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The number of confirmed cases of the coronavirus that causes COVID-19 rose past 6.5 million on Thursday, and California reported a rise in infections after weeks of slowing, raising concerns that the protests at the death of George Floyd, and the reopening of certain counties, are helping spread the illness.
California is one of 20 states that have seen an increase in COVID-19 cases in the last five days, according to data aggregated by Johns Hopkins University. Cities, including Los Angeles, have seen crowds gather to protest the death of the unarmed George, an African American, at the hands of a white police officer in Minnesota last week.
California now has 115,000 confirmed cases of COVID-19 and 4,374 people have died, the data show. The Golden State recorded more than 3,000 cases in a 24-hour period twice this week, according to The Mercury News.
At the same time, counties across the state have been pushing back on lockdown orders from Gov. Gavin Newsom and Californians have been heading back to beaches and parks.
UCLA Health issued a set of guidelines to advise anyone attending protests, including law enforcement agents and reporters, on the best ways to avoid infection, urging them to wear face masks covering their noses and mouths at all times and goggles to protect against tear gas and pepper spray. As the illness is mostly caused by droplets that are released when people cough, speak loudly or sing, UCLA is advising protesters to consider other ways to make their point.
Read now: Will the protests lead to a spike in coronavirus cases? That depends
“Examples include use of drums and other noise makers and carrying signs,” the guidelines say. “Consider the effect of contemplative, soulful, soft chanting as a dramatic way to protest in public.”
The guidelines remind protesters to maintain social distancing, use hand sanitizer frequently, self- quarantine when they return home and consider getting tested three to seven days after attending a protest. That effort may be complicated by the fact that some testing centers have been impacted by protests.
The guidelines also address the risks facing protesters who are arrested and held in close quarters in indoor settings, where the virus has more chance to spread. “Recent studies show as many as 80% of infected cases are asymptomatic, making close physical proximity to potentially infected individuals dangerous,” the guidelines say. And asymptomatically infected people are unaware of their contagiousness, “but nonetheless spread the virus.”
See:Some tech workers are slowly trickling back to the office this month
Latest tallies
There are now 6.5 million confirmed cases of COVID-19 worldwide, and at least 386,637 people have died, according to the Johns Hopkins data. At least 2.8 million people have recovered.
The U.S. has the highest case toll in the world at 1.85 million and the highest death toll at 107,235.
Brazil has 584,016 cases and 32,548 fatalities, after another record one-day death toll overnight, according to Health Ministry data. The nation recorded 1,349 confirmed deaths and another 28,633 confirmed cases. President Jair Bolsanaro has been widely criticized for repeatedly downplaying the risks of the virus, which he has dismissed as a small flu, as he pushes for states to reopen for business.
Russia has 440,538 cases and 5,376 fatalities.
The U.K. has 281,270 cases and 39,811 deaths, the highest death toll in Europe and second highest in the world after the U.S.
Early hot spot Spain has 240,326 cases and 27,128 deaths, while Italy has 233,836 cases and 33,601 deaths.
India has 218,437 cases and 6,104 deaths. France has 188,802 cases and 29,024 deaths, while Germany has 184,427 cases and 8,611 deaths.
Peru, Turkey, Iran, Chile, Mexico, Canada and Saudi Arabia and Pakistan are next, all ahead of China, where the illness was first reported late last year. China has 84,165 cases and 4,638 deaths.
What’s the latest medical news?
There was renewed controversy about the use of the antimalarial drug hydroxychloroquine as a treatment for COVID-19, after another clinical study found the drug is no more effective than a placebo.
The study, results of which were published Wednesday in the New England Journal of Medicine, is the first double-blind, randomized, placebo-controlled trial of the drug as a virus treatment. It has already been approved by the U.S. Food and Drug Administration for use in treating rheumatoid arthritis and lupus, and has received an FDA emergency use authorization for COVID-19.
