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Dow rises greater than 100 factors to recent file

Shares rose Tuesday, pushing the Dow and S&P 500 to new records as investors continued to fend off rising Covid cases from the Delta variant.

A bipartisan $ 1 trillion infrastructure bill was passed in the Senate to allay concerns about a slowdown in economic growth in the wake of the pandemic. The return on the 10-year yield rallied on Tuesday.

The Dow Jones Industrial Average rose about 176 points to hit a new intraday high. The S&P 500 rose 0.2% after hitting an intraday high at the start of the session. Meanwhile, the Nasdaq Composite lost 0.4%.

Bank stocks rose amid the surge in bond yields, but investors gave up technology stocks as rates rebounded. Goldman Sachs was up nearly 2%. Wells Fargo and Bank of America both gained more than 1.5%. The so-called FANNG names, however, were all in the red.

Energy stocks rebounded Tuesday after spearheading market declines on Monday, fueled by a fall in oil prices. Exxon Mobil and Chevron rose more than 1% on Tuesday and Diamondback Energy rebounded more than 2%. The US oil price rose 1.6% on Tuesday.

Stocks tied to the economic reopening also made up some of their losses on Monday. Norwegian Cruise Line was up 2% and American Airlines was up 1%.

The Senate passed a bipartisan infrastructure bill worth $ 1 trillion on Tuesday. The plan, which sees $ 550 billion in new spending on traffic and broadband, is expected to help boost the economy as peak growth slows after reopening after the pandemic.

During Monday’s regular trading, the Dow fell more than 100 points amid fears a wave of Covid cases could slow demand. The S&P 500 lost 0.1% and the Nasdaq Composite rose 0.16%.

AMC’s stock rose 4.7% on Tuesday after reporting a smaller-than-expected loss. The company also announced that it will accept Bitcoin in all US locations starting this year.

The winning season continues after the bell, and Coinbase will be reporting. The stock, which trades closely with Bitcoin price, fell 3% on Tuesday. SoftBank and Sysco will also report.

Bitcoin price fell 1.5% on Tuesday after rising 5% on Monday to its highest price since May.

Investors are waiting for the consumer price index and producer price index data, both of which measure inflation, to be released on Wednesday and Thursday, respectively. A handful of central bank spokespersons, including Chicago Fed President Charles Evans and Kansas City President Esther George, are also expected this week. Investors will watch out for clues as to how the Fed plans to scale back its bond purchases.

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Europe Reopened to People. Why, It Asks, Hasn’t the U.S. Reciprocated?

MADRID — He was vaccinated in April, tested negative for the coronavirus and believed he was exempt from travel restrictions.

But on a stopover in Amsterdam in late May, Peter Fuchs, 87, was told he could not board his New York-bound flight to attend his great-granddaughter’s christening. The reason: As a European citizen, he was not allowed to enter the United States.

“I felt helpless and broken down,” Mr. Fuchs said in an email from his nursing home apartment in Hanover, Germany.

In June, as the United States made headway in its vaccination campaign, European Union leaders recommended that member countries reopen their borders to Americans, a significant gesture meant to signal what they hoped would be the beginning of the pandemic’s end. They expected to be repaid in kind.

That the United States remains largely closed has dismayed Europeans and frustrated their leaders, who are demanding that Europe’s decision to open its borders be reciprocated.

“We insist comparable rules be applied to arrivals in both directions,” Ursula von der Leyen, the president of the European Commission, the bloc’s executive arm, said last week at a news conference. Officials with the bloc have even suggested reimposing travel restrictions against American travelers, though a quick change is not expected since many countries are reluctant to risk further ruin to summer tourism.

For some European families, the continued ban has compounded one of the deepest sorrows of the pandemic — separation itself — as loved ones become ill across closed borders and family elders grow fearful they may never see their loved ones again.

Unmarried partners with different passports have struggled to keep relationships afloat, giving rise to the popular Twitter hashtag #loveisnottourism. Europeans offered jobs in the United States still do not know whether they should accept them.

“Now that we have vaccines, at least let the vaccinated people come,” said Michele Kastelein, a dual French-American citizen living in Portola Valley, Calif. Her French brother Maurice had to abandon plans to attend her son’s wedding this month, despite hopes that the ban would be lifted by now for Europeans like him who are vaccinated.

The European travel ban dates to the start of the pandemic. President Donald J. Trump removed the restrictions in the final days of his term, but President Biden reinstated them shortly after taking office.

The White House, however, has offered little explanation on why the restrictions remain — even though some countries with higher infection and lower vaccination rates face no similar ban. At a news conference last week, Jen Psaki, the White House spokeswoman, cited the advice of medical experts and continued concerns about the Delta variant.

