1. Dow looks to log a 3-day winning streak
Dow futures were pointing to an over 150-point advance at Wednesday’s open, with U.S. oil prices moving higher for a sixth consecutive session as coronavirus-depressed demand ticks higher as more and more states take steps to reopen their economies. Earnings and ADP’s April private-sector jobs report could determine whether Wall Street logs its third straight day of gains.
2. ADP issues April private sector employment data
The ADP’s April numbers on private sector employment, out at 8:15 a.m. ET, are the first entire-month jobs data to fully reflect the economic impact of the coronavirus crisis. Economists expect that U.S. companies shed 22 million jobs last month compared to the loss of 27,000 positions in March as state stay-at-home orders and nonessential business closures were just starting to take hold. The government’s April employment report is out on Friday morning. The unemployment rate is expected to soar from 4.4% to over 16.1% in April, the highest level since 1939, according to Dow Jones. The weekly jobless claims numbers, which are reported on Thursdays, have been chronicling the nosedive in employment during the pandemic that wiped out the decade of job gains since the Great Recession.
3. Earnings during the coronavirus crisis
General Motors shares were jumping in Wednesday’s premarket after the automaker said before-the-bell that it made $294 million in the first quarter despite coronavirus factory closures. Revenue slipped 6.2% to $32.7 billion but exceeded estimates. GM burned through $903 million during the quarter. The company is targeting May 18 to restart the majority of U.S. production under extensive safety measures.
CVS Health shares soared in premarket trading Wednesday after the company reported a huge jump in sales at its stores as customers rushed in to get prescriptions and other essentials during the pandemic. Before the bell, CVS reported adjusted per-share profit of $1.91 on revenue of $66.8 billion, beating estimates on the both measures. CVS did not change its outlook for 2020 earnings despite many other companies withdrawing guidance.
Shares of Disney were under pressure in Wednesday’s premarket trading after the media and theme park giant issued lower-than-expected fiscal second-quarter earnings of 60 cents per share. The coronavirus crisis had a $1.4 billion impact on profits. While revenue of $18 billion exceeded forecasts, Disney said after-the-bell Tuesday the pandemic fallout would continue in all aspects of its entertainment businesses for the foreseeable future. The company is suspending its dividend payout for the first half of the fiscal year.
4. US airlines burn over $10 billion in cash per month
A worker puts on a protective mask behind the United Airlines check-in counter at San Diego International Airport (SAN) in San Diego, California, on Monday, April 27, 2020.
Bing Guan | Bloomberg via Getty Images
U.S. airlines are collectively burning more than $10 billion in cash a month and averaging fewer than two dozen passengers per domestic flight during the coronavirus pandemic, according to prepared testimony from industry trade group Airlines for America for a hearing Wednesday before the Senate Commerce Committee. If airlines were to refund all tickets, including those purchased as nonrefundable or those canceled by a passenger, “this will result in negative cash balances that will lead to bankruptcy,” the CEO of Airlines for America is expected to tell lawmakers. U.S. passenger traffic has fallen by 95% since March.
5. Trump says benefit of reopening economy outweighs cost
President Donald Trump participates in a tour of a Honeywell International plant that manufactures personal protective equipment in Phoenix, Arizona on May 5, 2020.
Brendan Smialowski | AFP | Getty Images
President Donald Trump, in a rare network interview, acknowledged that reopening parts of the nation’s economy now, against the advice of many health experts, would inevitably cost some Americans their lives. He told ABC’s David Muir the benefits outweigh the costs. As of Wednesday morning, there were 71,078 deaths in the U.S., with total cases of more than 1.2 million. Trump said Tuesday, during a visit to a Honeywell factory in Phoenix, the White House will phase out its coronavirus task force and likely replace it with a group focused on “reopening” the economy. The president did not wear a mask at the plant, which is producing millions of N95 masks for the federal government.
— Reuters contributed to this report. Follow all the developments on Wall Street in real-time with CNBC’s live markets blog.