1. Dow set for lower open after 580-point surge
Ahead of the last trading day in June and the second quarter, the Dow Jones Industrial Average was on track for an almost 16.8% quarterly advance, which would be the best quarter since Q4 1998. The Dow was pacing for a nearly 1% increase in June, which would be the third straight positive month. However, year to date, the Dow was still down 10% as of Monday’s close.
In prepared remarks for Tuesday afternoon’s House Financial Services Committee hearing, Federal Reserve Chairman Jerome Powell said big questions remain over the outlook for the economy, particularly in light of ongoing efforts to contain the pandemic.
Nearly all of the largest U.S. banks said Monday they performed well enough on the Fed’s most-recent stress test to maintain their current quarterly dividends. However, Wells Fargo said the Fed’s assessment of its business will warrant a reduction to its quarterly payout.
2. Fauci, other top U.S. health officials to testify
Dr. Anthony Fauci, Director of the National Institute for Allergy and Infectious Diseases, National Institutes of Health, testifies during a House Energy and Commerce Committee hearing on the Trump Administration’s Response to the COVID-19 Pandemic, on Capitol Hill in Washington, DC on Tuesday, June 23, 2020.
Kevin Dietsch | Pool via Reuters
White House health advisor Dr. Anthony Fauci and top U.S. health agency leaders are set to testify Tuesday morning before the Senate Health, Education, Labor and Pensions Committee, one day after a CDC official said the coronavirus is spreading too rapidly and too broadly for the U.S. to bring it under control. On Monday, the head of the World Health Organization said that despite progress in many countries “globally, the pandemic is actually speeding up” and “the worst is yet to come” as many nations and world leaders remain divided on how to combat the virus. Total worldwide cases now number more than 10.3 million, including over 505,500 deaths. A quarter of the infections and fatalities were in the U.S.
3. States walk back or delay reopening plans
A sign asking consumers not to move tables or chairs to maintain social distancing is displayed at the Arrowhead Towne Center on June 20, 2020 in Glendale, Arizona.
Christian Petersen | Getty Images
As coronavirus cases surge in Southern and Western states, more governors are walking back or delaying reopening plans. Arizona Gov. Doug Ducey on Monday shut down bars, movie theaters, gyms and water parks. Arizona is not alone in its reversal. States including Texas, Florida and California are backtracking, closing beaches and bars in some cases. Oregon Gov. Kate Brown and Kansas Gov. Laura Kelly are ordering people to wear masks or face coverings when social distancing cannot be maintained. The city of Jacksonville, Florida, where mask-averse President Donald Trump plans to accept the Republican nomination in August, is also implementing a face-covering order.
4. NJ governor delays indoor dining, NY governor announces mall requirements
A “CLOSED USA” sign on May 4, 2020 on the Jersey Shore in New Jersey.
Eduardo MunozAlvarez | VIEWpress | Corbis via Getty Images
In the Northeast, hard hit earlier this year but not seeing new surges, New Jersey Gov. Phil Murphy announced Monday the state will delay a resumption of indoor dining that was planned for Thursday. New York Gov. Andrew Cuomo announced that shopping malls in the state will be required to have virus-filtering air conditioning systems in place in order to reopen. AMC is pushing back the reopening date for its theaters to July 30. Previously, the company had planned on starting to reopen theaters in mid-July in time for the releases of “Tenet” and “Mulan,” both of which have been delayed into August.
5. China’s Xi Jinping signs Hong Kong security law
Police stand guard on a road to deter pro-democracy protesters from blocking roads in the Mong Kok district of Hong Kong on May 27, 2020.
Isaac Lawrence | AFP | Getty Images
Chinese President Xi Jinping has signed the Hong Kong national security law, state media reported Tuesday. Few details have been unveiled, but Beijing said the legislation is aimed at prohibiting secession, subversion of state power, terrorism activities and foreign interference. It’s unclear when it will take effect. When the law was proposed last month, it reignited protests in Hong Kong. Critics see the security law as a way to undermine the autonomy promised to Hong Kong for 50 years after it was handed over from the U.K. to China on July 1, 1997. Wednesday marks the anniversary of the handover.
— The Associated Press contributed to this report.