US stocks rise on optimism about reopening the economy: May 5, 2020

By CNN Business

Updated 5:34 p.m. ET, May 5, 2020
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10:11 a.m. ET, May 5, 2020

Wayfair's sales jump 20%

From CNN Business' Nathaniel Meyersohn

Americans stuck at home during the coronavirus pandemic are shopping online for home goods, and that's a boon for Wayfair.

Wayfair (W) announced Tuesday that sales for its most recent quarter increased 20% compared with the same period last year.

"Millions of new shoppers have discovered Wayfair while they shelter in place at home," CEO Niraj Shah said in a statement. "We are seeing strong acceleration in new and repeat customer orders across almost all classes of goods and across all regions."

Despite the sales gains, however, Wayfair lost $285 million during the quarter.

Still, Wayfair's stock surged 25% in early trading.

9:32 a.m. ET, May 5, 2020

Stocks open higher

From CNN Business' Anneken Tappe

US stocks opened higher on Tuesday, adding onto Monday’s gains, as optimism about the reopening of the economy boosted the market.

9:20 a.m. ET, May 5, 2020

Norwegian Cruise Line stock sinks after dire warning

From CNN Business' Chris Isidore

Norwegian Cruise Line Holdings (NCLH) warned investors that it might be forced to go out of business.

In a new filing with the Securities and Exchange Commission, the company said its accounting firm has "substantial doubt" about Norwegian's ability to continue as a going concern because of the Covid-19 pandemic.

Companies with this kind of dire outlook are sometimes able to turn things around and survive, although it often takes a trip through bankruptcy to shed debt and other liabilities in order to do so.

Shares fell 11% in premarket trading.

Read more here.

9:15 a.m. ET, May 5, 2020

Coronavirus dragged March trade data

From CNN Business' Anneken Tappe

The coronavirus pandemic has whacked global trade, and its aftershocks are expected to become more visible in the coming months.

In March, the US trade deficit amounted to $44.4 billion, according to the Census Bureau. That's up $4.6 billion from February and is in line with expectations.

Exports dropped 9.6% and imports fell 6.2%. US exports of cars, parts and engines dropped to a level not seen since November 2011.

Shutdowns starting in mid-March in the US depressed both imports and exports, and we expect further big hits to trade in April," wrote Mike Englund and Kim Rupert, economists at Action Economics, in a note.

The deficit could drop toward the $25.4 billion low it hit during the great financial crisis in May 2009, they added. The US petroleum surplus hit $2.1 billion, the highest level since the Census began tracking it in 1978.

And America's trade deficit with China fell to $11.8 billion, the lowest level since March 2004.

7:48 a.m. ET, May 5, 2020

Fiat Chrysler posts large loss but says merger with PSA Group remains on track

From CNN Business' Chris Isidore

Fiat Chrysler reported sharply lower sales and a 471 million euro ($510 million) loss. But it said it plans to move ahead with its merger of PSA Group, the European automaker that makes Peugeot cars.

Production at its auto plants in Italy and China were down for much of the first quarter, and for the last part of March at its North American plants. But production has restarted in China and at one of its Italian plants, and it said it is "fully prepared to restart production as conditions allow."

It did not give any guidance on second quarter results or even where sales stood in April in its earnings statement. In the first quarter revenue fell 3.9 billion euros, or $4.2 billion, a drop of 16%. Shipments to dealers worldwide declined by 21%.

Shares of Fiat Chrysler were narrowly higher in European trading on the report.

8:20 a.m. ET, May 5, 2020

Pfizer begins US trials for potential Covid-19 vaccine

From CNN Business' Jordan Valinsky

BioNTech SE has begun its first human trials of a potential Covid-19 vaccine in Germany last week.
BioNTech SE has begun its first human trials of a potential Covid-19 vaccine in Germany last week. BioNTech SE

Pfizer (PFE) and BioNTech SE (BNTX) shares rallied in premarket trading after announcing a significant step in trials for a Covid-19 vaccine.

The companies said Tuesday "first participants have been dosed" in the United States following a trial in Germany last week.

Roughly 360 healthy people in two age groups (18-55 and 65-85 years old) will be given the potential vaccine in the clinical trial.

Pfizer CEO said the shortened timeframe for moving from "pre-clinical studies to human testing is extraordinary." If successful, the vaccine could be distributed in the US by the end of the year.

6:54 a.m. ET, May 5, 2020

Starbucks says 85% of its US stores will reopen this week

From CNN Business' Jordan Valinsky

Starbucks (SBUX) said it will have "responsibly reopened" roughly 85% of its US stores by the end of the week following an extended closure spurred by the coronavirus pandemic.

Drive-thru and orders made ahead on its app or Uber Eats will be allowed, but dine-in services have been suspended. It expects 90% of its stores to have reopened by early June.

Starbucks shares rose 3% in premarket trading after the announcement.

6:40 a.m. ET, May 5, 2020

Gold's Gym files for bankruptcy

From CNN Business' Jordan Valinsky

Alex Wong/Getty Images
Alex Wong/Getty Images

Gold's Gym has filed for bankruptcy.

Coronavirus has affected the company "deeply and in many ways," the company said, including the temporary closures of many of its 700 global gyms.

The 55-year-old company said that filing for Chapter 11 will help the it "emerge stronger and ready to grow" and intends to exit bankruptcy by August 1.

Gold's Gym said in a statement that it's "absolutely not going anywhere" and doesn't intend to permanently close any more gyms than the 30 it shuttered last month.

6:13 a.m. ET, May 5, 2020

US stock futures are rising

From CNN Business' Jordan Valinsky

US stock futures are pointing to a higher opening as the economy gets back on its feet following closures because of the coronavirus pandemic.

Here's where futures stand at 6:15 am ET:

Stocks ended slightly higher Monday after starting the session in the red.