Stock futures flat after the market notches its best quarter in decades

Stock futures dipped slightly in overnight trading on Tuesday as the market is set to kick off a new quarter after a remarkable comeback.

Futures on the Dow Jones Industrial Average traded about 55 points lower. The S&P 500 futures and the Nasdaq 100 futures fell 0.2% and 0.1%, respectively. Trading volumes were thin. 

The market just notched its best quarter in decades as it snapped back from the historic sell-off triggered by the coronavirus. The Dow gained 17.8% in the second quarter, posting its best quarter since 1987, while the S&P 500 finished the period with a near 20% gain, its best since 1998. The tech-heavy Nasdaq soared 30.6% for the quarter, the most since 1999.

In after-hours trading Tuesday, FedEx jumped nearly 9% after posting quarterly earnings and revenue that topped analysts’ forecast. The shipping company experienced a surge in deliveries amid the coronavirus lockdown.

While the market bounced sharply from its March lows, the recent spikes in coronavirus cases in some states kept investors on edge. White House health advisor Dr. Anthony Fauci warned Tuesday that if the outbreak continues at its current pace, daily new cases could surpass 100,000 new infections per day.

So far, more than 12 states have now paused or rolled back their reopenings as cases in the U.S. jumped 40% over the past week to an average of about 39,750 on Monday, according to a CNBC analysis of data compiled by Johns Hopkins University. 

“We continue to expect it to be an uneven process, albeit with a positive trajectory,” Keith Lerner, chief market strategist at SunTrust Advisory Services, said in a note. “The good news is through this digestion period, markets are working off some of the excesses that had built up, and elevated expectations are being reset.”

Investors will monitor the pace of recovery in the U.S. labor market. ADP will release its private payroll count for June on Wednesday at 8:15 a.m. ET. Economists polled by Dow Jones expect an increase of 2.50 million after a 2.76 million decline in May.

On the corporate front, Macy’s is set to report its quarterly earnings before the bell on Wednesday.

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Fauci says U.S. coronavirus outbreak is ‘going to be very disturbing,’ could top 100,000 cases a day

The U.S. is “not in total control” of the coronavirus pandemic and daily new cases could surpass 100,000 new infections per day if the outbreak continues at its current pace, White House health advisor Dr. Anthony Fauci said Tuesday.

The country is now reporting nearly 40,000 new coronavirus cases every day — almost double from about 22,800 in mid-May — driven largely by outbreaks in a number of states across the South and West. Fauci said about 50% of all new cases are coming from four states: Florida, California, Texas and Arizona.

“I can’t make an accurate prediction but it’s going to be very disturbing,” Fauci told senators in a hearing held by the Senate Health, Education, Labor and Pensions Committee. “We are now having 40-plus-thousand new cases a day. I would not be surprised if we go up to 100,000 a day if this does not turn around, and so I am very concerned.”

The number of new cases reported each day in the U.S. is now outpacing April, when the virus rocked Washington state and parts of the Northeast, especially the New York City metropolitan area. 

The U.S. averaged 39,750 new cases per day over the past seven days as of Monday, according to a CNBC analysis of data compiled by Johns Hopkins University. That average has risen by more than 40% compared with a week ago. As of Tuesday morning, the seven-day average of daily new cases reported rose by more than 5% week over week in 40 states, according to the data. 

Fauci’s comments came in response to a question from Sen. Elizabeth Warren, a Democrat from Massachusetts, who asked whether the U.S. is heading in the right direction in terms of controlling the outbreak.

“Well I think the numbers speak for themselves,” Fauci said. “I’m very concerned and I’m not satisfied with what’s going on because we’re going in the wrong direction if you look at the curves of the new cases, so we really have got to do something about that and we need to do it quickly.”

Outbreaks in states like Florida and Texas also threaten to disrupt the progress states like New York and New Jersey have so far made in driving down the outbreak in the Northeast, Fauci said. New York, New Jersey and Connecticut last week announced they would mandate 14-day quarantines for any travelers coming from a states with rapidly expanding outbreaks. Nonetheless, Fauci said increased infection anywhere in the country threatens to spread everywhere.

“I guarantee you that because when you have an outbreak in one part of the country, even though in other parts of the country they’re doing well, they are vulnerable,” Fauci said. “I made that point very clearly last week at a press conference. We can’t just focus on those areas that are having a surge, it puts the entire country at risk.”

The outbreaks might be partly driven by states that reopened too soon and might have disregarded some of the federal guidance meant to help states restart safely, Fauci said.

