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FINANCIAL MARKETS
Stocks turn mixed
NEW YORK (AP) — Stocks gave up an early gain on Wall Street and were mixed, while the price of oil continued its wild ride.
Markets had gotten off to a strong start as nations and some U.S. states move toward reopening their economies from lockdowns made to restrict the spread of the coronavirus.
Investors are also focusing on earnings reports that big U.S. companies will be releasing this week. Google parent Alphabet and Starbucks report their latest results after the closing bell.
U.S. crude oil swung wildly again as concerns remain about oversupply and a lack of storage space.
CONSUMER CONFIDENCE
Consumer confidence plunges in April as millions lose jobs
WASHINGTON (AP) — U.S. consumer confidence plunged in April as millions lost their jobs, with an index that monitors attitudes about current business and work conditions dropping by the largest amount on record.
The Conference Board said Tuesday that its confidence index tumbled to a reading of 86.9, down from 118.8 in March. The index is composed of consumers’ assessment of present conditions and expectations about the future.
The present conditions index slumped from 166.7, to 76.4, a 90-point drop that was the largest on record. The expectations index, based on the future outlook, improved slightly from 86.8 in March to 93.8 in April.
HOME PRICES
Home prices rose before viral outbreak shut down economy
WASHINGTON (AP) — U.S home prices rose at a steady pace in February, before the viral outbreak shuttered much of the economy and caused a sharp fall in home sales.
The S&P CoreLogic Case-Shiller 20-city home price index rose 3.5% in February from a year ago, up from a 3.1% increase in January.
Solid hiring at the start of the year and low mortgage rates had supported rising home sales and prices, but in March sales of new and existing homes plummeted as much of the U.S. population sheltered in place.
VIRUS OUTBREAK-TRUMP-AIRLINES
Trump says administration is talking to airlines about passenger checks
WASHINGTON (AP) — President Donald Trump says his administration is talking to the airline industry about giving passengers temperature checks and testing them for the coronavirus.
Trump also says it “sounds like a good idea” for passengers to be wearing a face mask while on the plane.
The comments came as Trump met at the White House with Republican Governor Ron DeSantis of Florida about that state’s plans for loosening restrictions on the economy put into place as a result of the pandemic.
Florida health authorities have attributed many of the state’s COVID-19 cases to people traveling from other hot spots, including Europe, Nile river cruises, the New York City area and Latin America.
DeSantis tells Trump that his state’s ability to test people for the virus exceeds current demand and that moving to the first phase of reopening the economy should not be a heavy lift.
VIRUS OUTBREAK-SMALL BUSINESS
Bottleneck continues as businesses seek gov't relief loans
NEW YORK (AP) — Banks trying to submit applications for thousands of small businesses seeking coronavirus relief loans have hit a bottleneck for a second day at the Small Business Administration.
Banking industry groups say the SBA’s loan processing system is still unable to handle the volume of loan applications from business owners trying to get aid under the Paychceck Protection Program, part of the government’s $2 trillion coronavirus aid program.
The SBA has said the slowdown is due to its attempts to limit the amount of loans any bank can submit at one time. But some banks say they’re not able to get any applications into the system.
VIRUS OUTBREAK-RUSSIA
Putin extends economic shutdown
MOSCOW (AP) — Russian President Vladimir Putin has extended the nation’s partial economic shutdown through May 11, saying the coronavirus outbreak is yet to reach a peak.
Speaking in a conference call with top officials Tuesday, Putin says the shutdown that began at the end of March and was to expire on April 30 has slowed contagion. Lockdowns imposed by Russian regions have kept most people, except those working in vital industries, at home.
Russia has recorded 93,558 coronavirus cases and 867 deaths. Moscow has accounted for about half of the cases.
Putin instructed the government to prepare a plan for gradually lifting the lockdown after May 11. He also promised new steps to support businesses and restore the economic damage from the outbreak.
BANGLADESH-GARMENT INDUSTRY
Bangladesh reopens 600 apparel factories despite virus risk
DHAKA, Bangladesh (AP) — Nearly a month after Bangladesh ordered garment factories shuttered to prevent the spread of the coronavirus, the industry is reopening hundreds of them despite risks the disease might spread. The pandemic has cost Bangladesh more than $3 billion in orders that were canceled or suspended. Industry leader Rubana Huq said Tuesday that about 600 factories reopened during the past two days. She said the factories are adhering to health protocols and having workers living near the factories initially return to production lines. Huq said at least 856 factories will reopen soon. Bangladesh has the world's second largest garment industry after China. It normally earns $35 billion annually from exports mainly to the United States and Europe.
