Disney, AMC, Facebook, Coronavirus - 5 Things You Must Know Wednesday

Stock futures edge up following an end to the S&P 500's five-day winning streak; Walt Disney World to reopen July 11; Movie chain AMC nears deal to stave off bankruptcy.
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Here are five things you must know for Wednesday, July 8:

1. -- Stock Futures Rise Modestly

Stock futures edged higher Wednesday, a day after Wall Street's recent rally ended amid concerns the coronavirus outbreak could stall an economic recovery.

Contracts linked to the Dow Jones Industrial Average rose 10 points, futures for the S&P 500 were up 3 points and Nasdaq futures gained 33 points.

Stocks fell Tuesday and the S&P 500 ended a five-day winning streak after optimism over a swift economic recovery waned amid a resurgence of the virus. The U.S. crossed more than 3 million confirmed cases on Tuesday.

“It’s not unusual for these five-day runs to be met with a bout of profit-taking, especially given the headlines on the virus,” said Quincy Krosby, chief market strategist at Prudential Financial. “When you move toward overbought conditions it doesn’t take much for the market to burn off some of the froth.”

Atlanta Federal Reserve President Ralph Bostic told a business panel Tuesday that "business leaders are getting worried and consumers are getting worried' with respect to the resurgence in U.S. infections.

"There is a real sense this might go on longer than we have planned for," Bostic added.

Bostic's remarks, however, were somewhat softened by Fed Vice Chairman Richard Clarida, who told CNN International that "there's more that we can do, there's more that we will do" in terms of monetary accommodation if the economic recovery were to stall in the coming weeks. 

2. -- Walt Disney World Sticks to July 11 Reopening Plan

Walt Disney World in Orlando, Florida, will reopen Saturday, July 11, as planned despite a surge of coronavirus cases over the last month in the state.

Guests at the theme parks will be limited, Walt Disney  (DIS) - Get Report said, and they will be subject to temperature checks and will have to wear face coverings.

"As we continue the phased reopenings of our parks and resorts across the world, promoting health and safety for our guests, cast members, and the larger community is a responsibility we take very seriously," said Disney Parks chief medical officer, Dr. Pamela Hymel, in a statement.

"From increased cleaning and disinfecting across our parks and resorts, to updated health and safety policies, we have reimagined the Disney experience so we can all enjoy the magic responsibly," Hymel added.

Some Disney workers have petitioned the media and entertainment giant to move back the reopening of Walt Disney World, which closed in March.

Disney shares fell slightly in premarket trading to $113.48.

3. -- AMC Close to a Deal to Stave Off Bankruptcy

Shares of AMC Entertainment Holdings  (AMC) - Get Report were rising in premarket trading Wednesday following a report that said the largest U.S. cinema chain was close to a restructuring deal that would help stave off a near-term bankruptcy filing.

The Wall Street Journal reported the proposed deal, which could be announced within days, would require bondholders to provide a $200 million senior loan and to swap their unsecured claims at a discount for new, second-lien debt.

AMC also would turn down a competing financing offer from senior lenders including Apollo Global Management  (APO) - Get Report, the Journal reported, citing people familiar with the matter.

AMC was forced to shut down its more than 1,000 worldwide theaters due to the coronavirus pandemic.

The stock was rising 12.59% to $4.65 in premarket trading.

4. -- Facebook's Meeting With Boycott Organizers Doesn't Go Well

Facebook's  (FB) - Get Report meeting with organizers of an advertiser boycott reportedly ended at an impasse.

The New York Times reported that the meeting, which involved top Facebook executives, the Anti-Defamation League, the National Association for the Advancement of Colored People, civil rights group Color of Change and other activists, lasted more than an hour but failed to appease the company's critics. 

The boycott, dubbed #StopHateforProfit, is a protest of Facebook's policies on hate speech, voter suppression and misinformation. It's gained steam for several weeks, with hundreds of brands pledging to pull ad budgets from Facebook and Instagram at least through July. 

The groups said they discussed about 10 demands with Facebook’s leaders to help prevent vitriol and hate from spreading on its site, the Times reported. Those included Facebook hiring a top executive with a civil rights background, submitting to regular independent audits and updating its community standards, according to Jessica J. Gonzalez of the Free Press advocacy group.

Facebook CEO Mark Zuckerberg and Sheryl Sandberg, chief operating officer, agreed to hire a civil rights position but didn't not come to a resolution on most other requests, the groups told the Times. Instead, they said, the Facebook executives reverted to “spin” and firing up its “powerful P.R. machine.”

5 -- Mortgage Applications, Bed Bath & Beyond Earnings on Wednesday's Calendar

The economic calendar Wednesday includes mortgage applications for the week ended July 3 from the Mortgage Bankers' Association at 7 a.m. ET and oil inventories for the week ended July 3 at 10:30 a.m.

Bed Bath & Beyond  (BBBY) - Get Report is expected to report fiscal first-quarter earnings after the close of trading Wednesday.