Merck, meanwhile, has entered the vaccine race, announcing Tuesday it has teamed up with research nonprofit IAVI to develop a potential candidate.
This is CNBC’s live blog covering all the latest news on the coronavirus outbreak. This blog will be updated throughout the day as the news breaks.
- Global cases: More than 5.54 million
- Global deaths: At least 347,836
- U.S. cases: More than 1.66 million
- U.S. deaths: At least 98,426
The data above was compiled by Johns Hopkins University.
Ford shortly pauses production at Missouri plant
The company halted production of the Ford Transit van for about an hour Tuesday, a company spokeswoman said. Production of the F-150 full-size pickup, which the plant also produces, was not impacted, she said.
Ford, in a statement said, officials notified people known to have been in close contact with the infected individual and asked them to self-quarantine for 14 days. “The safety of our workforce is our top priority. Working closely with the UAW and external experts in infectious disease and epidemiology, we have developed safety standards to protect our workforce,” the company said.
“In this instance, our protocol calls for us to deep clean and disinfect the employees’ work area, equipment, team area and the path that the employee took while at the plant today.” The pause in operations is at least the fourth for Ford since beginning to restart production of its U.S. assembly plants on May 18. UAW members for the Detroit automakers are being paid during quarantine. The pay method may vary on a case by case basis and by company contract. —Michael Wayland
Google will give employees up to $1,000 for work-from-home expenses
Alphabet CEO Sundar Pichai gestures during a session at the World Economic Forum (WEF) annual meeting in Davos, on January 22, 2020.
Fabrice Coffrini | AFP | Getty Images
5:45 p.m. ET — Google CEO Sundar Pichai told employees in an email that they will receive up to $1,000 to cover the cost of equipment to help them continue to work from home.
The message came alongside updates to Google’s timeline for bringing its people back to offices. Pichai said Google will start reopening more of its facilities on July 6, suggesting that buildings would be about 10% occupied, and reach 30% occupancy in September. —Jordan Novet
Merck to approach vaccine in ‘very aggressive fashion,’ CEO says
5:30 p.m. ET — Pharmaceutical giant Merck plans to approach its coronavirus vaccine development “in a responsible” but “very aggressive fashion” as pressure mounts to find a vaccine to prevent Covid-19, the company’s CEO told CNBC.
Merck CEO Kenneth Frazier stressed the importance of making a vaccine to prevent Covid-19 widely available, saying “until all of us are safe, none of us are safe.” The coronavirus has shown “that it does not respect borders,” spreading to both high and low-income countries, he said. Earlier in the day, Merck announced that it plans to work alongside nonprofit scientific research organization IAVI to develop a potential vaccine against the coronavirus.
Disney to submit reopening proposal
5 p.m. ET — Disney announced that Walt Disney World Resort executives will submit a reopening proposal on Wednesday to the Orange County Economic Recovery Task Force in Florida. The proposal plans for a phased reopening of the resort’s theme parks.
The entertainment giant said earlier this month that it suffered a $1 billion loss in revenue during the second quarter after its parks, cruises and stores shuttered amid the pandemic.
Disney’s U.S. parks have been closed since mid-March, but Shanghai Disneyland reopened May 11. —Hannah Miller
California to allow hair salons and barbershops to reopen in majority of state’s counties, governor says
Michelle Harris gives a client a haircut at Rockabetty’s Hair Parlor, in Yuba City, Calif., Monday, May 4, 2020. Monday was the first day businesses could open in Sutter County under a modified public health order.
Rich Pedroncelli | AP
4:30 p.m. ET — California Gov. Gavin Newsom announced the state will allow most counties to begin reopening hair salons and barbershops with increased health modifications.
California is currently in phase two of its reopening plan, which has allowed for the resumption of retail businesses and manufacturing jobs with modifications. Counties in the state that meet certain health criteria have been allowed to move further into the state’s reopening plan.
Newsom said 47 of the state’s 58 counties have “self-attested” to meeting the state’s criteria to move further into phase two, and starting today they will be allowed to reopen barbershops and hair salons, he said. Some of California’s largest counties, however, like San Francisco and Los Angeles counties, have not met the criteria to move further into reopening. Newsom has yet to lift restrictions on nail salons, bars and wineries, nightclubs and theme parks, among other businesses. —Noah Higgins-Dunn
More states reopen bars, lift retail restrictions
Owner, Sarah Celek (red leggings), teaches a class at Pure Barre Cincinnati West as Ohio gyms and fitness centers reopen for business in the wake of the Coronavirus COVID-19 pandemic, on May 26, 2020, in Cincinnati, Ohio, United States.
