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July 14, 2020, 6:07 a.m. EDT

Coronavirus update: Global case tally edges toward 13 million, and Florida trounces one-day case record set by California last week

‘Not only do we need a stay home order now, but we need to stick with it this time until the hospitalization curve comes down, not just flattens,’ says Harris County Houston Judge Lina Hidalgo

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By Ciara Linnane, MarketWatch

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See: Tax us: Abigail Disney among 83 millionaires begging for higher taxes for coronavirus relief

India is third measured by cases at 878,254, followed by Russia with 726,826 and Peru with 326,326.

The U.K. has 291,155 cases and 44,904 fatalities, the highest in Europe and third highest in the world. China, where the illness was first reported late last year, has 85,117 cases and 4,641 fatalities.

What’s the latest medical news?

Pfizer Inc. /zigman2/quotes/202877789/composite PFE -0.69% and BioNTech SE /zigman2/quotes/214419716/composite BNTX -4.80% said Monday that two of their vaccine candidates to protect against the virus that causes COVID-19 received Fast Track designation status from the Food and Drug Administration. Fast Track is a process to expedite the review of new drugs and facilitate development of new drugs. The government has already committed to a program aimed at accelerating vaccine development called “Operation Warp Speed.”

Pfizer’s and BioNTech’s BNT162b1 and BNT162b2 are currently being evaluated in Phase 1/2 clinical studies in the U.S. and Germany.

“The FDA’s decision to grant these two COVID-19 vaccine candidates Fast Track designation signifies an important milestone in the efforts to develop a safe and effective vaccine against SARS-CoV-2,” said Peter Honig, Senior Vice President, Global Regulatory Affairs, Pfizer. “We look forward to continue working closely with the FDA throughout the clinical development of this program, Project Lightspeed, to evaluate the safety and efficacy of these vaccine candidates.”

Separately, Enzo Biochem Inc. /zigman2/quotes/203989318/composite ENZ -8.33%  received an emergency use authorization from the Food and Drug Administration for its COVID-19 diagnostic test. The regulator issued the EUA on July 7. It has granted emergency authorization to at least 137 diagnostic tests during the COVID-19 pandemic.

What are companies saying?

PepsiCo Inc. /zigman2/quotes/208744353/composite PEP -0.87%  reported second-quarter profit and revenue that fell less than expected, as snacks and food business remained resilient amid the pandemic.

Net income fell to $1.65 billion, or $1.18 a share, from $2.04 billion, or $1.44 a share, in the year-ago period. Excluding non-recurring items, core earnings per share came to $1.32, above the FactSet consensus of $1.25. Revenue fell 3.1% to $15.95 billion, but topped the FactSet consensus of $15.37 billion.

Frito-Lay North America revenue rose 6.6% to $4.27 billion, beverages North America revenue fell 6.6% to $4.97 billion and Quaker Foods North America revenue grew 23.0% to $664 million.

The company said it was not providing full-year financial guidance given the uncertainties associated with the pandemic, but said it plans to return $7.5 billion to shareholders through dividends of $5.5 billion and stock repurchases of about $2 billion.

Goldman Sachs initiated coverage of Walt Disney Co. stock /zigman2/quotes/203410047/composite DIS -3.09%  with a buy rating and $137 price target, amid high hopes that its streaming service could amass more than 150 million Disney+ streaming subscribers by 2025. The company had 54.5 million subscribers as of early May.

The company is “rapidly emerging as a global leader in direct-to-consumer entertainment,” analyst Brett Feldman wrote, and he argued that the consensus view underestimates the profit potential for Disney+. Feldman expects that the service could turn profitable in fiscal 2021, while he said the consensus view is targeting fiscal 2023.

Disney reopened its Florida parks over the weekend — and social media reacted predictably.

Click to Play

Risk for Major Missteps Within the Mouse House

Rich Greenfield, media analyst for Lightshed Partners, analyzes Disney's issues stemming from the Coronavirus impact on theme parks and sports.

Elsewhere, companies continued to offer updates on earnings, on liquidity and to brace for the second-quarter earnings season which kicks off informally tomorrow with the first of the big banks.

Don’t miss: S&P 500 earnings set to plunge as the coronavirus batters all sectors — with Wall Street counting on a bounce that may not come

Here’s the latest news about companies and COVID-19:

• AMC Entertainment Holdings Inc. /zigman2/quotes/200235402/composite AMC -8.25% has reached an agreement to reduce its debt by at least $460 million and has secured $300 million in new funding. The company, which has been battered during the pandemic as it was forced to close its theaters, said it has amended exchange offer and other agreements to reduce its debt by up to $630 million with holders of 73% of its roughly $2.3 billion in senior subordinated notes supporting an amendment announced late Friday. Separately, the company has reached agreements to restructure some $600 million of convertible bonds issued in 2018 to Silver Lake. In another liquidity-boosting move, AMC has converted cash interest on new exchange notes for 12 months, and under certain conditions up to 18 months, into payment-in-kind and they will be deferred until 2026. The company could save $100 million to $200 million of cash in the near term. “This is one of many steps we have taken since March as we navigate through these turbulent coronavirus times, including significantly reducing operating costs and capital expenditures, working with theatre landlords to abate and defer rents, raising $500 million of new public debt in April and developing new health and cleaning protocols with the best global experts to keep our theatres safe,” Chief Executive Adam Aron said.

