US stocks end the day higher: May 4, 2020

By CNN Business

Updated 5:52 a.m. ET, May 5, 2020
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1:43 p.m. ET, May 4, 2020

Intel makes $900 million acquisition to boost its autonomous vehicle ambitions

From CNN Business' Clare Duffy

Intel (INTC) has inked a nearly $900 million deal to acquire digital mobility firm Moovit in a bid to bolster its autonomous vehicle efforts, the companies said Monday.

Moovit is a Tel Aviv-based "mobility-as-a-service" startup founded in 2012. It provides route-mapping services using local public transit information and real time data from users in 103 countries and in 45 languages around the world.

For Intel, Moovit will provide a trove of transportation data — on transit systems, traffic patterns and user travel preferences — to support Intel's autonomous vehicle division, Mobileye. Mobileye builds both hardware, such as front-facing cameras, and software like self-driving systems to enable autonomous vehicle capabilities.

Intel's Mobileye is aiming to eventually provide robotaxi services, an area in which it could compete against offerings from Google's (GOOGL) Waymo, Uber (UBER), Lyft (LYFT), Tesla (TSLA) and others.

Moovit's CEO and co-founder Nir Erez will become an executive vice president at Mobileye.

Moovit’s massive global user base, proprietary transportation data, global editors community, strong partnerships with key transit and mobility ecosystem partners, and highly skilled team is what makes them a great investment,” Mobileye CEO Amnon Shashua said in a statement.
1:14 p.m. ET, May 4, 2020

Stocks are mixed at midday

From CNN Business' Anneken Tappe

The three major US stock benchmarks are mixed at midday, with only the Nasdaq Composite trading in the green.

The Nasdaq was last up 0.5%, while the Dow and the broader S&P 500 are both in negative territory -- dragged down by industrial stocks.

In the Dow, Raytheon (RTX), Boeing (BA) and Dow Inc. (DOW) are the biggest underperformers. The index is down 0.8%, or 193 points.

The S&P is down 0.4%.

12:24 p.m. ET, May 4, 2020

Seasonality + macro risks = an uncertain May for stocks

From CNN Business' Anneken Tappe

It's that time again: Investors are asking if they should "sell in May and go away." Especially this year.

May isn't actually the S&P 500's worst month seasonally (it's November), but the second quarter always brings worries about historical patterns of selloffs, said Bank of America Merrill Lynch currency strategist Adarsh Sinha in a note.

This year, seasonality coincides with a global pandemic and US-China tensions. So the stock market could turn turbulent again.

President Donald Trump threatened last week to impose tariffs on China over its handling of the coronavirus outbreak.

Both the S&P 500 and the Dow are in the red at midday, driven lower by the renewed tensions.

Extreme moves like the US canceling its debt obligations held by China have been floated -- but they're less likely. "[T]he bigger risk would be the sustainability of the Phase One trade agreement from January," Sinha wrote.

China will find it hard to meet import commitments and while there is an 'escape clause' for unforeseeable events, the US may start to press the issue," he added.

Back to the trade drama we go.

10:59 a.m. ET, May 4, 2020

GE stock falls 4% after announcing 13,000 job cuts

From CNN Business' Matt Egan

General Electric (GE) is cutting as many as 13,000 jobs in its jet engine business after the coronavirus pandemic brought devastation to the aerospace industry.

GE Aviation on Monday announced plans to accelerate its cost-cutting by permanently reducing its global workforce by as much as 25% this year through a mix of layoffs and voluntary actions. This includes the previously-announced plan to cut 10% of GE Aviation's US workforce.

GE shares fell 4% on Monday, leaving them down 44% year-to-date.

Read more here.

10:24 a.m. ET, May 4, 2020

Factory orders plummet in March

From CNN Business' Anneken Tappe

US factory orders collapsed by 10.3%, or $51 billion, in March, according to the Census Bureau, exceeding economists' expectations.

Transportation equipment fared the worst among durable goods, such as cars and appliances.

New orders for manufactured goods have fallen four of the past five months. Shipments also fell, and inventories rose.

The situation won't improve much in the near-term. The coronavirus crisis took hold in America in March, with manufacturing and business activity grinding to a halt to stop the spread of the virus in the second half of the month. April will be significantly worse, as millions of workers stayed home and business laid people off.

9:34 a.m. ET, May 4, 2020

Stocks open lower

From CNN Business' Anneken Tappe

US stocks kicked the new week off lower as tensions between the United States and China are rising.

President Donald Trump last week threatened China could face new tariffs over its handling of the coronavirus outbreak.

US Secretary of State Mike Pompeo said Monday over the weekend there is "enormous evidence" that the virus originated in a laboratory in Wuhan. Meanwhile, Trump said tariffs would be the "ultimate punishment" for China.

9:12 a.m. ET, May 4, 2020

Tyson shares slump after warning of more meat plant closures

From CNN Business' Danielle Wiener-Bronner

Tyson (TSN) warned Monday that it expects more meat plant closures this year.

The company also said it will continue producing less meat than usual, as workers refrain from coming to work during the coronavirus pandemic.

"We have and expect to continue to face slowdowns and temporary idling of production facilities from team member shortages or choices we make to ensure operational safety," the company said in a statement discussing financial results from the first three months of this year.

The meat processor has shuttered a number of plants in recent weeks as workers fall ill with Covid-19. It's warned that if the closures continue, America's food supply will suffer.

Tyson shares fell more than 6% in premarket trading. Read more here.

9:08 a.m. ET, May 4, 2020

As earnings approach, Disney faces an unknown future

From CNN Business' Frank Pallotta

Over the last century, Disney (DIS) has built an empire around entertaining large crowds in dense spaces. But following one of its best years ever in 2019 the coronavirus pandemic brought Disney to a halt.

Its parks and resorts have closed around the world, major films like "Mulan" and "Black Widow" are delayed and one of its biggest media networks, ESPN, is scrambling to fill its airtime due to a lack of sports. This has led Disney to furlough thousands of employees and led its stock to drop 27% year to date.

The company will report its earnings after the bell on Tuesday, and investors are eager to learn just how deeply the pandemic has hurt Disney's business.

"What everyone's worrying about is that we don't know when things are going to get back to normal," Michael Nathanson, a media analyst and founding partner at MoffettNathanson, told CNN Business.

"Will people be reluctant to go to parks? Will people want to sit in the theater next to strangers for fear of catching the virus?" he asked. "That's what the market is wrestling with when it comes to Disney."

8:38 a.m. ET, May 4, 2020

Dave & Buster's gets $100 million investment

From CNN Business' Jordan Valinsky

Dave & Buster's (PLAY) is receiving a much-needed financial boost as its entertainment centers remained closed because of the pandemic.

Investment firm Jeffries has bought $100 million in stock, with an option to buy an additional $15 million in the next month. Dave & Buster's said it would use the money to "strengthen its balance sheet," according to a release.

Dave & Buster's shares fell 10% in premarket trading and is down 65% for the year. The debt-laden company said last month in its earnings that it was exploring a deal like this.