Under the current rules, virtually all residents of Europe’s Schengen Area — the passport-free zone that includes 26 countries plus other entities — as well as those living in Britain and Ireland are still barred from traveling to the United States.

Five other countries under the ban include ones with high infection rates, like Iran, South Africa, Brazil and India, but also China, where rates of spread have been far lower than those in the United States for months.

The travel ban exempts some people, among them American citizens, permanent U.S. residents and some family members of U.S. citizens, provided the American is under 21.

Updated 

Aug. 9, 2021, 9:16 p.m. ET

People from the prohibited countries can still enter the United States if they spend the 14 days before their arrival in a country that is not on the Centers for Disease Control and Prevention’s list.

This last proviso led Shelley Murray, an American strength and conditioning coach, and her partner, Viktor Pesta, a mixed martial arts athlete from the Czech Republic, into an odyssey that spanned not just their native countries, but also Turkey and the Dominican Republic.

The two had moved into a home in Fort Lauderdale, Fla., shortly before the pandemic when Mr. Pesta was called to a coaching assignment in the Czech Republic. The European Union and the United States banned travel in both directions soon after, and the two were separated for six months, Ms. Murray said.

She was the first to leave her country, last August, after the Czech Republic created a so-called sweetheart exception that allowed Americans to visit unwed partners. But when Mr. Pesta wanted to return to the United States last October, he had to spend two weeks in Turkey — a country not on the C.D.C.’s prohibited list — so he would be allowed to enter.

This spring, shortly after Mr. Pesta was vaccinated in the United States, he traveled back to the Czech Republic for a mixed martial arts fight. When he wished to return to Florida this summer, the couple went to the Dominican Republic to allow for Mr. Pesta’s re-entry, a visit that stretched on for seven weeks because of visa delays.

Ms. Murray said her chief frustration was that American rules led the couple to stay in countries where infection rates were higher than in much of Europe, supposedly as a precaution against infected travelers.

“It was kind of nonsensical to us,” she said.

In another part of Fort Lauderdale sits the empty two-bedroom apartment of Elisabeth Haselbach, a Swiss citizen who bought it four years ago as an investment and vacation property.

Understand the State of Vaccine Mandates in the U.S.

But Ms. Haselbach has not been able to see her home since before the pandemic. She continues to pay taxes and condominium fees, but is worried because she has been unable to reinforce her home for the hurricane season, which lasts from June through November.

She said the predicament left her stunned: She found Mr. Trump’s behavior on the international stage unreasonable, but she did not expect to think the same of Mr. Biden on the closed borders.

“I was the No. 1 fan of the Democrats,” she said.

Frustration with the ban led Marius Van Der Veeken, a retired finance professional in the Netherlands, to write to Mr. Biden, saying he wanted to see his family in Michigan.

Mr. Van Der Veeken, 64, and his wife, Anne-Mieke, 61, had just gotten to know their grandchildren, now 3 and 4, before the pandemic prevented travel. Having received the AstraZeneca vaccine in March, they had believed they would soon have a chance to see the children, along with their daughter and son-in-law. Instead, they continue to meet each Sunday by video call.

Their grandchildren recognize them — calling them Opa and Oma, grandpa and grandma in Dutch — but Mr. Van Der Veeken worries that long-distance calls are not enough and that he is losing precious years.

“It’s important now to be building a relationship with them,” he said. “My big argument is that the travel restrictions should make a difference between family connections and tourists.”

Mr. Fuchs, the retiree from Germany, had similar feelings when he was blocked from his flight in May to attend the christening of his great-granddaughter, his first.

His daughter Natascha Sabert, an American citizen, said she had been told mistakenly by U.S. consular officials that he was eligible to enter the country as her father. But when he reached the airport in Amsterdam, he was told that he did not qualify because his daughter was over 21.

Ms. Sabert worried that her father, who is hard of hearing, would not be able to make it back to Germany that night from Amsterdam. Airport officials told her there were no more flights to Hanover that day, she said.

“I said, ‘You can’t push him in a wheelchair somewhere in the airport in the corner and just leave him there,’” she recalled.

Eventually, Mr. Fuchs was put on a flight to Hamburg, where a relative helped him onto a train to Hanover.

The experience has left Ms. Sabert fearful of asking her father to try to make the trip again. But she also feels time is running out and wants the chance for the family to reunite.

“It’s about these last moments before we say goodbye,” she said.

Monika Pronczukcontributed reporting from Brussels.