Jason Whitman | NurPhoto via Getty Images
3:21 p.m. ET — Both West Virginia and Arkansas reopened bars as more states continue to lift coronavirus-related restrictions. Michigan also allowed retailers to welcome customers in their stores under certain restrictions, and Ohio opened gyms, fitness centers and pools with specific health protocols in place. For more on states’ reopening progress, click here. —Hannah Miller
McConnell says Congress will decide on another coronavirus bill in the ‘next few weeks’
U.S. Senate Majority Leader Mitch McConnell (R-KY) and Senator Lyndsey Graham (R-SC) arrive for a closed Senate Republican policy lunch meeting with U.S. President Donald Trump to discuss the response to the coronavirus disease (COVID-19) outbreak on Capitol Hill in Washington, U.S., May 19, 2020.
Yuri Gripas | Reuters
3:17 p.m. ET — Senate Majority Leader Mitch McConnell said Congress will likely decide whether to pass another coronavirus relief bill in the “next few weeks.”
Lawmakers will “probably” have to approve another stimulus package, the Kentucky Republican said. GOP support for additional relief has grown in recent weeks, though Republicans have stressed that they want more targeted spending than the $3 trillion measure Democrats passed earlier this month.
McConnell once again said he wants to see liability protections for businesses and doctors included in any additional legislation. He signaled he could support relief for struggling state and local governments, but if it is targeted only for money lost and additional expenses accrued during the pandemic.
He did not address the possibility of another direct payment to Americans. Democrats included another check of up to $1,200 to individuals in their latest bill, and President Donald Trump has indicated he would back more direct payments. —Jacob Pramuk
Supreme Court steps into controversy over coronavirus in prisons
3:13 p.m. ET — The Supreme Court said it will not halt an order issued by a federal judge requiring the Bureau of Prisons to take steps to mitigate the spread of coronavirus at the Elkton Federal Correctional Institution in Ohio.
Nine inmates have died from Covid-19 at the facility, where the American Civil Liberties Union says prisoners are housed “cheek by jowl, in dormitory-style rooms of approximately 150 persons each.” Last month, U.S. District Judge James Gwin ordered the Bureau of Prisons to identify and transfer inmates who are medically vulnerable to the virus, which disproportionately impacts the elderly and those with chronic conditions.
The justices’ decision came in an unsigned order and cited procedural reasons. Three of the court’s conservatives, Justices Clarence Thomas, Samuel Alito and Neil Gorsuch, said they would have granted the Justice Department’s request to halt the order. —Tucker Higgins
Fed says millennials are taking a bigger hit from the economic shutdown
2:36 p.m. ET —Millennials are facing a particularly difficult economic struggle during the pandemic, according to a St. Louis Federal Reserve analysis. Specifically, those born between 1981 and 1996 have three specific challenges: leftover damage from the financial crisis, little financial cushion to withstand the unexpected hit to their wallets, and disproportionate unemployment impact.
“Millennials’ financial fragility hurts not only these individuals, their families and others who rely on them but also the economy as a whole,” Fed researcher Ana Kent wrote in a paper.
The news isn’t all bad, though. Kent said that the situation could also present opportunities for millennials “to pause and rethink how to best achieve household financial stability and resilience against future financial blows.” That’s also happening against historically high levels of rescue and stimulus funds from policymakers. —Jeff Cox
Novavax’s vaccine to be variably priced based on affordability, CEO says
2:04 p.m. ET — Vaccine development company Novavax plans to vary the price of its potential vaccine based on affordability, CEO Stanley Erck said.
“There’s got to be broad distribution. There’s got to be equitable access,” he said on CNBC’s “Squawk Alley.” “There will certainly be tiered pricing depending upon affordability so that the vaccine can be used globally.”
Novavax launched phase 1 clinical trials for its potential vaccine on Monday, the company said, and it hopes to release results in July. Erck said that if all goes to plan, the company could have its first doses ready for distribution by the end of the year. He added that the company hopes to produce “over a billion doses” by next year. —Will Feuer
Mercedes-Benz to allow remote work through 2020
1:55 p.m. ET — Mercedes-Benz is allowing employees at its U.S. headquarters near Atlanta to work remotely through at least the end of the year, the company confirmed.
The automaker joins companies such as Google, Facebook and Amazon in allowing employees to continue working from home through the end of the year due to the coronavirus pandemic.
Mercedes-Benz USA CEO Nicholas Speeks told trade publication Automotive News that the company is able to “function effectively” while employees work remotely.