“We’ve got to make sure that when states start to try to open again, they need to follow the guidelines that have been very carefully laid out with regard to checkpoints,” Fauci said earlier Tuesday. He added that some states might be “going too quickly” with regard to reopening and “skipping over some of the checkpoints.”

While much of the country was still shutdown in April, the White House published guidance to help states reopen businesses and parts of society to try to avoid a major resurgence of the virus. The guidance included recommendations like waiting to reopen until daily new cases steadily fall for 14 days, ramping up testing and contact tracing, and increasing hospital capacity.

However, the guidance was not mandatory and a number of the first and most aggressive states to reopen have since seen daily new cases spiral into full-fledged outbreaks, prompting officials to pause or reverse reopening efforts. Fauci added that it’s not just states that reopened early with outbreaks. In other states, expanding outbreaks could indicate that the public is not heeding public health precautions such as mask wearing and physical distancing.

Even in states where governors and mayors “did it right with the right recommendations, we saw visually in clips and in photographs of individuals in the community doing an all-or-none phenomenon, which is dangerous,” he said. “By all or none I mean, either be locked down or open up in a way where you see people at bars not wearing masks, not avoiding crowds, not paying attention to physical distancing.”

The “disregard of recommendations” that public health officials and scientists have made in response to the pandemic needs to be addressed, Fauci said. He urged people to follow the guidelines, practice physical distancing and wear a mask.

“I think the attitude of pushing back from authority and pushing back on scientific data is very concerning,” Fauci said. “We’re in the middle of catastrophic outbreak and we really do need to be guided by scientific principles.”

Fauci was responding to a question from Sen. Patty Murray, a Democrat from Washington, who said “we do not have enough tests and we do not have enough contact tracers.” 

Fauci has previously said some states are not conducting enough testing for the size of the outbreak they are dealing with and that contact-tracing efforts in the U.S. “is not going well.”

Contact tracing occurs when trained personnel contact infected people to investigate how they got Covid-19 and who they might have passed it to. Along with widespread testing and the ability to isolate potentially infectious people, tracing is an age-old public health intervention that is now being ramped up at an unprecedented scale.

“To just say you’re going to go out and identify, contact trace and isolate, that doesn’t mean anything until you do it,” Fauci told CNBC’s Meg Tirrell last week. “Not checking the box that you did it, but actually do it. Get people on the ground. Not on the phone. When you identify somebody, have a place to put them to get them out of social interaction.”

— CNBC’s Jasmine Kim and Berkeley Lovelace Jr. contributed to this report.

Treasury Department, IRS will not extend Tax Day a second time

Uncle Sam has heard your requests for more time to file your taxes – and they have been denied.

The Treasury Department and the IRS will stick with the July 15 deadline for 2019 income tax returns and taxes owed for that year, the agencies said.

The announcement came less than a week after Treasury Secretary Steven Mnuchin said that pushing the deadline out further was “something we may consider.”

People who are unable to submit their paperwork in two weeks can get an extension to Oct. 15. However, this is only an extension to file – not an extension to pay.

“The IRS urges people who owe taxes, even if they have a filing extension, to carefully review their situation and pay what they can by July 15 to avoid penalties and interest,” the agencies said in a statement.

Last year’s returns and taxes aren’t the only items due in two weeks. Quarterly filers must also pay taxes for the first two quarters of 2020 by July 15.

News of the IRS sticking to the deadline brought mixed reactions among tax professionals. Many of them are guiding small-business clients through the Paycheck Protection Program and contending with rapid-fire updates from Treasury and the IRS.

On top of that, accountants are also contending with the coronavirus that is surging in several states, which means they’re still not meeting clients and resuming business as usual. Many are dealing with the same issues plaguing remote workers today, including lack of childcare.

“It’s a bit disruptive because life keeps getting in the way,” said Nicole Davis, CPA and founder of Butler-Davis in Conyers, Georgia. “My workload has tripled, and I’m working long hours to meet deadlines for people who want to file on time.”

“Many firms have hard deadlines,” she said. “For us, it’s July 1. So if you can’t get it in by then, then you might end up on extension.”

Asking for more time

Going on extension this year will give you three more months to pull your paperwork together.

But it’s well worth the additional work if you think you might miss the July 15 deadline.

The penalty for failure to file is 5% of the unpaid tax you owe, assessed for each month or part of a month you’re late, up to five months.

Failure to pay your taxes on time can also sting.

