US deaths top 7,000, Fauci warns about ‘knockout drug’

This is CNBC’s live blog covering all the latest news on the coronavirus outbreak. All times below are in Eastern time. This blog will be updated throughout the day as the news breaks.

  • Global cases: More than 1,088,878
  • Global deaths: At least 58,773
  • US cases: At least 270,473
  • US deaths: At least 7,077

The data above was compiled by Johns Hopkins University.

6:21 pm: Coronavirus could cause $1 billion loss for NBA, NHL and MLB broadcasters, ad firm says

The coronavirus pandemic could cause roughly $1 billion in lost advertising for broadcasters of the top three U.S. pro sports leagues, according to ad firm MediaRadar.

The advertising information company released its findings showing how the virus would affect ad spend for the sports industry. The analysis found that combined, the National Basketball Association, National Hockey League and Major League Baseball would generate roughly $1 billion for broadcasters.

And that number could significantly increase if the National Football League experiences any delays due to coronavirus. The NFL’s season isn’t scheduled to start until September. —Jabari Young

6:16 pm: Updated map of US cases, which now total 270,473

6:09 pm: Next coronavirus relief bill should make health care a priority, McConnell says

Senate Majority Leader Mitch McConnell said that health care must be at the “top of the list” in the next coronavirus rescue package.

In an interview with The Associated Press, the Republican leader said Congress should focus on correcting any shortcomings in the just-passed $2.2 trillion aid bill and rely on health care experts for solutions to “wipe out” the virus.

“There will be a next measure,” McConnell said about what would be the fourth coronavirus aid bill from Congress.

The Kentucky Republican said the next package “should be more a targeted response to what we got wrong and what we didn’t do enough for — and at the top of the list there would have to be the health care part of it.” —Associated Press

6:02 pm: Treasury makes coronavirus loan terms less favorable for small businesses

The Treasury Department changed the terms on some loans it’s offering to small businesses during the coronavirus pandemic, making them less favorable for borrowers, experts say.

The loans at issue are being made through the Paycheck Protection Program, which offers up to $10 million in forgivable loans to businesses with 500 or fewer employees.

The program, which officially opened for many borrowers on Friday morning, will dole out up to $349 billion to ailing small businesses to help cover costs like payroll, rent and utilities. The loans are made through lenders approved by the Small Business Administration and other institutions. —Greg Iacurci

5:45 pm: CDC recommends cloth face covering to protect against coronavirus, Trump says

President Donald Trump said the Centers for Disease Control recommends using a cloth face covering to protect against coronavirus, but said he does not plan to do so himself.

Trump stressed that the recommendations were “voluntary.”

The CDC’s website explained that the guidance was updated following new studies that some infected people can transmit the coronavirus even without displaying symptoms of the disease.

“In light of this new evidence, CDC recommends wearing cloth face coverings in public settings where other social distancing measures are difficult to maintain,” such as in grocery stores or pharmacies, “especially in areas of significant community-based transmission,” the CDC says. —Christina Wilkie

5:25 pm: Ace Hardware ramps up hiring as pandemic, spring season leads to more demand

Ace Hardware plans to hire more than 30,000 employees as they see more demand for home repair items and cleaning products during the coronavirus pandemic. The Illinois-based hardware cooperative is hiring full-time, part-time and seasonal employees at its more than 4,300 stores across the U.S. Home improvement retailers, including Ace Hardware, usually do seasonal hiring in the spring.

It’s the busiest season for the stores as people take advantage of warmer weather to garden or do home projects. This year, customers are turning to the stores during the pandemic, too, to get cleaning supplies or items for home maintenance and repairs as they stay indoors. Lowe’s, which also said it’s seen more business, and Home Depot are also looking to fill thousands of jobs. —Melissa Repko

5 pm: Auto retailers furlough workers

AutoNation, the nation’s largest U.S. auto dealership chain, is placing 7,000 employees on unpaid leave, slashing executive pay and postponing more than $50 million of capital spending as its year-over-year sales declined by about 50% last month, according to a Friday filing with the U.S. Securities and Exchange Commission.

The company, as automakers did earlier in the week, cited “shelter-in-place” or “stay-at-home” orders from federal, state, and local governments as reasons for the decline in sales.

J.D. Power earlier in the week forecast retail sales this month to decline by about 80% compared with April 2019 due to stay-at-home orders and COVID-19′s overall impact on the economy and consumer confidence. Retail sales do not include sales to fleet customers such as the government or businesses.

AutoNation’s actions follow similar cuts from other publicly traded auto retailers such as Penske Automotive Group and Group 1 Automotive. —Michael Wayland

4:45 pm: California secures 7,000 hotel rooms for the homeless

California Governor Gavin Newsom

Agustin Paullier | AFP | Getty Images

California has secured 7,000 rooms and hopes to reserve as many as 15,000 to house homeless people as the state fights the COVID-19 coronavirus outbreak.

A total of 869 people have moved in so far, Gov. Gavin Newsom said. “Homelessness is a crisis that predates the current crisis. We’re doing everything we can to meet it head-on,” he said. The project, called “Room Key,” will be partially funded by FEMA, which will reimburse cities and counties for 75% of the costs, according to Newsom.

Newsom’s announcement comes a day after San Francisco reported its first COVID-19 case in a homeless shelter. —Kif Leswing

4:30 pm: Mexico stops brewing Corona beer, deemed non-essential in epidemic

Mexico’s Grupo Modelo said on Thursday it will temporarily stop brewing Corona beer and other brands exported to 180 countries after its business activities were declared non-essential under a government order aimed at curbing the spread of the coronavirus.

The Mexican government this week declared a health emergency and ordered the suspension of non-essential activities after the number of coronavirus cases in the country surpassed 1,000. On Thursday, it reported 1,510 cases and 50 deaths. —Reuters

4:20 pm: Economic damage rises as coronavirus hit worsens – here’s what to watch

The latest jobs report on Friday shone a light on the economic damage of the coronavirus crisis.

U.S. nonfarm payrolls dropped by 701,000 jobs in March, according to the Labor Department. This comes after data released Thursday that showed a record-breaking 6.6 million new jobless claims last week.

Five experts weigh in on the economic fallout. —Ivana Freitas

4:03 pm: Dow drops more than 300 points to close out another wild week on Wall Street

Stocks fell on Friday to end another volatile week of trading, pressured by a spike in coronavirus-related deaths in New York while investors digested a dismal U.S. jobs report.

The Dow Jones Industrial Average slid 357 points, or 1.7% in wild trading. The S&P 500 dropped 1.5%. The Nasdaq Composite also pulled back 1.5%. —Fred Imbert, Silvia Amaro, Thomas Franck

3:31 pm: Supreme Court postpones more oral arguments

The U.S. Supreme Court said it will postpone oral arguments scheduled for the last two weeks of April, and left open the possibility that some previously scheduled cases will not be heard at all before the end of the current term.

The court announced last month that cases set for late March and early April would be delayed as a health precaution, noting that the last time such a precaution had been taken was for the 1918 Spanish flu. Among the delayed cases were high-profile disputes of President Donald Trump’s financial records.

“The Court will consider rescheduling some cases from the March and April sessions before the end of the Term, if circumstances permit in light of public health and safety guidance at that time,” a spokesperson said in a statement. “The Court will consider a range of scheduling options and other alternatives if arguments cannot be held in the Courtroom before the end of the Term.”

The court will continue to decide cases for which it has already heard arguments, with opinions posted on its website. The Supreme Court term typically ends in June. —Tucker Higgins

3:24 pm: Field hospitals go up around the world

An emergency field hospital is being constructed in Central Park in New York City, United States on March 30, 2020.

Lokman Vural | Elibol | Anadolu Agency | Getty Images

Healthcare systems in countries around the world have been overwhelmed fighting the pandemic, forcing governments to build temporary field hospitals to help deal with the growing numbers of their infected population.

In Wuhan, China where the coronavirus first originated, two massive emergency hospitals were built in just 10 days. In New York, the epicenter of cases in the U.S., field hospitals have now been set up in the Jacob K. Javits Convention Center and Central Park, and the USTA Billie Jean King National Tennis Center has been converted into a 350-bed hospital.

Here are photos of field hospitals around the world. —Adam Jeffery

3:12 pm: Pentagon adjusts screening process for care on hospital ship in New York

The Pentagon announced it will modify the screening process for people to receive care on the hospital ship USNS Comfort in order to reduce the backlog of patients at New York hospitals.

The screening effort will now occur pier-side and will no longer require a patient to test negative for the coronavirus.

“Each patient will still be screened by temperature and a short questionnaire,” the Pentagon said. “This assistance will further unburden the local hospital and ambulance systems in these areas, allowing them to focus on the more serious COVID-19 cases.”

On Thursday, the captains of the U.S. Navy’s two hospital ships said that the vessels have treated fewer than 20 patients since deploying to New York and Los Angeles. —Amanda Macias

2:49 pm: Disney sets new dates for ‘Mulan,’ ‘Black Widow,’ ‘Jungle Cruise’ and more

Disney is making drastic changes to its 2020 movie slate in the wake of the outbreak.

The company revealed a number of films would be shifted to later dates on the calendar this year and into 2021 and 2022. Other films would be pushed to Disney+ or were not given a new release date as of yet.

Here’s Disney’s new slate. —Sarah Whitten

2:42 pm: Anyone near Trump or Pence will be given rapid coronavirus test-White House

With the coronavirus contagion spreading, the White House said anyone expected to be near President Donald Trump or Vice President Mike Pence will be given a rapid COVID-19 test.

“As the physician to the president and White House Operations continue to protect the health and safety of the president and vice president, starting today anyone who is expected to be in close proximity to either of them will be administered a COVID-19 test to evaluate for pre-symptomatic or asymptomatic carriers status to limit inadvertent transmission,” said White House spokesman Judd Deere. —Reuters

2:35 pm: Etsy calls on sellers to make masks and face covers

E-commerce website Etsy is calling on its existing sellers to make masks and face covers amid growing demand during the coronavirus pandemic.

“We’re experiencing unprecedented demand,” Etsy said in an app notification sent to sellers. “You can make a difference.”

The company offered guidelines on how to list face covers and masks on the online marketplace, including warnings against making health or medical claims about the items and against reselling commercially made products. The company also offered suggestions for how to match descriptions of the products with what shoppers are searching for. —Sarah Whitten

2:22 pm: Bank of America says 58,000 small businesses have asked for $6 billion in loans since 9 a.m.

2:16 pm: Loan program delayed for independent contractors and self-employed workers

2:01 pm: Trump compelled companies to make critical supplies, but most of them were already doing it

President Donald Trump, after much reluctance, has used the powers of the Defense Production Act to compel companies to manufacture items in short supply that would aid in the U.S. response to the deadly coronavirus.

