Here are five things you must know for Wednesday, May 6:
1. -- Stock Futures Rise as Trump Pushes to Reopen U.S. Economy
Stock futures posted gains Wednesday as President Donald Trump pushed for a reopening of the U.S. economy and as investors braced for a private-sector employment report that could provide a devastatingly ugly snapshot of the jobs market.
Contracts linked to the Dow Jones Industrial Average rose 187 points, futures for the S&P 500 were up 22 points and Nasdaq futures gained 70 points.
Trump, speaking in Phoenix during his first trip outside of Washington in more than a month, said he wants the U.S. economy to reopen but acknowledged some people will be “badly affected” if coronavirus infections increase as lockdowns are eased.
“Will some people be affected? Yes. Will some people be affected badly? Yes,” the president said. “But we have to get our country open and we have to get it open soon.”
“There’ll be more death,” he said in an interview with ABC News later on Tuesday. “The virus will pass, with or without a vaccine. And I think we’re doing very well on the vaccines but, with or without a vaccine, it’s going to pass, and we’re going to be back to normal."
The president is pushing to reopen the economy as lockdowns have shut businesses and more than 30 million Americans have filed for unemployment since mid-March.
ADP's National Employment Report, to be released at 8:15 a.m. ET, is expected to show private payroll jobs in April fell by 20 million, the steepest monthly drop ever.
The economic calendar Wednesday also includes Oil Inventories for the week ended May 1 at 10:30 a.m.
2. -- Walt Disney's Profit Slides as Coronavirus Keeps Theme Parks Closed
Walt Disney (DIS) - Get Free Report reported a sharp profit decline in the fiscal second quarter as the coronavirus pandemic shut its theme parks, closed movie theaters and cut ESPN's programming due to the suspension of most professional sports.
Operating income at Disney declined 37% in the period to $2.4 billion.
The media and entertainment posted adjusted earnings in the period of 60 cents a share, down from $1.61 a year earlier.
Analysts were expecting Disney to report adjusted earnings of 91 cents a share on sales of $18.06 billion.
“While the Covid-19 pandemic has had an appreciable financial impact on a number of our businesses, we are confident in our ability to withstand this disruption and emerge from it in a strong position,” said newly appointed CEO Bob Chapek, who took the reigns of Disney from Bob Iger during the quarter.
Shares fell 1.87% in premarket trading to $99.23.
The company said it estimates the coronavirus eliminated about $1 billion in operating income for the division in the quarter.
"We believe it is going to take serious time for park attendance to get back to normal because of structural challenges related to social distancing, limited travel, and a weaker consumer, which should be partially offset by what should be pent-up demand because the brand is still very strong," said Jim Cramer and the Action Alerts PLUS team, which holds Disney in its portfolio.
The company on Tuesday also said it would forgo dividend payment in July.
Disney's direct-to-consumer segment was a bright spot. The segment, which includes Hulu, ESPN+ and Indian service Hotstar, had 54.5 million subscribers as of May 4.
3. -- Beyond Meat Swings to Profit
Beyond Meat (BYND) - Get Free Report, the maker of plant-based meat, posted first-quarter earnings of 3 cents a share, a reversal from a year-earlier loss of 95 cents, after revenue more than doubled to $97.1 million as the supply chain for traditional meat has been disrupted by the coronavirus pandemic.
Analysts had been expecting Beyond Meat to report a loss in the period of 7 cents a share on revenue of $88.8 million.
“I am proud of our first-quarter financial results, which exceeded our expectations despite an increasingly challenging operating environment due to the Covid-19 health crisis,” said Beyond Meat CEO Ethan Brown in a statement.
The CEO said Beyond Meat was withdrawing its outlook for 2020 because of the uncertainty around the coronavirus outbreak.
Beyond Meat shares rose 7.78% to $107.95 in premarket trading.
4. -- CVS, GM, PayPal and Peloton Report Earnings
CVS Health (CVS) - Get Free Report posted stronger-than-expected first-quarter earnings as coronavirus lockdowns boosted retail and pharmacy sales as customers stockpiled household items and medical prescriptions.
General Motors (GM) - Get Free Report posted first-quarter adjusted earnings of 62 cents a share, beating analysts' estimates of 40 cents, as the automaker posted $32.7 billion revenue that also came in above forecasts.
Earnings are also expected Wednesday from Shopify (SHOP) - Get Free Report, PayPal (PYPL) - Get Free Report, Peloton Interactive (PTON) - Get Free Report, MetLife (MET) - Get Free Report, T-Mobile US (TMUS) - Get Free Report, Easy (ETSY) - Get Free Report, Fitbit (FIT) - Get Free Report, Grubhub undefined, Lyft (LYFT) - Get Free Report, Twilio (TWLO) - Get Free Report, Papa John's (PZZA) - Get Free Report, Wendy's (WEN) - Get Free Report and Waste Management (WM) - Get Free Report.
5. -- Gilead Seeks to Expand Supply of Coronavirus Drug
Gilead Sciences (GILD) - Get Free Report said it was in talks with chemical and pharmaceutical companies about producing its remdesivir drug for use combating Covid-19 in Europe, Asia and the developing world.
The company said it also was talking with UNICEF on how to distribute the drug in low- and middle-income countries.
Remdesivir was approved for use on an emergency basis in the U.S. on Friday after studies showed it shortened the time to recovery for patients suffering from the coronavirus.
“Close coordination of remdesivir manufacturing will be critical,” the company said in a statement. “Producing the drug requires scarce raw materials, with their own lengthy production time, and specialized manufacturing capabilities with limited global capacity. Any disruption to the supply chain impacting these scarce raw materials and other manufacturing inputs could reduce the amount of remdesivir produced and increase the time it takes to do so.”