Medical companies pummeled by outbreak; a fresh market opens

The outbreak of the coronavirus has dealt a shock to the global economy with unprecedented speed. Following are developments Wednesday related to the global economy, the work place and the spread of the virus.

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THE HEALTH BIZ: In this era if dire medical need, hospitals and other parts of the health sector have seen incoming revenue erode to almost nothing.

— Quest Diagnostics' testing volumes dropped more than 40% during the last two weeks of March, including COVID-19 testing. The company said in a regulatory filing that its cost-cutting measures include salary reductions for executives, suspension of its 401 (k) match, fewer hours for employees whose work has significantly declined and furloughs for employees with diminished work who expressed interest. Quest withdrew its full-year financial outlook.

— Products made by Medtronic are essential in the fight against COVID-19, but that's just a sliver of what the company produces, and sales of those other goods have plummeted. Non-emergency procedures unrelated to the outbreak have come to a standstill.

Weekly revenue in the U.S. have tumbled 60% since the middle of March, when compared with last year. At the same time, spending at Medtronic is churning along with a vast need for its ventilators.

EARNINGS SEASON: Nearly a fifth of S&P 500 companies are posting quarterly earnings this week. Like Delta's first-quarter report Wednesday, it's bad, but not as bad as it's going to get in the current quarter. Yet emerging details are providing a glimpse at the scope economic damage.

— AT&T withdrew its financial guidance for the year after the pandemic weighed down its revenue and profit in the first quarter. Revenue fell 4.6% to $42.8 billion, with $600 million tied to falling wireless equipment sales in the outbreak and canceled sports events like the NCAA basketball tournament.

Sales also fell 12.2% at WarnerMedia, the TV and film business, as AT&T prepares to launch HBO Max at the end of May. The shutdown throws a wrench into AT&T’s hopes for HBO Max amid the growing competition for streaming services as companies postpone some original programming.

— Knight-Swift Transportation, one of the trucking companies that is navigating radical changes in orders and demand, reported a 6.6% decline in revenue during the first quarter, and a 20.8% plunge in net income. But the results were better than Wall Street had expected.

The Arizona company spent $2.3 million on new safety measures and expects the same for the current quarter.

MARKETS: The Dow, S&P 500 and Nasdaq are down between 2% and 3% for the week after a dismal two days of trading, but all are up more than 20% over the past 30 days.

— Stocks around the world moved higher and the S&P 500 climbed toward its first gain of what’s been a dismal week. Even the oil market gained ground.

MARKET FOR FARMERS: Vendors selling vegetables, fruit and dairy products returned to Serbia’s markets Wednesday as restrictions on open-air facilities are eased. Sellers wore gloves and masks, as did the trickle of customers who arrived to by fresh produce, a long-held tradition in the central Belgrade.