The bulk of the companies assisting with emergency supply production were compelled to do so on Thursday, more than two weeks after Trump signed the executive order triggering the Korean War-era law. In a statement, the president said his order would “more fully ensure that domestic manufacturers can produce ventilators needed to save American lives.”

“My order to the Secretary of Health and Human Services and the Secretary of Homeland Security will help domestic manufacturers like General Electric, Hill-Rom, Medtronic, ResMed, Royal Philips, and Vyaire Medical secure the supplies they need to build ventilators needed to defeat the virus,” the statement continued.

Many of them had already ramped up production. —Yelena Dzhanova

1:55 pm: Airlines ordered to give refunds — not just vouchers — when flights are axed amid coronavirus

A worker walks through a baggage claim area at a nearly-empty O’Hare International Airport on April 2, 2020 in Chicago, Illinois.

Scott Olson | Getty Images

The Department of Transportation said that airlines must give customers refunds when flights are canceled or significantly delayed amid coronavirus.

The agency said it has received an increasing number of complaints from airline customers who said they were denied refunds for canceled or significantly delayed flights and instead given vouchers to use for travel at a later date.

“In recognition of the fact that the COVID-19 public health emergency has had major impacts on the airline industry, the Aviation Enforcement Office will exercise its prosecutorial discretion and provide carriers an opportunity to become compliant before taking further action,” the agency said. —Leslie Josephs

1:44 pm: Dow drops 500 points as sell-off accelerates to end a wild week

1:11 pm: Coronavirus pandemic economic fallout ‘way worse than the global financial crisis,’ IMF chief says

The coronavirus pandemic has created an economic crisis “like no other,” the top International Monetary Fund official said.

“Never in the history of the IMF have we witnessed the world economy come to a standstill,” said IMF managing director Kristalina Georgieva.

“This is in my lifetime humanity’s darkest hour, a big threat to the whole world, and it requires for us to stand united, be united,” Georgieva said during a World Health Organization press conference.

“It is way worse than the global financial crisis” of 2008-09, she said. “This is a crisis like no other.” —Dan Mangan

12:55 pm: WHO says countries that rush to containment risk ‘more severe and prolonged’ damage to economy

Countries that rush to lift quarantine restrictions risk an “even more severe and prolonged” economic downturn and a resurgence in COVID-19 cases, World Health Organization Director-General Tedros Adhanom Ghebreyesus warned.

“We are all aware of the profound social and economic consequences of the pandemic,” Tedros said during a briefing at the agency’s headquarters in Geneva. “Ultimately the best way for countries to end restrictions and ease their economic effects is to attack the virus.” —Berkeley Lovelace Jr.

12:46 pm: Forced off the campaign trail by coronavirus, House candidates reach more voters than ever

The coronavirus pandemic has changed almost everything about American life. Businesses are closed, people are home, and, for millions, the economic devastation has been life-altering.

For those running for the House of Representatives, the crisis poses unique problems. Campaigning is a handshake, kiss-the-baby business, and so is its lifeblood — fundraising. You can’t get out the vote if you can’t get out.

But interviews with candidates, strategists and fundraisers in recent days suggest that contenders in both parties are adjusting to the downturn with early signs of success. There are worries that the money will dry up, but it hasn’t yet. Voters, cooped up at home and worried about the future, are tuning in.

“What we are learning is that people are looking forward to distraction right now,” said Mike Garcia, a California Republican who is running in a special election for the House seat vacated by former Rep. Katie Hill. “People are paying attention.” —Tucker Higgins

12:27 pm: Detroit automakers creating new ‘arsenal of health’

Ford Motor employee Pat Tucker is among the autoworkers assisting the Detroit automakers in creating a new “arsenal of health” to assist health-care workers during the coronavirus pandemic.

The 55-year-old grandmother has been working 12-hour shifts every day for nearly two weeks to build much-needed medical face shields at a Ford subsidiary facility in Plymouth, Michigan.

“I want to help end this. I want to be here to watch my grandchildren grow up and graduate and get married, and I want them to be able to grow up,” she told CNBC Thursday night. “I enjoy helping people.”

She’s not alone. As they did nearly 80 years ago to assist the “Arsenal of Democracy” during World War II, employees at each of the Detroit automakers are assisting where they can.

Ford’s COVID-19 efforts are code-named “Project Apollo.” General Motors is executing “Project V” and “Project M.” Fiat Chrysler didn’t code-name its efforts but is assisting in feeding American children and making supplies during the outbreak as well. —Michael Wayland

12:18 pm: U.S. banks have processed more than $875 million in small business relief loans

U.S. Treasury Secretary Steven Mnuchin said community banks have processed more than $875 million in small business loans aimed at shoring up the economy amid the global coronavirus pandemic, and he sounded a positive note about a new program that lenders have greeted with skepticism.

“#PPPloan now over $875,000,000 processed almost all from community banks!” Mnuchin wrote on Twitter. “Big banks taking applications and will submitting them shortly.” —Reuters

12:05 pm: Free meals available to New Yorkers

The New York City Department of Education is making three free daily meals available to any New Yorker. People can pick up the meals at any of the city’s 400 Meal Hubs on weekdays, according to the DOE.

Children and families can access the hubs from 7:30 a.m. to 11:30 a.m., while adults can go from 11:30 a.m. to 1:30 p.m. Registration or identification is not required to obtain the meals, and halal and vegetarian options are available.

New Yorkers can use the DOE’s Meal Hub online lookup tool to find a pickup location.—Hannah Miller

11:55 am: ‘It’s only right’ — Cramer, a restaurant owner, says the government closed us, so it should help

Leaning on his experience as a restaurant owner, CNBC’s Jim Cramer said the U.S. government has an obligation to aid small businesses that are shut down during the coronavirus pandemic.

“I had a business that was closed. It was doing great, and then one day I learned I was closed,” Cramer said on “Squawk on the Street.” “You better help.”

Cramer owns Bar San Miguel and co-owns The Longshoreman, both in Brooklyn, New York.

The “Mad Money” host’s comments Friday came on the launch day of a $350 billion government program to help small business owners who are trying to navigate the economic shock from the coronavirus. —Kevin Stankiewicz

11:47 am: Scammers swooping in amid coronavirus pandemic

Coronavirus scams are on the rise.

Government agencies, like the IRS, the Federal Trade Commission and the Social Security Administration, are warning consumers to be vigilant as fraudsters try to take advantage of them during the coronavirus pandemic.

“Whenever crises erupt, the scammers and fraudsters have a heyday,” said Sally Greenberg, executive director of the National Consumers League, a consumer advocacy group. “We see so much fraud related to COVID-19 because people need answers, aren’t thinking straight and are somewhat confused.”

There’s been an uptick in financial fraud connected to the $2 trillion coronavirus relief package signed into law last week. —Greg Iacurci

11:39 am: Markets expect depression-level job losses, but the duration of the shutdowns is a much bigger worry

Stocks and bonds had a relatively muted response to the March employment report, which was far worse than forecast but barely reflected the unprecedented collapse of the labor market and the loss of millions of jobs from the coronavirus shutdowns.

Nonfarm payrolls fell by 701,000 in March, seven times what was forecast, but just a fraction of the actual jobs lost, which already have shown up in 10 million unemployment claims in the second half of March.

What the March employment report does show is the loss of 459,000 jobs in the leisure industry, showing how quickly the restaurant and hotel industry pared back staff, even ahead of major state shutdown orders.

“We all know things are terrible. We all know millions of people are losing their jobs,” said Peter Boockvar, chief investment strategist at Bleakley Advisory Group. “We had this sharp decline in anticipation of this news. The next batch of news we don’t know is what is the duration of this and what is going to happen in May. We hope at the end of April that we are looking at a slow reopening.” —Patti Domm

11:31 am: It’s ‘absurd’ – 3M CEO defends coronavirus response after Trump invokes DPA

The CEO of 3M said his company is maximizing its efforts to get respirator masks to U.S. health workers fighting the coronavirus, pushing back on what he called President Donald Trump’s “absurd” suggestion that the manufacturer was not doing all it could.

“Nothing is further from the truth,” CEO Mike Roman said on CNBC’s “Squawk on the Street” when told of Trump’s tweet slamming 3M “after seeing what they were doing with their Masks.”

Trump on Thursday issued an order under the Defense Production Act directing acting Homeland Security Secretary Chad Wolf to “use any and all authority available under the Act to acquire, from any appropriate subsidiary or affiliate of 3M Company, the number of N-95 respirators that the Administrator determines to be appropriate.”

Later Thursday, Trump tweeted, “We hit 3M hard today.” —Kevin Breuninger

11:25 am: New York Gov. Cuomo says state saw its biggest single-day increase in coronavirus deaths on Thursday

Gov. Andrew Cuomo said that 562 New Yorkers died from the coronavirus over the last 24 hours, the highest single increase in deaths since the outbreak began a few weeks ago. A total of 2,935 New Yorkers have died from the coronavirus.

“The curve continues to go up,” Cuomo said at a press conference in Albany, referring to the number of new COVID-19 cases across the state. There are 102,863 confirmed cases across the state, a 10% jump overnight, according to charts presented at the press conference. New York City alone accounts for 57,159 total cases, up 5,350 over the last 24 hours. —Noah Higgins-Dunn

Correction: This entry has been updated to reflect that 562 New Yorkers died from coronavirus over the last 24 hours.

11:16 am: Dr. Anthony Fauci warns we shouldn’t assume hydroxychloroquine is a ‘knockout drug’

Dr. Anthony Fauci, director of the National Institute of Allergy and Infectious Diseases, participates in the daily coronavirus task force briefing in the Brady Briefing room at the White House on March 31, 2020 in Washington, DC.

Win McNamee | Getty Images

Americans shouldn’t assume hydroxychloroquine is a “knockout drug” in preventing or treating COVID-19, White House health advisor Dr. Anthony Fauci warned.

“We still need to do the definitive studies to determine whether any intervention, not just this one, is truly safe and effective,” Fauci, the director of the National Institute of Allergy and Infectious Diseases, said on Fox News. “But when you don’t have that information, it’s understandable why people might want to take something anyway even with the slightest hint of being effective.”

New York state last week began the first large-scale clinical trial looking at hydroxychloroquine as a possible treatment for the coronavirus after the Food and Drug Administration fast-tracked the approval process. —Berkeley Lovelace Jr.

11:12 am: This chart shows which industries saw big job losses in March 2020

Among the hardest-hit areas of the economy in March was accommodation and food services sector, which had more than half of the month’s net losses. Businesses that prepare meals, snacks and beverages for customers for either on-premise (sit-down restaurants and bars) or off-premise (delivery and take-out) consumption saw payrolls slide by 417,000.

The broader leisure and hospitality sector, which includes that 417,000 decline in the food services industry, saw payrolls decline by 459,000 as hotels and other lodging businesses also cut jobs. This employment decline nearly offset gains accrued over the previous two years.

