5 things to know before the stock market opens on July 1, 2020

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1. Dow poised to fall after best quarter in over three decades

Traders work on the floor of the New York Stock Exchange (NYSE) in New York, the United States, on March 20, 2020.Lucas Jackson | Reuters

Futures on Dow were pointing to a 100 point drop at the opening on Wednesday as the third quarter on Wall Street begins with hopes of a repeat of the past three months despite an increase in US coronavirus cases.

  • The Dow Jones Industrial Average climbed more than 200 points, or nearly 1%, on Tuesday to close the second quarter with a lead of nearly 17.8% for its best quarterly gain since the start of 1987.
  • The S&P 500’s nearly 20% increase in the second quarter was the best since the end of 1998.
  • The second quarter Nasdaq gain of more than 30% was the best since the end of 1999.
  • As of Tuesday’s close, the Nasdaq had registered the only positive first half, with a 12% lead in 2020.
  • The Dow and the S&P 500 ended the first half down, with declines of 9.5% and 4% respectively so far this year.
  • The Dow, the S&P 500 and the Nasdaq were all positive in June before the first day of July.

Wednesday: Private sector jobs report released by ADP in June shows gain slightly below expectations of 2.37 million positions in US companies after an upward revised loss of nearly 3.07 million in May . The government releases its monthly employment report a day earlier than Thursday and its regular Thursday review of weekly unemployment claims. The stock market is closed on Friday for the July 4 holiday.

FedEx shares climbed 15% in Wednesday’s pre-market after a sharp increase in home deliveries fueled by a pandemic helped the packaging giant post better-than-expected revenues and quarterly revenues. However, the coronavirus crisis hurt business, with adjusted fourth-quarter tax profit cut in half to $ 2.53 a share and revenues down just over 2% to $ 17.4 billion.

2. Democrats lead PPP extension vote in Senate

Senate Minority Leader Chuck Schumer (D-NY) speaks at a press conference on the coronavirus epidemic at the United States Capitol March 11, 2020 in Washington, DC. Schumer and other members of the Democratic Caucus called on businesses and employers to provide paid sick leave to all employees by following recommended health procedures. Also represented (LR) Senator Sherrod Brown (D-OH), Senator Ben Cardin (D-MD), Senator Ron Wyden (D-OR), Senator Patty Murray (D-WA), Senator Patrick Leahy (D-VT) and Senator Mark Warner (D-VA).

Win McNamee | Getty Images

The Democrats led the GOP-controlled Senate to temporarily extend the paycheck protection program for small businesses until August 8. The unexpected development last Tuesday came hours before the expiration of the federal loan program, when there was approximately $ 130 billion allocated. The bill, which now goes to the democratically controlled House, would need the signature of President Donald Trump. The PPP was created as part of the $ 2.2 trillion economic rescue package in March. It has been changed twice since.

3. Fauci says new cases could “go up to 100,000 a day”

Anthony Fauci, director of the National Institute of Allergies and Infectious Diseases, wears a protective mask for Washington nationals while waiting to start a hearing of the Senate committee on health, education, work and pensions in Washington, DC, United States, Tuesday June 30, 2020.

Al Drago | Bloomberg | Getty Images

White House health adviser Dr. Anthony Fauci in a Senate testimony on Tuesday painted a grim picture of America’s ability to stop recent spikes in the Covid-19 cases. “We now have over 40,000 new cases a day. I wouldn’t be surprised if we went to 100,000 cases a day if it didn’t work out, so I’m very concerned, “he said.

America’s top infectious disease expert also said he sees the “characteristics” of the 2009 H1N1 virus and the 1918 flu pandemic in a new strain of flu in China. The 1918 flu, which Fauci often compared to Covid-19, killed 30 million to 50 million people, according to the CDC.

4. Half of the new cases come from only four states

People wait in line at a walk-in test site for COVID-19 during the new coronavirus pandemic, Tuesday June 30, 2020, in Miami Beach, Florida.

Lynne Sladky | AP

The recent number of new cases of coronavirus in the country, which reaches around 40,000 per day, is almost double the daily infections seen in mid-May. It is largely due to epidemics in the southern and western states. Fauci said about 50% of all new cases come from just four states: Florida, California, Texas and Arizona. New York adds eight additional states to its travel advisory, now requiring travelers from 16 states to be quarantined for 14 days. The order was first issued alongside New Jersey and Connecticut last week.

5. Voters in Swing State Give Trump Troubled Maronavirus Marks

According to a CNBC / Change Research poll, voters in six swing states of 2020 largely disapprove of Trump’s handling of the coronavirus crisis. the president was blamed by 35% of respondents for the recent increase in covid-19 hospitalizations, followed closely by people without masks and states reopening savings too soon.

Democrat Joe Biden widens his lead over the President in Arizona, Florida, Michigan, North Carolina, Pennsylvania and Wisconsin. The investigation, which comes after several states have cut back or suspended plans to reopen due to growing infections, also shows challenges for Republicans running for Senate races in Arizona, Michigan and North Carolina.

– The Associated Press and Reuters contributed to this report. Follow all the developments on Wall Street in real time with the CNBC Live Markets Blog. Keep up to date with the pandemic with our coronavirus blog.

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