On The Money: Dow falls more than 900 points amid fears of new COVID-19 restrictions | Democrats press Trump Org. about president’s Chinese bank account | Boeing plans thousands of additional job cuts
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THE BIG DEAL—Dow falls more than 900 points amid fears of new COVID-19 restrictions:
Stocks took steep losses Wednesday amid growing fears that rising COVID-19 cases and the lack of a stimulus agreement between the Trump administration and congressional Democrats will force more U.S. cities to close or restrict businesses.
The Dow Jones Industrial Average closed with a loss of 943 points, falling 3.4 percent. The Nasdaq composite fell 3.7 percent and the S&P 500 fell 3.5 percent.
Wednesday’s losses came as coronavirus cases and hospitalizations surge across much of the U.S., prompting some governments to reimpose restrictions meant to slow the spread. I have more on Wall Street’s rough day here.
The third wave of coronavirus cases has threatened to detail the slowing recovery from the onset of the pandemic in March, during which more than 20 million people lost their jobs as thousands of businesses were forced to close.
Roughly 11 million people have since returned to work, but the impact of rising coronavirus cases could threaten many of the businesses that brought them back.
- Illinois Gov. J.B. Pritzker (D) on Wednesday banned indoor dining and drinking in Chicago, following in the footsteps of European leaders who are also battling severe COVID-19 outbreaks across much of the continent.
Despite Wednesday’s losses and the volatility surrounding both the election and the pandemic, Wall Street traders are confident that the market will see steady gains after Nov. 3. I explain why here.
LEADING THE DAY
Democrats press Trump Organization about president’s Chinese bank account: Three top Senate Democrats on Wednesday pressed the Trump Organization for information about a Chinese bank account maintained by the president, saying there’s a national security need to learn more about his business interests.
In a letter to Alan Garten, executive vice president and chief legal officer of the Trump Organization, the senators said it’s important to understand how Trump’s financial dealings could be influencing foreign policy actions and trade negotiations with China.
“In light of the President’s refusal to release his tax returns and divest from his financial holdings, it is imperative that Congress have a full understanding of any potential financial conflicts of interest that the President has, especially with China, one of the nation’s most important economic competitors and strategic adversaries,” Senate Minority Leader Charles SchumerChuck SchumerHouse Democrats introduce bill to invest 0 billion in STEM research and education Graham dismisses criticism from Fox Business’s Lou Dobbs Lewandowski: Trump ‘wants to see every Republican reelected regardless of … if they break with the president’ MORE (N.Y.), Senate Finance Committee ranking member Sen. Ron WydenRonald (Ron) Lee WydenPlaintiff and defendant from Obergefell v. Hodges unite to oppose Barrett’s confirmation Senate Democrats call for ramped up Capitol coronavirus testing House Democrats slam FCC chairman over ‘blatant attempt to help’ Trump MORE (Ore.) and Senate Banking Committee ranking member Sen. Sherrod BrownSherrod Campbell BrownBrown says Biden’s first moves as president should be COVID relief, voting rights Senators battle over Supreme Court nominee in rare Saturday session Sunday shows preview: Trump, Biden gear up for final sprint to Election Day MORE (Ohio) wrote.
The Hill’s Naomi Jagoda breaks it down here.
Read more: Trump defends business practices after report he failed to pay millions in debt
Boeing plans thousands of additional job cuts in next year amid pandemic losses: Boeing on Wednesday announced plans for thousands of additional job cuts in the next year.
Boeing CEO David Calhoun told staff in a memo that the company plans to have 130,000 employees at the end of 2021, down from 160,000 at the beginning of 2020.
“As we align to market realities, our business units and functions are carefully making staffing decisions to prioritize natural attrition and stability in order to limit the impact on our people and our company,” Calhoun said in the memo. “We anticipate a workforce of about 130,000 employees by the end of 2021. Throughout this process, we will communicate with you every step of the way.”
The Hill’s Justine Coleman has more here.
GOOD TO KNOW