Zuckerberg says theres no end in sight for Facebook employees working from home – CNBC

The founder and CEO of Facebook Mark Zuckerberg speaks during the 56th Munich Security Conference in Munich, southern Germany, on February 15, 2020.

Christof Stache | AFP | Getty Images

Facebook CEO Mark Zuckerberg on Thursday said there is no timetable for when employees will return to the company’s offices amid a continuing surge in Covid-19 cases in the U.S. 

Zuckerberg made his comments on a call with analysts about Facebook’s second-quarter results, specifically criticizing the Trump Administration for its handling of the coronavirus. 

“With Covid growing quickly in the U.S., there’s currently no end in sight for when our teams here will be able to return to our offices,” Zuckerberg said. “It is incredibly disappointing because it seems like the U.S. could’ve avoided this current surge in cases if our government had handled this better.”

This is not the first time Zuckerberg criticized President Trump for his handling of Covid-19. Zuckerberg made similar criticisms on July 16 on a publicly streamed call with Dr. Anthony Fauci, the nation’s leading infectious disease expert.

In May, Zuckerberg said Facebook planned to allow employees to start going back into its offices on July 6.

The company reported 11% revenue growth despite the coronavirus pandemic’s effects on the economy and advertising spending, sending the company’s shares up more than 6% after hours on Thursday.

Facebook’s expenses in the second quarter were up 24% from a year earlier, excluding the company’s settlement with the Federal Trade Commission a year ago. That was a smaller increase than in the first quarter, primarily because of a decline in costs related to travel and events as a result of employees working from home, Facebook CFO David Wehner said on a call with analysts on Thursday. 

What the Apple Stock Split Means – The Wall Street Journal

Apple Inc. said Thursday that it will enact a 4-for-1 stock split, essentially giving investors three more shares for every one they own.

Once nearly a given for most firms when their shares topped $100 or so, stock splits by companies in the S&P 500 faded from prominence after the dot-com bust in 2000. They are even more rare among companies in the Dow Jones Industrial Average. Apple is a component of both.

One…

Coronavirus cases reported at 4 Costco stores in Santa Clara County, health officer says – KGO-TV

SANTA CLARA COUNTY, Calif. (KGO) — Health officials are now saying clusters of
coronavirus cases have been reported at four
Costco locations in Santa Clara County.

LIST: Face masks required at stores including Walmart, Best Buy, Starbucks

At least 13 workers have tested positive at the Costco in Sunnyvale at 150 Sunnyvale Station Road and it is still open to customers.

Smaller clusters were also reported at the Costco locations in Mountain View, Gilroy and San Jose.

The Santa Clara County Public Health Department says it is working with the stores to investigate the situation.

“The initial investigation shows that most likely it was not inside the store. The cases were most likely infected outside the workplace,” said Marty Fenstersheib, Santa Clara County health officer.

VIDEO: We’re all making this mask-wearing mistake, according to Gov. Gavin Newsom’s office

Essential workers at Bay Area grocery stores have been hit hard by coronavirus.

A dozen workers at Cardenas Markets in Oakland’s Fruitvale neighborhood tested positive for coronavirus in May.

Eight workers at a Trader Joe’s in San Jose tested positive for the virus earlier this month.

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If you have a question or comment about the coronavirus pandemic, submit yours via the form below or here.

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The restaurant apocalypse is much worse than I thought, Jim Cramer says – CNBC

CNBC’s Jim Cramer on Thursday had a dire outlook for the restaurant industry after listening in to Yum Brands’ conference call and digesting the company’s quarterly results.

“Welcome to the restaurant apocalypse,” the “Mad Money” host, himself a restaurant owner, said. “If you’re in the business of serving people food in a brick-and-mortar setting, all I can say is stick a fork in it, because that business is done.”

Yum Brands posted a double-digit fall in same-store sales last quarter, but Pizza Hut — one of five fast-food chains in the company’s portfolio — managed to grow sales in the U.S. by 1%.

That feat was made, despite a substantial number of locations remaining closed. Cramer said this is not good news for traditional restaurants, who rely on on-premise diners in a world where seating capacities are limited by the ongoing pandemic.

“Yum is the largest restaurant company on earth. Pizza Hut’s their largest division, and it might not need dining rooms at all,” Cramer said. “After listening to the protocols they’ve had to put in place to keep a few dining rooms open, it might not even be worth the effort.”

Yum Brands, which owns Pizza Hut, KFC and Taco Bell, among other brands, reported a 15% drop in global same-store sales in a quarter marred by lockdown orders. While store closures reached a peak in April, CEO David Gibbs on the conference call said the company has yet to reopen 24,000 locations.

The company bested Wall Street’s estimates for the second quarter, recording $1.2 billion in revenue and 82 cents in adjusted earnings per share. Analysts were looking for $1.19 billion and 54 cents, respectively.

