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The number of global cases of the coronavirus that causes COVID-19 rose to 4.9 million on Wednesday and Brazil suffered its worst fatalities since the start of the outbreak, prompting President Donald Trump to say he may bar entry to flights from Brazil.
“I don’t want people coming in here and infecting our people. I don’t want people over there sick either. We’re helping Brazil with ventilators. We’re sending them ventilators,” Trump told reporters during a cabinet meeting at the White House, the Associated Press reported.
Brazil suffered 1,179 deaths in a single day overnight, pushing its death toll to 17,971, according to the health ministry. The country has 271,885 cases, according to data aggregated by Johns Hopkins University.
Brazil’s far-right President Jair Bolsonaro has dismissed the risks of the disease and encouraged his supporters to go back to work. Bolsonaro did not respond to Trump’s comments on a travel ban, but he did say the health ministry would issue guidelines on the use of hydroxychloroquine to treat the illness.
The drug, which is approved to treat malaria, rheumatoid arthritis and lupus, has not been proved to be effective as a treatment for COVID-19, but has been touted by Trump for weeks. The president stunned many on Monday when he said he has been taking it himself. Hydroxychloroquine is known to have potentially severe side effects, including heart-rhythm problems.
The FDA in March granted an emergency-use authorization to hydroxychloroquine and chloroquine as COVID-19 treatments. Since then, a number of trials have been launched, including by the National Institute of Allergy and Infectious Diseases (NIAID), which is testing it on 2,000 patients with mild and moderate cases of the virus.
Russia reported another 8,764 cases in a 24-hour period, which while high, is its lowest case increase since May 1.
Countries that moved fast to contain the spread of the virus, meanwhile, were pushing ahead with reopening. In South Korea, seniors returned to high school on Wednesday, wearing face masks and observing social distancing, the Guardian reported.
New Zealand, which has had no new cases of the virus in the last 24 hours, is considering ways to boost its tourism industry, which has been hurt by a ban on foreign travelers. Prime Minister Jacinda Ardern proposed adding more public holidays or shortening the work week to encourage New Zealanders to travel around the country and make up for the loss of visitors from overseas.
Ardern made the suggestion in a Facebook video.
In the U.S., Trump again lashed out at China for “mass worldwide killing” for allowing the virus to spread from the city of Wuhan, where it was first reported late last year. The president tweeted that “some wacko” in China had released a statement blaming others for the virus.
It was unclear which statement he was referring to. Trump blasted the World Health Organization again this week for failing to respond quickly and aggressively enough in the early stages of the outbreak, the same criticism that has been leveled by some at his own managing of the crisis.
See also: This 2020 presidential forecast says Trump faces historic defeat due to terrible economy
Trump stirred further controversy on Tuesday by describing the U.S. case tally of 1.52 million at the time, the highest in the world, as a “badge of honor” that shows how much testing it is doing. Critics point out that the U.S. is far behind other countries measured by per capita testing, which public health officials say is crucial to understanding and managing the infection rate.
Latest tallies
There are now 324,063 fatalities from COVID-19 worldwide, according to the Johns Hopkins data. At least 1.7 million people have recovered.
The U.S. has the highest case toll at 1.53 million and the highest death toll at 92,066.
Russia has 308,705 cases and 2,972 deaths.
The U.K. has 250,138 cases and 35,422 deaths, the highest death toll in Europe and second highest in the world after the U.S.
See:Britain sells its first bonds at a negative interest rate
Spain has 232,037 cases and 27,778 deaths, while Italy has 226,699 cases and 32,169 deaths. France has 180,933 cases and 28,025 deaths, while Germany has 177,973 cases and 8,136 deaths.
Turkey has 151,615 cases and 4,199 deaths and Iran has 126,949 cases and 7,183 deaths. India is next with 107,819 cases and 3,317 fatalities, followed by Peru with 99,483 cases and 2,914 deaths. China, where the disease was first reported late last year, has 84,063 cases and 4,638 deaths.
