White-Hot U.S. Stock Rally Masks Massive Value Swings

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White-Hot U.S. Stock Rally Masks Massive Value Swings P2JW097000-5-A00100-17FFFF5178F ***** WEDNESDAY,APRIL 7, 2021 ~VOL. CCLXXVII NO.80 WSJ.com HHHH $4.00 DJIA 33430.24 g 96.95 0.3% NASDAQ 13698.38 g 0.1% STOXX 600 435.26 À 0.7% 10-YR. TREAS. À 17/32 , yield 1.656% OIL $59.33 À $0.68 GOLD $1,741.50 À $14.50 EURO $1.1874 YEN 109.74 Netanyahu Gets First Bid to Form Coalition, but Path Is Steep Credit What’s News Suisse Hit Hard Business&Finance On Fund redit Suisse reported Ca $4.7 billion hit from the meltdown of Archegos, Debacle slashed its dividend and said its investment-bank- ing and risk chiefs would Swiss bank reports leave the bank. A1 unit lost $4.7 billion, Big companies aremak- ing plans to stick with city- reduces dividend and center officebuildings, but cuts ties with staff they arecutting back on spaceand driving down BY MARGOT PATRICK rent prices foryearsto come,ananalysis shows. A1 Credit Suisse Group AG re- Merchant groups have ported a$4.7billion hit from formed acoalition to push the meltdown of Archegos forstricter antitrust laws, Capital Management,slashed including measures they hope itsdividend and said itsin- could forceAmazon to spin off vestment banking and risk some of itsbusinesslines. B1 OL chiefs would leave the bank. PO S TheSwisslender wasthe Japan’sToshiba said it PRES hardest hit by the collapse late received a proposal for ac- Y/ last month of Archegos,aU.S. quisition from private-equity family investment firm, with firm CVC, adeal that could MOISK LO itsunit that services hedge be valued at morethan KO funds registering the loss.The $20 billion if completed. B1 ALEX Archegos crisis emergedjust Aramcoisinadvanced STANDOFF: Israeli Prime Minister Benjamin Netanyahu, right, and his last coalition partner BeNNy Gantz, left, attend the weeks afterGreensill Capital, a talks to sell up to a49% stake swearing-in ceremony for lawmakers in parliament in Jerusalem on Tuesday. Israel’s president gave Mr. Netanyahu the U.K. financefirm, filed forin- in itsoil pipelines to aconsor- first crack at forming a new government after the nation’s fourth deadlocked election in two years. A6 solvency and leftthe bank on tium of investorsfor between the hook forlosses. $10 billion and $15 billion. B1 Chief ExecutiveThomas Gottstein will stay in his job, Major U.S. stock indexes but Chief Risk Officer Lara fell, with the S&P 500 and Warner leftthe bank Tuesday Nasdaq both slipping 0.1% White-Hot U.S. Stock Rally and head of investment bank- and the Dowlosing 0.3%. B13 ingBrian Chin will depart at Topps is going public theend of April. through acombination with Thedouble blows of a SPAC that sees potential Masks Massive Value Swings Archegos and Greensill repre- forthe baseball card maker’s sent the bank’sbiggest test in expansion in the digital yearsand comes at atime of collectibles market. B1 leadership transition. Mr. BY GUNJAN BANERJI TheCboe Volatility Index, a percentageofthe index’stotal value—more than what all of Gottstein took over ayear ago United Airlines said it gaugeofstock volatility based market value. Coca-Cola Co.iscurrently afterhis predecessor,Tidjane would start enrolling students Explosivemoves in individ- on options priced on the S&P Mammoth swingshave worth—in five sessions ahead Thiam, was forced out after in the pilot-training acad- ual stocks and sectorsare un- 500,recently closed at itslow- grownmorecommon across of itsJanuaryearningsreport. the bank wascaught spying on emyitagreed to buy before derpinning awhite-hot streak est level in morethan ayear. the stock market even as ma- Nvidia Corp.and PayPal Hold- an executivewho had recently the pandemic interrupted in the market. Yetunder the surface, the jor indexes keep touching re- ingsInc.each fell about $56 leftthe bank. itsplans to bolster hiring. B2 Major U.S. stock indexes market values of stocks within cords. And they haven’t been billioN in market value in just Laterthis month, the bank’s have kicked off the second the S&P 500 are shrinking or limited to stocks such as days in March, according to longtime chairman, UrsRoh- World-Wide quarter with abang,powering swelling at arateapproaching GameStopCorp., which soared Bank of America. ner, is set to retire. He is to be higher and building on ablock- the firsthalf of 2020,when morethan 2,000% this year The S&P 500 slipped on succeeded by an outsider, buster rally that began in volatility soared at the start of beforefizzling,orViacomCBS Tuesdayafter signs of rapid LloydsBanking Group PLC Biden said that all U.S. March 2020.The market’sas- the Covid-19 pandemic.That is Inc., which shed morethan economic recovery propelled Chief ExecutiveAntónio Horta- adultsshould be eligible for cent sincethen has been nearly according to Bank of America half its value in a few days in the broad U.S. stock indexto Osório. Covid-19 vaccines by April 19, relentless, pushing the S&P Corp.analystswho parsed the the midst of the blowupof another record close