Though Pizza Hut saw global same-store sales decline by 9%, its strong domestic performance offset weakness in foreign markets. The U.S. market makes up 42% of business, which led to a 1% growth in receipts.

“That terrifies me because I’m in the restaurant business and most of us smaller operators simply are not built around takeout,” said Cramer, who owns Bar San Miguel and co-owns The Longshoreman in Brooklyn, New York.

Gibbs said that carryout has been a “high-margin business” for KFC and Pizza Hut, adding that digital sales was a big factor in improving sales since the onset of the novel coronavirus outbreak.

“Unfortunately, your favorite sit-down restaurant probably can’t survive on delivery alone,” Cramer said. “I’m not saying they’ll all go under, but that restaurant that you like had better be a labor of love for the chef, because after listening to the Yum call, it’s clear that the brick and mortar restaurant biz has no way to turn a profit in the age of Covid.”

CEC Entertainment, the parent of Chuck E. Cheese; Garden Fresh Restaurants, the parent of Souplantation and Sweet Tomatoes; FoodFirst Global Restaurants, the parent of Brio and Bravo; and Vapiano have all filed for bankruptcy during the pandemic.

“If the next round of stimulus doesn’t make a major effort to save these independent operators — something bigger than the paycheck protection program — then you can say goodbye to your favorite place to eat, unless they can hold on until the now dreamed of vaccine somehow arrives,” Cramer said.

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COVID-19 outbreak at USC fraternity row; at least 40 infected – Los Angeles Times

USC is dealing with an outbreak of the coronavirus spread across the university’s Greek row.

The school has detected around 40 positive COVID-19 cases involving individuals living on 28th Street, where many fraternity groups associated with the university are based, chief student health officer Sarah Van Orman said.

“A significant number of the cases were associated with four fraternity houses,” Van Orman said. To date, around 150 USC students and employees have tested positive.

USC and other universities have adapted to the coronavirus in an effort to keep students, staff and local communities safe during the pandemic. Many schools, including UCLA and USC, have moved the vast majority of fall semester classes online and canceled events, limited the availability of on-campus housing to decrease density, added mask, social-distancing and symptom-checking measures, and regularly report infection data. Still, as students continue to return officially and unofficially, on-campus and off, universities face a daunting worry: Can the spread of COVID at colleges be stopped?

That answer depends on the decisions individuals make, Van Orman said, pointing out that USC’s recent outbreaks occurred at off-campus spaces not controlled by the university.

“Unless all of us understand that right now our only tools are physical distancing and wearing masks, we’re going to continue to have devastation, not only in terms of the economy, our learning, our academics, our jobs, but people dying,” she said. “Each of us have to decide what we stand for. Frats need to do that as well.” She said that although the outbreak affected fraternity houses, it wasn’t clear that the infection involved fraternity members, who often lease out rooms during the summer.

UCLA spokesman Steve Ritea agreed that the pandemic’s toll will be depend on community members’ choices.

“If you have three or four of our students who are living together in an off-campus apartment, all we can do is give them our best recommendation and the best knowledge. They have to make those decisions from there,” he said. Students living in official UCLA dorms face certain health restrictions imposed by the school, he added.

Coronavirus outbreaks have occurred in fraternity spaces at universities across the country, including the University of Washington and UC Berkeley. Van Orman attributed the spread in such spaces to the increased household exposure that comes with congregate living situations and social gatherings.

“When we think about the population size that they expose, it can quickly become quite large,” Van Orman said.

The outbreak among USC fraternities is mostly over, she said. The school first reported 15 positive cases on 28th Street through a July 9 press release. Continued testing and aggressive contact tracing allowed the university to identify exposed individuals and new positives. Mandatory quarantining ordered by the Los Angeles County Department of Public Health helped stop the spread.

“We haven’t seen any more cases for the last week or so,” Van Orman said. The testing, tracing and quarantining are all parts of USC’s pandemic plan, which is laid out on the school’s website.

In the fall, outbreaks at USC could lead to more remote classes. Hotel space has been set aside for students infected in the future, Van Orman said. The university is encouraging undergraduates to not return, working to educate students about spread and is set to enforce strong policies blocking rule-breakers from the campus, she added. Keeping students from getting together in groups will play an important role in preventing future outbreaks.

“Gatherings are a huge issue. Whether that’s at a church or a fraternity, that’s what we’re seeing: People get together, and if you have 20 or 30 people in the room you can quickly have half of them infected in one gathering,” Van Orman said.

On Wednesday, UCLA’s COVID total was similar to USC’s. The university reported 153 individuals have tested positive and reported their diagnosis to the university since testing began. 52 cases have been reported since June 15. Ritea said the data include self-reported cases from out-of-state students and that the Westwood campus is not experiencing a COVID-19 outbreak. UCLA isn’t seeing abnormal spread involving conjugal living spaces, he added.