The government described the degree of losses in that industry (as well as in health care and social assistance) as “notable” and said the nosedive reflects the nationwide effort to contain the spread of COVID-19. —Thomas Franck

11:02 am: 3M warns Trump that halting exports would reduce number of masks available to US

3M warned that the Trump administration’s request for the company to stop exporting respirator masks could make the protective gear less available in the U.S.

The American manufacturing giant shared that caution a day after President Donald Trump invoked the Defense Production Act to force 3M to produce respirator masks.

The company said it was already working with the administration on getting more masks to the U.S. —Kevin Breuninger

10:57 am: Dismissed US carrier captain to be reassigned during probe, acting Navy secretary says

Captain Brett Crozier, commanding officer of the U.S. Navy aircraft carrier USS Theodore Roosevelt, addresses the crew during an all-hands call on the ship’s flight deck in the eastern Pacific Ocean December 19, 2019.

Mass Communication Specialist 3rd Class Nicholas Huynh | US Navy

The fired commander of a U.S. aircraft carrier that suffered a coronavirus outbreak will not be thrown out of the Navy but rather reassigned, acting Navy Secretary Thomas Modly told Reuters, adding that an investigation would determine if he should face disciplinary action.

Modly said the probe would look into the communications and the chain of command after Capt. Brett Crozier was relieved of his command for sharing a scathing letter regarding the outbreak of the virus on the USS Theodore Roosevelt too widely, effectively allowing it to be leaked to the media.

“He’ll get reassigned, he’s not thrown out of the Navy,” Modly said. —Reuters

10:51 am: US, Spain, and Italy continue to outpace the world in the number of cases

10:46 am: Brazil’s leader under intensifying pressure over coronavirus denial

Brazilian President Jair Bolsonaro has sparked public outcry over his laissez-faire handling of the coronavirus crisis, with a movement to impeach the right-wing nationalist leader gaining popular support. The president of Latin America’s largest economy has repeatedly played down the threat of the pandemic, dismissing it as a “little flu” and condemning state governors for imposing lockdowns that are causing job losses.

He has also contradicted his own health minister’s advice over self-isolation and social distancing, encouraging people to end their time in quarantine and return to work.

All but three of Brazil’s 27 states have refused to relax lockdown measures, and citizens in many urban centers can be heard banging pots and pans from their homes each evening as an act of protest to the president’s demands. —Sam Meredith

10:21 am: Another figure in the jobs report paints an even gloomier picture of the damage

The government’s survey of establishments painted a grim picture of the U.S. employment situation through early March, but its poll of households was far worse.

The household survey, which asks individual residents how many people are working there, showed a stunning drop of 2,987,000 workers for the month.

That compares with the 701,000 nonfarm payrolls decline reported in the establishment survey and gives another perspective to just how bad the situation has gotten since the economy has all but shut down to protect against the coronavirus spread. —Jeff Cox

10:09 am: Florida finally takes cruise passengers, some on stretchers

A patient is taken off the the Zaandam cruise ship after it arrived at Port Everglades on April 02, 2020 in Fort Lauderdale, Florida.

Joe Raedle | Getty Images

Passengers from an ill-fated cruise were carefully freed from their cabins and allowed to touch dry land for the first time in weeks, following the removal of 14 critically ill people who were wheeled off to Florida hospitals bracing for an onslaught of coronavirus patients.

The exodus from the Zaandaam and its sister ship the Rotterdam was expected to continue throughout the day. Floridians were getting off first, followed by other passengers.

At least four buses brought the first small groups to Fort Lauderdale-Hollywood International Airport, where they prepared to board two planes waiting on the tarmac. The passengers wore masks, while paramedics and airline workers were fully suited up and masked in protective gear.

They’ll be followed by what Carnival said was its last ship carrying passengers to a U.S. port since the pandemic was declared. The Coral Princess is expected to arrive at the Port Everglades terminal on Saturday with more than 1,000 passengers who have been isolating in their cabins, including 12 confirmed cases of COVID-19 on board. —Associated Press

10:03 am: US services sector growth slows while employment drops, ISM reports

U.S. services sector activity slowed to a more than 3½-year low in March, with industries reporting a moderation in new orders and a drop in employment amid the coronavirus pandemic.

The Institute for Supply Management said its nonmanufacturing activity index fell to a reading of 52.5 last month, the lowest since August 2016, from 57.3 in February.

A reading above 50 indicates expansion in the services sector, which accounts for more than two-thirds of U.S. economic activity. Economists polled by Reuters had forecast the index dropping to a reading of 44.0 in March. —Reuters

9:55 am: FedEx slashes CEO’s salary, draws $1.5 billion from its credit line

FedEx said it would slash its chief executive officer’s pay and draw down $1.5 billion from a credit facility as delivery services take a hit from coronavirus-led lockdowns across the globe.

The company, which also suspended its financial outlook, said its board had approved a 91% reduction in CEO Frederick Smith’s base salary for six-month period from April 1 to Sept. 30. —Reuters

9:51 am: Pelosi wants more small business loans, direct payments, and unemployment benefits

US Speaker of the House Nancy Pelosi speaks to the press after the House passed a $2 trillion stimulus bill, on March 27, 2020, at the US Capitol in Washington, DC.

Alex Edelman | AFP | Getty Images

House Speaker Nancy Pelosi called for another bill to expand the provisions in the $2 trillion package Congress passed last week to limit the economic devastation from the coronavirus pandemic.

“It’s not enough,” Pelosi told CNBC’s “Squawk on the Street” about the last relief measure, after the government employment report showed the U.S. economy lost 701,000 jobs in early March as businesses started to close.

The California Democrat said she wants more direct payments to individuals, beyond the chunks of up to $1,200 lawmakers previously approved. She pushed for more small business loan funding beyond the $350 billion in the last law, and to extend beefed-up unemployment insurance for two more months. —Jacob Pramuk

9:44 am: The White House tried to force 3M to send face masks to US instead of Asia, report says

The White House reportedly tried to force 3M to export 10 million N95 respirator masks from its Singapore facilities to the U.S. rather than sending them to its markets in Asia, the Financial Times first reported, citing a person familiar with the conversations.

The Minnesota-based company was reluctant to accept the White House request on legal and humanitarian grounds since health-care workers across the region would be left without protection, the person said.

Peter Navarro, the White House advisor on trade and manufacturing, said that the administration “had some issues” making sure all the production 3M does around the world is going to the right places. The White House invoked the Defense Production Act on the company in an effort to boost its production of face masks.

In a statement, 3M said the administration also requested the company cease exporting respirators to Canadian and Latin American markets, however, it said there are significant humanitarian implications of doing so. —Noah Higgins-Dunn

9:15 am: New Google site shows where people are taking social distancing seriously — and where they’re not

Google has launched a new website that uses anonymous location data collected from users of Google products and services to show the level of social distancing taking place in various locations.

The COVID-19 Community Mobility Reports web site will show population data trends of six categories: Retail and recreation, grocery and pharmacy, parks, transit stations, workplaces, and residential. The data will track changes over the course of several weeks, and as recent as 48-to-72 hours prior, and will initially cover 131 countries as well as individual counties within certain states.

Google says the data will be collected in aggregate, rather than at an individual level, and it won’t show absolute numbers of people showing up at parks or grocery stores. The idea instead is to outline percentages, which highlight potential surges in attendance. —Jennifer Elias

9:00 am: ‘The Hot Zone’ author warns the next pandemic could ‘balloon faster’ than the coronavirus

The world will experience another pandemic, and it could be even more severe than the new coronavirus, author Richard Preston told CNBC on Friday.

“We hear some people saying, ‘Well this is a once-in-a-100-year event.’ It is absolutely not,” Preston said on “Squawk Box.” “I think a worse-case scenario could be worse than coronavirus.”

Preston is the author of the 1994 book, “The Hot Zone: The Terrifying True Story of the Origins of the Ebola Virus.” It was the basis of 2019 TV mini-series from the National Geographic Channel. —Kevin Stankiewicz

8:56 am: Small businesses have ‘a million questions’ about paycheck relief loan as applications come due

Millions of small business owners on Friday will start applying for government-backed loans that will let them pay people not to work with the hope that once the economy reopens companies can pick up where they left off. But confusion about the Small Business Administration loans is widespread at banks and among potential borrowers.

The banks responsible for accepting the applications and distributing the money aren’t all up to speed and, inundated with inquiries, are relaying differing messages to their clients. CNBC reported on Thursday that JPMorgan Chase, the biggest U.S. bank, told customers by email that it would likely not be ready to start taking applications on Friday.

The loan in question is the paycheck protection program (PPP), and it accounts for $349 billion of the $2 trillion coronavirus rescue package, or CARES Act, passed by Congress and signed into law last week. Businesses with fewer than 500 employees are eligible, and that includes independent contractors. Employers can apply to receive up to 2.5 times their average monthly payroll expense, including health-care benefits, for annual salaries up to $100,000. Loans max out at $10 million. —Ari Levy

8:40 am: The White House tried to force 3M to send face masks from Singapore to US, report says

The White House tried to force 3M to export 10 million N95 respirator masks from its Singapore facilities to the U.S., rather than sending them to its markets in Asia, the Financial Times first reported, citing a person familiar with the conversations. The Minnesota-based company was reluctant to accept the White House request on legal and humanitarian grounds since healthcare workers across the region would be left without protection, the person told the FT.

The White House invoked the Defense Production Act in an effort to boost 3M’s production of face masks. In a statement, 3M said the administration also requested the company cease exporting respirators to Canadian and Latin American markets. However, it said there are significant humanitarian implications of doing so.

“Ceasing all export of respirators produced in the United States would likely cause other countries to retaliate and do the same, as some have already done,” the company said in a statement. “If that were to occur, the net number of respirators being made available to the United States would actually decrease.” —Noah Higgins-Dunn

8:33 am: US payrolls drop 701,000 in March, the first jobs decline since 2010

Nonfarm payrolls dropped by 701,000 in March, according to Labor Department numbers that begin to show the economic damage wrought by the coronavirus crisis.

The unemployment rate rose to 4.4% as employers just began to cut payrolls ahead of social distancing practices that shut down large swaths of the U.S. economy in order to stop the virus’s spread.

Economists surveyed by Dow Jones had been looking for a payroll decline of 10,000 and for the unemployment rate to rise to 3.7%. —Jeff Cox

8:20 am: Cannes Lions advertising festival, previously postponed, is now canceled

The Cannes Lions International Festival of Creativity, the ad industry’s major awards festival and conference held in France each summer, has been canceled due to the coronavirus.

The festival, originally scheduled for June 22 through June  26, was postponed in March to Oct. 26 through Oct 30, but organizers announced the decision to cancel it for good this year.