EARNS-SOUTHWEST
Southwest posts first quarterly loss in almost a decade
DALLAS (AP) — Southwest Airlines is posting its first quarterly loss in almost a decade and doesn’t see any improvement in air travel on the horizon.
Chairman and CEO Gary Kelly said the U.S. economy is at a standstill and the airline's outlook for the second quarter shows no improvement in air travel trends.
On Tuesday, the Dallas carrier said it swung to a loss of $94 million for the quarter ended March 31, from a $387 million profit last year. It was the airline's first quarterly loss since 2011.
The company has canceled flights, parked planes and borrowed money to hang on through the coronavirus pandemic.
EARNS-PFIZER
Pfizer 2Q sales and profit down, but it maintains 2020 views
UNDATED (AP) — Drugmaker Pfizer says the COVID-19 pandemic is disrupting its patient testing of experimental drugs and will reduce revenue significantly in the second quarter.
But the world’s biggest prescription drugmaker said Tuesday that its manufacturing plants are running normally.
Pfizer reported lower drug revenue in the first quarter as sales of older off-patent drugs dropped. Still, the New York-based company is maintaining its 2020 profit forecast.
The maker of Xeljanz for rheumatoid arthritis and the Prevnar 13 vaccine against pneumonia and related infections reported net income of $3.4 billion, down 12% from a year ago.
EARNS-MERCK
Merck expects brunt of pandemic will strike this quarter
UNDATED (AP) — The pandemic increased sales of Merck medicines during the first quarter as households around the world stocked up, but the drugmaker expects a significant hit this quarter as the full force of the outbreak is registered.
Despite an 11% revenue jump and a profit increase of 10%, the company lowered its outlook for the year Tuesday.
Merck & Co. anticipates its 2020 prescription drug sales will fall by $1.7 billion, because the pandemic is keeping many patients with chronic conditions away from their doctors.
EARNS-UNITED PARCEL SERVICE
UPS posts $965 million profit, missing Wall Street's target
ATLANTA (AP) — United Parcel Service Inc. reported a 13% drop in first-quarter profit, to $965 million, as stay-at-home orders generated deliveries to people’s homes but not enough to offset the higher costs and a drop in business deliveries.
UPS said Tuesday that the coronavirus outbreak has created “significant headwinds.” The package-delivery company withdrew forecasts about future revenue and profit, saying it couldn’t predict the depth or duration of the pandemic’s impact on its business.
The company said it expects to cut capital spending this year by $1 billion and it is suspending share buybacks, reducing planned full-year spending on buybacks by $783 million.
CATERPILLAR-RESULTS
Caterpillar profit tumbles with world economy on lockdown
DEERFIELD, Ill. (AP) — Caterpillar’s profits are down 46% with much of the global economy seized by the spread of the coronavirus pandemic.
The company has already withdrawn all financial guidance and said Tuesday that it expects that the outbreak will skew its performance throughout the year. The company, which builds heavy mining and construction equipment, has been deemed essential by a number of central governments in maintaining infrastructure, and it’s implemented new safety protocols to continue operations. About 75% of its primary production facilities continue to operate as of mid-April.
SEAWORLD-FEDERAL LOAN
After furloughing 95% of workers, SeaWorld seeks fed loan
ORLANDO, Fla. (AP) — SeaWorld Entertainment is seeking a loan from a federal program meant to help businesses retain workers during pandemic-related shutdowns. But a labor group said this week that the theme park company is undeserving because it furloughed 95% of its employees.
SeaWorld operates a dozen SeaWorld, Busch Gardens and Sesame Place parks across the U.S.
The company said late last month that it was actively trying to get assistance from the Federal Reserve’s Main Street Lending Program. The program offers four-year loans of between $1 million and $25 million to medium-sized businesses. Principal and interest payments are deferred for a year.
HIGH TIMES-DISPENSARY SALE
High Times owner scores 13 California marijuana dispensaries
LOS ANGELES (AP) — The owner of High Times is going to start selling marijuana after championing its use in the pages of its magazine for nearly half a century.
Hightimes Holding Corp. said Tuesday is acquiring 13 dispensaries from Harvest Health and Recreation, one of the largest multi-state producers and sellers of cannabis in the U.S. The cash and stock deal is valued at $80 million.
The sale, which involves dispensaries in California, represents Hightimes’ first foray into the retail business.
The company said it will revamp and rebrand the stores, which will be licensed for regional delivery.
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