In that case, the IRS will assess a 0.5% penalty of tax that isn’t paid by July 15. The taxman will continue to charge penalties and interest on the remaining unpaid balance until you’ve squashed the debt.

More from Smart Tax Planning:
Uncle Sam is paying 5% interest on tax refunds. It’s taxable
Fast rollout of PPP loans raises fraud risk, watchdog says
Inherited an IRA and took a distribution? You can put it back

There are many valid reasons why people might want to ask for more time to file, including the possibility that they may have complex tax returns.

At the same time, plenty of taxpayers continue to struggle with getting organized so they can hustle the return out the door.

“What’s disturbed me is that even though it’s July 1 tomorrow, some clients call and tell me that they don’t have their documents together,” said Sheneya Wilson, CPA and founder of Fola Financial in New York.

“You had time to plan, and you knew what was expected,” she said.

Knock out the paperwork

Still sitting on the sidelines with two weeks to go? Here are a few suggestions to move forward.

• Get in touch with your tax professional. Don’t wait until July 15 to talk to your CPA. Firms may set deadlines prior to that date to ensure they have enough time to work through returns.

Further, your CPA will still need to crunch the numbers to find out how much you’ll owe the IRS by July 15.

• Got a refund coming up? File now. You can’t get your cash until you turn in the paperwork. The average refund issued as of June 19 was $2,763.

• Owe Uncle Sam? Work out a payment plan. Aside from penalties, tax balances owed accumulate interest. Starting July 1, the interest rate for underpayment is 3%.

Go to to review the agency’s different installment plans.

There are zero set-up fees for short-term payment plans — 120 days or less — but you’re still responsible for accrued penalties and interest until you’ve paid the tax.

Tech leads, Dow best quarter since 1987, gold tops $1,800

New York Stock Exchange (NYSE) building is seen with the Fearless Girl Statue during Covid-19 pandemic in Lower Manhattan, New York City, United States on May 26, 2020.

Tayfun Coskun | Anadolu Agency | Getty Images

Stocks moved between gains and losses on Tuesday as a growing number of Covid-19 cases weighed on sentiment. But the major averages are still on pace to finish the quarter sharply higher. The Dow and S&P are on track to post their largest quarterly gains since 1998, while the Nasdaq is tracking for its best quarter since 2001.

This is a live blog. Please check back for updates.

3:05 pm: Powell says he’d be open to retooling business lending program

The Federal Reserve’s Main Street lending program may need some more tinkering. Fed Chairman Jerome Powell said Tuesday that “in the range of 300 banks” have expressed interest in the facility that is targeting small- and medium-sized businesses. Though Boston Fed President Eric Rosengren had said that there was strong interest in the program, Powell said there is not “a ton of interest from borrowers.” The Boston Fed is running the program. Powell said he would be open to retooling the facility if necessary. “We’ve been very willing to learn from experience and learn from what we’re hearing from different parts of the economy,” he said. – Cox

3:03 pm: Gold settles above $1,800 for the first time since 2011

Gold futures jumped 1.1% to settle at $1,800.50 per ounce, marking the precious metal’s first settlement above the $1,800 mark since September 2011. Gold also hit an intraday high of $1,804, its highest level since Nov. 8, 2011. —Imbert, Francolla

2:58 pm: Final hour of trading: Stocks rise to wrap up their best quarter in decades

The major averages were higher with roughly one hour left in the trading session as Wall Street concludes its best quarter in around 20 years. The Dow traded 30 points higher, or 0.1%, while the S&P 500 and Nasdaq advanced 0.9% and 1.4%, respectively. The Dow and S&P 500 were up 16.9% and 19.3%, respectively, for the quarter, their biggest quarterly gain since 1998. The Nasdaq was headed for its biggest one-quarter gain since 2001. —Imbert

1:30 pm: Mnuchin says economy is in a strong position to recover from coronavirus

Treasury Secretary Mnuchin said in his opening remarks to the House Financial Services Committee that the U.S. economy is in a strong position to recover thanks to steps taken by Congress and the White House.