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Asia nations give away land, gold, cattle, houses

An elderly man will be given Covid-19 vaccine at the AstraZeneca Central Vaccination Center in Bang Sue Grand Station on July 13, 2021 in Bangkok, Thailand.

Sirachai Arunrugstichai | Getty Images News | Getty Images

Businesses and local governments in Asia are developing creative ways to promote vaccinations among people who are still reluctant to get one – distributing everything from gold to farm animals.

The Asia-Pacific region is battling a resurgence of Covid as major cities in China, Malaysia, Indonesia and Australia report rising cases daily, particularly from the highly contagious Delta variant of the disease.

But most of Asia is struggling with low vaccination rates as vaccination hesitation persists and vaccine misinformation spreads.

In addition, many countries cannot get enough doses for their populations.

According to Our World in Data, vaccine progress is lagging behind Europe and North America. On August 8, 41.6% of Europeans and 38.8% of North Americans were fully vaccinated, compared with only about 11.6% of people in Asia.

Hong Kong: apartment, gold and a private flight

Hong Kong companies are giving awards to raise vaccination rates amid public distrust of the government.

Several sponsors, including the real estate developer Sino Group, have arranged a raffle for the vaccinated. The grand prize is a new one-bedroom apartment valued at approximately Hong Kong $ 10.8 million ($ 1.39 million).

To support a government vaccination campaign, Cathay Pacific Airways has awarded 20 million airline miles in Asia. A winner can host a private party on board the airline’s new Airbus A321neo.

An organization of gold trading firms – the China Gold and Silver Exchange – is giving away Hong Kong dollars worth 1.1 million Hong Kong dollars to those who have received two Covid shots.

Incentives provided by companies totaled more than $ 73 million Hong Kong ($ 9.4 million), the South China Morning Post reported in June. According to Our World in Data, about 35% of Hong Kong’s population was fully vaccinated on August 8th.

Philippines: land, cattle and sacks of rice

Both local governments and private companies are doing their part to get more people to vaccinate.

The community of San Luis Pampanga has started a campaign to give vaccinated people the chance to win a cow.

Congresswoman Camille Villar offered a number of incentives to the people of her town when they were vaccinated. Las Pinas City residents have a chance of winning a home, motorcycles, and even groceries if they receive at least one dose of Covid vaccine, the Manila Times reported.

On the outskirts of Manila, in Sucat, according to Reuters, 20 people have the chance to take a 25-kilogram sack of rice home with them every week if they get their injections. The initiative aims to attract poorer residents who need an extra boost to get vaccinated, the news agency said.

While some give out rewards, others threaten those who don’t get vaccinated.

After weak participation in several vaccination centers in the capital Manila in June, the Philippine President Rodrigo Duterte is said to have warned residents: “If you do not want to be vaccinated, I will have you arrested.”

As the city prepared for a two-week lockdown on Friday, Reuters reported that thousands of people showed up at vaccination centers across Manila.

Only 9.8% of the country’s population was fully vaccinated by August 5, according to Our World in Data numbers.

Indonesia: live chickens

Indonesia has the second highest number of cases in Asia, according to data from Johns Hopkins University.

According to several media reports, government agencies in Cipanas, West Java Province, are distributing 500 live chickens to vaccinated seniors.

About 85% of Indonesia’s population are Muslim. Despite the religious approval of the country’s top Islamic body, many are concerned about whether the vaccines are halal or allowed by Islam.

“I was afraid that if I was vaccinated I would die immediately …

According to Our World in Data, 8.7% of the total population of Indonesia are fully vaccinated on August 8th.

India: gold, mixers and discounts

In India, McDonald’s fast food chain is offering vaccinated customers a 20% discount.

Goldsmiths in Rajkot, Gujurat, reportedly came together to encourage people over the age of 45 to get vaccinated. Women were given gold nasal needles for vaccination while men were given hand blenders, the Hindustan Times said.

India reported Friday that the country had given more than 500 million doses of vaccine.

However, so far only 8.2% of the population is fully vaccinated, as the figures from Our World in Data show.

According to local media reports, the country is threatened with a third wave of infections in the coming months.

China: eggs

China has been slow to start its vaccination program as the government was relatively successful in controlling the virus outbreak in the early days of the global pandemic. As a result, many citizens did not see the urgency of vaccination at first until new niches emerged in the country.

In March this year, a Beijing health center gave away 2.5 kilograms of eggs to residents who were 60 years of age or older when they received their first vaccination, the Associated Press reported.

However, some regions took a tougher approach.

Officials reportedly visited villages to persuade them to get vaccinated and were told it was their national duty, the Washington Post said.

