Dow futures were pointing to an over 200 point decline at Friday's open, with bank stocks lower after the Federal Reserve's annual stress test results and Dow-stock Nike under pressure after delivering an unexpected quarterly loss and a sharp sales decline. The Dow Jones Industrial Average on Thursday closed nearly 300 points higher in a volatile session, one day after plunging more than 700 points.
Late Thursday, the Fed imposed limits on dividend payments and suspended share buybacks at major U.S. banks after its annual banking industry stress test found several institutions could get uncomfortably close to minimum capital levels in scenarios tied to the coronavirus pandemic.
Nike, often lauded as one of the strongest global brands in the retail industry, reported late Thursday a surprise fiscal fourth-quarter loss of 51 cent per share and a 38% year-over-year revenue decline. Online sales, which represent nearly a third of total revenue, surged 75%, but that was not enough to make up for the temporary coronavirus-closures of its stores.
In a bright spot, shares of Gap, down over 40% this year as of Thursday's close, were soaring about 15% in Friday's premarket trading after the struggling retailer entered into a "multi-year partnership" with rapper and fashion designer Kanye West to create a Yeezy line of clothing. German sportswear giant Adidas also partners with West, selling a Yeezy line of footwear.
New daily Covid-19 infections are spiking in more than 31 states, including Texas and Florida, which paused their reopening plans. Twelve states hit record highs in new cases on Wednesday based on their seven-day average, according to a CNBC analysis of Johns Hopkins University data.
As total cases in the U.S. surged past 2.4 million, the Centers for Disease Control and Prevention said the true number of American cases could be 10 times higher. With many more young adults getting the virus, the CDC now advises that people of any age with certain underlying medical conditions, not just those over 65, are at increased risk for severe illness.
Even with skyrocketing case numbers, President Donald Trump remains adamant that the coronavirus situation remains under control. In a tweet around midnight, Trump said the U.S. economy is "roaring back" and won't be shut down again.
The Trump administration, despite the pandemic, is asking the Supreme Court to strike down Obamacare, arguing the health insurance mandate in the 2010 law is unconstitutional. Presumptive Democratic presidential nominee Joe Biden, who was vice president when Obamacare was signed, has said he would protect and enhance the program if elected.
The CEOs of major U.S. airlines are set to hold a meeting Friday with Vice President Mike Pence and other senior U.S. officials in Washington. The carriers have been pushing the Trump administration to require coronavirus temperature checks for passengers to reassure customers about the safety of air travel. On Thursday, unions representing tens of thousands of airline employees asked lawmakers for $32 billion in additional government aid to maintain their jobs through the end of March. The pandemic and the mitigation efforts have decimated the airline industry.
Shares of Ford, down more than 30% this year, were higher in Friday's premarket after the struggling automaker unveiled its new F-150 pickup. The 2021 version of the wildly popular truck is packed with tech features, including hands-free driving and an integrated power generator. The new pickup, available in traditional and hybrid models, is scheduled to begin arriving in dealerships this fall. Thursday night's launch for the 2021 F-150 comes as Ford works through an $11 billion restructuring plan and a pivot to emerging automotive technologies such as all-electric and autonomous vehicles.
— Reuters and NBC News contributed to this report. Follow all the developments on Wall Street in real-time with CNBC's live markets blog. Get the latest on the pandemic with our coronavirus blog.