Sectors of the U.S. economy are starting to show signs of a rebound, with more retailers reporting strong quarterly sales and weekly mortgage applications pointing to a remarkable recovery in the housing market. Wall Street later Wednesday gets a more detailed look at the Federal Reserve’s most recent decision, with the release of the central bank’s meeting minutes. The Fed has rolled out historic aid and lending programs in an effort to prop up the economy.
This is CNBC’s live blog covering all the latest news on the coronavirus outbreak. This blog will be updated throughout the day as the news breaks.
- Global cases: More than 4.91 million
- Global deaths: At least 323,653
- U.S. cases: More than 1.52 million
- U.S. deaths: At least 91,938
The data above was compiled by Johns Hopkins University.
Most Americans who lost jobs describe layoffs as temporary, but those jobs may be gone for good
10:46 am ET — Since the coronavirus crisis took hold in mid-March, the number of people forced out of work has exploded. The number of Americans filing for unemployment benefits has risen to nearly 36.5 million, the biggest loss in U.S. history.
But while 78% of out of work individuals describe themselves as temporarily laid off, new research suggests for many the job losses will be permanent, CNBC’s Rahel Solomon reportst. The University of Chicago’s Becker Friedman Institute estimates 42%, or about 11.6 million, of all jobs lost through April 25 due to the coronavirus will be gone for good.
“The current crisis may be so severe that the fraction of temporary layoffs that become permanent ends up being much larger than the historical evidence would suggest,” co-author Jose Maria Barrero said in an email. —Terri Cullen
Remote learning could be here to stay
Robert Schachter, a parent of an NYC public high school student and a college student, bought bridge tables so his kids could have space for remote learning while schools were closed due to the coronavirus.
10:32 am ET — The coronavirus crisis laid bare how ill-prepared most schools were when it came to remote learning. Now, a growing number of schools are committed to adopting a “hybrid” model to education in and outside the classroom going forward.
Students will likely see smaller classes and staggered scheduling, which could include alternating days of the week or times of the day, to help limit the number of people physically present in a building at any time That means kids will spend much less time in brick-and-mortar classrooms in the years ahead.
“Despite the clamor and the complaints about it, remote learning is going to be here to stay,” said Mayssoun Bydon, founder and managing partner of The Institute for High Learning, or IHL Prep, an educational consulting firm. —Jessica Dickler
As U.S. reopens, companies brace for a flood of workplace lawsuits
10:24 am ET — States are gearing up to slowly reopen their economies and companies of all sizes, especially small businesses, are worried about the liability risks.
“There is no playbook for this,” said Harold Kim, president of the U.S. Chamber Institute for Legal Reform. “Litigation is particularly damaging to Main Street because the level of potential damages can close down your doors.” He anticipates a surge in worker liability lawsuits as coronavirus infection rates tick up.
Recognizing the issue there is bipartisan debate on federal and state levels to limit liability. Most of the proposals focus on limiting liability from customers. House Minority Leader Kevin McCarthy, R-Calif., said liability protections for doctors and businesses are the top priority for GOP leaders: “No bill will pass without it,” he said speaking Tuesday on CNBC.
Anticipating the coming flood of suits, employers are developing workplace safety precautions including additional cleaning measures, conducting temperature checks of workers and requiring that all employees wear masks or other face coverings at work. —Lori Ioannou
Coca-Cola CEO says he expects a ‘U’-shaped economic recovery
9:44 am ET — Coca-Cola CEO James Quincey said he’s expecting a long road to recovery for the economy. “The economic impact of the lockdown is just starting to begin,” Quincey said on CNBC’s “Squawk Box.”
Countries around the world are easing shelter-at-home orders and letting businesses gradually open. But Quincey said he’s forecasting a “U”- or “extended U”-shaped recovery rather than one shaped like a “V,” where the economy quickly snaps back to pre-crisis activity.
