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Markets up as retailers rise with holiday shopping – CBC.ca

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Retailers and technology companies drove modest gains for stocks on Wall Street Thursday, extending the market’s record-setting run.

Technology stocks accounted for a big slice of the gains, which helped to briefly push the Nasdaq composite above the 9,000 mark for the first time.

Financial stocks rose along with bond yields, while Amazon and other retailers climbed after data showed a last-minute surge in online shopping helped holiday sales.

Energy stocks rose as crude oil prices headed higher. Health care and industrial stocks lagged the market.

Trading was muted as U.S. markets reopened after the Christmas holiday.

Canada’s main stock market, the TSX, will reopen December 27.

The benchmark S&P 500 index has finished with a weekly gain in 10 out of the past 11 weeks and is headed for its biggest annual gain since 2013 at 29 per cent.

Trade talk optimism lends boost

Rising optimism around a “Phase 1” trade deal announced earlier this month between the United States and China helped put investors in a buying mood in recent weeks. Fears about a possible recession have also faded since the summer after the Federal Reserve cut interest rates three times, and the central bank appears set to keep them low for a long time.

Still, as traders turn their attention to 2020, fears about the outlook for the global economy remain, as do concerns over unresolved trade issues between Washington and Beijing. Next year also has the added complication of the U.S. presidential election.

The S&P 500 rose 0.5 per cent. The index last hit a record high on Monday.

The Dow Jones Industrial Average rose 62 points, or 0.5 per cent, to 28,621. The Nasdaq composite added 0.8 per cent, extending its winning streak to 11 days.

The indexes are coming off a mixed finish in shortened, pre-Christmas trading on Tuesday.

People carry shopping bags while crossing a street in San Francisco, Friday, Nov. 29. Amazon and other retailers rose after data showed a last-minute surge in online shopping helped holiday sales. (Jeff Chiu/The Associated Press)

Retail rally

 A report from Mastercard SpendingPulse showed holiday retail sales rose 3.4 per cent, with online shopping rising 18.8 per cent.

Amazon was the biggest gainer in the S&P 500, climbing 4.45 per cent. Macy’s rose 2.61 per cent and Nordstrom added 1.81 per cent.

Technology stocks continued to add to their blockbuster gains Thursday. The sector is on pace to end the year with a 48 per cent gain, well above the other 10 sectors in the S&P 500. Apple was up 1.98 per cent and Western Digital rose 0.92 per cent.

Citigroup led the gainers in the financial sector, climbing 1.58 per cent. Banks got a boost as the 10-year Treasury yield rose to 1.92 per cent from 1.90 per cent late Tuesday.

The yield is a benchmark for the interest rates that lenders charge on mortgages and other consumer loans. Higher yields make those loans are more profitable for banks.

The final five

The last five days of December and the first two in the new year have historically been a positive period for the market.

Stocks have have brought an average gain of 1.3 per cent over that stretch since 1950, according to the Stock Trader’s Almanac.

Benchmark U.S. crude gained 54 cents to $61.65 per barrel. Brent crude oil, the international standard, picked up 45 cents to $66.61 per barrel.

The rise in oil prices helped lift energy sector stocks. Occidental Petroleum ended the day at $40.15, up 0.65 per cent.

Markets in Europe, Hong Kong and Australia remained closed. Elsewhere in Asia, Japan’s Nikkei 225 index advanced 0.6 per cent to 23,924.92, while the Kospi in South Korea gained 0.4 per cent to 2,197.93. India’s Sensex lost 0.3 per cent to 41,339.87. In Southeast Asia, benchmarks were mixed, while Taiwan was flat.

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Disney to lay off 28000 at its parks in California, Florida – CP24 Toronto's Breaking News

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Mike Schneider, The Associated Press


Published Tuesday, September 29, 2020 5:06PM EDT


Last Updated Tuesday, September 29, 2020 8:39PM EDT

ORLANDO, Fla. – Squeezed by limits on attendance at its theme parks and other restrictions due to the pandemic, The Walt Disney Co. said Tuesday it planned to lay off 28,000 workers in its parks division in California and Florida.

Two-thirds of the planned layoffs involve part-time workers but they ranged from salaried employees to hourly workers, Disney officials said.

Disney’s parks closed last spring as the pandemic started spreading in the U.S. The Florida parks reopened this summer, but the California parks have yet to reopen as the company awaits guidance from the state of California.

In a letter to employees, Josh D’Amaro, chairman of Disney Parks, Experience and Product, said California’s “unwillingness to lift restrictions that would allow Disneyland to reopen” exacerbated the situation for the company.

D’Amaro said his management team had worked hard to try to avoid layoffs. They had cut expenses, suspended projects and modified operations but it wasn’t enough given limits on the number of people allowed into the park because of social distancing restrictions and other pandemic-related measures, he said.

“As heartbreaking as it is to take this action, this is the only feasible option we have in light of the prolonged impact of COVID-19 on our business, including limited capacity due to physical distancing requirements and the continued uncertainty regarding the duration of the pandemic,” he said.

California’s health secretary on Tuesday said the state was close to working out a way to have the theme parks reopen in a responsible way.

“We know that a number of Californians are eager and wondering when that is coming, and we’re working with those industries to put out something that’s thoughtful, allows us to maintain the rest of our framework in a strong way, and really following those principles of slow and stringent to ensure those large activities are done responsibly,” said Dr. Mark Ghaly, secretary of California Health and Human Services.

Disney officials said the company would provide severance packages for the employees, where appropriate, and also offer other services to help workers with job placement.

