with my film camera at the ready. catherine.lindsay@wsj.com @CathsLindsay
Tammy Lian, Designer: As a visual producer, I'm always excited by the challenge of creative problem solving. In my spare time, you can usually find me taking care of my ever-growing collection of plants and drinking tea. tammy.lian@wsj.com @violian.tammy