Morning Brief

What to watch today: Dow set to surge as rates of deaths and new infections slow in Europe

BY THE NUMBERS

Dow futures pointed to a jump at Monday's open as improved coronavirus data in Europe offered hope for the United States. Hints that Saudi Arabia and Russia might be close to an oil production cut deal are also helping stocks. On Friday, the Dow dropped more than 360 points, capping its third negative week in four and pushing blue chips down 28.8% from their February all-time highs. (CNBC)

NYSE-legend Art Cashin gives his first comments on the coronavirus sell-off and when we recover (CNBC)

This morning, JPMorgan Chase CEO Jamie Dimon, who is recovering from heart surgery, released his widely read annual letter. "We have the resources to emerge from this crisis as a stronger country," Dimon wrote. But he also warned of "a
bad recession combined with some kind of financial stress similar to the global financial crisis of 2008." (CNBC)

Dimon: Under 'extremely adverse' scenario, JPMorgan might consider suspending dividend (CNBC)

IN THE NEWS TODAY

Heading into what the Trump administration has characterized as the toughest week yet in the fight against the coronavirus, U.S. cases surged to over 330,000, the most of any country in the world; in fact, nearly as many as the next three countries, Italy, Spain and Germany, combined, according to Johns Hopkins University data. There have been 9,653 deaths in the U.S.

Over a third of all infections and more than 40% of the deaths in America are in New York state, with New York City shouldering most of that burden. Over the weekend, Trump said 1,000 medical military personnel are deploying to New York City to help treat the overwhelming crush of coronavirus patients. Trump also expressed hope that U.S. cases may flatten soon. (CNBC)

'He's answered that question.' Trump interrupts when reporter asks Fauci about hydroxychloroquine (USA Today)

Global coronavirus cases increased to nearly 1.3 million with 70,355 deaths and almost 250,000 recoveries. While U.S. cases and deaths have yet to slow, Europe's hot spots are seeing signs of possibly leveling off, with Spain, Italy, Germany and France seeing death rates and new infections slowing down. Italy still has the most deaths in the world with 15,887, followed by Spain's 13,055 fatalities.

UK Prime Minister Boris Johnson hospitalized for tests over 'persistent' coronavirus symptoms (CNBC)

CVS Health said this morning it will be running two new drive-thru coronavirus testing locations and hopes to perform up to 1,000 tests a day. The sites are at Georgia Tech in Atlanta and at Twin River Casino near Providence, Rhode Island. They will use Abbott Laboratories' rapid COVID-19 test. (CNBC)

Apple is designing and producing face shields for medical workers, CEO Tim Cook said in a video released Sunday. Apple is aiming to produce 1 million face shields per week. Doctors across the country have said that a shortage of personal protective equipment. Cook also said Apple has donated 20 million N95 masks to organizations that need them. (CNBC)

Bank of America said Monday that it's seen fierce demand for emergency rescue loans with current applications already accounting for nearly 10% of the entire amount allocated by Congress. The bank confirmed that it has received applications from 177,000 small businesses for a total of $32.6 billion in financing (CNBC)

Wells Fargo caps its role in coronavirus rescue program at $10 billion (Reuters)'

STOCKS TO WATCH

Slack Technologies (WORK), a popular workplace messaging platform, announced a $600 million debt offering due in 2025, convertible into cash, stock, or a combination of both depending on the holder's preference.

Credit Suisse downgraded Zoom Video Communications (ZM) to underperform from neutral, saying the current share price reflects greater conversion to paid usage than will actually occur. The stock fell 11% premarket.

JetBlue (JBLU) is burning through $10 million per day due to the outbreak, according to CEO Robin Hayes. He told employees in a memo that only 7,000 customers per day are flying right now, as opposed to the typical 120,000.

Delta Air Lines (DAL) CEO Ed Bastian told employees the airline is preparing for a 90% revenue drop for the second quarter. Separately, Warren Buffett's Berkshire Hathaway (BRK.A) disclosed in an SEC filing that it had sold 18% of its shares in Delta as well as 4% of its holdings in Southwest Airlines (LUV).

United Airlines (UAL) and American Airlines (AAL) both announced further reductions in flights to the New York City area, one of the current hotspots in the COVID-19 outbreak.

Boeing (BA) is extending the suspension of its Washington State production operations, and declined to say when production might resume.

Kraft Heinz (KHC) is adding shifts at plants that make packaged foods such as macaroni and cheese, due to a spike in demand stemming from stay-at-home orders.

General Motors (GM) is seeking to extend maturities on $6 billion in revolving loans rather than refinance a $16.5 billion credit facility, according to a Reuters report.

Gilead Sciences (GILD) has increased production of its experimental coronavirus drug, remdesivir. Gilead is making the drug available through clinical trials and other special programs.

WATERCOOLER

Several cell towers in the U.K. have been set on fire and engineers harassed due to the spread of online conspiracy theories that link 5G technology with the coronavirus pandemic. Four of Vodafone's mobile phone masts were attacked in the last 24 hours. (CNBC)