Plus, coronavirus cases rose by more than 27,700 yesterday, AMC is facing backlash for saying it won’t require face masks when it reopens its movie theaters, while American Airlines has temporarily banned a passenger for flouting mask-wearing rules on board a flight out of New York.
Stocks were higher to start Friday with the Dow adding 193, or 0.7%. The S&P 500 gained 0.8%, while the Nasdaq traded 0.9% higher.
China is taking a step toward trade reconciliation with the U.S. after trade talks in Hawaii, according to a report from Bloomberg out this morning. The world’s second largest economy plans to accelerate purchases of American farm goods to comply with the phase one trade deal, including soybeans and ethanol. Due to the coronavirus shutdown, purchases of U.S. farm products by China had only reached 13% of the 2020 target under the deal within the first four months of 2020. Still, even as it appears China is compelled to accelerate imports, President Donald Trump said in a tweet yesterday afternoon that the U.S. could pursue a “complete decoupling from China” in response to unspecified conditions, in his most forceful statement yet on the souring relationship with Beijing.
Coronavirus cases in the U.S. surged by more than 27,700 yesterday as the average number of daily new cases steadily climbs higher. As of Thursday, the seven-day average of new COVID-19 cases rose more than 15% compared to a week ago, and have risen by 5% or more in 27 states across the U.S., including Arizona, California, Oklahoma, and Texas. In California, Governor Gavin Newsom issued a mask-wearing in public mandate to help slow the spread of the virus. “Science shows that face coverings and masks work,” Newsom said in a statement. “The are critical to keeping those who are around you safe, keeping businesses open and restarting our economy.” Cases of the deadly virus have risen to nearly 2.2 million in the U.S.
Amid growing calls for racial justice in the U.S., today’s Juneteenth celebrations—marking the day a union general read the emancipation proclamation in Galveston, Texas, freeing the last enslaved people in the nation following the end of the Civil War—are coming with calls to make it an official federal holiday. Companies including Nike, Twitter, Spotify, and Target are shutting down for the day as corporate leaders are met with their first big opportunity to put into action the rhetoric they’ve been voicing since Memorial Day following the killing of George Floyd by Minneapolis police. Target said it would close its Minneapolis headquarters and pay hourly workers time and a half today, and also pledged to listen to employees and community partners in the coming months after local protests in the city sparked a wave of demonstrations worldwide. “We recognize that the racial trauma the country is experiencing now is not new, but throughout recent weeks there has been a sense that this time is, and has to be, different,” said Target CEO Brian Cornell. “Juneteenth takes on additional significance in this moment.”
AMC Entertainment is facing backlash today after the movie theater operator said it would not require masks to be worn when it reopens in an effort to avoid “political controversy.” AMC CEO Adam Aron told Variety, “We thought it might be counterproductive if we forced mask wearing on those people who believe strongly that it is not necessary. We think that the vast majority of AMC guests will be wearing masks. When I go to an AMC feature, I will certainly be wearing a mask and leading by example.” But even with that explanation, AMC has been met with criticism for the decision. “The word that comes to mind is, irresponsible,” said Doug Stone, president of Box Office Analyst. “Personally, I would not go to a theater right now if masks were not required.” GOP Senator John Barrasso, who is a trained doctor, echoed the sentiment in an interview with CNBC this morning. “I have a lot of concerns about that,” Barrasso said. “You’re talking about a confined space where people are there for extended periods of time, breathing essentially the same air.”
And in more mask-wearing news, American Airlines has temporarily banned a customer who was removed from a flight in New York this week after refusing to wear a face mask on board, despite a requirement that passengers wear masks in an effort to curb the spread of COVID-19. The passenger, Brandon Straka, a conservative activist with around 400,000 Twitter followers, will not be allowed to fly on American until face coverings are no longer required. The move comes amid increased vigilance in requiring mask use by U.S. airlines as coronavirus cases continue to rise across the nation. American said in a statement, “We expect customers who choose to fly with us to comply with these policies, and if necessary, we will deny future travel for customers who refuse to do so. Restricting travel is a step we take very seriously, and it will only occur after a comprehensive review of the facts of an incident.” United Airlines also pledged this week to ban passengers flouting their mask-wearing rules, while exempting small children and people with medical conditions or disabilities that prevent them from wearing face coverings.
Stocks We’re Watching
Neonode Inc (NASDAQ: NEON): Neonode shares jumped as much as 85% yesterday after the company reported its touch sensor modules have been selected by Anhui Easpeed Technology to upgrade thousands of elevators in China with holographic bottom panels. Neonode CEO Urban Forssell said in a statement, “I am proud that Neonode is able to offer a practical and economical solution to address how the public can safely interact with elevator controls, ATMs, gas pumps, restaurant kiosks and other devices. We call it ‘Contactless Touch.’ We are excited to see early adopter Easpeed swiftly moved forward to roll out their holographic button solution with our products across China.”