The country had administered nearly 1.7 billion doses of vaccine as of August 3, the state media reported in Xinhua, citing the National Health Commission.

– CNBC’s Joanna Tan contributed to this coverage.

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Taliban Seize Zaranj, an Afghanistan Provincial Capital, in a Symbolic Victory

KABUL, Afghanistan — The Taliban captured a regional hub city in western Afghanistan on Friday, officials said, the first provincial capital to fall to the insurgency since the Biden administration announced the full withdrawal of U.S. troops.

The successful takeover marks a significant milestone in the insurgents’ relentless march to increase their stranglehold on the Afghan government and retake power in the country. The Taliban have besieged a host of such cities for weeks, and the fall of Zaranj, the provincial capital of Nimruz Province on the Afghanistan-Iran border, is the Taliban’s first breakthrough. And it handed the insurgents another crucial international border crossing, the latest in its recent campaign to control road access in Afghanistan.

A regional administrative hub is now completely controlled by the Taliban, an attention-grabbing addition to their steady drumbeat of rural victories in recent months. It was a considerable setback for the government, which has had to contend with simultaneous attacks on capital cities that have stretched military resources desperately thin.

The collapse of Zaranj at the hands of the insurgents was confirmed Friday by Rohgul Khairzad, the deputy governor of Nimruz, and Hajji Baz Mohammad Naser, the head of the provincial council.

“All the people are hiding in their houses in fear of the Taliban,” said Khair-ul-Nisa Ghami, a member of the provincial council. “The situation is very worrying. People are scared,” she said, adding: “The Taliban captured the city without any fighting.”

The collapse of Zaranj, a city of 160,000 people, occurred on the same day that a senior government official was assassinated in Kabul, the capital. It also came as the insurgents pressed hard into other provincial cities, in a day of bleak news for the government.

Situated in the remote southwestern corner of the country, Zaranj has long been considered a lawless border town, acting as Afghanistan’s main hub for illegal migration, replete with an illicit economy focused on drug trafficking and fuel. For decades, a steady flow of Afghans displaced by conflict and poverty have flocked to the city’s smuggler-owned hotels in order to broker deals to cross into Iran.

“Nimruz is a place where business interests and criminal networks govern the province,” said Ashley Jackson, a researcher with the Overseas Development Institute, adding that a Taliban takeover that disrupted those business interests “would not have been possible.”

Taliban fighters faced little resistance in taking Zaranj, said Afghan officials who were not authorized to speak to the news media. They said a deal had been negotiated with the Taliban allowing the authorities in the city to flee across the border to Iran with their families.

The flight of provincial authorities began on Thursday night when the neighboring district of Kang fell, according to the officials. They said people had started looting local government offices and businesses in the city until around 2 p.m. Friday when the Taliban arrived.

Only the local office of the National Directorate of Security, Afghanistan’s intelligence agency, put up a fight, but eventually surrendered, the officials said. One of the Taliban’s first acts after entering the city was to break into its prison, immediately filling Zaranj’s streets with liberated inmates, they added.

Later in the day, Afghan Air Force aircraft circled above the city, dropping strikes on the headquarters of the police and the border brigade, the officials said.

Mr. Naser, the provincial council head, said that the government had failed to send reinforcements to Zaranj, and that officials had decided to abandon the city in order to avoid casualties. He denied that a deal had been struck with the Taliban.

Since the Taliban began its military campaign in May, the city has buzzed with people looking to leave the country. In early July, around 450 pickup trucks carrying migrants snaked from Zaranj toward crossing points along the Iranian border each day — more than double the number of cars that made the trip in March, according to David Mansfield, a migration researcher with the Overseas Development Institute.

The seizure of Zaranj is a symbolically significant development in the Taliban’s campaign, as they have moved away from targeting rural districts to focus on attacking provincial capitals.

The 215th Corps of the Afghan National Army is responsible for security in both Zaranj and Lashkar Gah, the capital of neighboring Helmand Province, which has been under siege for several days. The 215th Corps’ leadership had shifted its focus to defending Lashkar Gah, leaving Zaranj vulnerable to capture.

The Taliban also took responsibility for the assassination on Friday of a senior government official in Kabul. Dawa Khan Meenapal, the head of the government’s media and information center, was gunned down in a targeted attack. Dozens of officials and civil society figures have been assassinated over the past year, though the Taliban have largely denied responsibility for those attacks.

The killing came days after a coordinated attack by the insurgent group on the residence of the acting defense minister that left eight people dead. That assault highlighted the Taliban’s ability to strike in the heart of the Afghan capital as they continue their sweeping military campaign.