What’s the latest medical news?
Moderna Inc. shares MRNA, +0.11% took a tumble late Tuesday, after a report from health news website Stat cited vaccine experts as saying the initial results from a Phase 1 trial of a COVID-19 vaccine candidate should be taken with a grain of salt. The news, released on Monday, sent Moderna’s stock to a record close and allowed the company do a more than $1 billion stock offering.
In the topline interim trial results released Monday, Moderna said that eight participants taking two of the three lower dosing levels reported the same or higher level of neutralizing antibodies as in blood samples gathered by patients who have recovered from COVID-19. There were four adverse events during the trial, including one participant who reported a severe skin reaction where the investigational vaccine was administered. Three of the adverse events took place in people receiving the highest dose of the vaccine.
But Stat said the company actually revealed very little information and what it did say was words and not data, which scientists need to draw any conclusions.
Equity analysts, however, remain positive on the trial results.
“While samples are not yet available for remaining participants, and we lack specifics on the exact levels of binding antibodies, we view this data as demonstrative of early signs of efficacy,” Goldman Sachs analysts wrote in a note to investors.
Maxim Group’s Jason McCarthy described the data as “compelling.”
Separately, Inovio Pharmaceuticals Inc. INO, +10.88% said its COVID-19 vaccine candidate demonstrated neutralizing antibodies in animals. The data, published in Nature Communications, is from a preclinical study, meaning it does not include information about how the investigational vaccine reacts in humans but in mice and guinea pigs.
Inovio is currently conducting a Phase 1 clinical trial testing the DNA vaccine candidate in people; early data from that study is expected to be announced in June.
“The potent neutralizing antibody and T cell immune responses generated in multiple animal models are supportive of our currently on-going INO-4800 clinical trials,” Dr. Kate Broderick, Inovio’s team lead for COVID-19 vaccine development, said in a news release.
Read also:Pandemic could cost global economy $82 trillion in depression scenario
What are companies saying?
Target Corp. TGT, -2.87% and Lowe’s Cos. LOW, -0.12% became the latest big-name retailers to post quarterly earnings and both benefited from demand for products during stay-at-home orders. Target said e-commerce sales grew 141% in the period and same-store sales rose 10.8% as the average basket total climbed 12.5%, due to more shoppers making fewer but bigger shopping trips.
The stay-at-home period was also a chance for consumers to see the investment that the company has been making in the food and beverage categories over the past few years. Sales in these items grew 20%.
“It’s one more reason for consumers to consolidate their shopping at Target,” Target Chief Executive Brian Cornell said during a call with the media. “Food rounds out the multi-category portfolio.”
Lowe’s posted earnings that were well above expectations, but pulled its full-year guidance because of uncertainty. U.S. same-store sales grew 12.3% above a year ago, compared with the FactSet consensus for domestic same-store sales growth of 2.4%.
United Airlines Holdings Inc. UAL, +4.47% unveiled a series of changes to how it will operate at airports and on board planes on Wednesday, including a partnership with Clorox Co. CLX, +1.43% for enhanced cleaning and another with the Cleveland Clinic, as it works to keep passengers safe during the coronavirus pandemic.
The company’s United CleanPlus effort “brings together a most trusted brand in surface disinfection – Clorox – and the country’s top medical experts – Cleveland Clinic – to inform and guide United’s new cleaning, safety and social distancing protocols that includes touchless kiosks in select locations for baggage check-in, sneeze guards, mandatory face coverings for crew and customers, and giving customers options when flights are more full,” the company said.
For more, read:United Airlines unveils coronavirus safety guide in effort to restore confidence after backlash over packed flight
The company will introduce an “all in one” economy snack bag that will include a sanitizing wipe. Passengers will be allowed to change flight if capacity exceeds 70%.
JetBlue Airways Corp. JBLU, +2.85% said it will keep middle seats blocked out until at least June 4 to maintain social distancing and will require passengers to wear face coverings during check-in and boarding and on flights.
