The daily business briefing: November 3, 2020
1.
U.S. stock index futures surged early Tuesday as Election Day arrived, marking an end to a bitter campaign between President Trump and his Democratic rival, Joe Biden. Futures for the Dow Jones Industrial Average were up by 1.5 percent, while those of the S&P 500 and the Nasdaq gained 1.3 percent and 0.7 percent respectively. On Monday, Wall Street bounced back from October losses driven by uncertainty about the November elections, as well as a new wave of coronavirus cases and the collapse of talks on a new pandemic relief package. The Dow rose by 1.6 percent on Monday. "Buying on the dip is back," said Jim Paulsen, chief investment strategist at the Leuthold Group. [CNBC]
2.
Royal Caribbean, Norwegian Cruise Line, and Carnival Corp. announced Monday that they were canceling most of their cruises through the rest of 2020 due to the newly surging COVID-19 pandemic. The news came after the Centers for Disease Control and Prevention's eight-month "no sail" order expired on Friday. It was replaced with a new order allowing cruise ships to operate in U.S. waters, although the first ships to leave port will be simulations without paying passengers intended to demonstrate compliance with CDC standards designed to curb infections. The companies had previously suspended cruises through Nov. 30. The industry in September unveiled mandatory health and safety measures in preparation for resumed operations. [USA Today]
3.
Stores and other businesses in cities across the country, including Denver, Detroit, and Washington, D.C., boarded up windows ahead of Tuesday's tense presidential election in case the results touch off unrest. In California, crews worked to cover the windows of all of the 70 or so high-end boutiques and other properties on Rodeo Drive, with plans to barricade the posh Beverly Hills strip for two days. "Rodeo Drive is among the most desirable streets in the world, which means we're one of the biggest targets," said Kathy Gohari, vice president of the Rodeo Drive Committee. Retailers have sustained an estimated $1 billion in insured losses from property damage and theft this year, according to the Insurance Information Institute, making 2020 protests "the costliest civil disorder in U.S. history." [The Washington Post, The New York Times]
4.
Twitter on Monday spelled out its plan to place warning labels on tweets from any candidate claiming victory before the announcement of official results after tomorrow's elections. The count is expected to be markedly different from past elections due to a historic wave of mail-in ballots cast by people hoping to avoid the risk of coronavirus infections at crowded polls. Twitter said it would start using warning labels on election night with statements such as "official sources called this election differently," or "official sources may not have called the race when this was tweeted." Social media companies have faced intense pressure to crack down on misinformation in the run-up to the election. [Reuters]
5.
Mall owners CBL Properties and PREIT have filed for bankruptcy in the latest sign that the coronavirus pandemic and shifting shopping trends are reshaping the retail industry. The two companies own about 130 malls combined. Both had previously warned their finances were in trouble as some of their anchor tenants, including JC Penney and Tailored Brands, filed for bankruptcy earlier in 2020. Tennessee-based CBL, the larger of the two companies with about 100 malls around the country, said unpaid rent, declining customer traffic, and debts of $1 billion and rising were factors in its decision. Pennsylvania-based PREIT said it was looking to quickly restructure and emerge from the bankruptcy process thanks to "overwhelming support" from its lenders. [CNN]
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