Business Highlights

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Dow drops more than 1,000 as outbreak threatens the economy

NEW YORK (AP) — The Dow Jones Industrial Average slumped more than 1,000 points Monday in the worst day for the stock market in two years as investors worry that the spread of a viral outbreak that began in China will weaken global economic growth. Traders sought safety in U.S. government bonds, gold and high-dividend stocks like utilities and real estate. The yield on the 10-year Treasury fell to the lowest level in more than three years.

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Virus outbreak chills markets, outlook for global economy

FRANKFURT, Germany (AP) — The widening coronavirus outbreak threatens to seriously disrupt the global economy just as it was steadying itself against the headwinds from the U.S.-China trade dispute. Some economists think the world's economy could shrink as a whole in the first quarter of this year. That would be the first such downturn since the global financial crisis more than a decade ago. Some top officials think the effect could be brief. But worse scenarios could also play out. Stocks have fallen sharply around the world amid news of outbreaks in more countries. Concerns are high in Europe, where the three largest economies are already scraping along at the edge of recession.

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Disinfecting wipes, conference calls: Wall Street winners

NEW YORK (AP) — A handful of companies are rising to new highs even as stock markets around the world tumble on worries about a rapidly spreading virus. These winners run across a range of industries, but investors see in each of them a chance to actually make money off fears about COVID-19. Some of these companies help people stay healthy, such as makers of disinfecting wipes or vaccines, while others help people stay sequestered and away from potential contamination. In some cases, analysts say the moves are overdone, but that's not keeping Wall Street from looking for more potential winners.

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Intuit buying Credit Karma in $7.1B deal

MOUNTAIN VIEW, Calif. (AP) — Intuit says it is buying consumer finance company Credit Karma in a $7.1 billion cash and stock deal. Intuit is best known for its personal finance tools such as TurboTax and Mint, while Credit Karma has products that help consumers find the right loan or credit card. Intuit says it will pay for the deal in equal portions of cash and its own stock. The companies say they expect the deal to close in the second half of 2020, pending regulatory approval.

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China promises companies aid, global virus cases rise

BEIJING (AP) — Regulators in China have promised tax cuts and other aid to help companies recover from its virus outbreak while a spike in new cases abroad raised the prospect of wider disruption to tourism and other industries. Chinese finance and planning officials said they are looking at how to channel aid to companies after President Xi Jinping publicly promised over the past week to ensure food production and other industries recover quickly. Manufacturing and other industries are gradually reviving, but forecasters say it is likely to be at least mid-March before automakers and other companies have returned to full production.

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Buffett says economy is slowing amid virus fears

OMAHA, Neb. (AP) — Warren Buffett says the economy is slowing amid fears about the virus outbreak in China, but he remains confident in the long-term future of American business. The billionaire appeared on CNBC Monday after releasing his annual letter to Berkshire Hathaway shareholders over the weekend. Buffett said the reports he gets from Berkshire's range of more than 90 businesses and stock investments show that business is a little softer now than it was six months ago. Also, a variety of businesses are being hurt by the virus outbreak in China. For instance, he said many of Berkshire's roughly 1,000 Dairy Queen stores in China are closed.

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China’s Huawei debuts latest version of folding phone

LONDON (AP) — China’s Huawei unveiled its latest folding smartphone Monday and its first such device to be available internationally, competing in a niche category with new models from Samsung and Motorola. The company took the wraps off the new Mate Xs by video instead of a press launch, as the tech show in Spain where it had planned to hold the unveiling was cancelled over worries about the new coronavirus outbreak.

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Survey: Business economists endorse Federal Reserve policies

WASHINGTON (AP) — Nearly two-thirds of U.S. business economists say the Federal Reserve's interest rate policy is “about right,” a sharp contrast to President Donald Trump's attacks on the Fed for not cutting rates more aggressively. A survey by the National Association for Business Economics found that just 4% of economists consider the Fed's policies to be “too restrictive” — that is, that its benchmark short-term rate should be lower. Trump has repeatedly tweeted that the Fed should cut rates to zero or even into negative territory.

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The S&P 500 index skidded 111.86 points, or 3.4%, to 3,225.89. The Dow Jones Industrial Average lost 1,031.61 points, or 3.6%, to 27,960.80. The Nasdaq dropped 355.31 points, or 3.7%, to 9,221.28. The Russell 2000 index of smaller company stocks gave up 50.50 points, or 3%, to 1,628.10.