“As the impact from COVID-19 continues to be felt across the world on consumers and our customers across the marketing, creative and media industries, it has become clear to us our customers’ priorities have shifted to the need to protect people, to serve consumers with essential items and to focus on preserving companies, society and economies,” organizers said in a statement Friday.

The next festival will take place June 21 through June 25 in 2021. —Megan Graham

8:09 am: Italian luxury shoemaker Sergio Rossi dies

Italian luxury shoemaker Sergio Rossi has died aged 85 after being hospitalized with the coronavirus, the mayor of the designer’s home town said.

Italy has recorded more deaths from coronavirus than any other country in the world, with 13,915 fatalities as of Thursday. The elderly have been particularly hard hit. Rossi died on Thursday in the small town of Cesena in central Italy.

“He was among the founders of the high-end women’s footwear district in the area of Forlì and Cesena in the mid-20th century,” said Luciana Garbuglia, mayor of San Mauro Pascoli, where Rossi was born in 1935 and where he founded his brand.

French luxury fashion group Kering took over the brand in 1999. It then passed into the hands of the Italian private equity fund Investindustrial in 2015, when Rossi had already retired. —Reuters

7:56 am: Spain cases surpass Italy’s, now second in the world

A general view of the temporary hospital for COVID-19 patients located at the Ifema convention and exhibition centre in Madrid, Spain taken on April 03, 2020.

Pierre-Philippe Marcou | AFP via Getty Images

As of 6 a.m. ET, Spain had reported 117,710 confirmed cases, according to Johns Hopkins University, surpassing the total count of cases in Italy, the original epicenter of Europe’s outbreak. According to Hopkins, Italy had reported 115,242 cases as of 6 a.m. That makes Spain second in the world for COVID-19 cases, behind only the U.S. Spain typically reports daily new cases several hours ahead of Italy, and the numbers will likely change throughout the day. —Will Feuer

7:30 am: UK health minister suggests nationwide peak could be Easter Sunday

U.K. Health Minister itMatt Hancock reportedly said the deadliest peak of Britain’s coronavirus outbreak could be on Easter Sunday.

In an interview with Sky News, Hancock said he “would defer to the scientists on exact predictions,” but the peak of the U.K. outbreak falling on April 12 was “one perfectly possible outcome.”

To date, the U.K. has reported more than 34,000 cases of the COVID-19 infection, with 2,926 deaths, according to data compiled by Johns Hopkins University. —Sam Meredith

7:19 am: BMW CEO says the company is working to safeguard liquidity

An employee inspects the body frame of a BMW X4 sports utility vehicle on the assembly plant in Greer, South Carolina.

Luke Sharrett | Bloomberg | Getty Images

BMW Chief Executive Oliver Zipse said the carmaker is focusing on preserving the health of its balance sheet and workforce.

“No company can possibly get through something like this unscathed. Guaranteeing our liquidity needs to happen very quickly. The Management Board are currently meeting twice as often as normal, so we can make the necessary decisions,” Zipse said in a statement.

“We are preparing to ramp up production as soon as the time is right in full compliance with all the safety aspects, and with international coordination. It’s essential that we synchronize with the supplier network on this,” he added. —Reuters

7:10 am: March job losses could be the worst in a decade

March’s employment report could show the most monthly job losses in a decade, but it’s only a fraction of the real hit to the workforce that came when many states issued stay-at-home orders late in the month.

Economists expect a consensus decline of 100,000 nonfarm payrolls when data is released at 8:30 am ET, according to Refinitiv. But the survey for the report was done before many states began telling residents to stay home. For the final two weeks of the month, 10 million people sought unemployment benefits as businesses and schools closed to stop the spread of the coronavirus. —Patti Domm

7:06 am: European business activity craters as Brussels races to find a ‘credible’ funding plan

The coronavirus pandemic is hitting European economies sharply, with the latest economic data showing massive falls in services activity across the region.

In Italy, the services industry dropped in March at the fastest rate since the IHS Markit survey began in 1998. In Germany, the services sector laid off staff at the steepest rate in about 23 years. In Spain, services activity contracted for the first time in six-and-a-half years.

The data released Friday showed the final Composite Purchasing Managers’ Index — which includes services and manufacturing — for the whole euro zone crashed to a record low of 29.7 in March, from 51.6 in February. This was the biggest monthly fall since the survey began. —Silvia Amaro

6:00 am: Spain’s daily death toll falls for the first time since March 26

Coffins containing the bodies of people who have died of coronavirus (COVID-19) are lined up in the long-term parking of the Collserola morgue before they either buried or incinerated, on April 02, 2020 in Barcelona, Spain.

David Ramos | Getty Images

The amount of people that have died from the coronavirus in Spain has seen its first daily fall since March 26. A total of 932 people died in the last 24 hours, down from 950 people the previous day, according to Reuters who cited the country’s health ministry. Spain’s death toll now stands at 10,935. —Matt Clinch

5:33 am: China’s central bank announces new stimulus measures

The People’s Bank of China said it was reducing the amount of cash that small and mid-sized banks need to hold in reserve. It will reportedly free up around 400 billion yuan ($56.38 billion) in liquidity and aid the country’s economy which has been badly hit by the coronavirus pandemic. —Matt Clinch

4:50 am: Singapore shuts schools, closes most workplaces

People seated in a food center in Marina Bay Sands shopping mall according to safe distancing markers on March 30, 2020 in Singapore.

Ore Huiying | Getty Images

Singapore’s Prime Minister Lee Hsien Loong announced stricter social distancing measures in the city-state, joining a chorus of countries globally that have done so to stem the spread of the coronavirus.

The measures include closing most workplaces, except those offering “essential services” such as food establishments, hospitals, and transport, Lee said. All schools will also be closed temporarily, he said. The prime minister also said his government is rethinking its advice that only those who are ill need to wear masks. —Yen Nee Lee

Read CNBC’s coverage from CNBC’s Asia-Pacific and Europe teams overnight here: Spain’s services industry records ‘unprecedented’ decline, survey shows

CORRECTION: This blog has been updated to correct the spelling of Cannes Lions in the headline.

.

The Wall Street money manager says the stock market won’t bottom until investors throw in the towel – and we haven’t arrived yet

It will be worse before it gets better – much worse, according to Scott Minerd.

Guggenheim Partners’ global chief investment officer says investors continue to hold hope in many sectors, and this could be a sign that the worst hasn’t gone through a market that has had a beat in the past month.


“Since we have not yet seen the capitulation, it would be premature to aggressively take action and buy at current levels, whether it be stocks or credit activities.”

Minerd offered some sad insights for his customers in a Sunday research report, published during the period when the Republican-controlled Senate failed to pass a bailout package to help companies and individuals in difficulty navigate the pandemic. global that has brought economies around the world to a sharp halt.

“Since we have not yet seen the capitulation, it would be premature to aggressively intervene and buy at current levels, whether it be stocks or credit activities,” said Minerd.

Minerd said that the turmoil that the markets are facing now is a combination of the viral epidemic exacerbated by companies and investors who have resolved the debt in a rapid sequence to readjust the new reality caused by the onset of the deadly pathogen, which it has infected with more than 335,000 people and have caused nearly 15,000 casualties worldwide, according to data compiled by Johns Hopkins University.

“The turmoil we are seeing right now is the result of this leveraging,” wrote Minerd.

In his report, Minerd reiterated that the United States government and the Federal Reserve, in particular, need to allocate substantially more than they have already arranged to correct dislocations in financial markets and contain the economic blow resulting from the rapid spread of COVID- 19.

He explained the market situation and possible Fed strategies in this way:

To get a foundation under the markets we will need something very large, something in the $ 2 trillion range in the form of a pool of liquidity that can be quickly made available to the companies and businesses that need it along with funding facilities from $ 2 to $ 4 trillion from the Fed. A facility like this will be much more efficient than a targeted, time-consuming approach to attempting to design bailouts.

Similar comments were made by Minerd on Wednesday and the editorial board of the Wall Street Journal on Monday.

“That’s why I said we would need to see around 4.5 trillion dollars in quantitative easing (QE),” he said, adding that those funds would come in addition to all the measures that the American central bank has taken so far. , including a structure for the recently unrolled commercial paper market.

On Sunday, Treasury Secretary Steven Mnuchin said the Fed will play a key role in lending funds to businesses affected by the coronavirus pandemic.

“By working with the Federal Reserve – we will have up to $ 4 trillion in cash that we can use to support the economy,” Mnuchin told Fox News on Sunday.


‘I’m not betting on a global depression, but I’m saying that for the first time in the post-war era we are really getting too close for comfort.’

Minerd said that the Fed’s funding efforts could bring its budget to at least $ 9 trillion, or about 40% of 2019’s gross domestic product.

The investor said that areas of the financial market, ranging from airline leasing to guaranteed loan obligations, are in poor shape, but have not yet hit bottom.

“Interestingly, aircraft securitisations have not entered the realm of prices that would be appropriate,” he said, referring to the damage that the travel and airline industry suffers as a result of ongoing global shutdowns due to the coronavirus.

As for the epidemic that is spreading around the world, Minerd said that extrapolating from the trajectory that the epidemic took in Wuhan, China, where it originated, the United States has been able to see substantially more coronavirus cases within a month.

At the end of Sunday, there were 33,000 cases of infections with the new coronavirus strain in the United States, and he predicted that there may be around 2 million infected people in the United States in the next 30 days.

“This tells us that our life patterns will not return to normal in the next 30 days, mainly because we have not yet blocked the whole country,” wrote Minerd.

So can Washington lawmakers save the market or the economy early? Minerd said not to hold his breath, because even if Capitol Hill were to pass a bailout bill, it could take months to eventually bring about calm in the economy and market.

For this reason, he says that “buying the plunge”, or market downturns, a practice that has proven profitable in the past two years until this recent bout of stomach upset volatility could be a foolish commission.

“Even if Congress approves all the necessary legislation, we should expect the market to be vulnerable for another six months,” he wrote.

“This means that” buying the plunge “in the expectation that Congress will pass something soon is probably not a prudent investment strategy,” he said.

So far, the markets have been in freefall, with the industrial average of Dow Jones
DJIA,
-4.54%
,
the S&P 500 index
SPX,
-4.33%

and the Nasdaq composite index
COMP,
-3.79%

all with the worst weekly drops from the financial crisis of 2008 to the closing on Friday.

And Monday’s action was gearing up to be more staggering losses to kick off the week, based on the downward action of US stock index futures last Sunday.

.

While Dow cancels over 3 years of stock exchange earnings, here is a warning on how to call the fund

This is a question that many investors are undoubtedly asking themselves after a week of historical volatility which saw the shares fall again and brought the Dow Jones Industrial Average to its lowest closing since December 2016, since the global pandemic COVID- 19 promises to push the world into recession.

After all, some investors may experience a strong temptation once the market finally shows some stability to declare that lows are present. But some Wall Street veterans have advice: don’t do it!