“Working remotely was the exception — for the foreseeable future, it will become the norm,” he said.
The German automaker employs about 875 people at its 200,000 square-foot U.S. headquarters, which it opened in 2018. —Michael Wayland
Study warns Brazil’s Covid-19 death toll could jump five-fold by August
1:44 p.m. ET — Brazil currently has the highest daily Covid-19 death rate in the world, and a new study has increased fears that the country could become a new hot spot in the pandemic.
The University of Washington study forecasts that Brazil’s total death toll could jump by five times what it is now and reach 125,000 by early August, Reuters reports. Brazilian President Jair Bolsonaro has resisted implementing lockdown measures in the country. —Hannah Miller
Napa Valley wineries set to reopen with a ‘new reality of wine tasting’
A Napa Valley welcome sign sits next to a vineyard, prior to California’s Governor Gavin Newsom’s effective immediately statewide “stay at home order”, in the face of the fast-spreading pandemic coronavirus (COVID-19), outside of Napa, California.
Shannon Stapleton | Reuters
1:20 p.m. ET — The U.S. wine industry has been hit hard by Covid-19, with some analysts projecting the sector could lose nearly $6 billion as a result of the pandemic.
And California has taken the brunt of the impact. While some of the state’s wineries have benefited from an uptick in demand at grocery stores, many have seen their total sales cut in half, due in large part to the crippling of the restaurant industry.
But now, with Napa Valley restaurants offering indoor dining once again and the region’s wineries poised to reopen, some winery owners are cautiously optimistic about the months ahead. Customers may just need to get used to the new reality of wine tasting in a post-pandemic world.
“Almost all of our tastings will be taking place outside,” said Emma Swain, CEO of St. Supery Estate Vineyards and Winery. “But, you’re going to be spaced further apart, we’re going to ask you to wear a mask when you’re not tasting, we’re going to have our team wearing masks, and so it’s a little harder to be as friendly as we want to be.”
Swain added the tastings will be poured for visitors to minimize close contact with their hosts, and the wine will be poured in “disposable materials.” —J.R. Reed
Gov. Cuomo says New York economy won’t ‘just bounce back’
People wait to receive food at a food distribution site in the Brooklyn borough of New York, the United States, May 14, 2020.
Michael Nagle | Xinhua News Agency | Getty Images
12:40 p.m. ET — While New York has begun reopening some regions, the state’s economy won’t “just bounce back,” according to Gov. Andrew Cuomo.
Cuomo said the state has lost thousands of small businesses and warned that residents will see pain in the new economy, CNBC’s Berkeley Lovelace and Jasmine Kim report.
Cuomo also said he will meet with President Trump on Wednesday in Washington to discuss coronavirus response efforts and plans to jumpstart the economy, including ideas for large-scale infrastructure projects.
“I’m going to go to Washington tomorrow, scheduled to meet with the president to talk about a number of things, but this is one of the things I want to talk to the president about,” Cuomo said during remarks at the New York Stock Exchange in Manhattan.
“You want to restart the economy? You want to reopen the economy? Let’s do something creative, let’s do it fast, let’s put Americans back to work and let’s make America better. It is common sense.”
Cuomo’s state has reported a multibillion-dollar revenue shortfall amid the pandemic. He laid out a number of infrastructure proposals, including an expansion of New York City’s Subway tunnels, while noting that federal approval would be required for the plans to move forward.
The virus has infected more than 362,700 people and killed at least 29,220 in New York, according to data from Johns Hopkins University. —Hannah Miller, Kevin Breuninger
Nobel winner touts European recovery approach that paid a percentage of furloughed workers’ income
12:10 p.m. ET — A Nobel laureate stated that European countries have better protected their economies amid the pandemic in comparison to the U.S.
Christopher Pissarides, professor of economics and political science at the London School of Economics and winner of the 2010 Nobel Memorial Prize in Economic Sciences, told CNBC that the European approach is keeping workers more attached to their employers, which will help with recovery, CNBC’s Chloe Taylor reports.
Countries like France, the U.K. and Ireland are paying a large percentage of furloughed workers’ income, while the U.S. gave one-time payments to individuals and strengthened unemployment insurance. —Hannah Miller
NJ Gov. Murphy says professional sports teams may return to training and competition
10:46 a.m. ET — New Jersey Gov. Phil Murphy said the state’s professional sports teams may return to training and competition if their leagues choose to move in that direction.