“We are in a strong position to recover because the administration work[ed] with Congress on a bipartisan basis to pass legislation and provide liquidity to markets in record time. In addition, the PPP is keeping tens of millions of workers connected to their jobs. Economic impact payments are also helping millions of families and workers though these challenging months.” — Franck

1:27 pm: Large banks move higher, except for Wells Fargo

Bank stocks bounced around on Tuesday, but most were solidly higher in afternoon trading. JPMorgan, Morgan Stanley, Citigroup and Bank of America all posted gains of less than 1% after trading in negative territory earlier in the session. Wells Fargo, which announced that it is likely to cut its dividend, was down 0.7% despite briefly trading in the green earlier in the day. — Pound

1:26 pm: Mnuchin sees more stimulus coming soon

Treasury Secretary Steven Mnuchin said he expects more stimulus funding to be approved by the end of July. “We do support additional legislation and we look forward to working with the House and Senate on that,” he said during a hearing before the House Financial Services Committee. While he did not have specifics, he said the effort would be focused on “re-purposing” $135 billion that remains available under the Paycheck Protection Program for businesses still in need. The PPP has doled out $519.6 billion in 4.8 million loans and expires Tuesday. – Cox

12:45 pm: Powell, Mnuchin testify

Federal Reserve Chairman Jerome Powell and Treasury Secretary Steven Mnuchin began testimony before the House Financial Services Committee around 12:45 pm ET regarding each agency’s response to the Covid-19 pandemic.

Watch the testimony here, and we’ll be posting highlights here in the blog. – Stevens

12:14 pm: Tesla jumps after Elon Musk email to employees leaks

Shares of Tesla jumped more than 7% on Tuesday, the morning after CEO Elon Musk sent an email to employees saying “Breaking even is looking super tight” for Q2. The e-mail, obtained by CNBC, did not make clear whether his break even comments were in reference to the company’s profit margin or another metric such as vehicle production numbers relative to estimates. Tesla is expected to report its second quarter vehicle production and deliveries numbers this week, before the 4th of July weekend. Shares of the electric vehicle maker have more than doubled this year, surging 158%. – Kolodny, Stevens 

11:29 am: Nevada gaming revenue down 99% in May from prior year

The Nevada Gaming Control Board said in a press release that gaming revenue was down 99.4% statewide in May, including a 99.3% decline in the Las Vegas Strip district. Revenue is down more than 19% year to date for both the district and the state. Shares of major casino stocks, including MGM Resorts and Las Vegas Sands, were mixed on Tuesday. —Pound

11:06 am: Chip stocks just had their best quarter since the tech bubble

Shares of chipmakers have rebounded sharply from their first-quarter lows, and they’re on track for their best quarterly performance since the tech bubble. The VanEck Vectors Semiconductor ETF, which tracks the 25 biggest chipmakers, is up almost 30% in the second quarter, marking its best quarter since the fourth quarter of 2001 when the exchange-traded fund gained 41%. The top performers this quarter include ON Semiconductor, Teradyne and Marvell, which have all gained more than 50% during the past three months.

CNBC PRO subscribers can read more here. – Li

10:12 am: Boeing shares slide after Norwegian Air cancellation

9:57 am: Inovio hasn’t provided critical data on its results, Stat says

Inovio Pharmaceuticals has not provided data needed to determine whether its vaccine is working, Stat, a medical news website reported Tuesday. The company put out a press release Tuesday morning claiming positive results in an early clinical trial, but it did not disclose how many patients produced antibodies that fight the coronavirus, the Stat report said. Inovio also said its vaccine candidate has been selected to participate in study as part of the government’s Operation Warp Speed, aimed at fast-tracking development of vaccines. Inovio stock is up nearly 800% year to date. It was down about 7% in trading on Wednesday morning. – Lewis

9:30 am: Stocks open last trading day of the quarter in the red

Stocks moved lower on Tuesday, the last trading day of the month, the quarter, and the first half of 2020. The Dow Jones Industrial Average shed 87 points, for a loss of 0.3%. The S&P 500 was down 0.10%, while the Nasdaq Composite slid 0.06%. Still, the record rebound from March’s low has the major averages on track for their best quarter in years. The Dow and S&P are on pace to post their largest quarterly gains since 1998, while the Nasdaq is on track for its best quarter since 2001. – Stevens

9:25 am: Investors must stay ‘cautious and selective,’ says portfolio manager

Katerina Simonetti, senior portfolio manager at UBS Private Wealth Management, said that with the number of Covid-19 cases rising, there’s considerable uncertainty in the market and investors therefore need to be “cautious and selective” going forward. She believes volatility will persist for several months, and that risk-averse investors should consider diversifying their portfolios by adding gold. “We see opportunities in companies that enable and benefit from digital transformation, e-commerce, fintech, genetic therapies and food. Companies in factory automation and robotics are also set to benefit, as industrial firms are planning to shorten global supply chains,” she said. UBS’ base case forecast sees the S&P 500 trading around 3,300 by December. – Stevens