In northern Afghanistan on Friday, the Taliban attacked another provincial capital, Sheberghan, from five directions, burning houses and wedding halls, and assaulting the police headquarters and the prison. There were numerous civilian casualties, said Halima Sadaf Karimi, a member of Parliament from Jowzjan Province, of which Sheberghan is the capital.

Fighting also continued around the major western city of Herat, in Kandahar city in the south and in other provincial capitals.

The government’s response to the insurgents’ recent victories has been piecemeal. Afghan forces have retaken some districts, but both the Afghan Air Force and its commando forces — which have been deployed to hold what territory remains as regular army and police units retreat, surrender or refuse to fight — are exhausted.

In the security forces’ stead, the government has once more looked to local militias to fill the gaps, a move reminiscent of the chaotic and ethnically divided civil war of the 1990s that many Afghans now fear will return.

In recent weeks, the U.S. military has increased airstrikes on Taliban positions around crucial cities in an effort to give Afghan forces on the ground time to regroup. The strikes alone do little to change the situation on the ground, but have slowed Taliban advances.

The United States is supposed to complete its withdrawal by Aug. 31, at which point the Biden administration has said its military operations will end. That would give the Afghan government mere weeks to reconstitute its security forces to defend the cities and territory still under its control.

At a special session of the United Nations Security Council on Friday, Deborah Lyons, the special representative of the U.N. secretary-general for Afghanistan, warned that without action, the country could descend “into a situation of catastrophe so serious that it would have few, if any, parallels in this century.”

Afghanistan, she said, had come to resemble the battlefields of Syria and Sarajevo, with the Taliban making a “strategic decision” to attack urban areas, causing hundreds of deaths among civilians in just the last few weeks. The fighting, she said, comes on top of a punishing drought that has left 18.5 million people in need of humanitarian aid.

She added: “As one Afghan put it to us recently, ‘We are no longer talking about preserving the progress and the rights we have gained, we are talking about mere survival.’”

Reporting was contributed by Christina Goldbaum, Thomas Gibbons-Neff and Michael Schwirtz.

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Deliveroo shares rise after German rival takes stake within the enterprise

A Deliveroo courier travels down Regent Street delivering takeaway food in central London during Covid-19 Tier 4 restrictions.

Pietro Recchia | SOPA pictures | LightRocket via Getty Images

LONDON – Shares in grocery supplier Deliveroo rose over 10% on Monday after the company announced that larger German rival Delivery Hero had acquired a 5.09% stake in the company.

The company’s stock rose from £ 3.36 ($ 4.66) per share to £ 3.60 per share in early trades on the London Stock Exchange on Monday, its highest level since trading began in March. Meanwhile, Delivery Hero shares on the Frankfurt Stock Exchange remained relatively unchanged.

Deliveroo’s market value is around £ 8 billion, so Delivery Hero’s investment is worth around £ 400 million. Deliveroo declined to comment on the exact amount of the investment, while Delivery Hero did not immediately respond to a CNBC request for comment.

In a notice to investors, Deliveroo announced that Delivery Hero would sell it after the market closed on March 6.

Founded in 2013 by Will Shu and Greg Orlowski, Deliveroo received a boost from Amazon in 2019 when the e-commerce giant launched a $ 575 million funding round into the company.

With a turnover of 4.1 billion

Deliveroo went public in March and while trading got off to a bumpy start, the company’s share price has since rebounded somewhat.

Delivery Hero’s investment comes in the midst of a period of consolidation in the food delivery market.

Deliveroo, headquartered in London, and Delivery Hero, headquartered in Berlin, are two of the largest food delivery companies in Europe and have been battling for market share in countries across the continent and beyond for almost a decade.

Delivery Hero, which is significantly larger than Deliveroo with a market capitalization of around 30 billion euros ($ 35 billion), also has minority stakes in food suppliers like Glovo, Just Eat Takeaway, Rappi, and Zomato.

Delivery Hero co-founder and CEO Niklas Östberg said on Twitter that Deliveroo felt “undervalued” and added that he had “great respect” for Shu and his team. Delivery Hero has been buying shares since April, paying an average of £ 2.70 per share, Östberg said.

It competes with Deliveroo in the Middle East through its Talabat business and in Hong Kong and Singapore through its Foodpanda divisions.

However, Deliveroo and Delivery Hero do not compete in the UK, which is Deliveroo’s main market. That’s because Delivery Hero sold its UK business Hungryhouse to Just Eat in 2016 for around £ 200 million.

Like UberEats and DoorDash, Deliveroo and Delivery Hero rely on an army of self-employed couriers to deliver groceries from restaurant kitchens to homes and offices in cities around the world in around 30 minutes while cutting down on each order.

