Global stock prices fell on Monday, as tensions rose between the US and China over the blame for the origin of the coronavirus pandemic.
Recently, the Trump administration has stepped up assertions that the virus originated in a Wuhan laboratory, with Secretary of State, Mike Pompeo, citing “enormous evidence” to support this. The White House will release a “conclusive’’ report on the topic, according to Trump.
The origin debate looks to renew fears of a US-China trade war, just as countries around the world began easing their lockdown restrictions.
These developments look to weigh on Friday's losses, where stocks closed lower (SPY: -2.65%), just a day after the S&P 500 closed with its best monthly gains since 1987.
Ahead, earnings reports are expected today from; Tyson Foods (TSN), Shake Shack (SHAK), Skyworks Solutions (SWKS), Texas Roadhouse (TXRH), Cirrus Logic (CRUS) and Avis Budget Group (CAR).
TODAY'S TOP HEADLINES
Coronavirus: Florida Begins Reopening After Virus Lockdown. (The WSJ)
Florida is joining the US states and countries around the world starting to reopen, as the global number of confirmed cases crossed 3.5 million.
Today's Economical Announcements.
10:00AM - ★★☆ - Factory Orders (Mar) (Previous: 0.0%)
STOCKS IN THE SPOTLIGHT
Pre-Market Movers & News Related Stocks.
Berkshire Hathaway (BRKB): [NEWS] Berkshire sold its entire stake in the four largest US airlines; Delta (DAL), American (AAL), United (UAL), and Southwest (LUV). Chairman and CEO Warren Buffett said it could be years before airline passenger levels return to where they were prior to the Covid-19 outbreak. Berkshire also posted a record quarterly loss of nearly $50 billion, with the coronavirus having impacts ranging from minor to severe in Berkshire’s more than 90 business units.
Gilead Sciences (GILD): [NEWS] Received emergency Food and Drug Administration approval for use of its drug remdesivir to treat Covid-19 patients. That followed studies showing it shortened recovery time.
Walt Disney (DIS): [DOWNGRADE] Moffett Nathanson downgraded Disney shares to “neutral” from “buy,” pointing to economic pressures stemming from the Covid-19 outbreak.
Uber Technologies (UBER): [NEWS] Will have to face a lawsuit alleging that the ride-hailing service engaged in anticompetitive practices that drove rival Sidecar Technologies out of business. A judge ruled Sidecar’s allegations were “sufficiently plausible” to allow the suit to go forward.
ConocoPhillips (COP): [REVIEW] Goldman Sachs added the stock to its “Conviction Buy” list, saying it sees energy industry fundamentals bottoming and that the stock is attractively priced among other reasons.
Constellation Brands (STZ): [NEWS] Exercised warrants that raises the spirit maker’s stake in cannabis producer Canopy Growth (CGC) to 38.6%, saying it sees the long-term opportunity in the cannabis industry as substantial.
Intel (INTC): [NEWS] Is in advanced talks to buy Israeli app developer Moovit for $1 billion, according to the financial news website Calcalist. Moovit is the company behind a free public transit app that operates in 100 countries.
Comcast (CMCSA): [NEWS] Comcast’s NBCUniversal unit is weighing significant cost-cutting actions across its media and entertainment properties, according to a Wall Street Journal report.
Ford (F), General Motors (GM), Fiat Chrysler (FCAU): [NEWS] Automakers are on watch after AutoData reported that US auto sales came in at an annual rate of 8.6 million vehicles for April, compared to 16.52 million a year ago.
Hertz (HTZ): [NEWS] Has until today to either pay $500 million dollars or obtain a waiver, according to a report in the New York Post. If it fails to do so, the report said the car rental company would likely file for bankruptcy within a matter of days.
Big Lots (BIG): [UPGRADE] Telsey Advisory Group upgraded the discount retailer’s stock to “outperform” from “market perform,” citing confidence in the company’s strategic transformation plan as well as its solid financial position.
DECLINERS: WY, CAR, HP, INO, SEM, THC, TAP, CINF
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