Morning Brief

What to watch today: Stock futures steady as Wall Street weighs rising coronavirus cases


Stock futures were relatively steady as concerns about rising coronavirus cases tempered Wall Street's enthusiasm. The major averages themselves are off in different directions: the Dow is on a three-day losing streak, the S&P 500 is down in two of the past three sessions, but the Nasdaq is riding a six-day winning streak. If the Nasdaq finishes positive, it would be its longest consecutive rise since increasing for 11-straight days last December. The Dow, S&P 500, and Nasdaq all ended the week higher last week, and all are up for the month of June.

Treasury yields retreat as coronavirus cases spike (CNBC)  

The National Association of Realtors will issue existing home sales for May at 10:00 a.m. ET, with consensus forecasts predicting an 8.8% decline following a 17.8% tumble in April.


Cases of the coronavirus continue to rise in states across the South, West and Midwest following the reopening of their economies. New cases in the U.S. eclipsed 30,000 on Friday and Saturday, the highest daily totals since May 1, according to Johns Hopkins University data. Increased testing contributes to some of the increases, but health officials are also warning that outbreaks are appearing among younger people who have returned to crowded bars and parties. (CNBC) 

South Korea says it is battling 'second wave' of coronavirus (Reuters) 

New York City enters the second phase of its coronavirus reopening today, a milestone for the city after it was hit hard by the Covid-19 outbreak. Restaurants can begin offering outdoor dining, retail stores can offer some on-premise shopping and companies can send workers back to the office. Barbershops and hair salons can reopen, with restrictions, as well. (AP) 

American Airlines (AAL) announced it will seek $3.5 billion in new financing as the coronavirus pandemic continues to challenge the travel industry. Shares of the Fort Worth, Texas-based company were down about 8% in premarket trading. American said Sunday it plans to sell $1.5 billion in stock and convertible notes, another $1.5 billion in senior secured notes, and will enter a new $500 million credit facility. (Reuters) 

A stand-off over the independence of one of the nations's most important federal prosecutor's offices ended, when Geoffrey Berman agreed to step down on Saturday as U.S. Attorney for the Southern District of New York. Berman's office had been investigating Trump's personal lawyer, Rudolph Giuliani. Attorney General William Barr said that Securities and Exchange Commission Chairman Jay Clayton had been chosen to replace Berman. (CNBC) 

U.S. banks have seen a record $2 trillion surge in deposits since January, a result of the government's response to the coronavirus pandemic and individual decisions to save more money. In April alone, deposits grew by $865 billion, more than the previous record for an entire year. (CNBC) 

NASCAR has opened an investigation into a noose that was found in the garage stall at Talladega of Bubba Wallace, who is the only full-time Black driver on its top racing circuit. "We are angry and outraged, and cannot state strongly enough how seriously we take this heinous act," NASCAR said in a statement Sunday. Earlier this month, Wallace successfully pushed NASCAR to ban Confederate flags at its races. (AP) 

Cup race at Talladega postponed to Monday because of thunderstorms (NBC Sports) 

Outdoor apparel brand Patagonia is pulling its advertising on Facebook until at least the end of July, making it the largest company thus far to join a boycott of the social media giant organized by a civil rights coalition that includes the NAACP. In a series of tweets, Patagonia said its decision was motivated by its belief that Facebook had "failed to take sufficient steps to stop the spread of hateful lies and dangerous propaganda on its platform." (CNN) 

Wirecard shares crash again after payments firm says missing $2 billion likely doesn't exist (CNBC) 

Apple's (AAPL) closely watched developers conference kicks off today — but it's gone virtual due to the pandemic. The company is expected to release demo updates to its software for the iPhone and its other products. (Washington Post) 


Virgin Galactic (SPCE) signed a deal with NASA to develop a recruitment and training program for private astronauts seeking to visit the International Space Station.

United Airlines (UAL) may launch a $5 billion debt sale this week, according to a Bloomberg report quoting people with knowledge of the matter.

Fiat Chrysler (FCAU) is close to winning Italian government approval for a $7 billion crisis loan, according to sources who spoke to Reuters.

FedEx (FDX) will take a $370 million non-cash impairment charge for the current quarter, mostly related to assets from its 2004 acquisition of Kinko's. FedEx said it was taking the charge due to "declining print revenue and temporary store closures".

Tesla (TSLA) set Sept. 15 as the new tentative date for its annual meeting, as well as its "Battery Day" event. Both had been previously scheduled to take place July 7, but were postponed due to the coronavirus pandemic.

China suspended imports of chicken from the Tyson Foods (TSN) plant in Springdale, Arkansas, saying it was taking the action because of coronavirus infections among plant workers. Tyson said it was looking into the matter, but added that it is confident its products are safe and that it was hopeful the matter could be resolved.

Foot Locker (FL) was downgraded to "neutral" from "buy" at B Riley FBR, which thinks the athletic footwear and apparel retailer is implementing more promotional activity than its peers.

Apollo Global Management's (APO) financially strapped Chuck E. Cheese restaurant chain is drawing interest from potential buyers, according to a report in The Wall Street Journal.


It's now been 103 days since the U.S.'s largest four sports leagues — MLB, NHL, NBA and NFL — held a game.  A number of college football teams also are experiencing outbreaks as players return to campus, sparking heightened fears that the fall season could be interrupted by the health crisis. (Axios)