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Rising Covid Instances Drive Organizers to Cancel New Orleans Jazz Fest

The New Orleans Jazz & Heritage Festival has been canceled, officials said Sunday, citing the “exponential growth of new Covid cases in New Orleans and the region.”

The festival, which usually takes place in the spring, has been postponed to October 8-17 in the hopes that vaccinations would make the event possible. Ticket holders will receive emails shortly describing the refund options.

Coronavirus infections hit a record high in Louisiana this month, with the state reporting an average of 4,600 new cases per day over the past week, according to a New York Times database. Hospital stays rose 140 percent to an average of 2,037 per day, and deaths rose 193 percent to an average of 30 per day.

Louisiana reintroduced indoor masking requirements this month in an attempt to contain infections fueled by the state’s low vaccination rate and the highly contagious Delta variant of the virus. Only 37 percent of the state’s population, including children under 12 who are not yet eligible for vaccination, have been fully vaccinated, according to the New York Times.

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Inventory futures are flat after Dow closes at file Friday

A trader works on the trading floor at the New York Stock Exchange (NYSE) in New York, August 5, 2021.

Andrew Kelly | Reuters

Stock futures were flat in overnight trading Sunday after the Dow Jones Industrial Average notched a record close Friday following a stronger-than-expected jobs report.

Futures on the Dow added 2 points, or 0.01%. S&P 500 futures edged 0.06% lower and Nasdaq 100 futures dipped 0.13%.

U.S. senators reconvened Sunday to work toward the passage of a $1 trillion infrastructure bill, a top political priority of President Joe Biden. The Senate is slated to hold another key procedural vote late Sunday and vote on final passage Tuesday. The bipartisan package is expected to have sufficient Republican support to pass in the Senate and move to the House for consideration in September.

The moves in futures trading came after the Dow rose 144.26 points, or 0.4%, to close at an all-time high of 35,208.51. The S&P 500 rose 0.17% to reach its own record close of 4,436.52. The Nasdaq Composite bucked the trend, dipping 0.4% to 14,835.76. All three major indexes ended the week higher and saw their second positive week in three.

The Labor Department jobs report Friday showed the U.S. economy added 943,000 jobs in July. Economists expected 845,000 new jobs last month, according to Dow Jones estimates. The unemployment rate dropped to 5.4%, below the expectation of 5.7%.

“You saw a lot more jobs being created in those areas that are reopening — restaurants, hotels, logistics, transportation,” Raymond James Chief Investment Officer Larry Adam said. “That’s a good sign. I think that puts more spending power behind the consumer going forward and I think that that’s ultimately a good thing for the economy.”

The signs of a strong economic recovery could prompt the Federal Reserve to pull back its monetary support measures and prepare to begin tapering its bond-buying program.

“If it does continue to this magnitude, that probably does bring the Fed a little sooner into the game when it comes to tapering,” Adam said.

The yield on the benchmark 10-year Treasury note jumped as high as 1.3% after the better-than-expected jobs report. The 10-year yield this summer has pulled back significantly from its highs in March, when it neared 1.8%.

The financial sector led gains Friday as rates edged up, increasing banks’ profitability prospects. Industrials, retailers and energy stocks also moved higher as the strong jobs report eased concerns about the economic recovery.

Meanwhile, technology stocks retreated after the jump in rates. Rising rates discount the value of future earnings and therefore can hit growth stocks like technology names particularly hard.

Investors are awaiting key inflation data scheduled for release this week. The consumer price index and the producer price index are scheduled to come out Wednesday and Thursday, respectively.

Several Fed officials are scheduled for speaking appearances in the week ahead, with investors listening with a close ear for insights into the central bank’s tapering decision making. Atlanta Fed President Raphael Bostic, Richmond Fed President Thomas Barkin, Chicago Fed President Charles Evans and Kansas City Fed President Esther George are all set to speak this week.

Companies including Tyson Foods, AMC Entertainment, Coinbase, Lordstown Motors, Bumble, Palantir, Disney, Airbnb and DoorDash are set to report quarterly earnings this week.

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One other provincial capital, Taliqan, falls to the insurgents on Sunday.

Taliban fighters captured another northern provincial capital on Sunday afternoon, local officials said, marking the third city to fall to the insurgent group in a single day.

The fighters had been contained at the gates of Taliqan, the capital of Takhar Province, since June. But as the Kunduz city center fell to the Taliban on Sunday, the insurgents moved into Taliqan, just a few miles away, pushing back government forces there in a bout of vicious fighting.