9:07 am: Inovio shares slip despite promising drug trial results

Stock of Inovio Pharmaceuticals was down more than 12% in early morning trading after the biotechnology company said its coronavirus vaccine candidate showed positive results in early clinical trials. Additionally, its vaccine candidate, INO-4800, has been selected to participate in a non-human primate study as part of the government’s Operation Warp Speed, aimed at fast-tracking development of vaccines. Inovio stock is up more than 860% year to date. – Lewis

9:01 am: Goldman Sachs says a mask mandate could save economy from a 5% hit

8:51 am: Conagra jumps following quarterly beat

Shares of Conagra Brands jumped more than 3% during premarket trading after the company’s fourth quarter results beat analyst estimates. The food producer posted a quarterly profit of 75 cents per share on an adjusted basis, which was nine cents ahead of estimates. Revenue also topped expectations, and the company gave upbeat guidance as the coronavirus pandemic has led to elevated demand. Shares have gained 19% in the last three months. – Stevens

8:07 am: Some banks stay silent on capital plans, dividends

On Monday night, major banks announced their dividend plans and stress capital buffers following the Federal Reserve’s stress test. However, some smaller banks have not reported their plans. PNC Financial has not filed  an update with the Securities and Exchange Commission, according to the regulator’s website. Capital One reported its stress capital buffer but did not mention dividends in the press release. —Pound 

7:49 am: Powell and Mnuchin to testify before the House Financial Services Committee

Federal Reserve chair Jerome Powell and Treasury Secretary Steven Mnuchin will testify before the House Financial Services Committee at 12:30 p.m. on Tuesday. The joint hearing will address the Fed and Treasury’s response to the coronavirus pandemic. In remarks prepared ahead of the hearing, Powell said that despite a recent uptick in economic activity as lockdown measures are eased across the world’s largest economy, the outlook is “extraordinarily uncertain” and will rely on both containing the virus and government support for the recovery. “A full recovery is unlikely until people are confident that it is safe to reengage in a broad range of activities,” Powell said. “The path forward will also depend on the policy actions taken at all levels of government to provide relief and to support the recovery for as long as needed.” –Li

7:46 am: Wells Fargo down, other banks move higher following capital plan announcements

7:38 am: Biden tells donors he will scrap most of Trump’s tax cuts

7:35 am: Market’s month & quarter in review

It’s the final trading day of June, and the final trading day of the second quarter. Here’s where the market stands.

  • The Dow is up 0.84% this month, on pace for its third positive month in a row
  • The Dow is up 16.78% this quarter, on pace for its best quarterly performance since the fourth quarter of 1998 when it gained 17.07%, and fifth positive quarter in six
  • For the first half of 2020 the Dow is down 10.31%
  • The S&P 500 is up 0.29% this month, on pace for its third positive month in a row
  • The S&P is up 18.13% this quarter, on pace for its best quarterly performance since the fourth quarter of 1998 when it gained 20.87%, and fifth positive quarter in six
  • For the first half of 2020 the S&P is down 5.5%
  • The Nasdaq Composite is up 4.05% this month, on pace for its third straight positive month
  • The Nasdaq Composite is up 28.23% this quarter, on pace for its best quarterly performance since the fourth quarter of 2001 when it gained 30.13%, and second positive quarter in three
  • The Nasdaq Composite is up 10.05% for the first half of 2020
  • The Russell 2,000 is up 1.95% this month, on pace for its third positive month in a row 
  • The Russell 2,000 is up 23.25% this quarter, on pace for its best quarterly performance since the first quarter of 1991 when it gained 29.37%, and second positive quarter in three
  • The Russell 2,000 is down 14.82% this year    
  • Seven out of 11 sectors are negative for June, led to the downside by utilities. Tech is the best performer
  • All 11 sectors are positive for the quarter, led by consumer discretionary, which is up 30.32% and on pace for its best quarterly performance ever
  • For the year, nine out of 11 sectors are negative, led to the downside by energy, which has shed 38.38%. Tech is the top performer after gaining 12.06%. – Hayes, Stevens

7:30 am: Micron shares jump after earnings

Micron traded more than 5% higher in the premarket after the chip manufacturer posted better-than-expected results for the previous quarter. The company posted an adjusted profit of 82 cents per share, topping a Refinitiv estimate of 77 cents. Revenues rose to $5.44 billion, beating an estimate of $5.31 billion. Micron also issued better-than-expected revenue guidance for the current quarter. —Imbert