The use of hydroxychloroquine to treat COVID-19 or prevent disease in high-risk individuals, like frontline health care workers or those deemed not at high risk, has been steeped in controversy, creating a seesaw effect as researchers and politicians debate its merits.
President Donald Trump has actively promoted the drug—including before it received an EUA—and recently told reporters that he was taking it.
Earlier this week, a negative study published in The Lancet that indicated hospitalized patients taking the drug were at higher risk of death was criticized for inaccuracies in the data. And on Wednesday the World Health Organization said it would resume testing hydroxychloroquine in a clinical trial for COVID-19 patients after investigating safety concerns.
Separately, health insurer Anthem Inc. US:ANTM said it would offer between a 10% and 50% one-time credit on monthly premiums to members as part of a total $2.5 billion financial assistance package during the pandemic. The move mimics action taken by car insurers, who have been giving customers refunds as stay-at-home orders limit driving.
Anthem also said it would expand an initiative to waive cost-sharing for telehealth through Sept. 30, and is offering dental providers a credit of $10 per patient per visit for personal protective equipment, among other initiatives. Like most health insurers, Anthem has reported a decline in members having elective medical procedures and office visits since lockdown orders went into place in mid-March.
Also Thursday, the Select Subcommittee on the Coronavirus Crisis, chaired by Rep. James E. Clyburn, are planning a video meeting with public-health experts at midday to discuss the impact of the virus on existing racial health disparities and the unequal burden of this public health crisis on communities of color.
People of color, including African Americans, Latinos and Native Americans, have been disproportionately affected by the illness.
What’s the economy saying?
Some 1.88 million Americans applied for traditional jobless benefits at the end of May and another 623,000 filed new claims under a federal-relief program, but the number of unemployed collecting government checks appears to have stabilized as more workers return to their jobs, as MarketWatch’s Jeffry Bartash reported.
Since peaking at almost 7 million in March, the numbers seeking jobless benefits have tapered off and fell by 249,000 in the seven days ended May 30 from the prior week’s total of 2.13 million, the Labor Department said Thursday.
A whopping 47 million applications for benefits have been filed since the coronavirus pandemic began several months ago, reflecting almost 30% of the labor force before the crisis.
Yet the number of pandemic-related claims is not reflective of how many people are actually receiving benefits. More people have been returning to work as states started to reopen their economies in May. A small number of claims have also been rejected and in some cases people filed more than once.
That’s why economists are focusing more on continuing jobless claims, one of six indicators used in Marketwatch’s Coronavirus Economic Recovery Tracker.
The numbers come ahead of the May jobs report on Friday, which is expected to show the jobless rate at 19% or higher. Few economists think the jobless rate will drop below 10% until next year in an indication of just how long they think it will take for the U.S. to recover.
A separate report from the Commerce Department showed the U.S. trade deficit widened to $49.4 billion in April from a revised $42.3 billion in the prior month. The wider trade gap masks a significant decline in trade flows from the pandemic.
Exports fell 20.5% to $151.3 billion in April, led by civilian aircraft, crude oil, and autos. Imports dropped 13% to $200.7 billion, led by passenger cars, semiconductors and consumer goods including pharmaceutical preparation and apparel.
For more, see: U.S. trade gap widens in April masking steep declines in both exports and imports
What are companies saying?
Amazon.com Inc. US:AMZN said it will lease 12 of Boeing Co.’ s US:BA 767 jets that have been converted to cargo from Air Transport Services Group Inc. US:ATSG. The planes join Amazon.com’s Amazon Air fleet of more than 80 cargo aircraft.
“Amazon continues to adapt to meet the changing needs of customers by investing in ways to provide fast, free delivery,” and Amazon Air “has played a central role during the COVID-19 pandemic,” Amazon said in a statement.
Th e-commerce giant likely got favorable terms on the deal, given the depressed state of aircraft values, said BofA analysts.