By sunset, the Taliban had seized the police headquarters and the provincial governor’s office, said an Afghan official who spoke on the condition of anonymity to discuss the developing situation.

Keramatullah Rustaqi, a Takhar provincial council member, said that the city had fallen to the Taliban and that “security forces left Taliqan to retreat to Farkhar,” a neighboring district.

Mr. Rustaqi added that government forces were ambushed along the way.

Taliqan, an ethnically diverse city with Uzbek, Tajik, Pashtun and Hazara residents, is symbolic to many in the north, and like Kunduz it borders Tajikistan. The city was the operations center of Ahmad Shah Massoud, an anti-Taliban militia commander who was killed just before the Sept. 11 terrorist attacks in 2001.

“A large number of the Taliban came from Kunduz and the districts of Takhar to capture Taliqan city, and there is fighting in four directions,” said Karimullah Bek, a pro-government militia commander in Taliqan, a few hours before the city fell. “We need reinforcements.”

The exhaustion described by government militia members fighting in Taliqan is common among security forces across Afghanistan after months of trying to hold back the Taliban. In addition to Kunduz, the insurgents have in just three days seized three other provincial capitals: Sheberghan, the capital of Jowzjan Province; Zaranj, the capital of Nimruz Province on the Afghanistan-Iran border; and Sar-e-Pul, the capital of a northern province of the same name.

“The situation is chaotic, and the front lines are not clear now,” said Mohammed Omar, a district governor in Takhar who is leading militia fighters in Taliqan.

By Sunday afternoon the Taliban had freed hundreds of inmates from the prison in Taliqan after security forces there fled, said Wafiullah Rahmani, the head of the Takhar provincial council. Breaking into jails and prisons has long been a central part of the insurgent group’s military strategy.

The Taliban’s capture of Taliqan, is a significant blow to the militia forces that are once again rising to prominence in an echo of the 1990s, when an ethnically charged civil war tore Afghanistan apart and helped the Taliban come to power.

Mr. Massoud’s son is now trying to assemble a force much in the way that his father did after the Soviets invaded Afghanistan more than 40 years ago. But the rise of these militia forces has had uneven effects on the battlefield.

The Taliban’s recent gains have put them in a position to consolidate their fighters and strengthen an offensive on Mazar-i-Sharif, an important economic hub near the Uzbek border and the capital of Balkh Province.

And once more the Afghan government has been presented with a dilemma: battle to retake the cities they have lost, or focus on defending what cities and provinces remain.

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Saudi Aramco posts close to 300% leap in Q2 revenue on international demand restoration

The Saudi Aramco logo is pictured at the oil facility in Abqaiq, Saudi Arabia on October 12, 2019.

Maxim Shemetov | Reuters

Saudi state oil giant Aramco reported a staggering 288% increase in net income to $ 25.5 billion for the second quarter, while maintaining its dividend of $ 18.8 billion amid large oil prices from higher prices and a rebound benefit from global demand.

Aramco’s net income of $ 25.5 billion for the quarter compared to $ 6.6 billion in the same quarter of 2020. Earnings exceeded expectations, with analysts posting an average net income of $ 24.7 billion for the quarter expect.

“Our second quarter results reflect a strong recovery in global energy demand and we are moving into the second half of 2021 with more resilience and flexibility as the global recovery picks up,” said Amin Nasser, President and CEO of Aramco, in an am Corporate statement published on Sunday.

Aramco said net income for the first half was $ 47.2 billion, compared to $ 23.2 billion in the first half of 2020, an increase of 103%. The company said the results were supported by easing Covid-19 restrictions around the world, vaccination campaigns, stimulus measures and accelerating activities in key markets.

“Although the challenges posed by Covid-19 variants are still uncertain, we have shown that we can adapt quickly and effectively to changing market conditions,” said Nasser.

Dividend plans

Aramco said free cash flow was $ 22.6 billion for the second quarter and $ 40.9 billion for the first half of 2021, compared to $ 6.1 billion and $ 21.1 billion, respectively. Dollars in the same time periods in 2020.

This is significant because free cash flow has now risen above the $ 18.75 billion quarterly dividend for the first time since the pandemic began. Aramco already pays the world’s largest dividend, but the improving outlook has led some analysts to call for higher payouts.

“A dividend hike is needed to stay competitive,” BofA analysts said in a research note ahead of the results. “Higher oil prices and OPEC + -driven production increases should support a significant increase in free cash flow over the next few years,” she added.

Aramco responded that its dividend would remain at “normal levels” for the quarter but would “advise” later on whether to stick to its current payout schedule.