UCLA has its own COVID procedures written up online too. The intentionally that’s gone into preparing makes Ritea feel better about the school’s outlook.

“When you’re talking about a global pandemic where there’s no vaccine yet, I would never say that any of us feel good about any number of cases,” he said. “But what I do feel good about is that our leadership has taken this so seriously. There’s been so much thought and care and planning that goes into how we’re doing this,” he said. He noted, however, the planning can only go so far.

“The best we can do is minimize the risk as much as we can,” Ritea said.

Both schools’ student populations are full of young people, who Van Orman acknowledged COVID-19 typically hits less hard. She said no one infected at USC has been hospitalized yet. But young people aren’t immune to the virus’s worst consequences, she added.

“We still see young, healthy people who contract the virus, who have severe disease, who are hospitalized and even die,” she said.

She added that a developing understanding of the virus’s long-term effects should concern young people, along with the fact that they can pass on the virus to more vulnerable people.

“They’re exposing their parents and their grandparents, they’re exposing the person that’s working in the store,” she said.

Ford Bronco reservations far exceed expectations, say executives – CNBC

The new Ford Bronco SUV is already exceeding company expectations ahead of arriving in dealer showrooms next year.

More than 150,000 reservations have been made for the upcoming two- or four-door SUV, far surpassing Ford Motor’s initial expectations, according to executives.

“That does exceed our optimistic expectations,” Ford CFO Tim Stone told reporters Thursday when discussing the company’s second-quarter earnings. “As a result, we’re working really hard right now to increase our annual production.”

Those reservations are for two- and four-door Bronco models. They exclude a smaller, more domesticated vehicle called the Bronco Sport that’s built more like a car than a truck.

Ford unveiled the new Bronco and Bronco Sport on July 13 to great fanfare. The nameplate developed a strong fan base following the original two-door SUV being discontinued in 1996.

Ford is launching the 2021 Bronco with more than 200 factory-backed aftermarket accessories for more capability and personalization.

Source: Ford

A limited “First Edition” Bronco model — starting at $60,800 — sold out quickly after the vehicle’s unveiling. The company doubled availability of the model to 7,000 units. All have been reserved, Ford said.

“The Bronco reception has been very positive,” Ford Chief Operating Officer Jim Farley told investors, saying reservations overall “far exceeded” expectations.

Farley said the mix of vehicles — ranging in starting price from about $30,000 to $60,000 — “is great.” Ford declined to provide a breakdown.

Kumar Galhotra, Ford’s president of the Americas & International Markets Group, has said the company projects it will sell hundreds of thousands of new Bronco SUVs a year.

Ford is taking $100 refundable deposits as part of the reservation process. 

The Bronco Sport is expected to begin arriving in dealerships by the end of this year, followed by the Bronco next spring.

The Bronco Sport will be produced at the automaker’s factory in Hermosillo Sonora, Mexico. The Bronco will be produced at a plant in Michigan.

The 2021 Bronco two- and four-door models are expected to arrive in dealerships spring 2021.

Ford

How Apples stock split will change the pecking order in the 124-year old Dow – MarketWatch

Apple Inc. is planning a 4-for-1 stock split and it has important implications for the Dow Jones Industrial Average, of which it is a key component.

The iPhone maker on Thursday announced that its board approved the stock split. The split, intended to make Apple “more accessible to a broader base of investors,” will impact owners of record as of Aug. 24 and Apple’s shares
AAPL,
+1.21%
,
which closed at $384.76 on Thursday, will trade on a split-adjusted basis on Aug. 31.

Because the Dow
DJIA,
-0.85%

is a price-weighted index, the scheduled split at the end of next month means that Apple will move from the most influential component of the 30-member blue-chip index to perhaps the 15th- or 16th-most significant member of the index.

The Dow’s price-weighting means the value of the stock gauge is determined by the price changes of its components, rather than percentage changes. The overall value of the index is computed by adding the price of the components and dividing by the so-called Dow divisor, which currently stands at 0.14744568353097.

That means that every dollar move of a company translates to a 6.78-point swing in the 124-year-old benchmark.

The divisor accounts for stock splits, so in that way Apple’s 4-for-1 split will alter its own influence on the benchmark and the divisor by which the index is calculated. The divisor is determined by S&P Dow Jones Indices, which owns the Dow indexes.

UnitedHealth Group Inc.
UNH,
-0.47%
,
which closed at $305.23, could become the most influential member of the Dow at the end of August. Home Depot Inc.
HD,
+0.62%

is currently the third-priciest stock in the Dow, finishing Thursday trade at $266.31.

Apple has been the largest, and therefore the most influential, Dow component since April 29, according to Dow Jones Market Data.

