The private equity firm that had planned to buy Victoria’s Secret is trying to back out of the deal.
Here’s what you need to know:
- Stocks and oil prices rebound from waves of selling.
- The plan to sell Victoria’s Secret to a private equity investor may be on the ropes.
- Murdoch’s Fox Corporation cuts executive pay.
- Tyson will close another meat processing plant.
- OSHA’s restraint on coronavirus inspections and rules is prompting concern.
Stocks and oil prices rebound from waves of selling.
Stocks on Wall Street and in major European markets rallied on Wednesday, and oil prices reversed some of the tremendous losses that had unnerved investors for several days.
The S&P 500 rose nearly 2 percent in early trading, after a nearly 5 percent drop on Monday and Tuesday.
The selling earlier in the week had been triggered by a collapse in oil prices, as the price of one oil benchmark dipped below zero for the first time, meaning some holders were ready to pay customers to take a barrel off their hands. The inversion in oil prices reflected disappearing demand for petroleum, and the fact that there are few places left to store all the crude still being pumped.
But on Wednesday, some stability returned to the energy market, with the price of both West Texas Intermediate crude, the American benchmark, and Brent crude, the international benchmark, sharply higher. Shares of companies in the energy industry, like Halliburton and Marathon Oil, were among the best performing stocks in the S&P 500
Bond trading also signaled some returning optimism. U.S. Treasury bond prices fell, a signal that investors were turning back to riskier investments.
Those investors had other news to consider. The United States Senate on Tuesday passed a bipartisan $484 billion coronavirus relief package that would replenish a depleted loan program for distressed small businesses and provide funds for hospitals, states and coronavirus testing.
The plan to sell Victoria’s Secret to a private equity investor may be on the ropes.
The private equity firm that agreed to buy Victoria’s Secret in February is trying to terminate the deal as the retail chain takes a hit from the coronavirus outbreak.