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Economic activity fell in all states during first quarter, raising concerns of potential cuts
People wait in line as SF-Marin Food Bank hands out 1600 food bags in San Francisco on April 20, 2020. Work furloughs and layoffs created by coronavirus shelter-in-place orders are driving thousands to seek food assistance.
San Francisco Chronicle | Hearst Newspapers via Getty Images
Economic activity fell in every state in the first three months of the year as the pandemic brought activity to halt, according to government data.
No state’s economy grew during the quarter, the data showed, while the U.S. gross domestic product — the broadest measure of the nation’s economy — contracted by 5%.
While financial support was created through the CARES Act, estimates from the Tax Policy Center show states could see a $200 billion revenue shortfall in the 2020 fiscal year. States are currently weighing cuts to basic services, including education, health care and public safety as a result, CNBC’s Scott Cohn reports.
Credit agencies have also taken notice of the changing financial situation. In May, Moody’s Investors Service lowered its outlook for the U.S. State sector to “negative” from “stable” for the first time since the 2008 financial crisis. –Alex Harring
Dow falls 200 points as travel stocks slide
Stocks opened lower, led by stocks that would directly benefit from an economic recovery, reports CNBC’s Fred Imbert and Yun Li. The Dow Jones Industrial Average traded 200 points lower, or 0.8%. The S&P 500 slid 0.6% and the Nasdaq Composite dropped 0.3%. —Melodie Warner
Regeneron signs $450 million contract with U.S. government for its coronavirus therapy
Brazil’s Bolsonaro tested for Covid-19 after feeling unwell
The President of Brazil Jair Bolsonaro appears on the ramp of the Planalto Palace to wave to his supporters amidst the coronavirus (COVID-19) pandemic at the Planalto Palace on May 15, 2020 in Brasilia.
Andressa Anholete | Getty Images
Brazilian President Jair Bolsonaro has been tested for the coronavirus, shortly after the presidential palace confirmed to NBC News that he had been feeling unwell and was running a high temperature.
An affiliate to CNN in Brazil had reported that the right-wing leader tested positive for the virus, but this has not been verified by CNBC or officially confirmed.
The results of Bolsonaro’s test for Covid-19 are expected at around 11 a.m. ET. —Sam Meredith
Novavax joins Operation Warp Speed
Biotech company Novavax announced it was awarded $1.6 billion from the U.S. government to help accelerate the late-stage development and manufacturing of its coronavirus vaccine candidate, Reuters reported.
It is the largest investment made so far through Operation Warp Speed, the Trump Administration’s effort to expedite the development and production of drugs and vaccines to help combat the virus. Novavax stock soared more than 35% in premarket trading on the news.
The federal government has also made investments through Operation Warp Speed in Johnson & Johnson‘s vaccine candidate, Moderna‘s and AstraZeneca’s potential vaccine, which is being developed with Oxford University.
Novavax said the award will help fund its phase three trial, expected to begin in the fall, and help it to ready 100 million doses for distribution as early as the end of the year if the potential vaccine proves safe and effective in humans. —Will Feuer
Read CNBC’s previous coronavirus live coverage here: Australia closes interstate border; California asks indoor businesses to close