Stocks slide as coronavirus spike slows US reopening

How can Congress support manufacturing amid coronavirus?

Association of Equipment Manufacturers senior vice president Kip Eideberg says the decreased demand and stressed supply chains have caused manufacturing businesses to lay off employees during the coronavirus pandemic.

Stocks dipped lower Friday as a rebound in COVID-19 infections began to slow America's reopening from economically wrenching lockdowns meant to curb the pandemic's spread.

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The U.S., which has the most infections in the world, recorded an all-time high of about 40,000 new cases on Thursday after states and cities began allowing people back in stores, restaurants and public gathering spots such as beaches.

Arizona alone confirmed 3,056 new cases Thursday, and Gov. Doug Ducey said the state would delay further phases of its reopening, joining Texas, North Carolina, Louisiana and Delaware.

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The blue-chip Dow Jones Industrial Average fell 169 points, or 0.66 percent, while the broader S&P 500 dipped 0.33 percent and the tech-heavy Nasdaq Composite slipped 0.18 percent.

Ticker Security Last Change Change %
I:DJI DOW JONES AVERAGES 25297.56 -448.04 -1.74%
SP500 S&P 500 3046.14 -37.62 -1.22%
I:COMP NASDAQ COMPOSITE INDEX 9875.750639 -141.25 -1.41%

On Wall Street, investors balanced the Federal Reserve's decision to cap dividends and halt stock-buybacks until at least Sept. 30 against an easing of the so-called Volcker Rule.

The regulation, named for former Fed Chairman Paul Volcker and imposed after the 2008 financial crisis, barred banks from speculative trades on their own accounts; easing it may buoy their revenue.

Ticker Security Last Change Change %
JPM JP MORGAN CHASE & CO. 94.13 -3.83 -3.91%
BAC BANK OF AMERICA CORP. 23.66 -1.06 -4.29%
C CITIGROUP INC. 50.60 -2.08 -3.95%
MS MORGAN STANLEY 47.34 -1.46 -2.98%
GS GOLDMAN SACHS GROUP INC. 194.03 -13.07 -6.31%

Limiting payouts to investors will also preserve capital as lenders navigate the worst economic downturn since the Great Depression.

In Silicon Valley, an advertising boycott against Facebook gained a major new participant in telecommunications firm Verizon.

Ticker Security Last Change Change %
FB FACEBOOK INC. 224.14 -11.54 -4.90%
BZ n.a. n.a. n.a. n.a.

Companies from Ben & Jerry's, Patagonia, The North Face and Eddie Bauer are pressuring the business founded by Mark Zuckerberg and other social media firms to do a better job of curbing hate speech on their platforms.

VERIZON JOINS FACEBOOK, INSTAGRAM AD BOYCOTT

In the consumer sector, Nike was under pressure after a $790 million loss in a quarter when almost all of its stores were shut down because of the COVID-19 pandemic. Sales plummeted 38 percent to $6.3 billion during the quarter, falling far short of the $7.3 billion that Wall Street analysts expected, according to Refinitiv data.

Ticker Security Last Change Change %
NKE NIKE INC. 97.02 -4.38 -4.32%

In commodities markets, West Texas Intermediate crude slipped 0.65 percent to $38.47 while gold dropped 0.07 percent to $1,769 an ounce.

European markets were up across the board, with London's FTSE gaining 1.39 percent, France's CAC 40 adding 1.1 percent and Germany's DAX up 0.44 percent.

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Asian stock markets were mixed: The Nikkei in Tokyo rose 1.13 percent, while Hong Kong's Hang Seng dropped 0.93 percent.

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