• Bed Bath & Beyond Inc. /zigman2/quotes/209801102/composite BBBY -3.96% has appointed Neil Lick to the senior vice president of owned brands role, leading a new team that will start launching private labels in 2021 for the home retailer. Lick previously spent 22 years with Williams-Sonoma Inc. /zigman2/quotes/202067350/composite WSM +0.59%  where he held a number of roles, including head of corporate social responsibility. Analysts are optimistic about the opportunities available for Bed Bath & Beyond moving forward, despite the company’s most recent earnings miss.

• Hi-Crush Inc. , a Houston-based provider of proppant and logistics services for hydraulic fracturing operations, filed for bankruptcy, hurt by the falling oil price and reduced demand during the pandemic. The bankruptcy will help implement a restructuring support agreement with creditors holding nearly all of its outstanding 9.5% senior unsecured notes due 2026. Hi-Crush has received commitments for $65 million in debtor-in-possession and exit financing, as the company will continue to operate its business during the bankruptcy. Terms of the bankruptcy include payment of substantially all trade claims in the ordinary course, cancellation of current equity, conversion of $450 million of existing pre-petition debt into equity of the reorganized company and a $40 million rights offering for new secured convertible notes.

• Quest Diagnostics Inc. /zigman2/quotes/201001842/composite DGX -3.39% expects second-quarter revenue of about $1.83 billion, a decline of about 6% from the year-earlier period but well ahead of the $1.53 billion FactSet consensus. Testing volumes in the company’s base business, which excludes COVID-19 molecular and antibody testing, fell about 18%, the company said. It now expects per-share earnings of $1.33 to $1.36, compared with $1.51 a year ago. Adjusted EPS is expected to range from $1.39 to $1.42, compared with $1.73 in 2019 and a the FactSet consensus of 16 cents. The company will report second-quarter earnings on July 23.

•Yelp Inc. /zigman2/quotes/201334325/composite YELP -1.75% disclosed in a filing that it plans to bring back “nearly all” of the employees it furloughed earlier in the year when the COVID-19 outbreak pressured its business. “Of the more than 1,000 furloughed employees, many will return in August as planned, while our sales force is returning on a staggered timeline over a four-month period starting this month,” Chief Executive Jeremy Stoppelman said in a message to employees that was also filed with the Securities and Exchange Commission. The company would also be restoring employees to 100% pay and time starting Aug. 10. Yelp anticipates that it will continue with remote work “into the first half of 2021” and the company is eliminating 63 roles, primarily related to workplace and recruiting efforts, as a result of the pandemic.

/zigman2/quotes/202877789/composite
US : U.S.: NYSE
$ 36.00
-0.25 -0.69%
Volume: 21.92M
Sept. 23, 2020 4:02p
P/E Ratio
14.32
Dividend Yield
4.22%
Market Cap
$201.44 billion
Rev. per Employee
$580,595
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/zigman2/quotes/214419716/composite
US : U.S.: Nasdaq
$ 63.83
-3.22 -4.80%
Volume: 1.68M
Sept. 23, 2020 4:00p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$15.97 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/203989318/composite
US : U.S.: NYSE
$ 2.09
-0.19 -8.33%
Volume: 317,119
Sept. 23, 2020 4:00p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$109.19 million
Rev. per Employee
$180,262
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/zigman2/quotes/208744353/composite
US : U.S.: Nasdaq
$ 131.00
-1.15 -0.87%
Volume: 5.91M
Sept. 23, 2020 4:00p
P/E Ratio
26.76
Dividend Yield
3.12%
Market Cap
$182.98 billion
Rev. per Employee
$242,172
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/zigman2/quotes/203410047/composite
US : U.S.: NYSE
$ 123.28
-3.93 -3.09%
Volume: 8.32M
Sept. 23, 2020 4:02p
P/E Ratio
N/A
Dividend Yield
0.00%
Market Cap
$229.88 billion
Rev. per Employee
$295,532
loading...
/zigman2/quotes/200235402/composite
US : U.S.: NYSE
$ 4.78
-0.43 -8.25%
Volume: 4.29M
Sept. 23, 2020 4:00p
P/E Ratio
N/A
Dividend Yield
0.00%
Market Cap
$569.55 million
Rev. per Employee
$135,969
loading...
/zigman2/quotes/209801102/composite
US : U.S.: Nasdaq
$ 13.36
-0.55 -3.96%
Volume: 6.76M
Sept. 23, 2020 4:00p
P/E Ratio
N/A
Dividend Yield
0.00%
Market Cap
$1.75 billion
Rev. per Employee
$191,341
loading...
/zigman2/quotes/202067350/composite
US : U.S.: NYSE
$ 88.40
+0.52 +0.59%
Volume: 1.39M
Sept. 23, 2020 4:00p
P/E Ratio
17.01
Dividend Yield
2.17%
Market Cap
$6.84 billion
Rev. per Employee
$204,014
loading...
/zigman2/quotes/201001842/composite
US : U.S.: NYSE
$ 111.32
-3.91 -3.39%
Volume: 1.26M
Sept. 23, 2020 4:02p
P/E Ratio
20.24
Dividend Yield
2.01%
Market Cap
$15.48 billion
Rev. per Employee
$163,717
loading...
/zigman2/quotes/201334325/composite
US : U.S.: NYSE
$ 19.63
-0.35 -1.75%
Volume: 1.02M
Sept. 23, 2020 4:00p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$1.46 billion
Rev. per Employee
$156,347
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Ciara Linnane is MarketWatch's investing- and corporate-news editor. She is based in New York.

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