U.S.-China Tensions Flare Anew, Buffett Dumps Airlines, FDA OKs Roche Antibody Test - 5 Things You Must Know Monday

Stock futures tumble as tensions between the United States and China over the origin of the coronavirus renew fears of a trade war; Tyson Foods and Shake Shack report earnings; Warren Buffett dumps his stake in the four biggest U.S. airlines.
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Here are five things you must know for Monday, May 4:

1. -- Stock Futures Fall Amid U.S. and China Spat Over Coronavirus

Stock futures tumbled Monday as tensions between the United States and China over the origin of the coronavirus renewed fears of a trade war just as countries around the world began reopening their economies.

Contracts linked to the Dow Jones Industrial Average fell 243 points, futures for the S&P 500 declined 22 points and Nasdaq futures were down 60 points.

Criticized for his handling of the coronavirus crisis, President Donald Trump again raised the idea of reprisals against China for its lack of transparency during the early stages of the outbreak.

U.S. Secretary of State Michael Pompeo said over the weekend there was "enormous evidence" that the coronavirus, known as Covid-19, had emerged from a virology lab in the Chinese city of Wuhan.

“The renewed possibility of the return of the trade war that had plagued markets since at least 2017 once again weighed on sentiment,” said Jingyi Pan of IG.

Worries that the U.S. economy was reopening too quickly - even as infections continue rising in some areas - also curbed investors' optimism.

Stocks closed sharply lower Friday, a day after the S&P 500 closed with its best monthly gains since 1987.

2. -- Tyson and Shack Shack Report Earnings

Earnings reports are expected Monday from Tyson Foods  (TSN) - Get Report, Shake Shack  (SHAK) - Get Report, Skyworks Solutions  (SWKS) - Get Report, Cirrus Logic  (CRUS) - Get Report, Texas Roadhouse  (TXRH) - Get Report and Avis Budget Group  (CAR) - Get Report.

Reports are expected later in the week from Walt Disney  (DIS) - Get Report, General Motors  (GM) - Get Report, Beyond Meat  (BYND) - Get Report, DuPont  (DD) - Get Report, CVS Health  (CVS) - Get Report, Activision Blizzard  (ATVI) - Get Report, Shopify  (SHOP) - Get Report, Peloton Interactive  (PTON) - Get Report, PayPal  (PYPL) - Get Report, Raytheon Technologies  (RTX) - Get Report, Bristol-Myers Squibb  (BMY) - Get Report,  ViacomCBS  (VIACA) - Get Report and Uber  (UBER) - Get Report.

Tyson Foods, Bristol-Myers, CVS Health, Walt Disney and ViacomCBS are holdings in Jim Cramer's Action Alerts PLUS member club. Want to be alerted before Jim Cramer buys or sells the stocks? Learn more now.

The economic calendar Monday includes Factory Orders for March at 10 a.m. ET. 

The big data point of the week will be the U.S. jobs report for April, which will be released on Friday. It's expected that payrolls contracted more than 21 million during the month after falling 701,000 in March, which was the deepest in 45 years.

More than 30 million Americans have sought unemployment benefits over the past six weeks as the coronavirus outbreak forced businesses to shut and slash their workforces.

3. -- Roche's Coronavirus Antibody Test Gets FDA Emergency Approval

Roche  (RHHBY)  received emergency approval from the Food and Drug Administration for its Covid-19 antibody test as the U.S. clocked in well more than 1.15 million total known infections from the coronavirus and nearly 68,000 deaths.

The Swiss healthcare giant said the so-called serology test has a "specificity" greater than 99.8% and sensitivity of 100%, within 14 days after confirmation.

"Roche has already started shipping the new antibody test to leading laboratories globally and will ramp up production capacity to high double-digit millions per month to serve healthcare systems in countries accepting (accepting European approvals) as well as the U.S.," Roche said in a statement.

The FDA used its "Emergency Use Authorization" to approve the tests, known as the Elecsys Anti-SARS-CoV-2 antibody test.

The tests would help determine who has been exposed to the SARS-CoV-2 virus - the virus that causes Covid-19 - and have since developed antibodies against it.

4. -- Berkshire Hathaway Posts $50 Billion Loss

Warren Buffett's Berkshire Hathaway  (BRK.A) - Get Report reported a record first-quarter loss of $50 billion as the impact of the coronavirus pandemic on the economy ravaged the value of the well-known investment manager’s holdings.

Quarterly operating profit, which Buffett considers a better performance measure as it takes into account operational costs and other factors, rose 6% to $5.87 billion from $5.56 billion, the company said.

Cash on hand totaled a record $137 billion as of March 31, up almost $10 billion from the end of 2019. 

Buffett said at Berkshire Hathaway's annual meeting over the weekend that the firm sold its entire stakes in the four largest U.S. airlines - American Airlines  (AAL) - Get Report, Delta Air Lines  (DAL) - Get Report, United Airlines  (UAL) - Get Report and Southwest Airlines  (LUV) - Get Report. The airline industry has been one of the hardest hit during the coronavirus pandemic.

"The airline business - and I may be wrong, and I hope I'm wrong - but I think it's changed in a very major way," Buffett said. "The future is much less clear to me."

Delta shares fell 10.2% in premarket trading Monday, the most of any of the airlines.

5. -- Intel Reportedly in Talks to Buy Israel's Moovit Transit App

Intel  (INTC) - Get Report is in talks to acquire Moovit App Global, an Israeli public transit app developer, for $1 billion, according to a report.

A report from Calcalist said the two companies were close to signing an agreement.

Intel already has made significant forays into Israel, with the chipmaker's largest acquisition being that of Mobileye for $15.3 billion in 2017. 

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