Other indexes, including the S&P 500 index
SPX,
-0.37%

and the Nasdaq Composite Index
COMP,
+0.42%
,
are market-capitalization weighted, therefore they are impacted by the overall value of their components.

Apple currently stands as the biggest company by market cap, boasting a value of $1.647 trillion, as of Thursday’s close, according to FactSet data. Microsoft
MSFT,
-0.07%

ranks No. 2 at $1.54 trillion, while Amazon.com Inc
AMZN,
+0.60%

is the third-most highly valued U.S. company at $1.513 trillion.

It is for that reason that the large-capitalization components have had an outsize impact on returns for the broader market, excluding the Dow, since stocks hit their recent nadir in late March.

For example, the price-weighted Dow has gained 41.5% since its March 23 low, while the S&P 500 has returned 45% and the Nasdaq has climbed 54% over the same period.

Apple became a Dow member back in March 2015. Back then, AT&T
T,
+0.03%

was taken out in exchange for the Cupertino, Calif.-based technology behemoth.

Splits of shares in Dow components aren’t uncommon. Nike Inc.
NKE,
-0.15%

announced a 2-for-1 stock split back in December 2015.

Apple’s stock-split announcement came after the company brushed off the COVID-19 crisis to report record results Thursday. The company posted fiscal third-quarter net income of $11.25 billion, or $2.58 a share, up from $10.04 billion, or $2.18 a share, in the year-prior quarter. Analysts surveyed by FactSet had been anticipating $2.05 a share.

Jim Cramer reacts to Amazon, Apple, Facebook and Alphabet earnings – CNBC

CNBC’s Jim Cramer on Thursday reacted to the quarterly reports that four of the five largest publicly traded companies posted after markets closed.

Shares of Amazon, Apple, Facebook and Alphabet, with a combined market value of more than $4.8 trillion as of Thursday’s close, are all up in the aftermarket after each company topped Wall Street estimates in a quarter consumed by the coronavirus pandemic that has disrupted global economies.

“These big tech stocks have been roaring because they either benefit directly from the pandemic or they’ve figured out how to thrive in spite of it,” the “Mad Money” host said.

One day prior, the chief executives of each tech titan were summoned before Congress to testify on antitrust claims. Cramer called the House antitrust subcommittee the “greatest stock-picking research firm in the world” after lawmakers on both sides of the aisle grilled the company heads on their business practices and outsized dominance in their respective markets.

“When I’m searching for long-term investments,” Cramer said, “I dream of finding companies that [are] so powerful [and] so strong, that they end up being hauled in front of Congress for destroying their competition fair and square.”

Amazon

Amazon shares surged more than 5% in the aftermarket after the e-commerce giant reported earnings of $10.30 per share on revenue of $88.91 billion, well above the $1.46 per share and $81.56 billion numbers, respectively, analysts were looking for.

“They weren’t even trying to have an incredibly profitable quarter. They spent aggressively to build capacity for the stay-at-home economy, and to keep their employees safe,” Cramer said. “As for the next quarter, Amazon gave you a blowout forecast. The stock’s on fire.”

Apple

Apple stock shot up about 6% after posting a blockbuster report and announcing a four-for-one stock split after the bell. The company recorded $59.69 billion on the top line, compared to analyst estimates of $52.25 billion, and $2.58 per share on the bottom line, a 54-cent beat.

“While Apple didn’t give us a forecast for the next quarter, they did give us … a four-for-one stock split, which should make this one a lot more enticing to home-gamers who might be scared away from a $400-plus price tag,” the host said. “Many other companies should actually watch what [CEO] Tim Cook does here and stop watching what Warren Buffett does. Do what Tim Cook does. It’s another reason why Apple is zooming after hours.”

Facebook

Shares of Facebook rallied above 6% after besting analyst estimates in the second quarter. The social media giant reported earnings of $1.80 per share, when Wall Street was looking for $1.39, on revenues o $18.69 billion, more than $1 billion above expectations.

“After all the sturm und drang about major advertisers boycotting the platform, Facebook shot the lights out,” Cramer said. “Even better, July’s going strong. Millions of small businesses need Facebook. Instagram Shops is a gigantic hit. This is a small- and medium-sized business juggernaut. No wonder the stock’s flying in after-hours trading.”

Alphabet

Google-parent Alphabet is the laggard here with its stock up less than 1% in extended trading. The online behemoth beat on the top and bottom lines, but the company saw revenues decline for the first time in its history. Alphabet brought in $38.30 billion in revenue and produced profits of $10.13 per share, while analysts predicted $37.37 billion and $8.21, respectively.

“Their numbers were substantially better than expected, even as their core advertising business took a major hit,” the former hedge fund manager said. “The stock barely budged in response, but I think that’s because Alphabet’s management is so non-promotional.”

Disclosure: Cramer’s charitable trust owns shares of Amazon, Alphabet, Apple and Facebook.

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