1. Dow to fall after best quarter in 3 decades
Dow futures pointed to a 200-point drop at Wednesday’s open, as Wall Street’s third quarter begins with hopes of a repeat of the past three months, despite a sharp increase in US cases of coronavirus.
- The Dow Jones Industrial Average rose more than 200 points, or nearly 1%, on Tuesday to close the second quarter with an increase of almost 17.8%, which is the best quarterly indicator since the beginning of 1987.
- S&P 500 growth of almost 20% in the second quarter was the best since the end of 1998.
- Nasdaq’s second quarter earnings of more than 30% have been the best since late 1999.
- As of Tuesday’s close, Nasdaq registered the only positive first half of the year, with 12% growth in 2020.
- The Dow and S & P 500 ended the first half with a decrease of 9.5% and 4%, respectively, this year.
- Dow, S & P 500 and Nasdaq were positive in June, starting on the first day of July.
Key to the market on Wednesday: ADP publishes its June report on private sector employment at 8:15 am ET, expecting an increase of 2.5 million. Positions in the US after losing 2.76 million in May. The government publishes its monthly employment report the day before on Thursday, and on Thursday it regularly reviews weekly jobless claims. The stock market closed on Friday due to the July 4th celebration.
FedEx shares soared nearly 10% on premarket Wednesday after a surge in home deliveries due to a pandemic helped the giant pack publish better-than-expected quarterly earnings and revenue. However, the coronavirus crisis was detrimental to business: adjusted earnings in the fourth quarter halved to $ 2.53 per share, and revenue fell slightly more than 2% to $ 17.4 billion. USA.
2. Democrats manage Senate PPP expansion
Senate minority leader Chuck Schumer, New York, speaks at a press conference on the outbreak of the coronavirus in the US Capitol on March 11, 2020 in Washington, DC. Schumer and other members of the Democratic Group called on corporations and employers to provide paid sick leave to all workers in accordance with recommended medical procedures. Also depicted (LR) are Senator Sherrod Brown (D-OH), Senator Ben Cardin (D-MD), Senator Ron Wieden (D-OR), Senator Patty Murray (D-WA), Senator Patrick Leahy (D-VT) and Senator Mark Warner (D-VA).
Win by McNami | Getty images
Democrats drove a passage in the Senate, controlled by the Republican Party, on the temporary extension of the Small Business Salary Protection Program until August 8. An unexpected event at the end of Tuesday occurred a few hours before the expiration of the federal loan program, and it remains to allocate about 130 billion dollars. Account now goes to a democratically controlled house need the signature of President Donald Trump. PPP was created as part of a package of measures to save the economy worth $ 2.2 trillion in March. It has been changed twice since.
3. Fakui says new cases can “go up to 100,000 a day”
Anthony Fauci, director of the National Institute of Allergy and Infectious Diseases, wears a Washington Nationals face mask, awaiting the Senate Health, Education, Labor and Pension Committee hearing in Washington, DC, USA on Tuesday, June 30, 2020.
Al Drago | Bloomberg | Getty images
White House Health Advisor Dr. Anthony Fauci, in his Senate speech on Tuesday, portrayed a grim prospect for America’s ability to stem the recent outbursts of Covid-19 cases. “Now we have more than 40 thousand new cases per day. I will not be surprised if we raise to 100,000 per day, if this does not change, and therefore I am very concerned, ”he said.
A leading infectious disease expert in the United States also said that he sees the “characteristics” of the 2009 H1N1 virus and the 1918 flu pandemic in a new influenza strain in China. According to the CDC, the 1918 flu, which Fauchi often compares with Covid-19, killed 30 to 50 million people.
4. Half of the new cases came from only four states
During a new coronavirus pandemic on Tuesday, June 30, 2020, in Miami Beach, Florida, people are standing in line at a place to test COVID-19.
Lynn Sweet | AP
The recent increase in coronavirus cases in the country to 40,000 people a day is nearly double the daily infections observed in mid-May. This is largely due to outbreaks in several states in the south and west. According to Fauci, about 50% of all new cases come from four states: Florida, California, Texas and Arizona. New York adds eight additional states to its travel recommendation, and now requires travelers from 16 states to be quarantined for 14 days. The order was first released with New Jersey and Connecticut last week.
According to a CNBC / Change Research poll, voters in the six wavering states of 2020 largely disapprove of how the president deals with the coronavirus crisis. Trump was accused by 35% of respondents of the recent increase in the number of hospital admissions Covid-19, followed by people without masks and staff, opening the economy too early.
Prospective Democratic presidential candidate Joe Biden is expanding his leadership over the president in Arizona, Florida, Michigan, North Carolina, Pennsylvania, and Wisconsin. The survey, which is a result of several states cutting or halting their reopening plans due to rising infections, also shows problems for Republicans participating in Senate races in Arizona, Michigan, and North Carolina.
– The Associated Press and Reuters contributed to this report.