August 19, 2020

Good morning. The head of the Postal Service said he would suspend cuts until after the election. Democrats formally nominated Joe Biden for president. And as the economy staggers, the S&P 500 has hit a record high.

The record market, explained

The stock prices of big tech firms, including Apple, have risen.Spencer Platt/Getty Images

Despite a global pandemic and double-digit unemployment in the United States, the S&P 500 stock index reached a new high yesterday.

We asked Andrew Ross Sorkin, a business columnist and founder of The Times’s DealBook newsletter, to help us understand how the market could be doing so well amid economic devastation.

As irrational as it might seem, here’s the way investors rationalize the bullish stock market to themselves (we’ll only find out whether they are right or wrong in the future):

1. The stock market is forward-looking: Investors are betting on what the world and the economy look like in 12 to 18 months from now, not what they look like today, tomorrow or this fall.

2. The big get bigger: Much of the stock market’s success has been the result of a run-up in value for a few big technology companies — including Apple, Amazon and Microsoft — that make up a large share of the index. And retailers like Walmart and Home Depot are growing in part because small businesses have closed, allowing the bigger companies to take even more market share.

3. Betting on a vaccine: Given the daily headlines about the potential for a vaccine, investors want to be invested in the market when the news comes that there is a genuine vaccine, on the assumption that it will send stocks even higher.

4. The only game in town: With the Federal Reserve planning to print money for the foreseeable future, investors don’t want to be in cash or bonds, which are steadily losing value. So where else can they put their money? The stock market has become a default.

5. Help from Washington: As dysfunctional as Congress has proved to be, investors are betting that Republicans and Democrats will find a way to keep plying the economy with stimulus. (Anecdotal stories suggest some Americans have even taken their $600 unemployment checks and invested them in the stock market.)

Of course, all of these rationalizations don’t take into account the possibility of a terrible second or third coronavirus wave, a delay in the discovery of a vaccine, a constitutional crisis come the election in November, runaway inflation, the prospect of higher taxes to pay for the stimulus, a more significant trade war with China, or the dozens of other risks that seem to be bubbling just below — and in some cases on — the surface.

In the meantime, happy trading!

For more on the economy: Many Americans are still avoiding malls, restaurants and other businesses despite the end of strict lockdowns across much of the country, a Times analysis of cellphone data found. Their behavior suggests the economic recovery could be prolonged and uneven.

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The most crucial business and policy news you need to know from Andrew Ross Sorkin and team.

FOUR MORE BIG STORIES

1. A Postal Service about-face

Postmaster General Louis DeJoy said on Tuesday that he would suspend cost-cutting measures and operational changes at the Postal Service until after the November election “to avoid even the appearance of any impact on election mail.” Those changes included eliminating overtime for mail carriers, reducing post office hours and removing postal boxes.

The announcement came after a coalition of at least 20 state attorneys general said they would sue the Trump administration, charging that the policy changes would undermine voting by mail. DeJoy is still expected to face tough questioning at a virtual Senate hearing on Friday and a House hearing on Monday.

2. What happened on Night 2 of the D.N.C.

Democrats formally nominated Joe Biden for the presidency on the second night of their national convention, in a virtual roll call vote that showcased delegates speaking from their home states and territories. The vote was kicked off by a Times security guard whose chance meeting with Biden last year went viral.

The night also featured a mash-up speech from 17 young Democratic politicians; a brief address from former President Bill Clinton; and closing remarks from Jill Biden, delivered from the public-school classroom where she once taught. Watch the highlights here.

From Opinion: Our writers ranked the night’s best and worst moments.

Today’s lineup: Speakers include Hillary Clinton, former President Barack Obama and Senator Kamala Harris. We’ll have live coverage starting at 9 p.m. Eastern.

3. Senate panel affirms Russian interference

A bipartisan report released Tuesday by the Republican-controlled Senate Intelligence Committee reaffirmed that Russia interfered in the 2016 presidential election to help President Trump and revealed new details about Russian links to the Trump campaign.

The nearly 1,000-page report did not conclude that the campaign engaged in a coordinated conspiracy with the Russian government. But it found that a longtime associate of Paul Manafort, Trump’s former campaign chairman, was a Russian intelligence officer who might have been involved in efforts to steal and disseminate Democratic emails.

The report lands as Russia and other countries attempt to influence another U.S. election. “The Russians are fully aware that they can’t play the 2016 playbook in 2020,” said our colleague David Sanger. But from spreading disinformation about the pandemic to inflaming culture-war issues, “new routes to interference are endless.”

Find eight takeaways from the report here.

4. Flint struggles with two disasters

Curbside pickup at a food pantry in Flint, Mich., in June.Brittany Greeson for The New York Times

Six years after elected officials introduced tainted water into their homes, the residents of Flint, Mich., are still reeling from the crisis. Now the city is dealing with coronavirus, too.

A project to help clear the drinking water supply, which was supposed to have wrapped up last year, was delayed by the pandemic. The virus has also deepened city residents’ problems, with job opportunities more scarce and violent crime spiking.

