Stocks drop after President Trump calls off stimulus talks
NEW YORK (AP) — Stocks dropped on Wall Street Tuesday after President Donald Trump ordered aides to stop negotiating with Democrats over another round of aid for the economy until after the election. Investors have been clamoring for more stimulus after the economy was punched into a recession by coronavirus shutdowns. The S&P 500 index closed 1.4% lower, after being up as much as 0.7%. The series of tweets from the president came just hours after Federal Reserve Chair Jerome Powell urged Congress to come through with more aid, saying that too little support “would lead to a weak recovery, creating unnecessary hardship.”
Trump halts COVID-19 relief talks until after election
WASHINGTON (AP) — President Donald Trump says he has instructed aides to stop negotiating on another round of COVID-19 relief until after the election. Trump tweets that House Speaker Nancy Pelosi is “not negotiating in good faith” and says he has asked Senate Majority Leader Mitch McConnell to direct all his focus before the election into confirming his U.S. Supreme Court nominee, Amy Coney Barrett. The unexpected turn could be a blow to Trump’s reelection prospects and comes as his administration and campaign are in turmoil. Trump is quarantining in the White House with a case of COVID.
Small gyms devastated by coronavirus fear, restrictions
NEW YORK (AP) — There’s little evidence of Americans’ passion for fitness at thousands of small and independent gyms around the country — the coronavirus outbreak has devastated these small businesses and put some in danger of closing permanently. Gyms, health clubs and workout studios reopened in late spring following government-ordered shutdowns but revenue has been decimated since then by restrictions on how many people can be onsite at once. Equally troubling for gym owners is clients’ fear of the virus that’s keeping people away. And some clients have discovered they can stay in shape by running or working out at home, so don’t need to use a gym anymore.
Boeing says pandemic will cut demand for planes for a decade
CHICAGO (AP) — Boeing says the pandemic will reduce demand for new planes for the next decade, long after experts expect a vaccine for COVID-19. The company updated its forecast of the airplane market on Tuesday. It remains upbeat about long-term prospects driven by increasing air travel in Asia. Boeing, which along with Europe’s Airbus dominates the aircraft-building industry, has seen orders and deliveries of new planes crumble this year. The Chicago-based company was already under pressure from the grounding last year of its best-selling plane, the 737 Max, after two deadly crashes.
Trump administration to sharply limit skilled-worker visas
WASHINGTON (AP) — The Trump administration has announced plans to sharply limit visas issued to skilled workers from overseas. Department of Homeland Security and Department of Labor officials said Tuesday that new rules will be issued soon to restrict the use of what’s known as the H-1B program. Acting Deputy Secretary Ken Cuccinelli says the new rules would result in the rejection of one-third of the applications for visas that allow people with college degrees to work in professional positions in the U.S. Cuccinelli and others say the program has been abused to allow companies to displace American workers with less expensive employees from overseas.
US trade deficit up to $67.1 billion in August, 14-year high
WASHINGTON (AP) — The U.S. trade deficit rose in August to the highest level in 14 years. The Commerce Department reported Tuesday that the gap between the goods and services the United States sells and what it buys abroad climbed 5.9% in August to $67.1 billion. The politically sensitive deficit in the trade of goods with China fell 6.7% to $26.4 billion. So far this year, the United States has recorded a trade gap of $421.8 billion, up 5.7% from January-August 2019. Exports rose 2.2% to $171.9 billion, but imports rose more — up 3.2% to $239 billion.
US job postings edge lower, to 6.49 million
WASHINGTON (AP) — U.S. employers advertised for slightly fewer jobs in August while their hiring ticked up modestly. The Labor Department said Tuesday that the number of U.S. job postings on the last day of August dipped to 6.49 million, down from 6.70 million July. A year earlier, employers posted 7.17 job openings. Hiring in August edged up to 5.92 million, slightly above the 5.90 million job applicants hired in July. The government reported last Friday that the U.S. economy generated 661,000 jobs in September, marking the third straight month of slower hiring after an initial burst as the recovery began to recover from the spring virus-related lockdowns.
The S&P 500 fell 47.66 points, or 1.4%, to 3,360.97. The Dow Jones Industrial Average dropped 375.88 points, or 1.3%, to 27,772.76. The Nasdaq composite lost 177.88 points, or 1.6%, to 11,154.60. The Russell 2000 index of small-cap stocks gave up 4.67 points, or 0.3%, to 1,577.29.