Elsewhere, companies continued to announce pay cuts, dividend suspensions and offer updates on how they will get businesses off the ground again.
Here are the latest things companies have said about COVID-19:
• Corning Inc.’s GLW, +2.85% chief executive will take a 40% cut in base salary as the specialty glass company moves to combat the effect of the pandemic. Named executive officers salaries will be reduced by 30%, while the cash compensation of its non-employee directors will be cut by 40%. Cuts of 5% to 30% will be imposed for all other salaried U.S. workers from June 1, 2020 through December 31, 2020. Similar actions will be taken outside the U.S., based on local regulations and mutual consent requirements. The company will issue equity to its employees in the form of restricted stock units and stock options in an amount equal to the salary cut.
• Facebook Inc. FB, +5.82% is launching Facebook Shops, a free way for small businesses to sell their products online, starting in the U.S. this summer. Customers can message a business through WhatsApp, Facebook Messenger or Instagram Direct to get support and track deliveries.
• Halliburton Co. HAL, +6.63% slashed its quarterly dividend by 75%, citing efforts to maintain a strong liquidity position given uncertainties regarding the depth and duration of the downturn in market conditions. The new dividend of 4.5 cents a share, down from 18 cents a share, will be payable June 24 to shareholders of record on June 3. Based on Tuesday’s stock closing price of $11.15, the new annual dividend rate implies a dividend yield of 1.61%, compared with the yield for the SPDR Energy Select Sector ETF XLE, +3.30% of 6.07% and the implied yield for the S&P SPX, +1.60% f 1.97%. Annual retainers for Halliburton’s board of directors will be cut by 20%.
• McKesson Corp. MCK, +2.32% reported fiscal fourth-quarter earnings that beat expectations, but provided a downbeat earnings outlook citing “anticipated headwinds” as a result of the pandemic. Price increases for branded drugs and higher volumes from retail national account customers boosted sales at its U.S. pharmaceutical and specialty solutions business. For fiscal 2021, the company expects adjusted EPS of $13.95 to $14.75, below the FactSet consensus of $15.42. McKesson expects 2021 revenue growth of 2% to 4%, while the FactSet revenue consensus of $234.6 billion implies 1.5% growth.
• Norwegian Air NAS, -31.21% will get a 2.7 billion Norwegian krone (US$271 million) state-backed loan from the government after a debt restructuring. But the airline sees “challenging months ahead” as the industry has been devastated by the pandemic. Shares of Norwegian Air have lost 94% this year. “Norwegian will still need to collaborate closely with a number of creditors as the company currently has limited revenues,” said CEO Jacob Schram.
• Royal Caribbean Cruises Ltd. RCL, -3.09% swung to a first-quarter loss that was wider than expected as the pandemic led to cruise suspensions, but said 2021 bookings remained within historical ranges. For the rest of 2020, the company said booking volumes are “meaningfully lower” than the same time last year at prices that are down in the low-single digit percentage range. For 2021, however, the booked position is within historical ranges on prices up mid-single digits compared with this year. The company indicated it had about $3.3 billion in liquidity as of May 19.
• Trulieve Cannabis Corp. TCNNF, -1.83% TRUL, -1.83% posted better-than-expected earnings for the first quarter. The Tallahassee, Fla.-based opened three new stores in Florida in the period, ending the quarter with a network of 47 stores nationwide. The company said it has not experienced any “material” COVID-19 impact on its ability to serve patients and customers.
• Urban Outfitters Inc. URBN, -8.19% quarterly results fell well short of Wall Street estimates as the pandemic forced store closures. “The impact of the coronavirus pandemic (COVID-19) on the company’s business has resulted in the need to perform impairment assessments of the company’s long-lived assets,” Urban Outfitters said. “These preliminary financial results include a provisional impairment expense and the corresponding tax effects, all of which are currently being evaluated. While these items are non-cash in nature, a potential change to the provisional impairment expense could materially impact the reported results.”
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