The daily business briefing: February 25, 2020
1.
U.S. stocks plummeted on Monday as coronavirus cases surged outside of China, fueling concerns of a pandemic that could cause enduring damage to the global economy. The Dow Jones Industrial Average closed down by 1,032 points, or 3.6 percent, the index's sharpest drop in two years. The S&P 500 fell by 3.4 percent, and the Nasdaq lost 3.7 percent. Supply chains around the world have been disrupted due to factory closures and transportation bans in China. "The second-largest economy in the world is completely shut down. People aren't totally pricing that in," said Larry Benedict, CEO of The Opportunistic Trader. "It seems like there's much more to come." Airlines were hit particularly hard, as was Apple, which has iPhone suppliers in China. U.S. stock futures inched up early Tuesday. [CNBC]
2.
A jury on Monday found film producer Harvey Weinstein guilty on charges of third-degree rape and sexual assault, but acquitted him of the higher-level crimes of first-degree rape and predatory sexual assault. Six women, including The Sopranos actress Annabella Sciorra, testified that Weinstein sexually assaulted them. The charges in the trial related to allegations by two of the women. Former TV production assistant Miriam Haley said Weinstein forced oral sex on her in 2006, and former aspiring actress Jessica Mann said he raped her in a Manhattan hotel in 2013. The trial marked a high-profile test in the #MeToo era's efforts to hold powerful men accountable for sexual harassment and assault in the workplace. [The New York Times]
3.
Shares of drugmaker Moderna jumped by 18 percent in after-hours trading Monday after The Wall Street Journal reported that the company had sent the first potential coronavirus vaccine for clinical trials. Massachusetts-based Moderna shipped a batch of vials of the vaccine to the National Institute of Allergy and Infectious Diseases in Maryland. Initial clinical trials — the first human tests on a drug aiming to curb an outbreak that started in China — are expected to start by late April, with results possible by July or August, the Journal reported. Nearly 80,000 coronavirus infections have been confirmed worldwide, with more than 2,600 deaths. Several countries outside China, including South Korea, Italy, and Iran, have reported a surge in new cases, fueling fears of a pandemic. [The Wall Street Journal, Yahoo Finance]
4.
Oil prices dropped by nearly 4 percent on Monday as the explosive spread of the coronavirus in countries outside China boosted expectations of an economic slowdown that could sharply reduce demand for crude. As stocks plunged worldwide, the price of benchmark Brent crude dropped by 3.8 percent to $56.30 a barrel. The U.S. benchmark West Texas Intermediate fell by 3.7 percent to $51.43 a barrel. "The reports of the coronavirus spreading is raising more fears of demand destruction," said Phil Flynn, an analyst at Price Futures Group in Chicago. "When we saw the big move down in the stock market, oil traders were selling first and asking questions later." [Reuters]
5.
Intuit agreed Monday to buy consumer finance company Credit Karma in a $7.1 billion cash and stock deal. The purchase gives Intuit, maker of personal finance software including TurboTax and QuickBooks, a way to broaden its offerings of personal finance tools with start-up Credit Karma's free access to credit scores and other information, such as comparisons of credit cards and loans. "This is very core to what we've declared around helping our customers make ends meet and make smart money decisions," Intuit CEO Sasan Goodarzi said in a conference call with analysts. Credit Karma founder and CEO Ken Lin will continue to run the company after the deal closes, which the companies expect to happen in the second half of the year. [The New York Times, The Associated Press]