1. Dow set to drop following a strong week
Dow futures were pointing to an over 200-point decline at Monday’s open after the Dow Jones Industrial Average logged back-to-back gains. Investors on Friday overlooked the worst jobs report since the post-World War II era and continued to bet on states starting to reopen their economies in a coronavirus world. The real standout last week was the Nasdaq, which advanced in all five sessions and broke a two-week losing streak as tech stocks powered higher. The Dow, which was up four out of the past five sessions, also snapped a two-week losing streak.
Shares of California-based Quidel were soaring 17% in Monday’s premarket after the diagnostic solutions maker was granted the first emergency use authorization from the FDA for a so-called antigen test for the coronavirus. This type of test can provide results in minutes. Positive results from antigen tests are highly accurate. But there’s a greater chance of false negatives — so negative antigen test results may need to be confirmed by a different type of test, which takes longer but is more accurate.
2. Musk goes off on California over Tesla’s Fremont factory
Elon Musk, co-founder and chief executive officer of Tesla Motors Inc., speaks during an interview at the company’s assembly plant in Fremont, California, U.S., on Wednesday, July 10, 2013.
Bloomberg | Bloomberg | Getty Images
Tesla has started the process to resume production at its Fremont auto factory in California as CEO Elon Musk escalated his dispute with local authorities over a shelter-in-place order that’s kept the plant idle during the coronavirus pandemic. On Saturday, in a series of scathing tweets, Musk threatened to pull Tesla out of California. Later in the day, Tesla filed a federal lawsuit against Alameda County, where the electric car maker’s Fremont factory is located, asserting that county rules contradict state policy on business closures. Last week, Gov. Gavin Newsom laid out a “four-stage framework to allow Californians to gradually reopen some lower-risk businesses and public spaces.” But the framework also gives counties the discretion to keep “more restrictive measures in place based on their local conditions.”
3. Apple and Macy’s start reopening US stores
Apple plans to begin reopening U.S. stores this week, starting with locations in Idaho, South Carolina, Alabama and Alaska. The stores will have temperature checks and will limit the number of people inside at one time. Apple’s stores outside of China have been closed since the middle of March.
Last week, Macy’s reopened 68 stores, marking the first phase of its plan to resume operations. The retailer, already struggling before the pandemic, plans to have all its locations up-and-running in six to eight weeks, provided new rates of Covid-19 infections continue to slow down.
4. Shanghai Disneyland reopens; South Korea sees setback
Visitors wearing masks walk past Shanghai Disney Resort, that will be closed following the outbreak of a new coronavirus, in China.
Aly Song | Reuters
Theme park operators around the world are watching to see how Monday’s reopening of Shanghai Disneyland with coronavirus controls plays out in the coming days and weeks. Shanghai Disneyland and Disney‘s park in Hong Kong closed on Jan. 25 as China isolated cities with 60 million people to try to contain the outbreak, which originated in the Chinese city of Wuhan late last year. Tokyo Disneyland closed in February, with parks in the U.S. and Europe following suit a month later.
The difficulty in trying to reopen economies without sparking new coronavirus outbreaks was highlighted Monday as concern grew in South Korea about a spike in infections that spread through newly reopened nightclubs. Authorities in South Korea are combing through credit card and cellphone records and security camera footage to track thousands of people who visited a popular Seoul entertainment district in recent weeks.
5. White House takes steps to mitigate exposures
Vice President Mike Pence speaks at a coronavirus task force press conference.
Michael Brochstein | Echoes Wire | Barcroft Media via Getty Images