“First of all, we recognize that none of us can predict when the market will drop,” said Brian Levitt, Invesco’s global market strategist, in a Friday note.

“The number of new COVID-19 cases is likely to peak before we get there. This is a question epidemiologists have to answer and a challenge for Americans and global citizens to take social distancing and / or isolation seriously. “, he wrote.

Counterpoint:The stock market may drop long before the peaks of the coronavirus epidemic, analysts say

Indeed, for Wall Street professionals, Nicholas Colas, co-founder of DataTrek Research, warned that the temptation to make a bold phone call on the market poses a serious career risk.

“During my 30-year career on Wall Street I have seen more friends laid off or losing customers because they have tried to choose a fund than any other single cause,” he said in a Friday note.

Of course, the shares will stop falling at some point. Although the bear market is still far from over, the story offers some reassurance for long-term investors, said Levitt.

“In fact, in the six major bear markets we have observed, investors would have lost, on average, 38% between the midpoint and the fund. Ten years later, an investor would have returned, on average 110% cumulatively from the midpoint of the drawdown, “he said.

But the carnage inherent in this bear market is understandably unnerving. The industrial average of Dow Jones
DJIA,
-4.54%

fell more than 17% in the past week due to the worst weekly performance since the 2008 financial crisis, while the S&P 500
SPX,
-4.33%

marked the same milestone with a 15% drop.

The Dow and S&P 500, both trading at their historic highs in February, went from records to a bearish market – a 20% pullback from a recent spike – at the fastest pace ever recorded, and continued to decline. As of Friday’s close, the Dow is down 35.1% from its February 12 record, while the S&P 500 is down 31.9% from its February 19 record.

And the drop was accompanied by unprecedented volatility. The S&P 500 saw a seven-day trading period in which the index rose or fell 4%, the longest ever recorded. Cboe’s volatility index
VIX,
-8.27%
,
a measure of the volatility expected for the S&P 500 in the next 30 days, closed at the all-time high at the beginning of the week.

The volatility of the stock market is part of a broader market share that has seen investors worldwide liquidate assets across the board in a race to the bottom that has also seen traditional port activities fall and skyrocketing the dollar, creating a feedback loop.

The Federal Reserve and other major central banks responded with a series of stimulus measures and other efforts to support liquidity and ensure the functioning of the markets. Governments have weighed a number of fiscal stimulus measures on previously unthinkable scales.

To read:Here is a breakdown of the Fed’s bailout programs to maintain credit flow during the pandemic

As a result, investors are seeing historical market events together for the first time, said Brian Belski, chief investment strategist at BMO Capital Markets.

“For a culture and a community of investments and strategies that regularly base their history on priorities and perspectives, we believe it is safe to say that what has emerged in the last few days does not have a perfect parallel with the corrections and” shocks “of the previous stock market said, in a note.

This means that “unfortunately there is no magic diagram, table or bullet that will answer all the questions, let alone illustrate the bottom or predict the recovery in actions that will follow this,” said Belski. “Unfortunately, a less negative and possibly POSITIVE flow of coronavirus (COVID19) securities is most likely the only acceptable antidote that the stock market craves at the moment.”

In the coming week, investors will be looking at a range of economic data, including February’s durable goods orders on Wednesday, while February’s consumer spending and income data are due on Friday. But the main event could be given by data on Thursday’s weekly unemployment benefit claims, which should show a big jump as employers prepare for the arrests.

.

Trump’s argument for re-election is collapsing

President Donald Trump speaks at a Make America Great Again rally at the Civic Center in Charleston, West Virginia.

Leah Millis | Reuters

WASHINGTON – Looking back now, the night of February 4th was probably the height of Donald Trump’s presidency.

A few minutes after 9:00 pm ET, Trump entered the elaborate Chamber Chamber and then happily moved down the aisle, all to the sound of thunderous applause from the Republicans, who sang “another four years.”

This was Trump’s third state of the Union address. Trump’s 90-minute speech was filled with the confidence, self-flattery and entertainment that became the hallmarks of his term.

The speech also reflects his optimism about the economy, a sentiment that millions of Americans shared with him at the time, according to polls. Financial markets were skyrocketing and the unemployment rate was at an all-time low. That afternoon, the Nasdaq Composite Index had reached a record high, at 9,467. The Dow Jones Industrial Average, an indicator that Trump often raises, closed at 28,807 that day, already on track for an all-time high of 29,551 that would hit the end of the month.

The economy wasn’t the only thing Trump was celebrating that Tuesday night. The day before, in the nation’s first Iowa caucuses, the Vermont senator Bernie Sanders had won the popular vote. Sanders is a self-described democratic socialist who would not do as much against Trump in general elections as former vice president Joe Biden would do, according to the poll.

Trump also knew that the next day he would be acquitted in the Senate impeachment process. For Trump, the verdict would represent a long-awaited triumph over his perceived enemies, including Democrats in Congress, whistleblowers in his own White House, and “deep state” government bureaucrats that Trump feared was planning to bring him down.

With his impeachment process behind him and his highest approval score ever, Trump seemed perfectly positioned to easily win the re-election in November.

And now almost everything is gone.

In just over a month, three pillars on which his reelection thesis is based have all collapsed: the strong economy that Trump plans to pursue; the Sanders campaign Trump had planned to run on; and the “us against them” approach to Washington and the federal government, on which Trump built his political mark.

President Donald Trump gives his State of the Union address at a joint session of the United States Congress in the chamber of the United States Capitol Chamber in Washington, the United States, on February 4, 2020.

Leah Millis | Reuters

On Wednesday, the Dow dropped below its closed level on January 19, 2017, the day before Trump took office promising to “make America rich again”. Market losses reflect wider anxieties across the nation, where coronavirus has forced the shutdown of much of the U.S. economy and has made recession almost inevitable.

Meanwhile, Sanders and the progressive far-left movement he promised to build failed to win over Democratic primary voters. Instead, they are ready to appoint a moderate expert, Biden, to race against Trump in the fall.

Back in Washington, Trump is attempting to orchestrate a sprawling federal response to the coronavirus epidemic backed by a White House messaging machine that produces daily praise releases that embrace Trump’s “whole government” approach.

But by promoting massive federal spending through large government programs, Trump undermines one of the central principles of Trumpism: his belief that the federal government is a corrupt, bloated and broken institution, as the “unelected bureaucrats” who fill the its ranks should not be trusted.

“The coronavirus crisis has revealed that Trump is not well prepared and not a hard worker,” said Matthew Barreto, a professor of political science and Chican studies at UCLA.

“When everything goes well, these deep character flaws are hidden. But when a major crisis strikes, voters will remember that Trump was completely asleep and even passed on misleading and false information.”

As of Thursday morning, there have been more than 9,000 confirmed cases of COVID-19 in the United States and more than 150 Americans had died from it. The stock market had unabated volatility and claims for unemployment benefits for the past week have jumped ahead of a likely increase in layoffs.

Yeah, polls are showing that voters have more confidence in the federal government as a whole than the president does. A recent NBC / Wall Street Journal survey found that 62% of respondents trust the federal government to manage the coronavirus crisis, compared with 48% who said they trust Trump.

The end of prosperity?

“Since my election, US stock markets have increased by 70%, adding over $ 12 trillion to our nation’s wealth, transcending everything anyone believed was possible,” Trump said during his state of the Union address. in February.

The American economy, he said, “is advancing at an unimaginable pace not long ago, and we will never ever go back.” On February 12, eight days after Trump had promised Americans a future full of endless growth, the Dow hit its record high.

But now, less than eight weeks later, panic over the coronavirus pandemic has made the president’s promises empty. Markets dropped by over 30% in a few days. Much of the wealth that Trump claimed credit for has been wiped out.

Many analysts now predict that the U.S. economy could decline by 5% in the second quarter of this year, as schools, bars, restaurants, theaters, gyms and workplaces across the country are closed for weeks to prevent the spread of the coronavirus. . On Wednesday, a JPMorgan analyst warned that the second quarter contraction could go up to 14%.

Major airlines are in danger of bankruptcy as travelers cancel their trips and stay close to home, some by choice, and others on the orders of state and local governments. This is expected to continue until summer, Trump said on Monday, although it may be “longer than that”.

Economists and investors now seem resigned to the fact that the US economy will enter a recession, defined as two consecutive quarters of negative growth. The only questions that remain now are how long the recession will last and how deep it will cut.

On Tuesday, Treasury Secretary Steve Mnuchin reportedly told Senate Republicans that, unless massive government intervention in the economy, the unemployment rate in the United States could rise to 20% in a matter of months. When asked about the comments during a briefing on Wednesday, Mnuchin said that the figure was “an absolute worst case scenario”, but not something that Mnuchin never believed could actually happen.

Steven Mnuchin, U.S. Treasury Secretary, right, speaks next to U.S. President Donald Trump during a Coronavirus Task Force press conference in the White House meeting room in Washington, DC, the United States, Tuesday March 17, 2020 .

Kevin Dietsch | Bloomberg | Getty Images.

But if the final figure turns out to be simply bad or catastrophic, history indicates that they will be terrible for Trump’s re-election prospects.

“It would be very difficult for the president to survive November” if the economy sinks into recession, said William Galston, a senior member of the government at the Brookings Institution. “I can’t think of a precedent for this.”

Despite dire economic warning signs, however, Trump’s re-election campaign still claims ownership of what it calls “Trump’s economy”.

“The basic fundamentals of Trump’s economy are strong and President Trump is ensuring that the solid prosperity that Americans are experiencing is likely to remain,” Kayleigh McEnany, an election campaign spokesman, told CNBC.

Trump’s democratic opponents, he said, “would cancel Trump’s economy.”

This type of boundless economic optimism has long been a part of Trump’s political DNA. So Trump has the will to ignore the economic reality in order to paint a more solar picture of the facts on the ground support, be it the financial markets, the United States economy, his personal wealth or his business.

On Friday, after a month of historical decline, the markets reversed and rose sharply. But Trump’s tweet is still deeply misleading. Friday’s market wave was an anomalous data point and Trump used it to mask a wider reality. Stocks have resumed their drastic falls this week.

With the election and a potential recession looming, Trump’s habit of pretending that the economy is doing better than it really is is becoming increasingly risky, Galston said.

“Trump has to be careful now, not to say things that contradict the evidence of ordinary people’s experiences, what’s in front of them every day,” he said.

“As president, you can say almost anything you want about Afghanistan, Iran or the court cases. But when tens of millions of families have difficulties and experience personal pain, you cannot tell them that the sky is blue when it is green, “He said.

Biden’s bump

Trump is certainly not the first candidate to see the bottom of their biggest campaign promise drop. But there is a saying in politics: if you can’t convince voters that you are the best guy, then convince them that your opponent is the worst. Trump is a master of this type of negative campaign.

