U.S. Growth Erases Much of Slide
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P2JW304000-5-A00100-17FFFF5178F ***** FRIDAY,OCTOBER 30,2020~VOL. CCLXXVI NO.103 WSJ.com HHHH $4.00 DJIA 26659.11 À 139.16 0.5% NASDAQ 11185.59 À 1.6% STOXX 600 341.76 g 0.1% 10-YR. TREAS. g 16/32 , yield 0.834% OIL $36.17 g $1.22 GOLD $1,865.60 g $10.90 EURO $1.1674 YEN 104.62 What’s U.S. Growth ErasesMuch of Slide Quarterly GDP recoups consumer demand and govern- tial economic headwind in the Quarterly GDP levelGDP,percentagechange News ment support helped power current fourth quarter,saying, from previous quarter about two-thirds of spending afterdisruptions re- “It’shardtoreopen an econ- Thirdquarter Thirdquarter the contraction from lated to Covid-19 eased. The omy unless workers and con- Business&Finance increase in growth, the biggest sumersfeel safeand healthy.” $18.58T 7.4% earlier in the pandemic jump in recordsdating to 1947, Thethird-quarter GDP in- $18 trillion 5% followedarecorddecline ear- crease followeda9%quarter- he U.S. economygrew at BY HARRIET TORRY lier in the pandemic when the to-quarter decline in the second Tarecordpaceinthe third virus disrupted businessactiv- quarter,ora31.4% annualized Second quarter,increasing 7.4% over TheU.S.economygrewata ity across the country. drop,adjusted forinflation and 17 quarter 0 the prior quarter and at a 33.1% record paceinthe thirdquar- That puts the economy seasonal fluctuations. $17.3T annual rate,recovering about ter—increasing 7.4% over the about 3.5% smaller than at the U.S. GDP is normally re- two-thirds of the ground it priorquarter and at a33.1% end of last year,beforethe ported at an annual rate,oras lost earlier in the pandemic. A1 annual rate—recovering about global health crisis hit. if the quarter’s paceofgrowth 16 –5 U.S. stocks rose afterdata two-thirds of the ground it “Recordgains aren’t continued forafull year.But showedjoblessclaims fell and lost earlier in the coronavirus enough to getusout of the thepandemic triggeredex- Second quarter GDP jumped. TheS&P 500, pandemic. hole that Covidleftusin,” treme swingsinoutput—a se- –9% Dowand Nasdaq added 1.2%, Grossdomestic product— said Diane Swonk,chief econo- PleaseturntopageA2 15 –10 0.5% and 1.6%, respectively. B10 the value of all goods and ser- mist at Grant Thornton. She vices produced acrossthe cited risks from a recent U.S. ECB plans added stimulus to 2010 ’12 ’14 ’16 ’18 ’20 2010 ’12 ’14 ’16 ’18 ’20 Tech giants including Am- economy—jumped as pent-up surge in infections as apoten- protect economy...................... A8 azon and Google parent Al- Note:Seasonally and inflation adjustedatannual ratesSource:Commerce Department phabet reported strong sales and profitsthat showedhow pandemic-erademand is driv- France on High Terror Alert After Three Are Slain in Church ing them to newheights. A1 Big Tech Apple benefited from a significant uptick in sales of laptops and iPads,eveN Companies as quarterly iPhone sales fell from a year earlier. B1 Facebook posted record Post Gains revenue for the third quar- ter, propelled by strong digital ad spending. B1 As Covid Twittersaid uncertainty over the U.S. election could weigh on advertising spend- Fuels Shift ing in the current quarter. B2 Exxon expects to shed BY DANA MATTIOLI as much as 15% of itsglobal workforce over the next year, Tech giantsincluding Ama- as the pandemic continues zon.comInc.and Google re- to batterthe oil industry. A1 ported strong quarterly sales andprofits that showedhow Apollo CEO Leon Black pandemic-erademand for offered his most detailed their digital services and gad- public account yet regard- gets is driving them to new ing his ties to the late fi- heightsevenamid adebate nancier Jeffrey Epstein. B9 about their market power. VW reported higher- The financial results made than-expected profit while public Thursday, which also warning that rising coronavi- included record revenue at ruscases and fresh lockdowns Facebook Inc., illustrated threaten the rebound. B3 OL again howincreased remote PO S working and living has ele- Airbus stemmed an out- vated use of everything from flow of cash in the thirdquar- /PRES online retail and social media terbut said the aviation mar- to cloud computing services ket’s recovery would start GAILLARD and digital advertising—accel- later than initially forecast. B3 erating shifts in consumer and ERIC GUARDED: Police stand outside the Notre Dame Basilica in Nice, where a knife-wielding man killed three people in a sus- businessbehavior that areex- World-Wide pected Islamist attack. French President Emmanuel Macron raised the country’s terrorism alert to its highest level. A8 pected to continue beyond the Covid-19 outbreak. Amazon,which had deliv- Trump cast GDP growth ered record sales in the sec- as proof the pandemic-in- ond quarter of the year, duced economic collapse INSIDE topped that level in the three wasturning acorner thanks Exxon Prepares to Trim months through September, to his administration, while with revenue soaring 37% to a Biden said manyAmericans record $96.2 billion. Profit won’t feel likethey arebet- nearly tripled to $6.3 billion, teroff following Thursday’s Up to 15% of Global Jobs propelled by strong online GDP and job figures. A4 sales as well as digital adver- tising and growth in itslucra- The number of people BY CHRISTOPHER M. MATTHEWS hospitalized forCovid-19 firms arecollectively shedding itsfooting this year,severely tive cloud computing arm. morethan 50,000 jobs. crimping demand foroil and “We’reseeing morecus- in the U.S. has jumped Exxon Mobil Corp.said that Exxon is in the midst of one gas. That is combining with tomersthan ever shopping 46% sincethe beginning it expects to shed as much as of its toughest stretches ever longer-term concerns about earlyfor their holidaygifts, of October,with a12% in- JASONGAY 15% of itsglobal workforce afterChief ExecutiveDarren futurecompetition from re- which is just one of the signs crease in the past week over the next year,including Woods,who took over in 2017, newable energy and electric that this is going to be an un- alone,datashow. A7 Oncefootball’sglitziest division, the dismal 1,900 jobs in the U.S.,asthe embarked on an ambitious vehicles to drag down the precedented holiday season,” Hospitals acrossthe U.S. coronavirus pandemic contin- plan to reversethe company’s value of manyoil-and-gas Amazon CEO Jeff Bezossaid. arebracing foraggressive NFCEastnow needsa ues to batter the oil industry. declining fortunes by dramati- companies to decade lows. Google parent Alphabet cyberattacks that could hardreset. A12 Theestimated 14,000 job cally increasing oil production Exxonmade public the U.S. Inc., one of the few big tech threaten patient care,after cuts, which followsimilar layoff by 2025.Inhindsight, Exxon’s job cutsThursday, and in re- companies to have alackluster warningsthat Russian cy- announcementsbyrivals Royal heavy spending on newoutput sponse to questions added performanceinthe second bercriminals had already hit U.S. NEWS Dutch Shell PLC,BPPLC and nowappearsspectacularly ill- that it anticipates it will elimi- quarter, said digital advertis- several hospitals and were Newscientific study Chevron Corp., arepart of a timed and has put itsfinances nate around 14,000 positions, PleaseturntopageA4 targeting hundreds more. A3 cites flaws in Crispr wholesale effort by the belea- under severe stress. including employees and con- guered industrytorestructure Newlockdowns in Europe in PleaseturntopageA7 Laptops, iPads drive Apple China’sleadersapproved gene-editing an economic blueprint for itself to weather theworst response to climbing Covid-19 sales................................................. B1 technology. A3 downturn in ageneration. In all, cases aredamping hopes that Shell lifts dividend, pledges Twitter warns of election the next five yearsthat em- big oil producersand services the global economywill regain more as debt is reduced..... B5 impact on ads............................ B2 phasizes “technologyself- reliance,” adefiant message in the faceofU.S.sanctions against Chinese firms. A16 ScarceCredit Holds Europe Is Out. Private insurers must publish the prices they have HowAbout Salesforce. negotiated with providers Back Detroit Housing under aTrump administra- Helen, Ga.? tion rule aimed at lowering #1 CRM. health-care spending. A3 iii TheState Department has Mortgage lenders shun low-priced homes, ruled that aformer Green Unlikely locales Ranked #1 for CRM Applications basedon a challenge for the city’s Black residents IDC 2020H1 Revenue Market ShareWorldwide. Beret and his son canbeex- 19.8% tradited to Japan to face become tourist BY BEN EISEN made last year in almost a chargesthat they helped Ghosn flee that country, ac- third of Detroit’s census hot spots DETROIT—Alter Road tracts, and fewer than five cording to court documents. B1 runs northwest along this each in another third, ac- BY CAMERON MCWHIRTER Ohio utility FirstEnergy city’s border. To the east is cording to data from Lend- said it firedits CEO afteraN Grosse Pointe Park, an up- ingPatterns.com, a mortgage- HELEN,Ga.—NitaDecker, internal reviewrelated to scale suburb dotted with data analysis tool. whohas acabin-rental busi- government probes of the grand old mansions built in The impact runs dispro- nessinthis faux-Bavarian firm’spotential role in an al- the auto industry’s heyday. portionately along racial tourist destination in the leged statebriberyscandal. A3 To the west is the city of De- lines in the majority Black North Georgia mountains,is 5.3% troit, lined with abandoned city. Detroit’s Black residents the busiest she has ever been. 4.8% CONTENTS Markets................... B10 houses and empty lots. are largely shut out of access “We never saw it coming,” 3.9% Arts in ReviewA10-11 Opinion.............. A13-15 3.8% Business News.. B3,5 Sports........................ A12 On the east side of the to financing, making it she said. “Wecan’t keep up Capital Account.... A2 Technology............... B4 street, getting a mortgage to tougher to attain home- with the laundry.” Crossword..............