The tech rally wasn't enough to lift stocks for a third-straight day: May 6, 2020

By CNN Business

Updated 12:23 a.m. ET, May 7, 2020
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8:49 a.m. ET, May 6, 2020

More than 20 million private-sector jobs vanished in April

From CNN Business' Anneken Tappe

American private-sector payrolls fell by 20.2 million jobs in April, the worst month on record, according to the ADP National Employment Report.

ADP has been reporting private-sector payrolls each month since 2002.

The losses were broad-based across small-, medium- and large-sized businesses as the coronavirus pandemic swept across the country and forced companies to shut down. The services sector was hit the hardest: 16 million service jobs were lost last month.

“Job losses of this scale are unprecedented. The total number of job losses for the month of April alone was more than double the total jobs lost during the Great Recession,” said Ahu Yildirmaz, co-head of the ADP Research Institute.

The ADP report comes two days before the US Bureau of Labor Statistics' jobs report, which is expected to paint an equally bleak picture of the American labor market during the pandemic. Economists polled by Refinitiv predict 21.85 million jobs were lost in April, bringing the US unemployment rate to 16%.

8:23 a.m. ET, May 6, 2020

GM's small profit sends shares 5% higher

From CNN Business' Chris Isidore

General Motors (GM) was able to turn a profit in the first three months of the year during the Covid-19 pandemic, and America's largest automaker intends to reopen its US and Canadian plants on May 18.

The company reported net income of $294, a big drop from the $2.2 billion it earned a year ago, but better than the first-quarter losses reported at Ford (F) and Fiat Chrysler (FCAU). Revenue fell 6% to $32.7 billion.

US factories were shut beginning the last two weeks of March. GM reported operating income of $2.2 billion in North America, while losing $551 million in overseas operations.

GM shares rose more than 5% in premarket trading. Read more here.

7:35 a.m. ET, May 6, 2020

Papa John's sales rose more than 5% in the first quarter

From CNN Business' Jordan Valinsky

The stay-at-home economy has helped Papa John's (PZZA) turnaround. Sales in North America rose 5.3% in the first quarter despite cancellations of large events, including March Madness.

The pizza chain posted particularly strong sales for April, with sales jumping 27%. It said that "demand for carry-out and delivery across our markets has increased over the past several weeks."

However, its profit and revenue came in below analysts' expectations and it scrapped its full-year financial guidance. Shares rose more than 2% in premarket trading.

7:10 a.m. ET, May 6, 2020

CVS' profits soar 41% because customers are stockpiling supplies during the pandemic

From CNN Business' Jordan Valinsky

CVS Health (CVS) reported a strong first quarter as customers raced to its stores to stockpile on medication and essentials during the coronavirus pandemic.

  • First-quarter profit rose 41% compared to the same period a year earlier.
  • Total revenues also jumped 8.3% to $66.8 billion.
  • Sales increased 8%.

CVS said in a press release that the revenue boost was the spurred by the "increased total pharmacy claims volume, including greater use of 90-day prescriptions and early refills of maintenance medications as consumers prepared for the Covid-19 pandemic."

Its full-year financial guidance remains unchanged.

Shares soared more than 5% in premarket trading.

6:47 a.m. ET, May 6, 2020

Nordstrom is permanently closing 16 stores

From CNN Business' Jordan Valinsky

Nordstrom (JWN) is shuttering 16 namesake department stores to "strengthen its business for the long-term."

Like other retailers, Nordstrom has been negatively affected by the pandemic. Its physical stores remain closed and the reopening of its 116 locations is unclear because of local regulations.

It also announced late Tuesday that it's "restructuring" corporate and support roles, which will save it around $150 million.

6:21 a.m. ET, May 6, 2020

US stock futures point to third straight day of gains

Stock futures indicate another day of gains after ending in positive territories the past two days.

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

6:22 a.m. ET, May 6, 2020

Disney's profit plunged 91% last quarter as its parks closed their doors

From CNN Business' Frank Pallotta

Disney's (DIS) profit dropped a whopping 91% during the first three months of 2020, revealing the widespread damage that the coronavirus pandemic has brought on its media empire.

Although sales for its second quarter were up 21% to $18 billion, Disney's profit took an enormous hit from the closure of its twelve theme parks as well as mammoth costs associated with getting the Disney+ streaming service off the ground.

The company's parks, experiences and products unit was hit particularly hard by the outbreak. That segment's operating income dropped a staggering 58% compared to last year — a result of Disney shuttering its theme parks and resorts around the world.

Disney's stock fell roughly 2% in premarket trading. Read more here.