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May 30, 2020, 11:59 a.m. EDT

Coronavirus update: Global death toll tops 365,000 as Brazil, Mexico and Peru record spikes in new cases

Salesforce disappoints investors with subdued guidance, while Costco spends $300 million on wages and enhanced cleaning

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By Ciara Linnane, MarketWatch

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Canada is next with 90,910 cases and 7,063 deaths. That’s followed by Chile, which now has 90,638 cases and 944 fatalities.

Mexico has moved past China by case number with 84,627 confirmed cases and 9,415 deaths. China, where the disease was first reported late last year, has 84,126 cases and 4,638 deaths.

Don’t miss: Long lines and plenty of limitations on the other side of Spain’s pandemic

What’s the economy saying?

Commerce Department data released Friday showed personal income rose by 10.5% in April, boosted by government relief payments to households, but consumer spending fell 13.6%, more than the 13% forecast by economists polled by MarketWatch. Economists were expecting a 2.1% decline in personal income.

See also: ‘A prolonged depression is virtually guaranteed without significant federal aid to state and local governments’

“While social-distancing measures are gradually being relaxed across the country, we should not forget that lingering virus fear and restrained incomes will continue to constrain consumers’ willingness and ability to spend,” said Lydia Boussour, senior economist at Oxford Economics. “We estimate household outlays will likely contract around 15% in Q2, or nearly 50% annualized, while real GDP shrinks by just under 40% annualized.”

Separately, the Commerce Department said the U.S. trade deficit in goods increased by 7.2% in April, according to an advanced estimate. The gap in goods stood at $69.7 billion in April, up from a revised March figure of $65 billion.

See: Record rise in unemployment casts a shadow over Trump’s re-election bid

Economists polled by MarketWatch had expected a trade deficit of $63 billion for April. The Commerce Department’s report also showed a 0.4% rise in advanced wholesale inventories and a 3.6% decline in advanced retail inventories.

What are companies saying?

Salesforce Inc.’s shares /zigman2/quotes/200515854/composite CRM -3.24%  fell 4.5% Friday, after the enterprise content platform reported first-quarter results that were largely in line with Wall Street estimates but offered guidance that fell short.

“Our results, amidst this global crisis, demonstrated our ability to execute at speed, innovate at scale and the strength of our business model,” Salesforce Chief Executive Marc Benioff said in a statement announcing the results. Benioff, who co-founded the San Francisco–based cloud-computing giant, regained the title of sole CEO in February after sharing the title briefly with executive Keith Block.

Later, during a conference call with analysts, Benioff said Salesforce has heard from more companies than ever, including customer AT&T Inc. /zigman2/quotes/203165245/composite T +0.60%  that are accelerating their operations to a “digital-first world.”

Dell Technologies Inc. said COVID-19 actually helped sales in some sectors, including banking and financial services, government, health care and life sciences. The company’s stock rose 6%, after earnings topped estimates.

At wholesaler Costco Co., profit and sales lagged expectations as the company spent nearly $300 million in wages and extra cleaning and disinfecting during the pandemic. The company had already warned that higher e-commerce sales would not fully offset the impact of closed stores as consumers complied with stay-at-home orders. Shutdowns also hurt Costco’s travel business, food courts and departments such as optical and photo.

Elsewhere, companies continue to bolster liquidity by fundraising and to update investors on their reopening plans.

Here are the latest things companies have said about COVID-19:

• Big Lots Inc. /zigman2/quotes/202923245/composite BIG +1.47%  reported a first-quarter profit that was well above expectations and provided an upbeat outlook, as same-store sales got a boost amid the pandemic. Same-store sales for the second quarter to date “are up strongly,” as the acceleration in the business that started in mid-April has continued, but the trends are expected to moderate for the rest of the quarter, the company said. It expects second-quarter EPS of 65 cents to 80 cents, compared with the FactSet consensus of 24 cents. Separately, Big Lots declared a regular quarterly dividend of 30 cents a share, payable June 26 to shareholders of record on June 12.

• Dell Technologies Inc. /zigman2/quotes/203822527/composite DELL -0.25% said the pandemic has boosted its business in certain sectors as it showed a financial performance that was well beyond expectations. “Customers need essential technology now more than ever to put business continuity, remote working and learning plans into practice,” Chief Operating Officer Jeff Clarke .

• Five Below Inc. /zigman2/quotes/202743941/composite FIVE -0.38%  has reopened over 75% of its stores, with stores reopening in all but four states, where curbside pickup is available. The off-price retailer with products aimed at teens and tweens, has over 900 stores in 36 states. In addition to the more-than 700 stores that have been reopened since April 21, as COVID-19-related lockdown restrictions have eased, the company said it has opened 40 new stores so far this year, and continues to expect to open 100 to 120 new stores in 2020.

• Party City Holdco Inc. /zigman2/quotes/209141609/composite PRTY +7.36% reached a transaction support agreement, or TSA, with its bondholders, which aims to reduce leverage by about $450 million, raise $100 million in new capital and eliminate substantially all of the restrictive covenants and certain events of default. The TSA is expected to lead to an exchange offer in which the 6.125% 2023 and 6.625% 2026 senior notes are exchanged for 19.9% of Party City common stock outstanding, $100 million in 10% notes due 2026 and $185 million in notes due 2025. The company will also initiate a rights offering in which certain note holders will have the right to buy a portion of $50 million of 15.00% senior notes due 2025.

• Sonoma Pharmaceuticals Inc. /zigman2/quotes/200164174/composite SNOA -5.62% , a California-based producer of hypochlorous acid products, and partner Dubai-based MicroSafe Group said their Nanocyn disinfectant and sanitizer was entered into the Australian Register of Therapeutic Goods for use against the novel coronavirus. Nanocyn is manufactured using Sonoma’s Microcyn technology. “We have been fighting global pandemics for nearly 20 years with our safe and non-toxic Microcyn based disinfectant and we are very pleased with the test results and subsequent approval of the SARS-CoV-2 (COVID-19) label claim for our Nanocyn disinfectant in Australia,” said MicroSafe Chief Executive Safa Qadumi. “The label claim comes with a 30 second virucidal kill time on hard surfaces, a landmark kill time for a non-toxic disinfectant.”

• Williams-Sonoma Inc.’s /zigman2/quotes/202067350/composite WSM +3.82% online business experienced “breakout” growth in the latter part of the first quarter and “continues to accelerate,” making up for store closures amid the coronavirus pandemic. Sales reached $1.24 billion, flat in comparison with a year ago, thanks to “a significant acceleration in e-commerce revenue growth to over 30%. The company did not provide guidance due to the pandemic and “the continuing macroeconomic uncertainty that could impact its performance.”

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$ 201.05
-6.74 -3.24%
Volume: 5.42M
Aug. 7, 2020 4:00p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$180.83 billion
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N/A
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/zigman2/quotes/202743941/composite
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$ 102.46
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N/A
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P/E Ratio
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Dividend Yield
N/A
Market Cap
$165.36 million
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$235,681
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$ 8.90
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P/E Ratio
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Dividend Yield
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$ 93.17
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Ciara Linnane is MarketWatch's investing- and corporate-news editor. She is based in New York.

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