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The number of U.S. cases of the coronavirus that causes COVID-19 rose above 600,000 on Wednesday, as President Donald Trump suspended funding to the World Health Organization, drawing criticism from other world leaders and health officials during the middle of the pandemic.
House Speaker Nancy Pelosi issued a stark warning to Americans to “ignore the lies” in a scathing rebuke of Trump’s handling of the crisis, in which she said he ignored early warnings, took insufficient actions that caused ‘unnecessary death and disaster.” Pelosi joined state governors who are pushing back against the president’s efforts to reopen the economy sooner rather than later, warning that it would cause more deaths and further jeopardize any economic recovery.
The latest batch of economic data offered a grim reading on the havoc the virus is causing as Americans are ordered to stay at home, offices and plants are closed and retail outlets shuttered. March retail sales fell a record 8.7%, industrial production suffered the biggest decline since 1946 and New York’s Empire State business conditions index plummeted a record 57 points to -78.2 in April, the lowest reading on record.
See:IMF isn’t convinced the global economy can shake the ‘Great Lockdown’ by 2021
In Europe, Germany is extending social-distancing restrictions until May 3, although Chancellor Angela Merkel is to host a conference call with the heads of Germany’s 16 Lander, or states, to discuss an exit strategy from the lockdown, as the Guardian reported.
Elsewhere in Europe, Denmark began tentatively opening schools, while Sweden saw a surge in deaths from the virus and health experts continue to question its government’s approach and failure to impose the public-safety measures that have helped neighboring Finland greatly reduce its death toll. Sweden’s Public Health Agency said Tuesday it has a death toll rate of 101 per million inhabitants, compared with Finland’s 11 per million and Denmark’s 51 per million.
There are now more than 2 million cases of COVID-19 globally and 128,071 people have died, according to data aggregated by Johns Hopkins University. At least 501,206 people have recovered.
The U.S. has the most cases at 609,696 and the most deaths at 26,059. In Europe, Spain has the most cases at 177,633 and 18,579 fatalities. Italy has 162,488 cases but the highest death toll in Europe at 21,067.
Germany, which has been praised for widespread testing, has 132,321 cases but just 3,502 deaths, while France has 131,362 cases and 15,570 deaths. The U.K. has 94,582 cases and 12,131 deaths. China, where the virus was first reported late last year, has 83,355 cases and 3,346 deaths, although some have questioned the accuracy of those numbers. Iran has 76,389 cases and 4,777 deaths.
New York state remains the U.S. epicenter with 202,208 confirmed cases and 10,834 deaths. New York City’s death toll took a tragic turn late Tuesday when the city began to add the number of probable COVID-19 deaths to those confirmed in laboratories. That pushed the number to 10,367, or almost four times the 2,753 lives that were lost in the attacks on Sept. 11, 2001.
Mayor Bill de Blasio announced that New York City will begin manufacturing its own coronavirus test kits. The local production of 50,000 test kits a week will begin at the start of May.
“If people can make them around the world, why not us? Companies all over the world could make some of these components, why couldn’t the most innovative city on earth figure out a way?” de Blasio said. “So, I’m here to announce to you that we have found a way.”
Abbot ABT, +1.89% announced the launch of a serological test that can be used to detect if an individual has COVID-19 antibodies even if they never have had symptoms of the virus. Some officials are hopeful that such tests would allow people to move more freely in their communities if the tests demonstrate immunity and could support reopening the economy. It’s unknown at this time whether the antibodies provide immunity and if they do for how long.
In company news, Target was upgraded on expectations it will win market share as smaller rivals are felled by COVID-19. Netflix was assigned a record high price target on expectations it will cement its leading position in streaming thanks to its massive library of content and original programming during the lockdown.
Others announced another round of cost and pay cuts for executives and rank-and-file workers and raised money through bond sales.
Read: Airlines say deal on bailout includes provisions for government ownership
Here’s what companies said about COVID-19 on Wednesday:
• ANGI Homeservices ANGI, -2.73% expects first-quarter 2020 revenue of $340 million to $345 million, and an operating loss of $15 million to $20 million. Analysts polled by FactSet expect the company to report sales around $356 million. The home services company has $384.2 million in cash and cash equivalents, $244.1 million of debt, which is mostly due in 2023, and $250 million available under its revolving credit facility, which expires in November 2023. The company withdrew its prior full-year 2020 guidance due to the impact of COVID-19; uncertainties wrought by the pandemic include economic impact on consumers and the willingness of homeowners and service professionals to resume interaction.
• Best Buy Co. Inc. BBY, -6.65% has held on to 70% of its year-over-year sales despite the move to curbside-only service amid the crisis. All of the consumer electronics retailer’s domestic stores are closed apart from curbside service, and about 40 stores are shuttered entirely. Online sales have soared 250% with half of those orders using the curbside service, according to CEO Corie Barry. Sales for the nine weeks ending April 4 fell about 5%, but were up in the eight days ending March 20 by 25%. Sales slumped 30% from March 21. Best Buy has drawn down all of its $1.25 billion revolving credit facility and suspended share repurchases. Starting April 19, 51,000 hourly store workers and nearly all part-time workers will be furloughed. About 82% of full-time workers, in-home advisers and Geek Squad technology assistance agents will be kept on. Some corporate employees will also take voluntary cuts to their work weeks and pay, or be voluntarily furloughed. CEO Barry will cut her base salary in half, and board members will halve their retainer until at least September 1. Company executives will take a 20% pay cut until at least September 1. Best Buy is cutting promotional and marketing spend and suspending the 401(k) matching program. .