“First the water crisis, and now here comes Covid,” said one resident, who for two weeks sustained herself on oranges as she battled the virus. “We’re in double challenge mode.”

Here’s what else is happening

The M.V. Wakashio went off course and ran aground on a coral reef.Agence France-Presse — Getty Images

The captain of a ship that spilled about 1,000 tons of oil into the Indian Ocean — endangering world-renowned coral reefs and lagoons in Mauritius — was arrested on Tuesday.
A week into the fall semester, the University of Notre Dame announced that it would move to online instruction for at least the next two weeks in an attempt to control a growing coronavirus outbreak. Michigan State University also shifted its reopening plans, telling students not to return for the start of classes in two weeks.
President Ibrahim Boubacar Keïta of Mali resigned after the country’s military mutinied Tuesday, arresting him and other government officials. The West African nation has been gripped by unrest for weeks, driven by charges that Keïta stole an election in March.
Gov. Gavin Newsom declared a state of emergency in response to wildfires in California, as the state battled the effects of a sweltering heat wave, rolling blackouts and the coronavirus pandemic.
Fifteen years after a bombing that killed Rafik Hariri, the former prime minister of Lebanon, and 21 others, a U.N.-backed tribunal concluded with only a single conviction, of a minor Hezbollah figure.
Lives Lived: Gisèle Halimi was a prominent French lawyer, activist and author who championed feminist causes and human rights efforts for decades. She founded a feminist group with Simone de Beauvoir and played a key role in the decriminalization of abortion in France. She died at 93.

The truth is essential. Every day Times journalists report from the front lines and do the deep research. None of this coverage would be possible without our subscribers, so thank you. And if you’re not a subscriber, please consider becoming one today.

IDEA OF THE DAY: HOW TO IMPROVE REMOTE LEARNING

Feeling overwhelmed, anxious and abandoned, the vast majority of parents across America have resigned themselves to the idea that school will be remote for some time, a new survey for The New York Times has found. That means some degree of online learning for most children after a disastrous end to the last school year that largely took place remotely.

With school from home looking like the default for the foreseeable future, here are three ideas to make it go more smoothly.

Emphasize interaction. Educators should lead videoconference sessions that give students face time with teachers and their peers, argues Sal Khan, the founder of Khan Academy, a nonprofit online education organization. “Lesson plans designed for in-person classes don’t work in this coronavirus world,” he writes in a Times Op-Ed.

Keep lessons short. Live instruction should be broken up into smaller chunks spaced throughout the day, the education researchers Benjamin Cottingham and Alix Gallagher write in The Los Angeles Times. “Even adults have trouble videoconferencing for long stretches. For the youngest students, it is nearly impossible.”

Support parents. In the spring, “too many of our students and our young students were left home to navigate the virtual learning on their own with no support at home,” Marnie Hazelton, a New Jersey superintendent, told NJ.com. The Times survey found that one in five parents was considering hiring an in-person private teacher or tutor, though that option is largely limited to those with sufficient financial means. Ideally, schools would assign virtual counselors and tutors to ease the burden for the rest.

You can read more on this issue in the Coronavirus Schools Briefing.

PLAY, WATCH, EAT, GARDEN

Make something refreshing

Johnny Miller for The New York Times

For a bright summer dish, make spicy cucumbers with yogurt and lemon. The simple yogurt sauce is elevated with herbs and lemon zest, then topped with cucumbers marinated in a spicy oil.

Fighting racism in the food world

Making a good jam is easy, explained Ashley Rouse, the founder of Trade Street Jam Company. The hard part, she said, is “everything that comes after.”

For Black jam makers, systemic racism across the craft food movement means obstacles in scaling their businesses, getting book deals and receiving widespread recognition. “It’s easier for white makers to get these opportunities than for people of color,” Rouse said. And if they make mistakes, “people are more willing to forgive.”

The joys of gardening on TikTok

Marcus Bridgewater at home in Spring, Texas.Antonio Chicaia for The New York Times

Marcus Bridgewater — known to his fans as Garden Marcus — built a following on TikTok for his calming videos about plant care that often double as life lessons.

In one clip, he plants a sweet potato vine in a new spot to help it flourish. “It can be difficult to re-root, establish new relationships, grow beyond the old form,” he narrates, “but it can also be what’s needed to create new and healthier roots in our future.”

In a new interview, he shares some more gardening wisdom.

Diversions

How big is a foot? For decades, American scientists have juggled two conflicting measurements. Not anymore.
Michelle Obama’s speech on the first night of the Democratic convention made quite an impression on the late-night comedy hosts.

Games

Here’s today’s Mini Crossword, and a clue: One way to vote in a presidential election (five letters).

You can find all of our puzzles here.

Thanks for spending part of your morning with The Times. See you tomorrow.

P.S. The word “teleconvention” appeared for the first time in The Times yesterday, as noted by the Twitter bot @NYT_first_said.

David Leonhardt, this newsletter’s usual writer, is on break until Monday.

You can see today’s print front page here.

Today’s episode of “The Daily” is about the fight over the Postal Service.

You can reach the team at themorning@nytimes.com.

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