Coke is still seeing declining demand in May, compared to a year ago. Restaurants, movie theaters and other away-from-home occasions accounted for half of its revenue before the crisis. —Amelia Lucas
Dow jumps more than 300 points, lifted in part by solid retail earnings
Lowe’s sales soar, led by growth in online sales
The pandemic hit in the midst of the company’s turnaround plan that includes a revamping of its website.
Lowe’s kept its stores open as essential retailers as the coronavirus kept most brick-and-mortars closed through the beginning of Spring, the home improvement industry’s busiest time of the year. However, the company limited capacity in its stores and rolled out curbside pickup for online customers. —William Feuer
The latest hot spots of new U.S. cases
CDC publishes 60-page document of guidelines for reopening
9:02 am ET — The Centers for Disease Control and Prevention released 60 pages of guidance for reopening schools, mass transit and non-essential businesses. The plan outlines a “three-phased approach” for reducing social distancing measures and proposes the use of six “gating” indicators to assess when to move through another phase.
The health agency warned that some amount of community mitigation will be necessary until a vaccine or effective drug for Covid-19 is widely available. The document comes as the CDC has remained largely quiet on the coronavirus, which has infected more than 1.5 million people in the United States. Agency officials haven’t held a coronavirus-related briefing in more than two months. —Berkeley Lovelace Jr.
Voters in swing states are divided on coronavirus
8:20 am ET — Swing state voters are divided along party lines over the coronavirus pandemic and whether a second wave is likely to hit the country, according to a CNBC/Change Research poll.
Democrat and Republican voters in Arizona, Florida, Michigan, North Carolina, Pennsylvania and Wisconsin — all key electoral states — disagree about the country’s trajectory in fighting the virus, and about who would be to blame if the U.S. did see a resurgence, the poll found. Those surveyed were also divided along partisan lines about whether they were wearing masks or eating out. Read more on the poll results from CNBC’s Tucker Higgins. —Sara Salinas
Strong retail sales continue with report from Target
A cyclist wearing a protective mask passes the future site of a Target Corp. store in Chicago, Illinois, U.S., on Thursday, May 7, 2020.
Christopher Dilts | Bloomberg | Getty Images
7:43 am ET — Target continued a strong week of retail earnings reports, posting quarterly sales growth of 10.8%.
Target saw a surge in online orders. Sales at brick-and-mortar stores open at least 12 months rose just 0.9% during the quarter on an annual basis. Online sales, in contrast, soared 141%. —Sara Salinas
Iconic New York steakhouse to start delivery and accept credit cards for first time
People walk past the Peter Luger steakhouse in New York City.
7:16 am ET — Peter Luger Steak House in Brooklyn is now offering delivery for the first time in its more than 130-year history. To make that happen, the iconic restaurant has partnered with delivery app Caviar, owned by Square. In another first, the steakhouse will accept credit cards.
“To best serve our customers, delivery was the best option for us,” General Manager David Berson told CNBC’s “Worldwide Exchange.” “As far as the best safety practice, credit cards only was the clear choice to us.”
Peter Luger’s dining room remains closed due to the coronavirus pandemic. In addition to delivery, customers can order and pickup at the Brooklyn location. —Matthew Belvedere
Germany will tighten rules on meat processing plants after coronavirus outbreaks
6:38 am ET — Germany has tightened up rules on meat processing plants, government sources told Reuters, after some coronavirus outbreaks in the country were linked to the food sector.
New rules agreed upon will ban the subcontracting of meatpacking work through agencies, meaning that people working in the processing facilities will have to be employed by the company itself, a move that will likely push up wage costs for the industry.
The majority of workers in the meat production industry are migrants, with many coming from Romania. More than 600 coronavirus cases have reportedly been among plant workers, government sources told Reuters. –Holly Ellyatt
Read CNBC’s previous coronavirus live coverage here: Brazil records largest single-day spike in cases; Russia’s top 300,000