• Energizer Holdings Inc. ENR, -6.03% expects fiscal second-quarter revenue of $587 million, up 5.5% from a year ago, but slightly below the FactSet consensus of $590 million. The battery maker’s results were driven by “strong” consumer demand for batteries in March. Energizer is withdrawing its full-year guidance. The company has “fully drawn” its revolving credit facility, to increase liquidity in case future COVID-19-related developments negatively impact business operations, giving it $484 million in cash and cash equivalents.
• Estée Lauder Cos. EL, -4.06% is borrowing the full $1.5 billion available under its revolving credit facility. The beauty company has suspended its dividend, issued $700 million in 2.6% senior unsecured notes that mature in 2030 and furloughed employees. From May 1 through October 30, Executive Chairman William Lauder and Chief Executive Fabrizio Freda will have their salaries halved, the executive leadership team will cut their salaries by 30% and other members of management will cut their salaries by 10% to 20%. Leonard Lauder, chairman emeritus, and Ronald Lauder, chairman of Clinique Laboratories, LLC, will have their pay cut nearly entirely and the board will forego compensation until November. Stores across Asia are reopening though those in other parts of the world and travel retail outlets remain closed or curtailed.
• Exxon Mobil Corp. XOM, -6.44% has boosted production of the raw materials needed to make medical face masks, hand sanitizers and gowns, to help combat shortages of personal protective equipment (PPE). The oil giant has increased its capability to make specialized polypropylene by about 1,000 tons a month, which is enough to enable production of up to 200 million medical masks or 20 million gowns. The company has also increased production of isopropyl alcohol (rubbing alcohol) by 3,000 tons, which is enough to make up to 50 million 4-ounce bottles of medical-grade hand sanitizer.
• Illumina Inc. ILMN, -2.06%, which specializes in genetic testing and DNA sequencing, expects first-quarter revenue to beat its own projections and estimates that have declined in the wake of the COVID-19 pandemic. The company expects revenue of about $858 million, up from $846 million a year ago and higher than the projection of $850 million to $855 million that the company provided in January. Analysts on average expect revenue of $835 million for the quarter, though that projection has declined from $857.4 million as of the end of February. Illumina is withdrawing guidance for this year.
• Muscle Maker Inc. GRIL, +13.79%, parent of the Muscle Maker Grill restaurant chain, has launched a grocery service, including four meal bundles, that can either be picked up curbside or delivered “contactless” to certain locations. The company is offering a Cleaning Bundle, which includes 4 rolls of toilet paper, 2 rolls of paper towels, disinfectant spray and a box of 100 disposable gloves. Among the meal bundles, the Breakfast Bundle includes a dozen eggs, a pound of bacon, a loaf of bread, a gallon of 2% milk, a half gallon of orange juice, a pound of butter and omelet fixings. Other bundles are the Burger Bundle, the Burrito Bundle and the Italian Bundle.
• Noble Energy Inc. NBL, -15.15% is cutting 2020 capex by an additional $350 million to a range of $800 million to $900 million, lowering it by 50% from the midpoint of its initial plan. The company has identified another $125 million in cash cost savings to reduce cash outlay for 2020 by more than $175 million versus the original plan. The company has lowered the salaries of its executive leadership by 10% to 20% and cut its cash retainer to directors by 25% effective through year-end. It has furloughed employees to align its workforce with activity levels. The company has settled for cash certain oil hedges that had reached maximum value and generated $145 million in realized gains in the first quarter, while adding new downside hedges for the rest of the year. To ensure it has sufficient cash on hand, it had drawn $1 billion of its $4 billion revolving credit facility at end March and reduced its cash dividend to an annualized 8 cents a share.
• Procter & Gamble Co. PG, -0.05% is increasing its quarterly dividend 6% to 79 cents a share and moving up its earnings release to April 17. Procter & Gamble makes several brands of popular toilet paper including Charmin and Cottonelle, among other consumer goods.
• Theme park operator Six Flags Entertainment Corp. SIX, -5.67% is offering up to $665 million of senior secured notes. Proceeds will be used to repay debt and fund operations. The company has consent from lenders to amend its credit facility to allow for the bond sale and to suspend certain covenants through year-end. It has also put a minimum price floor on partnership parks, which could fall in value after parks were forced to close during the coronavirus pandemic.
• Teladoc Health Inc.’s TDOC, +7.24% activity had doubled in the past month as COVID-19 spread across the globe/ The company is now routinely providing in excess of 20,000 virtual medical visits per day in the United States, representing an increase of over 100% as compared to the first week of March. Revenue grew to between $180 million and $181 million in the first quarter from $128.6 million a year ago. The company had projected first-quarter revenue of $169 million to $172 million, and analysts on average were expecting $172.1 million, according to FactSet.
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