1. Stock futures point to rebound on Wall Street, Dow set to rally 500 points
U.S. stock futures jumped on Friday, indicating a partial recovery from the market’s massive drop in the previous session. Dow Jones Industrial Average futures were up 557 points, or 2.2%. S&P 500 and Nasdaq-100 futures climbed 1.9% and 1.6%, respectively. Retailers, airlines and cruise line operators led the premarket gains. Wall Street was coming off its worst session in about three months, with the Dow plunging more than 1,600 points on Thursday.
Stocks are still headed for a big losing week. The Dow is down 7% this week through Thursday. The S&P 500 is off by 6%.
2. UK economy posts biggest contraction on record
Prime Minister Boris Johnson makes a statement outside 10 Downing Street, London, as he resumes working after spending two weeks recovering from Covid-19.
Stefan Rousseau | PA Images via Getty Images
Economic activity in the U.K. contracted by a whopping 20.4% in April — a record — compared to the previous month as the country implemented strict quarantine measures to curb the spread of the coronavirus. “Q1 GDP figures highlighted the damage caused by just the first few weeks of lockdown — the Q2 estimates expected later this month will show output in a crater,” said Ed Monk, associate director for Personal Investing at Fidelity International.
3. Arizona coronavirus cases nearly double since Memorial Day
A CNBC analysis of Johns Hopkins University data shows the number of coronavirus cases in Arizona have nearly doubled since Memorial Day as the state — along with others — start to reopen. Overall, the state’s seven-day average of daily cases confirmed has risen to just over 1,000 from 720 a week ago. To be sure, the spike coincides with increasing testing. However, the proportion of positive tests has also jumped in recent weeks to 13% from a May 3 low of 5%.
4. Lululemon reports 17% drop in sales, shares slide
A shopper at a Lululemon store in New York.
Scott Mlyn | CNBC
Shares of Lululemon fell about 4% in the premarket after the apparel retailer reported a 17% decline in sales for its fiscal first quarter. The company, like many other retailers, took a hit from stores closing around the country due to the coronavirus outbreak. Lululemon also said it doesn’t expect its earnings to grow on a year-over-year basis until the company’s fiscal fourth quarter. However, Lululemon also reported a 125% surge in online sales during the quarter. “There’s no doubt, coming out, that our online business I believe will find a new norm that’s higher than where we began,” CEO Calvin McDonald noted.
5. Jackson Hole symposium will be held virtually
Jerome Powell (L) walks with Mark Carney during the annual Fed symposium in Jackson Hole, WY on August 23, 2019.
Gerard Miller | CNBC