aday ear- PleaseturntopageA2 speeding up atimeline he set 500 to 17 highs in 2021 and re- 50 largest shifts—higher or Archegos Capital Management. lier.The DowJones Industrial out last month, as he urged cently hurtling past the index’s lower—in market value among Apple Inc., forexample, Averageslipped 0.3%, or about Heard on the Street: Just the Americans to be patient 4000 mark forthe firsttime. companies in the S&P 500 as a gained $265 billion in market PleaseturntopageA2 start of a turnaround......... B14 and take precautions. A5 California plans to fully reopen its economy on Newofficetenants in the market monthly, June 15 assuming there is first quarterofeach year enough supply of vaccine Calls Grow to Abandon Rules for everyone ages 16 and 350 NewYork Washington D.C. Chicago Los Angeles older and Covid-19 hospi- talizations remain low. A3 Eased in the Pandemic 300 100 Some Democratic policy goals in Biden’s infrastruc- ture plan could soon bump 250 50 up against arcane Senate Some want regulations on outdoor dining, telehealth gone for good rules that limit what type of 200 0 legislation lawmakers caN BY AARON ZITNER AND JULIE BYKOWICZ movewith his ability to rehire40employees. 2020 ’21 approvealong party lines. A4 Across the country, state and local gov- 150 One day early in the coronavirus pan- ernments have temporarily eased hundreds Western and Iranian offi- Boston SanFrancisco Seattle demic, El Arroyo, a Tex-Mex restaurant in of regulations during the pandemic, aiming cials kicked off talks on re- Austin, banked just $186 in sales. Owner El- to help consumers social distance and busi- 100 100 viving the 2015 nuclear ac- lis Winstanley put a cheeky plea on the mar- nesses avoid economic disaster. Now, some cord against abackdrop of quee: “Now would be a good time to legalize want to abandon them for good. bitterrelations between 50 50 drive-up margaritas.” Lawmakers in Texas and at least 19 other Washingtonand Tehran. A6 Days later,Texas Republican Gov.GregAb- states that let bars and restaurants sell to-go bottdid just that by issuing temporaryap- cocktails during the pandemic are moving to Israel’spresident gave 0 0 Netanyahu the firstcrack at proval of alcohol pickup and deliveryfromli- PleaseturntopageA8 2020 ’21 2020 ’21 forming a new government censed barsand restaurants. Mr.Winstanley after the country’s latest Source:VTS analysis changed his sign to credit the governor’s California sets date to fully reopen..................... A3 deadlocked election. A6 Jordan’sdeputy premier Companies Seek Cuts said authorities had neutral- Hair a Mess? ized what they said wasa mounting threat posed by a In Office Space, Rent Your Barber Salesforce. former crownprincewho had criticized the government of his half brother,the king. A6 Is Thrilled BY PETER GRANT presence while allowing em- #1 CRM. ProsecutorsiNDerek Chau- ployees to work remotely at iii vin’strial continued to focus Bigcompanies aremaking least part-time. on policetraining and tactics plans to stick with city-center Theterms under negotiation Newly vaccinated Ranked #1 for CRM Applications basedon in an effort to showthe ex-of- officebuildings, but they are showlandlords areoffering IDC 2020H1 Revenue Market ShareWorldwide. ficerused excessiveforce in his cutting back on spaceand long-termleases of four and visit salons with 19.8% restraint of George Floyd. A3 driving down rent prices for more yearsatdiscountsupto yearstocome,according to an 13% belowrent ratesreached in patchy home trims Died: Alcee Hastings,84, analysis of U.S. office leasing the firstquarter of 2020 when longtime congressman. A4 trends prepared for The Wall factoring in concessions likepe- BY RACHEL lOUISE ENSIGN Street Journal. riods of free rent, according to TheJournal’sleasing infor- VTS. Companies arealso seek- At least onceaday,a JOURNAL REPORT mationcomes from the data ingonaverage about 10% less masked man with shaggy hair Artificial Intelligence: It’s firm VTS, which tracks tens of spacethan they were looking walks intoMikeMoriello’s Sau- time to create new thousands of negotiations forinthe firstquarter of 2020. gus, Mass.,barbershop.At benchmarksfor AI. R1-6 acrossthe U.S. between land- As Covid-19 vaccine rollouts first, the fifth-generation bar- 5.3% lords and tenants. Landlordand accelerateand moreworkers ber thinks he’sastranger. 4.8% CONTENTS Personal Journal A9-10 tenant discussions in seven of feel that it is safetogoback to Then he realizes another 3.9% Arts in Review.... A11 Property Report... B6 3.8% Business News...... B3 Sports........................ A12 the largest officemarketsoffer the office, morecompanies longtime customer is returning Crossword.............. A12 Technology............... B4 an early glimpse intothe evolv- might look to add officespace. forhis firstcut in morethan a Heard on Street.B14 U.S. News............. A2-5 ing workplacestrategies for But if the current tenor of nego- year.“Theguy might have a 2016 2017 2018 2019 2020H1 Markets...................
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