“Americans of all political beliefs are tired of radical and rage-ridden left-wing socialists,” Trump said in a campaign demonstration in New Jersey in late January. “Really, the Democratic Party is the socialist party and perhaps worse.” Later in the demonstration. Trump said Democrats “have never been more extreme than they are at the moment,” adding: “These people are crazy. They are inspired by socialists like Bernie. [Sanders]”.

Senator Bernie Sanders speaks during the Bernie Sanders Rally “Bernie’s Back” in Queensbridge Park.

Lev Radin | LightRocket | Getty Images

When Trump said this, the polls actually showed Sanders a comfortable lead in a crowded democratic camp, so there were probably some Democrats taking cues from him.

And it is also true that Sanders embraced the “democratic socialist” label and did not hide his admiration for the economies of the “Nordic model”, which use heavy taxes to redistribute wealth and finance a vast social welfare system.

For Trump, Sanders’ first successes in Iowa, New Hampshire and Nevada were excellent news. Long before the Democratic primary began, Trump had rallied his supporters for more than a year with wild claims about how Democrats are all socialists intent on destroying free markets.

As long as Sanders was in the lead, Trump had the best possible platform to make dark prophecies about what a President Sanders’ socialist hold on America might look like. Trump’s re-election was the last better hope of the voters, the de facto choice for anyone who did not appreciate the idea that the United States became the next Venezuela, the reasoning went.

When Trump swore in his State of the Union speech in February that “he would never allow socialism to destroy American health care,” he was making a direct decision on Sanders’ “Medicare for All” plan.

The night Trump pledged to save America from Sanders, Biden’s campaign was at a crossroads. He had just finished fourth in the Iowa caucus, a milestone that even the candidate admitted was “punched in the stomach”.

The following week, Biden finished fifth in New Hampshire’s first grade, only to finish second in the Nevada caucus. At that point, the Biden campaign was practically on life support. Millions of Democrats across the country were waking up to the real possibility that Sanders – who isn’t even a registered Democrat, he’s an independent – would be on top of the party ticket in November.

But everything changed on February 29, when Biden demolished the rest of the Democratic camp in South Carolina’s long-awaited primary. It was the first primary in the South and Biden won by an astounding margin of nearly 30 points.

Former Presidential Democratic Vice President Joe Biden talks to supporters at an election event at Wofford University on February 28, 2020 in Spartanburg, South Carolina.

Sean Rayford | Getty Images

Since then, Biden has won the lion’s share of primary and democratic delegates. On Tuesday evening, the former vice president won competitions in Arizona, Florida and Illinois, consolidating his almost insurmountable lead over Sanders.

All this good news for Biden, however, is bad news for Trump.

“Trump was hoping to run against Bernie Sanders and play the so-called socialism card, and now that plan has also fallen apart,” Barla of UCLA said. “Vice President Biden will be a formidable opponent who has more experience than Trump in the White House.”

To make matters worse for Trump, Biden has direct experience in response to a national economic crisis, which offers him a unique perspective from which to challenge Trump’s decisions.

“You will hear Biden talk more and more about his role in the 2009 economic recovery package that he helped promote during the Obama administration,” said Baretto.

“The 2008 recession has been very serious. Looking back, most economists give the Obama administration a lot of credit for stabilizing the economy, and Biden has played a role in this.”

As Sanders ‘main campaign fades, expect to see Trump’s campaign work hard to saddle Biden with Sanders’ most polarizing political background.

“Democrats are choosing between two far-left extremists trying to open our borders, destroy millions of jobs by eliminating fossil fuels and oppose travel restrictions” which helped limit the spread of the coronavirus, McEnany said CNBC.

Moments later, McEnany connected them together again, saying: “Both Bernie and Biden would have canceled Trump’s economy and would not have had the leadership needed to guide our country through the pandemic that President Trump is navigating with an all-around approach. American”.

The “invisible enemy”

As Trump and his administration begin putting together a massive trillion-dollar stimulus package managed by the government to mitigate the economic effects of coronavirus, another piece of Trump’s reelection camp is falling apart: Trump’s insistence on be at war against the “big government”, a “rigged system” which he claims is controlled by his enemies, democrats, the media, the “deep state” and the “swamp”.

In 2016, Trump won the presidency in part because his supporters believed he would dismantle a corrupt ruling class of lobbyists and technocrats, “drained the swamp” and “downsized the swollen federal bureaucracy.”

Four years later, federal agencies were really gutted, largely through a combination of attrition, budget cuts, “rationalization” and low morale.

Suddenly, in the face of the coronavirus, Trump’s commitment to combat the administrative state and “drain the swamp” was sidelined in favor of phrases such as “an entirely governmental approach”.

As the Americans, frightened and desperate, have increasingly sought help from the federal government, Trump has begun to confront each other in the past few days, after weeks of belittling and rejecting the threat from the coronavirus. Starting this week, Trump has worn the mantle of the great government himself, taking credit for the federal response and attacking the media for any perceived criticism.

However, turning abruptly from a crusader fighting the evils of the big government into a benevolent bureaucrat ready to distribute big government bailouts, set up task forces and send checks to people in the mail is not easy.

Trump’s profound cuts to the federal workforce over the past three years have already come back to haunt him.

President Donald Trump announces his decision for the United States to withdraw from the Paris climate agreement in the Rose Garden at the White House on June 1, 2017 in Washington, DC.

Vinci McNamee | Getty Images

Last week, Trump was targeted by the 2018 closure of the National Health Council’s global health office in the White House, responsible for coordinating responses to the pandemic. When a reporter asked the president to close the office, Trump became defensive and agitated, calling the question “bad” and saying he knew nothing of the move.

“It’s the administration, maybe they do,” said Trump, apparently referring to his administration.

In order for Trump to argue convincingly for re-election, he will have to find a way to reconcile the two contradictory versions of himself that he is currently projecting. There is the precoronavirus Trump, which built an entire presidency on principles such as not giving government benefits away for free and not trusting career bureaucrats. And there is post-coronavirus Trump, who tweeted this previously unthinkable message on Wednesday morning.

“For people who are now out of work due to important and necessary containment policies, such as closing hotels, bars and restaurants, money will come for you soon,” said the president.

Brookings’ Galston succinctly described Trump’s current situation.

“It’s easy to hate the government until you need it.”

Correction: This story has been updated to clarify how polls characterize Sanders’ chances against Trump in general elections.

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Stock futures indicate another day of declines on Wall Street

A man wearing a mask walks at the New York Stock Exchange (NYSE) on March 17, 2020 on Wall Street in New York City.

Johannes Eisele | AFP | Getty Images

Forward contracts linked to major US stock indices fell early Thursday morning, signaling another day of declines for Wall Street.

As of 2:07 ET, Dow Jones Industrial Average futures were 410 points lower, implying an initial drop of 306.92 points. The S&P 500 and Nasdaq futures also indicated lower openings for the two indices, although trading in futures contracts may change rapidly overnight.

The moves followed another violent day on Wall Street on Wednesday, when investors returned to pessimism after Tuesday’s 6% rebound.

The Dow lost 1,338.46 points, or 6.3%, on Wednesday and closed its first close below 20,000 since February 2017. The Dow dropped more than 2,300 points to the session lows. The S&P 500 index fell 5.2% to 2,398.10 and closed nearly 30% below a record set last month as both indices further declined in the bear markets.

A dizzying spike in Treasury yields has also made investors anxious. The 10-year Treasury rate rose 22 basis points to 1.18% on Wednesday, after an increase of over 30 basis points on Tuesday as it picks up from record lows.

Early Wednesday evening, futures rose higher after the ECB announced a new pandemic emergency purchase program that will use € 750 billion ($ 819 billion) to buy stocks to support the European economy. The central bank said that the purchases will be conducted through the end of 2020 and will include a variety of assets including public debt.

“The ECB will ensure that all sectors of the economy can benefit from supportive financing conditions that allow them to absorb this shock,” the central bank said in a statement. “This also applies to households, businesses, banks and governments. The Governing Council will do everything necessary within its mandate.”

The ECB’s action follows similar initiatives by the Fed, its US counterpart. The Fed announced earlier this month that it plans to pump an additional $ 1 trillion into the U.S. economy through asset purchases and reduce the federal funds rate to zero.

The spread of the coronavirus also led to the New York Stock Exchange announcing Wednesday that it will temporarily close its historic trading platform and switch completely to electronic commerce. The exchange said two people tested positive for the disease on screenings conducted this week.

All-electronic trading will begin outdoors on March 23, the exchange said.

Expressing investors’ fears about the virus, longtime hedge fund Bill Ackman joined CNBC on Wednesday to warn that the new coronavirus will cause destruction in the financial markets and the US economy without unprecedented action from part of the federal government.

Ackman and dozens of other economists and investors fear that the virus and efforts to prevent its spread could undermine U.S. production, exports and ultimately GDP growth.

The Pershing Square executive called on President Donald Trump to begin a “Spring Break” in the United States for a month and to suspend all interest, royalty and tax payments for the duration.

“We have to close it now … This is the only answer,” said the billionaire investor. “America will end as we know it. I’m sorry to say it, unless we take this option.”

Shares moved down towards the end of Wednesday’s session, however, after the Senate had enough votes to pass a bill that expands the paid allowances and unemployment benefits in response to the virus as part of that which should be a huge government response to avoid a recession.

Senate majority leader Mitch McConnell said Wednesday that he will vote for the plan despite what he has called “real shortcomings”. With the urgent need for action “I don’t think we should let perfection be the enemy of something that can help even a subset of workers,” he said.

The White House weighs a tax package of over $ 1 trillion that includes direct payments to Americans and financial relief for small businesses and the airline industry.

Wall Street has been on an unprecedented roller coaster ride amid the coronavirus riot, with the S&P 500 swinging 4% or more in both directions for eight consecutive sessions.

– Eustance Huang and Christine Wang of CNBC contributed to this report.

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South Korean equities drop after arrest, Philippines equities

Asia Pacific equities lost their previous upward momentum in Thursday afternoon trade as concerns about the economic impact of the coronavirus pandemic continued to weigh on investor sentiment.

The main markets in the region fell deeply into negative territory, with the South Korean Kospi recording losses as it fell 6.86% while the Kosdaq index fell 7.5%. The Korean exchange said the first switches were activated after the Kospi fell 8%, with trade halted for 20 minutes, according to Reuters.

Hong Kong’s Hang Seng index fell 4.25% in the afternoon.

In the Philippines, where trading was stopped earlier this week, the PSE composite index plunged 12.42%, picking up on Thursday.

Elsewhere in Southeast Asia, the Jakarta composite index fell 5.35% lower. Indonesia’s stock exchange previously announced a temporary halt to trading after the Jakarta composite index fell 5%.

