Zoom Boosts Outlook As Sales Surge in Shift to Remote Work
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P2JW245000-5-A00100-17FFFF5178F ***** TUESDAY,SEPTEMBER 1, 2020 ~VOL. CCLXXVI NO.53 WSJ.com HHHH $4.00 DJIA 28430.05 g 223.82 0.8% NASDAQ 11775.46 À 0.7% STOXX 600 366.51 g 0.6% 10-YR. TREAS. À 10/32 , yield 0.695% OIL $42.61 g $0.36 GOLD $1,967.60 À $3.00 EURO $1.1937 YEN 105.90 New Lebanon Leader Named, but Anger Lingers Over Blast Stocks What’s News Log Five Straight Business&Finance Months .S. stocks wrapped up U their best month since April, continuing an ex- Of Gains traordinary rally fueled by stimulus from Washington, signs of economic revival S&P 500 had its best and progress toward a cor- onavirus vaccine. A1, B9 August since 1986; Zoom Video again low rates and stimulus raised its full-year outlook spur market rebound after quarterly sales more than quadrupled amid the BY ALEXANDER OSIPOVICH shift to working at home GES AND ANNA ISAAC and remote schooling. A1 IMA The Fed’s Clarida said ETTY U.S. stocks wrapped up the bank would resume talks /G their best month sinceApril, at itsmeeting in two weeks ENCY continuing an extraordinary AG over how it could refine its U rally fueled by stimulus from guidanceabout plans to keep Washington, signs of economic rates lower for longer. A2 ANADOL revival and progresstoward a O/ coronavirus vaccine. J.C. Penney is flirting Thebenchmark S&P 500 in- with collapse, eager for SHBAR M dexadvanced7%for the lenders to agree to buy its SA month—itsbest August since assets out of bankruptcy HOUS 1986—but endedonadown- after talks with potential AMID RUBBLE: Mustapha Adib, designated Lebanon’s next prime minister, visited parts of Beirut devastated by the Aug. 4 beat note, falling 7.70 points, bidders broke down. B1 blast that killed 180. He was confronted by locals angry over the explosion and seeking an overhaul of the government. A8 or 0.2%, to 3500.31onMonday. American and Deltasaid All three major U.S. stock they were removing change indexes have climbed for five fees on most domestic flights, consecutivemonths aftera as the levies emergedasanew brutal Februaryand March competitivebattleground. B1 that endedthe longest bull Zoom Boosts Outlook as Sales market on record. McDonald’s pushed TheS&P 500 has surged back against ex-CEO East- 35% over that period, itslarg- erbrook’s attempts to dis- est five-month percentage miss its lawsuit seeking to gain since 1938. clawback his severance. B1 SurgeinShifttoRemoteWork TheDow Jones Industrial Berkshire’spurchase of Averageand the technology- stakes in five Japanese heavy Nasdaq Composite companies wasdescribed BY KIMBERLY CHIN panies to atool on which many months ended July 31. to supporting afutureof posted respectivemonthly by investorsand analystsas Americans have come to rely to Zoom said the number of working anywhere, learning gains of 7.6% and 9.6%, their aclassic Buffettmove. B1 Zoom Video Communica- stay connected with co-work- itsmost lucrativecustomers anywhereand connecting any- best performances sinceApril. tionsInc.raised itsfull-year ers, family and friends.Its user morethan doubled from a where,” Zoom Chief Executive TheDow is still 3.8%below India’s GDP shrank by a outlook forasecond time dur- numbershaveskyrocketed. year ago. But itsappeal has Eric Yuan said. February’srecordand is off record 23.9% last quarter, ing the pandemic, cementing Zoom on Monday reported become increasingly broad Thepandemic has driven 0.4%for the year,while the the biggest blow the coro- its position as one of the big- sales of $663.5 million in the based. Smaller companies, many companies to embrace Nasdaq closed at another re- navirus pandemic has dealt gest corporatewinnersfrom July quarter, up from $145.8 with 10 or feweremployees, digital tools on an accelerated cord Monday, extending its to a major economy. A7 the shifttoworking from million ayear earlier,asit nowrepresent 36% of revenue, timeline.That has liftedthe rise for 2020 to 31%. Walmart is trying again home and remote schooling. posted a profit of $185.7 mil- up from around 20% of sales fortunes of cloud-servicepro- TheS&P 500 set records to build amembership Thecoronavirus pandemic lion. Analystssurveyed by about six months ago. viderssuch as Amazon.comInc. PleaseturntopageA2 program that canrival almost overnight turned SaN FactSet had expected sales of “Organizations areshifting and MicrosoftCorp., as well as Amazon Prime. B4 Jose,Calif.