“With aircraft values possibly depressed for several years (after 9/11, aircraft values did not regain pre-crisis values until 2005), and cargo yields increasing, it is likely cost-effective for AMZN to expand its fleet this year,” BofA analysts wrote in a note. “Per a study by Depaul University, Amazon’s fleet of aircraft will likely expand to 200 aircraft in 7-8 years (a “conservative estimate”), so additional investment still likely.”
Elsewhere, companies continued to raise capital through equity, bond and convertible bond offerings and to offer updates on the reopening of stores, plants and offices.
Here are the latest things companies have said about COVID-19:
• Carpenter Technology Corp. US:CRS is cutting its salaried workforce by 20%, as part of actions made necessary by the business challenges created by the pandemic. The high-performance, alloy-based materials company expects to take a charge of $10 million in the fourth quarter as a result of the job cuts, but also expects the cuts to reduce costs by $30 million to $35 million a year. The company had 5,100 employees as of the fiscal year ended June 30, 2019. Among other actions, Carpenter is effecting temporary furloughs for certain production, maintenance and salaried employees; implementing a hiring freeze; deferring merit increases; and is exiting the Amega West oil and gas business and idling powder facilities in Rhode Island and West Virginia. The company is withdrawing its financial guidance for the current quarter, given limited visibility.
• Ciena Corp. US:CIEN reported fiscal second-quarter profit and revenue that rose above expectations, but the networking systems and software company’s stock pulled back after closing the previous session at an 18-year high. Revenue rose 3.4% to $894.1 million, topping the FactSet consensus of $880.4 million, with networking revenue rising 3.1% to $718.5 million to beat expectations of $698.6 million.
• Cloudera Inc. US:CLDR an enterprise software company, posted revenue guidance that fell short of the Wall Street consensus. “The business outlook is based on the assumption that the recessionary impact of the coronavirus pandemic (COVID-19) will peak in Cloudera’s second and third quarters of fiscal 2021 and moderate in the fourth quarter of our fiscal 2021,” the company said in a statement. “We executed extremely well in Q1, particularly as the pandemic was in full effect for more than half of our fiscal quarter,” said Rob Bearden, Cloudera chief executive.
• Sales at Costco Wholesale Corp. US:COST returned to growth in May, rising 7.5% to $12.6 billion. Online sales jumped 106% in the month, while same-store sales rose 5.4%. Costco last month reported that its April sales had fallen 1.8% as skyrocketing e-commerce sales — a rise of nearly 86% in April — failed to make up for a drop in foot traffic at its stores due to stay-at-home orders, social distancing restrictions and closures related to the pandemic.
• Eldorado Resorts Inc. US:ERI will resume operations at five Nevada casinos on Thursday. The Reno-based company will reopen Eldorado Resort Casino, Silver Legacy Resort Casino and Circus Circus Hotel Casino in Reno, MontBleu Resort Casino Spa in Lake Tahoe and Tropicana Laughlin. The company has now reopened 16 of its 23 casino entertainment facilities following the suspension of operations in March.
• Fitbit Inc. US:FIT has received emergency-use authorization for a “low-cost” emergency ventilator. The Fitbit Flow ventilator “builds on standard resuscitator bags, like those used by paramedics, with sophisticated instruments, sensors, and alarms that work together to support automated compressions and patient monitoring,” the company said. The devices are intended for health-care systems around the world that don’t have enough traditional commercial ventilators to meet their needs and that the ventilators are only intended to be used when traditional ones aren’t available.
• J.M. Smucker Co. US:SJM posted better-than-expected quarterly earnings but guidance that fell short of expectations. The food company benefited from demand related to COVID-19, and expects that to continue. “Looking ahead, we anticipate increased at-home consumption to continue during the beginning of our fiscal year 2021 – though at a more moderate rate as stock-up purchasing in the fourth quarter is not anticipated to reoccur, and significant declines for the away from home business are expected to persist throughout the year,” said CEI Mark Smucker. Smucker expects full-year fiscal 2021 sales to fall 1% to 2% year-over-year, and adjusted EPS of $7.90 to $8.30. The FactSet consensus is for sales of $7.75 billion, suggesting a decline of 1.1%, and EPS of $8.46.