The state has been in constant discussions with teams about necessary protocols to protect the health and safety of players, coaches, and personnel, Murphy said in a tweet. —Melodie Warner
Consumer confidence unexpectedly rises in May
10:38 a.m. ET — Data released by The Conference Board showed U.S. consumer confidence unexpectedly rose in May as states slowly start to reopen.
The consumer confidence index rose to 86.6 this month from 85.7 in April. Economists expected a decline to 82.3 in May, according to Dow Jones.
Lynn Franco, senior director of economic indicators at The Conference Board, said “short-term expectations moderately increased as the gradual re-opening of the economy helped improve consumers’ spirits.”
Franco added, however, that consumers “remain concerned about their financial prospects.” —Fred Imbert
Related Chairman Stephen Ross says a ‘flood’ of retail bankruptcies on the way
10:27 a.m. ET — Mall owner Related Companies Chairman Stephen Ross says the retail industry is one of the hardest hit by the coronavirus pandemic, as many businesses have been forced to temporarily close their doors. He joined CNBC to say he expects many will be forced into bankruptcy, following Neiman Marcus, J.C. Penney and J.Crew.
“You are going to have such a flood of cases going to the bankruptcy court,” Ross said. “And these aren’t really the type of bankruptcies that were induced by bad practices. It’s really all driven by the pandemic.”
Related owns the Hudson Yards mall and the Shops at Columbus Circle in New York City. Both of these properties have not yet been able to reopen. —Lauren Thomas
Home prices gained strength in March as coronavirus shut down economy, S&P Case-Shiller says
10:03 a.m. ET — Home prices were still gaining steam in March, as the country began shutting down in the face of the coronavirus pandemic.
On a national level, prices in March rose 4.4% annually, up from 4.2% in February, according to the S&P CoreLogic Case-Shiller index.
The same cities continue to lead the gains, with Phoenix, Seattle and Charlotte seeing the highest year-over-year gains among the 19 cities (excluding Detroit for the month). Prices in Phoenix rose 8.2% annually, followed by Seattle with a 6.9% increase and Charlotte with a 5.8% increase. Price gains were smallest in Chicago, New York City and Dallas.
Prices are still being buoyed by a severe lack of homes for sale. There was already a shortage going into the coronavirus crisis, but then sellers began de-listing their properties, and potential sellers decided to wait. Total for-sale inventory at the end of March was down 10.2% compared with March 2019, according to the National Association of Realtors. —Diana Olick
The latest hot spots of new cases in the U.S.
S&P 500 back above 3,000 for the first time since early March
9:36 a.m. ET — Stocks surged as optimism grew about the reopening of the economy and a potential coronavirus vaccine. The S&P 500 rallied 2.2%, breaking above 3,000 for the first time since March 5. The Dow Jones Industrial Average rose around 600 points, or 2.4%. The 30-stock average also traded at levels not seen since early March, jumping above 25,000. The Nasdaq Composite advanced 1.6%.
Read stock market activity updates from CNBC’s Fred Imbert and Yun Li. —Melodie Warner
Dentists consider investing in UV light products as they reopen
9:30 a.m. ET — As dentist offices reopen, some are considering using ultraviolet light technology to keep their practices clean and to help prevent their patients and staff from getting sick.
Manufacturers of UV light sanitizing equipment are seeing huge increases in business inquiries, particularly from dentists.
“We’re getting calls, emails, hundreds and hundreds, if not thousands of requests on a daily basis,” said Brett Messina, vice president of sales and marketing at Medical Illumination, which makes VidaShield, an air purifier that disinfects using UV light.
Though UV light has been proven effective against other coronaviruses, research is still ongoing regarding its impact on Covid-19. This new technology could also be an expensive investment for dental offices looking to recover profits from shut downs. —Hannah Miller
Memorial Day weekend boosts air travel to 13% of last year’s levels
A sign reminding passengers to stay 6 feet apart is seen at a screening checkpoint at Orlando International Airport. The Transportation Security Administration has rolled out new guidelines for the screening of air passengers designed to decrease the chances that its officers are exposed to the coronavirus.
Paul Hennessy | SOPA Images | Getty Images
9:24 a.m. ET — Air travel reached a more than two-month high over Memorial Day weekend, but carriers have long to go before getting remotely close to last year’s levels as the pandemic keeps a lid on demand.
Memorial Day kicks off the peak travel season of late spring and summer, which is usually the most lucrative time of year for U.S. carriers. More than 1.2 million people passed through checkpoints at U.S. airports from Friday through Monday, according to the Transportation Security Administration, about 13% of the numbers logged a year earlier.