-based Zoom from a $500 millionand net income from addressing their immedi- the companies that runonthe Mom-and-pop investors fall niche application used by com- of $134 million forthe three ate business continuity needs PleaseturntopageA6 back in love with stocks..... B9 World-Wide THE COVID STORM Biden, in his first address INSIDE sinceformally accepting the Democratic presiden- tial nomination, accused ‘Try Getting It Yo urselves’: How Trump of failing to guard American safety amid the pandemic and turmoil in GES Administration SowedSupplyChaos Wisconsin and Oregon. The speech drew criticism from IMA the president, who wasex- ETTY pected to travel to Kenosha, O/G Wis.,onTuesday. A4, A5 White House put burden on states to procure medical equipment, causing problems that persist BELL Ajudgecan scrutinize AL BY MICHAEL C. BENDER onavirus pandemic wasbecoming clear way they could,asituation that made it the Justice Department’s JASONGAY AND REBECCA BALLHAUS in the U.S., stoking panic about short- harder to protect health-careworkers, unusual request to drop the criminal case against The U.S. Open gets ages of medical supplies,the Trump ad- treat infected patientsand slowthe Sergio Melgar, the chief financial of- ministration signaled to states they spread of the virus. former Trump national se- under way, but the ficerfor the largest health-caresystem shouldn’t expect the federal govern- Therewas asense,said Eric Dickson, curity adviser Flynn, an vibe won’tbethe same in central Massachusetts,was about to ment to meet their medical-supply chief executiveofUMassMemorial appeals court ruled. A3 without the fans. A14 runout of medical-grade N95 masks.A needs.InaMarch 16 conferencecall, Health Careand Mr.Melgar’s boss, that TheEPA completed aset of Chinese companypoised to replenish President Trump told governorsthat “wewereall alone.Therewas nobody newguidelines fordisposing the supply wanted the money upfront. the federal government would tryto coming,therewas no help coming.You of coal ash and wastewater PERSONAL JOURNAL It wasafter midnight on March 20, help,but that for“respirators, ventila- were going to have to managethis on from coal-fired powerplants, Aquestfor racial toolatetoarrangeawiretransfer.So tors,all of the equipment—trygetting your own.” changes critics saycould diversityinAlzheimer’s Mr.Melgar took out his owncredit card it yourselves.” Less than two weeks later,Federal allowmorepollutants. A3 and authorized a$100,000 charge.“If I What followed, sayhospital adminis- PleaseturntopageA10 researchtargets Lebanon named its am- don’t do this,” he recalls thinking,“we tratorsand stateofficials,was anation- clinical trials. A11 will runout.” wide free-for-all in whichmedical pro- Reported cases in U.S. now exceed six bassador to Germanyasthe Days earlier,asthe spread of the cor- viders tried to getneeded supplies any million....................................................................... A6 country’snextprime minis- ter, an appointment unlikely to placateprotesters. A8 Welcome Back, India and China accused Companies Cut Back each other of moving troops acrosstheir disputed bor- Now Stay der in recent days in viola- On M.B.A. Job Offers tion of agreements. A7 In Your Dorm AHouse panel said it BY PATRICK THOMAS ratestoprospectivestudents; planned to subpoena DeJoy iii fordocumentsrelated to mail those ratesranged between delays,evenasthe USPS com- Business-school studentsare 80% to 90% formanyhighly College semesters mittedto providing weekly bracing foranuncertain job ranked programs beforethe market this coming school year pandemic hit. begin with service-level updates. A5 as manytraditional corporate PwCsaid it has no plans to Theadministration pro- recruitersshelvetheir usual fall hireupto100 second-year quarantines posed arule that would allow hiring plans. M.B.A. studentsasitusually Medicaretoapprovecover- At atime of year when many does each fall.This year,only BY MELISSA KORN ageofsome innovativemedi- business-school studentsare thosewho had summer intern- caldevicesthe same daythey polishing their networking skills ships with the firm gotjob of- For14days,Nick Cipriani sat areapproved by the FDA. A3 and getting their businesshair- fers in August forpositions that in aroom at the HolidayINN in Died: John Thompson,78, cuts, anumber of big compa- will start aftergraduation in Saratoga Springs, N.Y. He ate nies,including consulting giant the spring of 2021, said Rod Ad- salad, napped on one of the two famed basketball coach. A14 One cloud PricewaterhouseCoopers, say ams,the U.S. recruitment leader queen-sizebeds,updated his ré- therewill be no jobs on offer to at thecompany. sumé and began to knit ascarf. CONTENTS Opinion.............. A15-17 second-year M.B.A. candidates, “Those that have interned Occasionally,he’dlook out the Arts in ReviewA12-13 Personal Journal A11 Business News...... B3 Sports....................... A14 beyond those who interned this with us have generally per- windowand see families playing fits all. Capital Journal...... A4 Technology............... B4 summer,looking to lock down a formed betterwhen they start at thepool. Crossword.............. A13 U.S. News............. A2-6 position