• Arts and crafts retailer The Michaels Cos. US:MIK reported first-quarter earnings fell far short of estimates as stores were shuttered temporarily during the coronavirus pandemic. Irving, Texas-based Michaels swung to a loss, as same-store sales fell 27.6%, compared with a FactSet consensus for a decline of 7.4%. The company ended the quarter with cash of $926.8 million, due to actions including a drawdown of a revolving credit facility. “The company expects to have sufficient liquidity to fund planned capital expenditures, working capital requirements, debt service requirements and anticipated growth for the foreseeable future,” the company said.
• Navistar International Corp. US:NAV reported a narrower than expected loss while revenue fell less than forecast. Revenue fell 36% to $1.93 billion, due primarily to the impact of the pandemic, which resulted in lower volumes in the company’s core trucks and buses market, but was above the FactSet consensus of $1.90 billion. Truck sales fell 39% and parts sales declined 23%.
• Potbelly Corp. US:PBPB has seen an improvement in same-store sales in eight of the past nine weeks, as COVID-19-related restrictions have begun to ease. During that time, same-store sales have improved to a decline in the mid-20% range from a decline of 68%. In places where limited dine-in services have been allowed, such as in Texas and Phoenix, same-store sales declines have improved to the low single-digit percentage range. Separately, the company reduced its cash burn by 75% from the peak in early April, amid continued conversations with landlords regarding store closures and lease restructurings and other cash preservation actions.
• Royal Caribbean Cruises Ltd. US:RCL is offering up to $2 billion in senior notes and convertible bonds that mature in 2023 in two separate offerings. Proceeds of the deal will be used for general corporate purposes, which may include repaying debt, the cruise operator said in a statement. Cruise companies have been hit hard by the pandemic, which has forced them to temporarily halt all voyages.
• Sabre Corp. US:SABR, the travel services software and technology company, is cutting 800 jobs, as part of a strategic realignment of its airline and agency-focused businesses. The cuts are in addition to the previously announced cut of 400 jobs, through voluntary severance and early retirement programs. The company had 9,250 employees as of Dec. 31, 2019. Employee furloughs will end on or before July 6, and pay reductions that took effect in March and April will end by July 6. “This pandemic has caused major shifts in the travel ecosystem resulting in the changing needs of our airline, hotel and agency customers,” said Chief Executive Sean Menke. “We have taken this opportunity to accelerate the organizational changes we began in 2018 to address the changing travel landscape.” The company expects the business realignment to be substantially completed early in the third quarter.
• Smartsheet Inc.’s US:SMAR earnings fell short of expectations for first-quarter billings and it offered a weaker-than-anticipated outlook for the current period. Calculated billings for the fiscal first quarter rose to $89.9 million from $69.1 million, while analysts were expecting $94.1 million. For the fiscal second quarter, Smartsheet expects $86 million to $87 million in revenue and an adjusted net loss of 16 cents to 18 cents a share. Analysts surveyed by FactSet had modeled $88.2 million in revenue and a 14-cent adjusted loss per share. Smartsheet also expects $91 million to $93 million in fiscal second-quarter billings, while the FactSet consensus was for $104.2 million.
• Tuesday Morning Corp. US:TUES has obtained a commitment from a B. Riley Financial unit for $25 million of debtor-in-possession funding to support operations during chapter 11 bankruptcy. The Dallas-based home furnishings retailer said the funding is part of its $100 million DIP agreement with existing lenders. The company is seeking to restructure under chapter 11 after COVID-19-related store closures slammed its business.
• Zuora Inc. US:ZUO an online subscription billing and management platform, reported fiscal first-quarter results that exceeded Wall Street estimates. Revenue improved 15% to $73.9 million from $64.1 million a year ago.
Coronavirus Update: Senate Approves PPP Changes, China to Allow More Flights