In Australia, the S&P / ASX 200 fell 3.53% after jumping before 2%. Employment data released Thursday by the Australian Bureau of Statistics shows that the seasonally adjusted unemployment rate for February is 5.1%.

Mainland China equities declined when the Shanghai composite declined by more than 2% while the Shenzhen composite declined 1,461%.

The Nikkei 225 in Japan slipped 1.42%, while the Topix index added 0.95%.

Overall, the ex Japan MSCI Asia Index fell 5.37%.

“What is really putting pressure on equity markets at the moment is actually liquidity from credit markets,” said Sean Taylor, Asia-Pacific’s Chief Investment Officer at DWS, CNBC’s “Street Signs”.

Taylor said investors should be “very cautious” and keep “very liquid” in the meantime.

Developments on the global coronavirus epidemic continued to be observed on Thursday.

The Reserve Bank of Australia (RBA) announced on Thursday a “full package”, which includes a reduction in the target cash rate to 0.25%, to support the country’s economy as it grapples with the impact of the virus.

“At some point, the virus will be contained and the Australian economy will recover,” said RBA governor Philip Lowe in a statement. “In the meantime, a priority for the Reserve Bank is to support jobs, incomes and businesses, so that when the health crisis subsides, the country is in the best position to recover strongly.”

Meanwhile, the United States Federal Reserve called on its emergency authority Wednesday to create support for primary money market mutual funds. The new Mutual Money Market Fund will provide loans to financial institutions to purchase assets from primary money market funds.

Shares in the region previously had a boost after the European Central Bank announced a new pandemic emergency purchase program on Wednesday that will use € 750 billion (approximately $ 821 billion) to buy stocks to help support the European economy. .

“The ECB will ensure that all sectors of the economy can benefit from supportive financing conditions that allow them to absorb this shock,” the central bank said in a statement. “This also applies to households, businesses, banks and governments. The Governing Council will do everything necessary within its mandate.”

So far, at least 207,860 have been infected while at least 8,657 people have been carried away by the disease globally, according to the latest data from the World Health Organization.

Overnight on Wall Street, the Dow Jones Industrial Average lost 1,338.46 points to close at 19,898.92. This was the first closing of the index below 20,000 since February 2017. The S&P 500 index fell 5.2% to 2,398.10 and ended its trading day almost 30% below of a record set last month. The Nasdaq Composite fell 4.7% to close at 6,989.84.

Rebound in oil prices

Oil prices attempted to recover from Wednesday’s losses. In the afternoon of Thursday’s Asian trading hours, futures on the Brent crude benchmark rose by 2.69% to $ 25.55 a barrel. U.S. West Texas intermediate crude added 8.49% to $ 22.10 a barrel.

The moves came after oil prices plunged on the third worst day on Wednesday. US crude fell 24.4% to $ 20.37 a barrel, the lowest level since February 2002. Brent oil fell 14.1% to $ 24.67, the lowest level since 2003.

The US dollar index, which tracks the greenback against a basket of its peers, lasted at 101.356 after rising from levels below 100 yesterday.

The Japanese yen was trading at 109.14 per dollar after seeing levels below 106 earlier in the week. The Australian dollar changed hands to $ 0.5579 after falling from above $ 0.6 levels earlier in the week.

Thomas— Thomas Franck and Steve Liesman of CNBC contributed to this report.

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Stock exchange trading stopped after Wall Street was frightened by the economic blow

Stock trading was halted on Wednesday, marking the fourth halt in two weeks, while Wall Street was frightened by the deepening economic impact of the coronavirus pandemic. President Donald Trump earlier in the day announced that the United States and Canada will block “nonessential traffic” from traveling across the northern border to control the spread of the disease.

The trading halt came after the shares dropped more than 7%, triggering what is called a “switch” that stops trading for 15 minutes. Trading stops when stocks drop 7%, 13% or 20% in a single session. The measures were taken for the first time since the 1987 crash and had not taken place since 1997.

The Dow plummeted 1,660 points, or 7.8%, to 19,577 before the switch was activated. The shares had also slipped before the selloff triggered the breaker, with the Dow down 1,229 points, or 5.8%, to 20,008 in morning trading.

Coronavirus: the race to respond ›

More in Coronavirus: The Race To Respond

The growing pandemic, which caused at least 109 deaths in the United States, is prompting U.S. cities and states to order residents to stay home and closed restaurants and bars and other meeting places. Such measures are spiraling the economy, leading to layoffs and sharp falls in revenue for many consumer-focused businesses. The United States is likely already in recession, according to Oxford Economics.

“We now see a severe global recession happening in the first half of 2020,” Deutsche Bank economists wrote in a research note. “The quarterly decreases in GDP growth that we expect substantially outweigh anything previously recorded dating back at least to World War II.”

How to cushion the economic impact of coronavirus

Wednesday’s drop swept yesterday’s market gains, which were fueled by President Donald Trump and Treasury Secretary Steve Mnuchin, that the administration and Congress were working on a “big” and “bold” legislative package. to deal with the coronavirus crisis. Mnuchin added that the administration is “trying to send checks to Americans immediately.”

That rebound followed Monday’s course which marked Wall Street’s worst day since the epic “Black Monday” incident in 1987.

While it’s unclear how long the coronavirus pandemic will last, President Trump earlier this week said it could go on until July or August. In the short term, economists say the damage could be profound, leading to job losses, a spike in unemployment and a drop in GDP.

“The focus is understandably focused on limiting the damage resulting from the short-term effects of the coronavirus epidemic,” Oxford Economics said in a statement on Wednesday. “But it is likely that once the disruption and uncertainty fades, the rebound in global economic activity will be strong. It is important that businesses position themselves for such a recovery.”

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Futures fall after the market rebound in hopes of a $ 1 trillion stimulus

Stock futures fell Tuesday overnight as markets remained very volatile with the government’s response to the coronavirus fallout.

As of 9:53 pm ET, futures on the Dow Jones Industrial Average have fallen by 530 points, indicating a loss of over 700 points at Wednesday’s opening. The S&P 500 and Nasdaq-100 futures also fell.

The market rebounded from their deepest course since 1987, when investors hoped that the Trump administration’s massive fiscal stimulus plans will save the economy, which is at risk of falling into a recession due to the impact of the coronavirus. .

The White House weighs over $ 1 trillion in a tax package that includes direct payments to Americans and financial breaks for small businesses and the airline industry. Treasury Secretary Steven Mnuchin also said that companies will be able to defer tax payments of up to $ 10 million while individuals could defer up to $ 1 million in payments to the Internal Revenue Service.

Mnuchin told Republican senators that unemployment could reach 20% if Congress fails to promote the trillion-dollar stimulus package he has proposed, CNBC reported Tuesday evening, citing a source familiar with the matter.

The Dow rose to over 1,000 points on Tuesday to end another unstable session, recovering less than half of Monday’s steep losses. The S&P 500 gained 6%.

Wall Street has been on an unprecedented roller coaster ride amid the coronavirus riot, with the S&P 500 fluctuating 4% or more in both directions for seven consecutive sessions. This surpasses the previous six-day record of November 1929, according to LPL Financial.

On Tuesday, investors also encouraged the Federal Reserve’s intensified efforts to help companies who have difficulty obtaining short-term financing. The bank has announced a special credit line for purchasing corporate card from some issuers. This follows the Fed’s $ 700 billion emergency quantitative easing schedule and a further 100 basis point cut in Sunday’s interest rates.

“The signs indicate that the pandemic will be under control and that the economy will have enough support to resist the storm,” said Brad McMillan, Chief Investment Officer at Commonwealth Financial. “Make no mistake, there will be damage. But from the market point of view, the question will be whether the damage is greater than what the markets now expect or not.”

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Stock futures fell slightly after the market rebound in hopes of a $ 1 trillion stimulus

Stock futures fell in overnight trading on Tuesday as markets remained very volatile with the government’s response to the coronavirus fallout.

Dow Jones’ industrial average futures were down around 400 points, indicating a 600 point loss at Wednesday’s opening. S&P 500 futures also fell by around 45 points.

The market rebounded from their deepest course since 1987, when investors hoped that the Trump administration’s massive fiscal stimulus plans will save the economy, which is at risk of falling into a recession due to the impact of the coronavirus. .

The White House weighs over $ 1 trillion in a tax package that includes direct payments to Americans and financial breaks for small businesses and the airline industry. Treasury Secretary Steven Mnuchin also said that companies will be able to defer tax payments of up to $ 10 million while individuals could defer up to $ 1 million in payments to the Internal Revenue Service.

Mnuchin told Republican senators that unemployment could reach 20% if Congress fails to promote the trillion-dollar stimulus package he has proposed, CNBC reported Tuesday evening, citing a source familiar with the matter.

The Dow rose to over 1,000 points on Tuesday to end another unstable session, recovering less than half of Monday’s steep losses. The S&P 500 gained 6%.

Wall Street has been on an unprecedented roller coaster ride amid the coronavirus riot, with the S&P 500 fluctuating 4% or more in both directions for seven consecutive sessions. This surpasses the previous six-day record of November 1929, according to LPL Financial.

On Tuesday, investors also encouraged the Federal Reserve’s intensified efforts to help companies who have difficulty obtaining short-term financing. The bank has announced a special credit line for purchasing corporate card from some issuers. This follows the Fed’s $ 700 billion emergency quantitative easing schedule and a further 100 basis point cut in Sunday’s interest rates.

“The signs indicate that the pandemic will be under control and that the economy will have enough support to resist the storm,” said Brad McMillan, Chief Investment Officer at Commonwealth Financial. “Make no mistake, there will be damage. But from the market point of view, the question will be whether the damage is greater than what the markets now expect or not.”

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Dow below 20,000, Boeing drops 20%

Traders work during the opening bell on the New York Stock Exchange (NYSE) on March 16, 2020 on Wall Street in New York City.

Johannes Eisele | AFP | Getty Images

This is a live blog. Check for updates

10:58 am: stocks get help from Fed announcement

After the Federal Reserve announced that it will move to help small businesses get short-term funding, stocks have been on a buoyant boost. The Dow has risen by over 150 points in volatile trading. Nasdaq and S&P 500 both increased by around 2%. – Fitzgerald

10:50 am: Fed to provide short-term financing in the commercial paper market

The Federal Reserve said Tuesday that it is providing help to companies that are having difficulty obtaining the short-term financing they need to operate. The bank announced a special credit line for purchasing corporate card from issuers who had difficulty finding buyers in the open market. The company card provides for unsecured short-term loans. The one-day facility will involve a three-month document for eligible companies. The cost will be the swap rate on the three-month overnight index plus 200 points. – Cox

10:33: biotechnology companies that beat the market

While the market in general struggled to rebound from Monday’s deep losses, a handful of biotech companies posted double-digit returns. Germany-based BioNTech rose nearly 61% on Tuesday after stating that it had partnered with Pfizer to develop a coronavirus vaccine. Modern surpassed 12%, while Regeneron rose more than 10% after the company said it wanted to start human clinical trials of a coronavirus drug in early summer. – Li, Francolla

10:32 am: Analysts highlight defensive stocks like Walmart and P&G in Tuesday’s major calls

  • Oppenheimer updated Walmart to outperform
  • Deutsche Bank updated Procter & Gamble to buy from the suspension.
  • Needham started Zoom as a purchase.
  • Evercore ISI updated Pepsi to outperform from online.
  • Bernstein updated JD.com to outperform the market.
  • MKM has updated Boston Beer to purchase it as a neutral.
  • MKM has updated Electronic Arts to purchase neutral.
  • Cowen has upgraded Square to outperform the market.
  • Bank of America has downgraded Royal Caribbean to underperform neutral.
  • Wedbush added Facebook, Amazon and Peloton to the list of best ideas.

