Apple re-closes some stores, raising economic concerns

Apple's Friday decision to close stores in four states with surging coronavirus cases highlights a question that other businesses may soon face: Stay open or prepare for more shutdowns?

Apple, like many other major U.S. retailers, shut down all of its U.S. locations in March. On Friday, it said it would shut 11 stores, seven in Arizona, two in Florida, two in North Carolina and one in South Carolina, that it had reopened just a few weeks ago.

The move heightens concerns that the pandemic might keep the economy in the doldrums longer than expected. Those worries sent stocks on Wall Street lower. It's not clear whether other retailers will follow en masse, although one analyst expects hard-hit stores to stay open unless forced to close by local authorities.

Many other businesses, including manufacturing, travel, dining, and entertainment, have been steadily reopening where they can while taking health precautions. But some have recently pulled back or paused their plans. The Cruise Lines International Association, for instance, announced Friday that ships will not be sailing from U.S. ports until at least Sept. 15, extending a pause put in place because of the coronavirus pandemic.

The auto industry, meanwhile, has seen its efforts to restart production hampered in part by infected workers.

Because U.S. efforts to contain the pandemic haven't been particularly successful, the situation “could ultimately lead to a need for more prolonged shut-downs” that would reduce consumer spending and cost jobs, said Eric Rosengren, president of the Federal Reserve Bank of Boston. In public remarks Friday, Rosengren said he expected the economic rebound this year would be less than what was initially hoped for at the pandemic's outset, and that the unemployment rate would remain in double-digits.

States such as Utah and Oregon...