U.S. airlines have slashed service and parked roughly half of their fleets as the virus and shelter-in-place orders devastated demand, but executives say they have turned a corner from the low point hit in April. Airlines are closely watching for a sustained pickup in demand beyond the holiday weekend. —Leslie Josephs
McLaren Group is laying off 25% of its workforce as coronavirus halts races, manufacturing and sales
The 2020 McLaren 600LT Spider
Mack Hogan | CNBC
9:18 a.m. ET — McLaren Group, which owns the Formula 1 team and supercar maker, plans to lay off 1,200 staff as part of a proposed restructuring. Roughly 25% of the luxury car maker’s workforce stands to be affected.
The redundancies will be made across McLaren’s applied, automotive and racing businesses worldwide. Some support and back office roles will also be affected. —Sam Shead
U.K. minister quits over top aide’s lockdown trip
Dominic Cummings, special advisor for Britain’s Prime Minister Boris Johnson, makes a statement at 10 Downing Street, following the outbreak of the coronavirus disease in London, Britain, May 25, 2020.
Jonathan Brady/Pool via Reuters
9:08 a.m. ET — A political crisis is brewing in the U.K. after Prime Minister Boris Johnson’s closest aide defied calls to quit over an apparent breach of the country’s coronavirus lockdown rules.
Dominic Cummings defended his decision on Monday to travel 260 miles from London to Durham, northern England, days after the U.K. went into lockdown in March. He said his trip to family in Durham was within the scope of the restrictions because he needed to seek child care in case he and his wife fell ill.
However, his explanation hasn’t convinced everyone. On Tuesday, Scotland Minister Douglas Ross announced he was resigning from the government due to “events over the last few days.” Ross said that, while he accepted that Cummings’ statement on Monday “clarified” his actions, “these were decisions many others felt were not available to them.” —Ryan Browne
Even amid coronavirus crisis, the number of students applying for financial aid drops
9:03 a.m. ET — The coronavirus crisis has made families suddenly feeling less confident about their ability to pay for college next year.
Fewer families have applied for financial aid and only a few more weeks remain until the June 30 deadline to submit the Free Application for Federal Student Aid for the fall semester.
The FAFSA form is the gateway to all federal money, including loans, work-study and grants.
The number of applications is down 2.8% from last year, with roughly 55,000 fewer high school seniors applying, according to the National College Attainment Network. —Jessica Dickler
NYSE floor reopens two months after shuttering
7:55 a.m. ET — The trading floor at the New York Stock Exchange reopened Tuesday, welcoming back about 80 brokers after a two-month closure.
Traders entering the floor will be required to take a temperature test and sign a legal document saying they understand the risks of returning. The stock exchange will bar entry to anyone who took public transportation. Read more about the floor’s reopening and traders’ sentiments around returning from CNBC’s Bob Pisani. —Sara Salinas
Hospitalizations tick up after states reopen, former FDA chief says
7:16 a.m. ET — U.S. hospitalizations are on a gradual upswing now that every state has begun to reopen nonessential businesses and ease restrictions, former Food and Drug Administration Commissioner Dr. Scott Gottlieb told CNBC.
“We now see a trend in an uptick in hospitalizations. It’s a small uptick, but it is an uptick and it’s unmistakable and it is probably a result of reopening,” Gottlieb said on CNBC’s “Squawk Box.” “We are going to have to watch it.”
Florida, Georgia, Virginia, Alabama, Maryland, Minnesota and others have all seen an increase in hospitalizations since beginning to reopen, Gottlieb said. He added that the “national trend is a small uptick.” —Will Feuer
Disclosure: Scott Gottlieb is a CNBC contributor and is a member of the boards of Pfizer and biotech company Illumina.
Merck announces plans to develop coronavirus vaccine
7 a.m. ET — Merck announced that it has teamed up with research nonprofit IAVI to develop a potential vaccine against the coronavirus.
The vaccine candidate for Covid-19 is currently in preclinical development, the U.S. drugmaker said in a statement, with clinical studies expected to start later in the year.
If the vaccine is approved, Merck and IAVI said they would work together to make it “accessible and affordable” to people across the globe. Shares of Merck were up more than 3.5% in premarket trading. —Sam Meredith
Global fund for vaccine, drug development raises $10 billion
6:54 a.m. ET — A global fund established to support and accelerate the development of a coronavirus vaccine and effective treatments has raised about $10.4 billion, European Commission President Ursula von der Leyen said.
The fund was established at a virtual conference on May 4, which the U.S. did not participate in. —Will Feuer
Read CNBC’s previous coronavirus live coverage here: Russia reports record daily rise in deaths; Spain calls for EU border rules