Read the full analyst calls of the day here. –flowering

10:30 am: Boeing stocks drop 20% due to worsening aircraft manufacturer slide

The crown jewel of American industrialists Boeing dropped another 20% on Tuesday, adding an astonishing slide for the aircraft manufacturer in recent months. The sell-off comes the day after Boeing says it is in talks with the Trump administration on potential aid and others in its supply chain as the new coronavirus hits the travel industry. The airline was already facing the consequences of two fatal accidents on its 737 Max plane, which has been grounded worldwide since 2019. The price of equity Boeing has fallen 72% in the past six months. – Franck

10:25 am: Fed announces another $ 500 billion deal for overnight repurchase financing markets

The Federal Reserve continues to provide support for short-term bank financing as it will establish another $ 500 billion repurchase operation on Tuesday afternoon. In the latest deal, the Fed will take another step in addition to a similar offer on Monday. The central bank’s New York trading desk aimed to clamp down on disruptions in overnight lending markets where banks need to get operating capital. –helmsman

10:23: Amazon stock rises by more than 3%

Amazon shares rose 3.8% in Tuesday morning trading. The e-commerce giant has said it plans to hire another 100,000 warehouse workers and delivery workers amid an increase in online orders due to the coronavirus epidemic. The company is also increasing wages for warehouse workers and delivery personnel for $ 2 an hour in the United States until the end of April. On Saturday, Amazon said that some brands in the “household items” category were out of stock and warned that some of its “delivery promises are longer than usual”. – Palmer, Li

10:20 am: Homebuilder’s sentiment subsides as the coronavirus begins to take into consideration

A monthly measure of house builders’ sentiment only partially reflected the growing economic effects of coronavirus. Sentiment dropped 2 points to 72 in March, according to the National Association of Home Builders / Wells Fargo Housing housing market index. Sentiment levels have remained in a narrow range between the mid and mid-1970s over the past six months. Anything above 50 is considered positive. –Olick

10:07 am: Tesla’s stock drops below $ 420

Tesla’s shares fell below the infamous $ 420 level at the start of Tuesday’s trading, just three months after hitting that mark for the first time. The price has become notorious for Tesla’s shares, since CEO Elon Musk tweeted in August 2018 that he had obtained “guaranteed funding” to make the company private at that level. Musk later agreed on an agreement with the SEC on the statement after the regulator sought to prevent Musk from holding leadership positions in any publicly traded company. – Sheetz

10:06 am: Trump administration wants $ 850 billion stimulus plan, reports say

Treasury secretary Steven Mnuchin visits Capitol today to discuss a third coronavirus response package with Senate Republicans as politicians try to avoid economic calamity. The Trump administration wants a $ 850 billion economic stimulus plan, Politico and The Washington Post report. The White House proposal is expected to include around $ 50 billion in aid to an airline industry hit by the global pandemic, according to Swiss Post. Congress has already paid $ 8.3 billion in emergency funding to help stop the spread of coronavirus disease. This week, a separate program to expand paid leave allowances, increase unemployment insurance and make tests more affordable is going through the Capitol. –Pramuk

10:01: Shares in red, Dow below 20,000

The shares renounced all their earnings within 30 minutes of the opening bell. The industrial average of Dow Jones has fallen below 20,000 for the first time since February 2017. The average of 30 stocks has fallen by around 200 points. The S&P 500 and the Nasdaq also turned negative. – Fitzgerald

9:58: VIX reaches another historic high

Wall Street fear is Cboe’s volatility index, known as VIX, which hit another all-time high of 83.94 on Tuesday morning in the midst of wild trading. During the huge sell-off on Monday, the VIX blew nearly 25 points, or nearly 43%, to close at a record high of 82.69, surpassing the peak level of 80.74 during the financial crisis. The VIX, which tracks the S&P 500’s implied 30-day volatility, more than doubled in March alone. The index examines option prices on the S&P 500 to track the level of fear on Wall Street. – There

9:50: Regeneron reaches 52 weeks of hope in the coronavirus drug

Stocks of biotechnology company Regeneron hit a new 52-week high of $ 503.20 per share on Tuesday after the company said it intended to prepare doses of a potential drug for COVID-19 ready to begin human clinical trials. early summer. Regeneron’s shares were last traded around 9%. –Fitzgerald

9:47: parts of the McDonald crisis after the closure of the dining room

McDonald’s is asking its US franchisees to close their dining rooms as the company responds to the outbreak of the coronavirus. The fast-food giant also plans to close the dining rooms at the company’s headquarters in the United States. Customers will be able to order take-away or delivery food and drinks or via the drive-thru. McDonald’s owns approximately 5% of its approximately 14,000 U.S. restaurants. McDonald’s shares fell nearly 6% in morning trading. –There

9:43: shares seem to earn shortly after opening

The stocks quickly lost their earnings on Tuesday, with the Dow briefly plunging into negative territory. The average dropped 100 points in less than 15 minutes after the opening bell, but last time it traded over 100 points. The S&P 500 and the Nasdaq have remained in the green but have also reduced earnings. – Fitzgerald

9:30 am: Actions open in the green, Dow up 400 points

Stocks have attempted a worst-day rebound since 1987, with all three major averages open in positive territory on Tuesday. The industrial average of Dow Jones rose 410 points, or 2%. The S&P 500 rose 2.2% and the Nasdaq jumped 2.2%. – Fitzgerald

9:15: retail sales declined in February

Retail sales in the United States declined 0.5% in February, lacking analyst expectations of a 0.2% increase, according to Reuters estimates. The January data, however, have been revised upwards. For the month, sales increased by 0.6%. Previous reports had shown an acceleration of 0.3%. – Stevens

9:03: These are the rough headlines “social distance,” says Piper Sandler

Piper Sandler has identified a basket of “social distancing” actions that he believes are destined to outperform as people stay indoors and work from home in an attempt to stop the spread of COVID-19. “We are all in an unexplored territory like this global movement the health crisis is eradicating the way we go every day, our workflow and our social interactions, “said the company in a recent note to customers, claiming to favor companies that offer restaurant services. , entertainment and work at home, as well as retailers with a strong e-commerce presence. The list includes names like Kellogg and Zoom Video. CNBC Pro subscribers can read more here. – Stevens

8:38: Morgan Stanley expects a global recession this year

Company chief economist Chetan Ahya told investors that “a global recession in 2020 is now our base case.” Morgan Stanley said that the coronavirus pandemic is fundamentally upsetting the world economy, predicting the lowest global economic growth “from the global financial crisis”. – Sheetz

8:30 am: The Treasury generates a rebound only on sight

Treasury yields rose somewhat on Tuesday morning as investors sought more details on the fiscal stimulus from the Trump administration to combat the fallout of the coronavirus. The yield on the 10-year Treasury note increased by just five basis points to 0.77% after falling 23 basis points in the previous session. The yield on the 30-year Treasury bond rose slightly to 1.36%. Bond yields move inversely relative to prices. “There will come a stage in the process where the lows will eventually be set and efforts will be made to bring the market back to a semblance of normality,” said Ian Lyngen, BMO’s US tariffs manager. “It is unclear whether investors have entered this stage, while the reverberations of monetary policy continue to make their way through the system.” – There

7:37: Tech titans cancel more than $ 1 trillion in the market sell-off

So-called “MAGA” stocks – or Microsoft, Apple, Amazon and Google-parent Alphabet – wiped $ 1.3 trillion in value from their February high during the market’s largest sell-off. Microsoft was the hardest hit, losing around $ 405.2 billion. Apple canceled about $ 371.8 billion, while Alphabet lost $ 311.1 billion. Amazon has lost $ 239.4 billion. With recent losses, only Apple and Microsoft are now valued at over $ 1 trillion. – Stevens

7:31: Nordstrom says it will close U.S. stores, suspending 2020 guidelines

Nordstrom has said it will close 364 of its stores in an attempt to curb the spread of the coronavirus. Due to continuing uncertainty over the long-term impact of the virus, the retailer also suspended the earnings outlook for 2020. Nordstrom said it had experienced “a generalized slowdown in customer demand in the past two weeks, particularly in the markets. most affected by the virus. ” The stock has lost more than half its value this year after losing 58%. Shares remained stable during Tuesday’s premier market trades. – Stevens, Thomas

7:14: Cramer claims that wild future swings are “a total joke”

Stock futures were on an unbridled run towards Tuesday’s opening on Wall Street, questioning the reliability of pre-market trading as an indicator of the situation. Overnight futures have been “limited” at some point in a situation where trading has stopped because they have achieved a 5% gain and cannot go higher. However, shortly before 6:30 the markets reversed and were negative at some point. They then shot higher again shortly thereafter and recently indicated a big gain. Looking at the huge swings, CNBC’s Jim Cramer said futures are losing their reliability and are “a complete joke”. “Don’t even look at them. You can’t have a bull market at 3:30 in the morning and end it by 7 in the morning,” said the host “Mad Money”. –helmsman

7:05: Regeneron speeds up the history of coronavirus drugs

Pharmaceutical company Regeneron said Tuesday that it is speeding up its coronavirus drug, with the potential to run tests in early summer. Antibody therapy has the potential to be preventive from the virus and treat active cases. The share of the biotechnology company grew by more than 13% in trading on the premier market on Tuesday. – Fitzgerald

7:00: stocks set to rebound

Stock futures rebounded Tuesday after the third worst day in Dow Jones’ industrial media history. Dow Jones Industrial Average futures indicated an implicit opening of over 600 points. The S&P 500 and the Nasdaq were also on the rise.

The rebound comes after the Dow and S&P 500 experienced their worst day after the 1987 “Black Monday” slump despite Federal Reserve rate cuts and easing actions. The Dow has lost nearly 13%, the third-worst one-day drop in history. The S&P 500 lost 12%. The Nasdaq Composite had the biggest one-day dip ever, plunging 12.3%. – Fitzgerald

– with reports from Jeff Cox and Michael Sheetz of CNBC.

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