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Fed signals it will likely hold rates near zero for months

WASHINGTON (AP) — The Federal Reserve says it will keep its key short-term interest rate near zero for the foreseeable future as part of its extraordinary efforts to bolster an economy that is sinking into its worst crisis since the 1930s. The Fed says it will also continue to buy Treasury and mortgage bonds to help keep rates low and ensure that companies can continue to lend easily to each other amid a near-paralysis of the economy caused by the coronavirus. The central bank did not specify any amounts or timing for its bond purchases.

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Economists agree: No quick rebound from recession is likely

WASHINGTON (AP) — Hopes are beginning to arise that the U.S. economy might be poised to rebound by the second half of the year. The idea is that the economy might be able to mount a sharp comeback if more employees and consumers were to gradually return to working and spending. Yet most economists say such expectations should be kept in check. Among their concerns is that the coronavirus could flare up again after the economy is re-opened, forcing reopened businesses to shut down again. Another is that people will remain too wary of contracting the coronavirus to return to anything resembling normal economic behavior.

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Stocks charge higher on hopes for progress in fighting virus

NEW YORK (AP) — Stocks charged higher around the world Wednesday following an encouraging report on a possible treatment for COVID-19. The S&P 500 closed 2.7% higher after Gilead Sciences said its experimental drug proved effective against the new coronavirus in a major U.S. government study that put it to a strict test. The news hit at the same time a report showed the U.S. economy shrank at a 4.8% annual rate in the first three months of the year, the worst showing since the financial crisis in 2008. The Federal Reserve said it plans to keep its key interest rate near zero for the foreseeable future.

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Facebook revenue growth slows amid the coronavirus pandemic

OAKLAND, Calif. (AP) — Facebook on Wednesday reported its slowest quarterly growth as a public company, pressured by the coronavirus pandemic and a resulting global slowdown in the digital advertising market. The social network, like Google on Monday, said it’s feeling the squeeze but expects to weather it with modest long-term effects. Facebook said it earned $4.9 billion, or $1.71 per share, in the January-March quarter. That’s more than double the $2.43 billion, or 85 cents per share, it reported in the same period a year earlier. Facebook’s stock shot up more than 8.5% to $210.77 in after-hours trading following release of its results.

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Tesla ekes out small 1Q net profit, surprising Wall Street

DETROIT (AP) — Tesla eked out a small first-quarter net profit just as the coronavirus started to affect the electric car and solar panel maker. The company said it made $16 million from January through March, or 8 cents per share. It was the third straight profitable quarter for the Palo Alto, California, company. It appears the virus is forcing Tesla to dial back its forecast to produce more than 500,000 vehicles in 2020. The company said it’s uncertain how quickly its California plant can ramp up after being shut down due to the virus. Excluding one-time items, Tesla earned $1.24 per share. That easily beat Wall Street estimates of a 28-cent-per-share loss, according to FactSet.

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Smallest businesses get a few hours at head of relief loan line

NEW YORK (AP) — The smallest companies seeking coronavirus relief loans are moving to the head of the line. The Small Business Administration says that for eight hours ending at midnight Eastern time it will accept loans only from small lenders. SBA head Jovita Carranza says in a tweet that the step is being taken to ensure that small community lenders and their small business customers will have access to the $310 billion program, There have been concerns about the nation’s smallest businesses being able to get loans because small banks — many of them with just a few hundred applications — have had to compete with big national banks submitting hundreds of thousands of loan requests.

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Boeing to cut 10% of work force as 1Q revenue, profit slide

CHICAGO (AP) — Boeing says it will cut about 10% of its workforce and slow production of planes as it deals with the coronavirus pandemic and ongoing grounding of its best-selling jet. With air travel falling sharply because of the virus, airlines have delayed orders and deliveries of new planes, reducing Boeing’s revenue. The company announced the job cuts as it reported a loss of $641 million in the first quarter. It earned $2.15 billion in the same period last year. Revenue fell 26% to $16.91 billion. Boeing says jobs will be eliminated through a combination of voluntary exits and layoffs. They will be deepest in the division that makes airline jets, and less severe in the company’s defense and space unit.

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The S&P 500 index rose 76.12 points to 2,939.51. The Dow Jones Industrial Average rose 532.31, or 2.2%, to 24,633.86, and the Nasdaq climbed 306.98, or 3.6%, to 8,914.71. The Russell 2000 of smaller-company stocks rose 62.68 points, or 4.8%, to 1,360.76.