“We’re looking at our sustainability program,” Nasser told CNBC on Sunday’s conference call. “Many of the elements of our capital program that we are currently considering have to do with crude oil-to-chemistry and hydrogen, and all of these programs offer great opportunities, particularly with the Shareek program,” he added.

Aramco, which is majority owned by the Saudi Arabian government, is an important source of income for the kingdom. “All of this will be reviewed with our board of directors and we will decide on an additional dividend payment at a later date,” said Nasser.

Price outlook

Oil prices soared around 40% to around $ 70 a barrel in 2021, prompting major oil rivals BP, Chevron and Royal Dutch Shell to raise dividends and launch share buyback programs.

“We assume that the recovery will continue,” said Nasser. “We’re seeing more economies opening and we expect demand to be around 99 million barrels by the end of the year … and 100 million barrels next year as a forecast for aggregate demand,” he added.

Amin Nasser, CEO of Saudi Aramco, gesticulates during a panel meeting on the third day of the World Economic Forum (WEF) in Davos, Switzerland, on Thursday, January 23, 2020.

Jason Alden | Bloomberg | Getty Images

Aramco also said it lowered its gearing ratio – essentially how much the company is debt-financed to equity – to 19.4% on June 30, down from 23% on December 31, 2020. The decrease was mainly due to higher cash and cash equivalents and stronger operating cash flows and proceeds related to Aramco’s most recent crude oil pipeline transaction.

“Our historic $ 12.4 billion pipeline deal was an endorsement of our long-term business strategy from international investors and represents a significant advance in our portfolio optimization program,” said Nasser.

Capital expenditures were $ 7.5 billion for the second quarter and $ 15.7 billion for the first half of 2021, up 20% and 15% respectively. Capital expenditures are expected to be around $ 35 billion in 2021, according to Aramco.

Saudi Arabia’s Crown Prince Mohammed bin Salman said the kingdom would sell more Aramco shares earlier this year, but the company made no comment on the plans. Aramco also briefly stopped commenting on a previously announced oil-to-chemicals deal with Indian conglomerate Reliance Industries, which is expected to be formalized later this year.

“We are advancing a number of strategic programs that focus on sustainability and low carbon fuels, maximizing the value of our assets and driving our downstream integration and expansion,” added Nasser.

“For all of these and other reasons, I am very positive about the second half of 2021 and beyond.”

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Two Belarus Coaches Expelled From Tokyo Olympics

TOKYO — Two coaches involved in the attempt to force an Olympic athlete home to Belarus against her will have been stripped of their credentials and expelled from the Olympic Village, Games organizers said Friday.

The case of the 200-meter specialist Kristina Timanovskaya, 24, briefly turned the Tokyo Games into the center of a major diplomatic conflict when Timanovskaya sought sanctuary from the police at Narita International Airport. Timanovskaya, who is now in Poland, said she had been “kidnapped” after writing an Instagram post criticizing the Belarusian athletic federation’s preparations for the Olympics.

The International Olympic Committee had come under pressure over the slow progress of its investigation into the matter until, on Friday, the organization announced in a Twitter post that it had asked the coaches, Artur Shimak and Yuri Moisevich, to leave the Olympic Games. “They will be offered an opportunity to be heard,” the post said, noting that the investigation was continuing.

Timanovskaya complained in her video that her coaches had registered her for an event she hadn’t trained for, the 4×400-meter relay, because they had failed to conduct enough antidoping tests on other athletes.

In an interview with The New York Times this week, Timanovskaya named Moisevich, the head coach of the Belarusian national team, and Shimak, the deputy director of the Belarusian Republican Track and Field Training Center, as central players in the attempt to remove her from Tokyo.

She said the two men had come to her room at the Olympic Village to persuade her to recant the complaints she had made in her Instagram post and to go home. The order, they said, came from higher-ranking officials.

“Put aside your pride,” Moisevich can be heard saying on a partial recording Timanovskaya made of the conversation. “Your pride will tell you: ‘Don’t do it. You’ve got to be kidding.’ And it will start pulling you into the devil’s vortex and twisting you.”

He adds, “That’s how suicide cases end up, unfortunately.”

Timanovskaya can be heard crying on the tape. At other times she sounds defiant, refusing to believe that if she were to acquiesce and return home, she would be able to continue her athletic career.

The chairman of the Belarus Olympic committee is the eldest son of Aleksandr G. Lukashenko, the strongman leader who has held power in the country for 27 years. He has long sought to stifle any dissent, through measures including a brutal crackdown that began a year ago after a disputed presidential election. Targets of the crackdown also included a number of athletes, leading to the I.O.C.’s decision in December to bar the Lukashenkos from attending the Tokyo Games.