US stocks and oil rebound after historic meltdown: April 22, 2020

Fox Corp.’s executives are taking a pay cut because of the coronavirus pandemic, the company's CEO Lachlan Murdoch said in a memo to employees on Wednesday. 

Lachlan Murdoch and Chairman Rupert Murdoch, COO John Nallen, Chief Legal Officer Viet Dinh and CFO Steve Tomsic will forgo their salaries through September 30.

The rest of Lachlan Murdoch’s direct executive team will reduce their pay by 50% in the same time frame. Vice presidents and higher level executives will take a 15% cut from May 1 to the end of July.

The pay cuts apply to divisions like Fox News, where Fox News Media CEO Suzanne Scott will take a 50% cut.

The pay reductions will affect roughly 700 people, the memo said.

Murdoch added, "Because of your effort, and the years of hard work that preceded it, we are in a strong position to weather this storm."

Other media companies like Disney have also had executives take pay cuts because of the pandemic.

The deluge of Americans filing for jobless claims isn't over. Another 4.2 million claims for first-time unemployment benefits are expected to show up in tomorrow's economic data.

That would bring the total number of claims to more than 26 million over the past five weeks.

Since mid-March, 22 million Americans filed for benefits, accounting for roughly 13.5% of the nation's work force, as businesses shut down to limit the spread of coronavirus.

While talk of reopening the economy is growing and some states are beginning to loosen restrictions, companies continue to lay off and furlough their workers. Consumer behavior and demand has changed, and economists don't expect people to revert to old habits even after shelter-in-place orders come to an end. The hospitality and travel sectors, for example, are likely to be affected far longer than other sectors, and those jobs are unlikely to bounce back.

As if the coronavirus crisis wasn't enough, oil markets have broken down this week. Prices for the commodity are now so low that hundreds of oil companies could go bankrupt, eliminating even more jobs in a reeling US economy.

The US Department of Labor will report jobless claims for the week ended April 18 at 8:30 am ET tomorrow.

US stocks continue their rebound rally at midday, trading near the highs of the session.

Market sentiment improved today after the Senate approved more fiscal stimulus and oil prices attempted to stage a comeback.

Despite today's good mood in the market, the themes that weighed on markets at the start of the week remain in the background.

The oil market continues to struggle with low demand and limited storage capacity, which is weighing on prices. These dynamics are not expected to change anytime soon, given the lower consumption of oil during the coronavirus crisis. On top of that, companies are slashing their guidance amid the uncertainty of the outbreak while reporting the impact it has had on their businesses in the first quarter.

Billionaire Beanie Babies creator Ty Warner is honoring front line workers with a new special edition plush Beanie bear called "Hope."

Warner said the mini praying bear is meant to "bring us the smile we need right now."

The bear, available on Ty.com, will soon hit retail stores worldwide, including drug and grocery stores.

Warner, who also owns the Four Seasons New York, is currently housing doctors, nurses and other healthcare workers caring for the large number of patients in the city infected with coronavirus in his upscale hotel.

Warner plans to give the Hope bear to those front line workers and donate 100% of profits from the sale of the bear to nonprofit United Way Worldwide.

People are drinking more beer these days. They're just not buying Heineken.

The Dutch brewer reported its global sales slid 14% in March as the coronavirus pandemic spread. Its total first-quarter profit fell 68%.

Heineken, which also brews Amstel and Lagunitas IPA, also said beer volumes dipped 2.1% for the first three months of the year.

The company attributed the losses to worldwide closures of its sales "outlets," meaning largely restaurants and pubs.

Heineken (HEINY) said its performance is "expected to worsen" through the year. It also scrapped its guidance because of the "lack of visibility on the end date of the Covid-19 pandemic."

Shares fell 1% in Wednesday trading.

The US Senate passed a new $480 billion round of fiscal stimulus yesterday in Washington's latest effort to provide some economic relief from the coronavirus pandemic.

The new bill is a step in the right direction, economists say, but they expect more money will be needed in the future.

While the new bill expands support to small businesses after the Paycheck Protection Program (PPP) ran out of funds last week, it likely won't prevent some small companies from going under.

"Many small businesses that are currently closed or operating at reduced levels could still struggle to remain financially viable, even if lockdowns are progressively lifted over the coming weeks," said Rebecca Karnovitz, a Moody's vice president, in emailed comments. "A wave of small business bankruptcies would weigh on a recovery in employment and economic activity."

Oil prices swung wildly on Wednesday as traders tried to make sense of the historic implosion earlier in the week.

Brent crude futures, the main benchmark for global contracts, plunged by as much as 17% to their lowest level since 1999 before surging later in the day. Brent crude futures were last trading at $20.83 per barrel, a gain of nearly 8%.

The gyrations followed a historic rout on Monday, when US oil for May delivery traded at negative prices. The combination of evaporating demand due to the pandemic, significant oversupply and a critical lack of storage for excess barrels saw traders effectively paying people to take American crude off their hands.

On Wednesday, US oil climbed more than 22% to $14.13 per barrel. The price of a barrel of West Texas Intermediate crude, the US benchmark, settled Tuesday at $11.57 after falling as low as $6.50.

-- CNN Business' Jazmin Goodwin, Laura He and Mark Thompson contributed to this post

Netflix (NFLX) announced on Wednesday that it intends to raise $1 billion in a debt offering.

The company said it will use the offering for “general corporate purposes,” which may include spending on the acquisition, production and development of new content. The streaming company reported $14.2 billion in long-term debt at the end of March.

The news comes a day after Netflix reported big earnings. The company said on Tuesday that it added 16 million subscribers last quarter, blowing by its own projections. Netflix now has 183 million subscribers worldwide.

The company mixed the big earnings with a somber tone by speaking about the uncertainty of the coronavirus pandemic.

Netflix also spoke about potential disruptions to its business, including content production. However, the company noted that it would release all shows and films that were already scheduled to run in its second quarter.

US stocks opened higher on Wednesday, rebounding after two days of losses brought on by the collapse of oil prices.

The oil market continues to be in distress, as global benchmark prices fall to their lowest level since 1999. US oil remains around $14.

But investors focused instead on the Senate's approval of a new tranche of fiscal stimulus, including more aid for the payroll protections plan.

Meanwhile, earnings season is roaring on and companies are fulling their guidance amid the coronavirus uncertainty.