Morning Brief

What to watch today: Dow set to drop following a strong week


Dow futures were pointing to a decline at Monday's open after the Dow Jones Industrial Average logged back-to-back gains. Investors on Friday overlooked the worst jobs report since the post-World War II era and continued to bet on states starting to reopen their economies in a coronavirus world. (CNBC)

The real standout was the Nasdaq, which advanced in all five sessions last week and broke a two-week losing streak as tech stocks powered higher. The Dow, which was up four out of the past five sessions, also snapped a two-week losing streak. (CNBC)

Shares of California-based Quidel were soaring 17% in Monday's premarket after the diagnostic solutions maker was granted the first emergency use authorization from the FDA for a so-called antigen test for the coronavirus. This type of test can provide results in minutes. (CNBC)

Under Armour shares were falling about 4% in the premarket after the athletic apparel maker reported a sales decline of 23% during the first quarter, as its business took a blow from the coronavirus pandemic and its stores were forced shut, freezing its turnaround plans. (CNBC)


Tesla (TSLA) has started the process to resume production at its Fremont auto factory in California as CEO Elon Musk escalated his dispute with local authorities over a shelter-in-place order that's kept the plant idle during the coronavirus pandemic. On Saturday, in a series of scathing tweets, Musk threatened to pull Tesla out of California. (CNBC)

Tesla filed a federal lawsuit against Alameda County, where the electric car maker's Fremont factory is located, asserting that county rules contradict state policy on business closures. Last week, Gov. Gavin Newsom laid out a "four-stage" reopening framework, which also gave counties the discretion to keep "more restrictive measures in place." (CNBC)

Richard Branson is preparing to sell up to $504.5 million of his stake in space tourism company Virgin Galactic (SPCE), according to company filings on Monday. "Virgin intends to use any proceeds to support its portfolio of global leisure, holiday and travel businesses that have been affected by the unprecedented impact of COVID-19," Virgin Group said. (CNBC)

Apple (AAPL) plans to begin reopening U.S. stores this week, starting with locations in Idaho, South Carolina, Alabama and Alaska. The stores will have temperature checks and will limit the number of people inside at one time. Apple's stores outside of China have been closed since the middle of March. (CNBC)

Theme park operators around the world are watching to see how Monday's reopening of Shanghai Disneyland with coronavirus controls plays out in the coming days and weeks. Shanghai Disneyland and Disney's (DIS) park in Hong Kong closed in late January. Tokyo Disneyland closed in February, with parks in the U.S. and Europe following suit a month later. (AP)

The difficulty in trying to reopen economies without sparking new coronavirus outbreaks was highlighted as concern grew in South Korea about a spike in infections that spread through reopened nightclubs. Authorities in South Korea are trying to track thousands of people who visited a popular Seoul entertainment district in recent weeks. (CNBC)

Vice President Mike Pence will distance himself from others for the next couple days after his press secretary tested positive for coronavirus, a senior official told NBC News on Sunday. The official said Pence's precautions did not amount to self isolation because there are no restrictions on his schedule.

White House health advisor Dr. Anthony Fauci will follow a "modified" quarantine after "low-risk" exposure to a White House aide who tested positive for coronavirus, an administration official told NBC News. Fauci was still planning to attend in-person Tuesday's Senate hearing on reopening the American economy.

Democratic New York Gov. Andrew Cuomo said Sunday the number of new daily Covid-19 hospitalizations had returned to the level it was when he issued a statewide closure of nonessential businesses nearly two months ago. New York has amassed the most total infections in the U.S., which overall tops 1.3 million. (CNBC)

STOCKS TO WATCH (AMZN) is mulling a possible purchase of movie theater operator AMC Entertainment (AMC), according to a report published by the UK's Mail newspaper. The report said it is not clear whether talks between the parties are still going on.

Cosmetics maker Coty (COTY) on Monday said it had agreed to sell a majority stake in its professional beauty and retail hair businesses, including Wella and Clairol brands, to investment firm KKR in a deal valued at $4.3 billion.

Cardinal Health (CAH), the drug distributor, reported quarterly earnings of $1.62 per share, beating the consensus estimate of $1.43 a share. Revenue also beat forecasts. Its businesses reported increased volume related to the Covid-19 pandemic, but it does expect a significant net negative impact to current-quarter results.

Marriott (MAR) earned 26 cents per share for the first quarter, well below the consensus estimate of 80 cents a share. Revenue topped estimates. Marriott said business was improving in greater China, and stabilizing in the rest of the world although at extremely low levels.

AutoNation (AN), the car dealer giant, posted better-than-expected revenue for its latest quarter, even as it took $315 million in non-cash impairment charges due to the pandemic. AutoNation said sales strengthened during the final 10 days of April.

United Airlines (UAL) decided not to proceed with a $2.25 billion debt offering, without giving a reason. The airline had planned to use the proceeds to pay off a $2 billion loan that it had taken in March.

Sony (SNE) suspended its mainland China PlayStation online store, saying the temporary shutdown was for a system security upgrade. It did not specify how long the suspension would last.

Chesapeake Energy (CHK) is advancing $25 million in incentive pay to its executives, ahead of a planned bankruptcy filing. The energy producer said in a regulatory filing that traditional metrics would not be effective in "incentivizing the company's workforce."

Intel (INTC) and Taiwan Semiconductor (TSM) are in talks with the Trump administration about building new chip factories in the U.S., according to The Wall Street Journal, as concerns grow about the reliability of Asia-based supply chains.

Pfizer (PFE) said it is in talks with contractors to outsource more drug production, to allow it to focus on producing its experimental vaccine for Covid-19 should it prove safe and effective.

Potbelly (PBPB) said it could not meet a May 8 deadline to file its quarterly report, due to the closure of the sandwich chain's headquarters and staff cuts. It said it should be able to file the report no later than June 22.

Chipotle Mexican Grill (CMG) secured a new $600 million revolving credit line, according to a Securities and Exchange Commission filing. The restaurant chain had $909 million in liquidity and no debt as of March 31.

Waste Management (WM), the nation's largest trash hauler, is seeking higher fees for home trash pickup, due to a surge in volume following the implementation of lockdowns that are keeping people at home. CFO Devina Rankin told The Wall Street Journal that home residential trash volume has increased by 15% to 25% since the lockdown began.


CNBC's Make It looked at 13 ways the coronavirus pandemic could forever change the way Americans work, including more work from home; most meetings could be replaced by email or instant messaging; and business travel could be significantly curtailed.