Officials with the union that represents the actors who play Disney characters at the theme parks said they were having conversations with Disney officials about how they would be impacted, according to Actors’ Equity Association.

Officials with the Service Trades Council Union, which represents 43,000 workers at Disney World in Florida, said they were having similar conversations.

“We were disappointed to learn that the Covid-19 crisis has led Disney to make the decision to layoff Cast Members,” the coalition of six unions said in a statement.

About 950 workers from Unite Here Local 11 in California will be laid off starting Nov. 1, union leaders said.

Disney officials didn’t offer a breakdown of the layoffs between the Florida and California operations. Walt Disney World in Florida has around 77,000 employees, while the Disneyland Resort in California has more than 30,000 workers.

With its parks closed due to the pandemic in April, Disney furloughed up to 43,000 workers while still paying for their health insurance at its Florida resort. It brought many of them back after it reopened in July. Furloughed workers in California also received health benefits.

In a statement, U.S. Rep. Val Demings, a Democrat from Orlando, said the layoffs showed the need for more coronavirus-related relief from Congress.

“These layoffs show yet again how desperately that assistance is needed by American households and businesses,” Demings said.

Associated Press writers Adam Beam in Sacramento, California, and Amy Taxin in Orange County, California, contributed to this report.

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Disney to lay off 28000 at its parks in California, Florida – CTV News

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ORLANDO, FLA. —
Squeezed by limits on attendance at its theme parks and other restrictions due to the pandemic, The Walt Disney Co. said Tuesday it planned to lay off 28,000 workers in its parks division in California and Florida.

Two-thirds of the planned layoffs involve part-time workers but they ranged from salaried employees to hourly workers, Disney officials said.

Disney’s parks closed last spring as the pandemic started spreading in the U.S. The Florida parks reopened this summer, but the California parks have yet to reopen as the company awaits guidance from the state of California.

In a letter to employees, Josh DAmaro, chairman of Disney Parks, Experience and Product, said California’s “unwillingness to lift restrictions that would allow Disneyland to reopen” exacerbated the situation for the company.

DAmaro said his management team had worked hard to try to avoid layoffs. They had cut expenses, suspended projects and modified operations but it wasn’t enough given limits on the number of people allowed into the park because of social distancing restrictions and other pandemic-related measures, he said.

“As heartbreaking as it is to take this action, this is the only feasible option we have in light of the prolonged impact of COVID-19 on our business, including limited capacity due to physical distancing requirements and the continued uncertainty regarding the duration of the pandemic,” he said.

California’s health secretary on Tuesday said the state was close to working out a way to have the theme parks reopen in a responsible way.

“We know that a number of Californians are eager and wondering when that is coming, and we’re working with those industries to put out something that’s thoughtful, allows us to maintain the rest of our framework in a strong way, and really following those principles of slow and stringent to ensure those large activities are done responsibly,” said Dr. Mark Ghaly, secretary of California Health and Human Services.

Disney officials said the company would provide severance packages for the employees, where appropriate, and also offer other services to help workers with job placement.

Officials with the union that represents the actors who play Disney characters at the theme parks said they were having conversations with Disney officials about how they would be impacted, according to Actors’ Equity Association.

Officials with the Service Trades Council Union, which represents 43,000 workers at Disney World in Florida, said they were having similar conversations.

“We were disappointed to learn that the Covid-19 crisis has led Disney to make the decision to layoff Cast Members,” the coalition of six unions said in a statement.

About 950 workers from Unite Here Local 11 in California will be laid off starting Nov. 1, union leaders said.

Disney officials didn’t offer a breakdown of the layoffs between the Florida and California operations. Walt Disney World in Florida has around 77,000 employees, while the Disneyland Resort in California has more than 30,000 workers.

With its parks closed due to the pandemic in April, Disney furloughed up to 43,000 workers while still paying for their health insurance at its Florida resort. It brought many of them back after it reopened in July. Furloughed workers in California also received health benefits.

In a statement, U.S. Rep. Val Demings, a Democrat from Orlando, said the layoffs showed the need for more coronavirus-related relief from Congress.

“These layoffs show yet again how desperately that assistance is needed by American households and businesses,” Demings said.

Associated Press writers Adam Beam in Sacramento, California, and Amy Taxin in Orange County, California, contributed to this report.

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Disney will lay off 28,000 theme parks workers due to coronavirus pandemic – CBC.ca

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Squeezed by attendance limits at its theme parks and other restrictions due to the coronavirus pandemic, The Walt Disney Co. said Tuesday it planned to lay off 28,000 workers in its parks division in California and Florida.

Two-thirds of the planned layoffs involve part-time workers but they ranged from salaried employees to non-union hourly workers, Disney officials said.

Disney’s parks closed last spring as the pandemic started spreading in the U.S. The Florida parks reopened this summer, but the California parks have yet to reopen as the company awaits guidance from the state of California.

In a letter to employees, Josh D’Amaro, chairman of Disney Parks, Experience and Product, said his management team had worked hard to try to avoid layoffs.

He said they had cut expenses, suspended projects and modified operations, but it wasn’t enough given limits on the number of people allowed into the park because of pandemic-related measures.

“As heartbreaking as it is to take this action, this is the only feasible option we have in light of the prolonged impact of COVID-19 on our business,” he said, “including limited capacity due to physical distancing requirements and the continued uncertainty regarding the duration of the pandemic.”

Disney officials said the company would provide severance packages for the employees where appropriate, and also offer other services to help workers with job placement.

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