Happy Monday everyone! Today is August 24 and futures jump 250 points as the market looks to extend its record-setting rally. Microsoft is backing Epic’s battle against Apple and Facebook’s Mark Zuckerberg had raised the alarm about Chinese tech companies in a speech he gave last fall. The Trump administration grants emergency authorization for a coronavirus plasma treatment. In addition, 1 in 4 hotels can’t pay their mortgages and Goldman Sachs expects about a quarter of its layoffs to be permanent.
Stock futures rallied in early trading on Monday as Wall Street tries to build on a record-setting week. Gains in tech shares and some developments on coronavirus treatments were behind the bullish sentiment.Futures on the Dow Jones Industrial Average rose 270 points, or about 1%. The move indicated an opening gain of more about 260 points. S&P 500 futures added 0.8%. Nasdaq-100 futures gained 0.9%.
Microsoft Corp. is backing Epic Games Inc. in its fight with Apple Inc. Epic, a game developer, is set to ask a federal court on Monday to force Apple to restore the Fortnite app to the App Store, and block the iPhone maker from cutting off Epic’s developer tools and limiting its ability to provide key graphics technology to other apps.
When Facebook Inc. Chief Executive Mark Zuckerberg delivered a speech about freedom of expression in Washington, D.C., last fall, there was also another agenda: to raise the alarm about the threat from Chinese tech companies and, more specifically, the popular video-sharing app TikTok. Tucked into the speech was a line pointing to Facebook’s rising rival: Mr. Zuckerberg told Georgetown students that TikTok doesn’t share Facebook’s commitment to freedom of expression, and represents a risk to American values and technological supremacy.
The FDA said it was granting the emergency authorization because it is reasonable to believe that convalescent plasma may be effective in treating Covid-19 patients. The announcement came on the eve of the Republican National Convention, and some top health officials have said the clinical data is too weak. The treatment uses blood from Covid-19 patients who have recovered and built antibodies against the virus and infuses it into people with the disease to prevent severe cases.
In a desperate plea for help, the hotel industry said it faces a default disaster, in which 25% of hotels are at risk of foreclosure. The report, sent to Congress this week and compiled by Trepp, shows that the percentage of hotel loans 30 or more days delinquent is 23.4% as of last month — the highest percentage on record. By comparison, the percentage of hotel loans that were 30 or more days delinquent at the end of 2019 was just 1.3%.
The rehiring of temporarily laid-off workers will continue to bolster the U.S. labor market’s recovery in the months ahead, but Goldman Sachs Group Inc. expects almost a quarter of those layoffs to become permanent.In the early months of the pandemic, employers shed more than 22 million people from their payrolls. The staggering figure had a small silver lining: the majority of those layoffs were billed as temporary. More than 18 million people were classified as temporarily unemployed in April, the most on record.