The daily business briefing: April 28, 2020

1. More states ease stay-at-home orders to let some businesses open

Governors in a handful of states from Mississippi to Montana allowed some non-essential businesses to reopen for the first time in weeks on Monday despite warnings from experts that there wasn't enough testing to contain the coronavirus yet. Georgia, Texas, Michigan, Hawaii, and Alaska were among the states that allowed some businesses to resume operations. California Gov. Gavin Newsom (D) said his state was still weeks away from easing its stay-at-home order. Texas Gov. Greg Abbott (R) said his state would let stores, restaurants, movie theaters, and malls reopen with limited capacity on May 1. Some health experts warned that some states were easing restrictions too early, saying that could extend the crisis and push up the death toll.

CNN Reuters

2. Lakers repay PPP loan after fund depleted

The Los Angeles Lakers said in a statement Monday that the professional basketball team repaid a $4.6 million coronavirus relief loan after finding out that the program's first round of funding had run out. "The Lakers qualified for and received a loan under the Payroll Protection Program," the NBA franchise said in a statement. "However, once we found out the funds from the program had been depleted, we repaid the loan so that financial support would be directed to those most in need." A second round of loans under the program began Monday after Congress replenished the program's funding last week. The Lakers qualified because they have only 300 employees, although the team is estimated to be the NBA's second most valuable franchise with a value around $4 billion.

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The Associated Press

3. Fed starts 2-day meeting with interest rates already near zero

The Federal Reserve on Tuesday begins a two-day policy meeting as it continues to seek ways to support the economy through the coronavirus crisis. The U.S. central bank has cut interest rates, resumed bond-buying, and taken action to support credit markets to pump more money into the economy as business shutdowns put millions of Americans out of work. The Fed is not expected to change rates at this meeting, but the statement issued when the meeting closes on Wednesday could provide an indication of how long the Fed expects to keep interest rates near zero. "It is an unusual meeting," said St. Louis Fed President James Bullard, who suggested the Fed might emphasize how much remains unknown as the crisis continues.

Reuters

4. Automakers target May 18 to reopen some factories

Detroit automakers are aiming to resume some production May 18 after shutting down plants in March due to the coronavirus crisis. Fiat Chrysler Automobiles reportedly had been aiming for a May 4 restart date, but reconsidered after Michigan Gov. Gretchen Whitmer extended her executive order to keep non-essential businesses closed until May 15 to help curb the spread of the COVID-19 coronavirus. Executives from General Motors, Ford, and FCA reportedly settled on the new timeline after discussions with United Auto Workers union leaders and Whitmer's office. A Ford spokeswoman said the company had not made a final decision on an exact date for reopening factories in North America. "We are continuing to assess public health conditions, government guidelines, and supplier readiness," she said.

Detroit Free Press MarketWatch

5. Stock futures rise as more states reopen, oil falls

U.S. stock index futures rose early Tuesday as oil prices fell. Futures for the Dow Jones Industrial Average, the S&P 500, and the Nasdaq were all up by more than 1 percent several hours before the opening bell. The U.S. crude oil benchmark, West Texas Intermediate, for June delivery dropped by nearly 20 percent to $10.27 per barrel following Monday's 24 percent decline as concerns persisted about declining storage capacity. Investor sentiment got a lift from the partial reopening of non-essential businesses in several states, including Alaska, Georgia, South Carolina, Tennessee, and Texas, after weeks of stay-at-home orders imposed to curb the spread of the coronavirus.

CNBC