7:25 am: China says its manufacturing sector expanded in June

Chinas’s official Purchasing Manager’s Index came in at 50.9 for June, beating expectations and showing a growing sector. The expectation was for a reading of 50.4, according to economists polled by Reuters. In PMIs, readings above 50 represent expansion. A private survey PMI from Caixin and IHS Markit is scheduled to be released later this week. — Pound, Tan

7:20 am: FedEx rises ahead of earnings

Shares of FedEx rose 1% in premarket trading as the company prepares to release its fourth quarter earnings results after the market closes on Tuesday. According to consensus estimates from FactSet, analysts are expecting the company to earn $1.58 per share on $16.41 billion in revenue. In a recent note to clients UBS said it’s expecting a “very weak” report for the shipping company, although the firm still has a buy rating on the stock.  “FDX’s potential for multi-year margin improvement and EPS growth can make it attractive to investors,” UBS said. Shares of FedEx are down 11% this year. – Stevens 

7:20 am: Stock futures flat

Stock futures pointed to a flat open in early trading Tuesday following a strong rally in the previous session. Futures on the Dow Jones Industrial Average futures dipped 40 points, implying a loss of 10 points at the open. S&P 500 and Nasdaq-100 futures traded just below the flat line. Tuesday’s session marks the last day of June and the second quarter. Investors will monitor Federal Reserve chair Jerome Powell and Treasury Secretary Steven Mnuchin’s testimony before the House Financial Services Committee at 12:30 p.m.— Li

— CNBC’s Fred Imbert, Christopher Hayes, Thomas Franck, Al Lewis and Huileng Tan contributed reporting.

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Fauci says U.S. could see 100,000 new cases per day

New York is cracking down further on travelers heading to the state from regions where hotspots are seeing steep increases in new Covid-19 cases. Gov. Andrew Cuomo added eight new states to New York’s travel advisory, bringing the total to 16 states from which residents who travel to New York are required to quarantine for 14 days upon arrival. The enhanced travel advisory comes as former Food and Drug Administration chief Dr. Scott Gottlieb said he estimates roughly 25% of New York City residents have likely been infected with the virus. 

This is CNBC’s live blog covering all the latest news on the coronavirus outbreak. This blog will be updated throughout the day as the news breaks. 

  • Global cases: More than 10.4 million 
  • Global deaths: At least 509,516
  • U.S. cases: More than 2.68 million
  • U.S. deaths: At least 129,545

The data above was compiled by Johns Hopkins University.

CDC disappointed American Airlines will resume full flights

2:43 p.m. ET — Robert Redfield, director of the Centers for Disease Control and Prevention, expressed “substantial disappointment” with American Airlines over its plan to resume full flights starting Wednesday.

Redfield told the Senate Health, Education, Labor and Pensions Committee that the new policy is currently under “critical review” at the agency as he said it doesn’t send the right message to Americans amid a pandemic.

American Airlines told CNBC that it is “unwavering in our commitment to the safety and well-being of our customers and team members.”

“We have multiple layers of protection in place for those who fly with us, including required face coverings, enhanced cleaning procedures, and a pre-flight COVID-19 symptom checklist — and we’re providing additional flexibility for customers to change their travel plans, as well,” the airline said. —Berkeley Lovelace Jr. 

TSA chief says passenger temperature checks aren’t foolproof 

A TSA officer checks a man’s ID at a screening checkpoint at Orlando International Airport.

Paul Hennessy | SOPA Images | Getty Images

2:04 p.m. ET — The head of the Transportation Security Administration said the federal government hasn’t yet made a decision about whether to screen passengers for high temperatures and that the procedure might not be the most effective at weeding out travelers with Covid-19.

“I know in talking to our medical professionals and talking to the Centers for Disease Control is that temperature checks are not a guarantee that passengers who don’t have an elevated temperature also don’t have Covid-19,” Pekoske said.

The reverse may also be true, where travelers could have temperatures but not Covid-19. Another issue is that travelers may come into close contact with one another in other areas, such as at car rental offices.

The aviation industry is grappling with how to keep travelers and employees safe in the pandemic and ensure that customers feel comfortable flying again. U.S. airlines now require that travelers wear masks on board and have threatened to deny them flights if they don’t comply.

While demand has rebounded from lows hit in April, it’s still off roughly 80% from a year ago, according to federal data. —Leslie Josephs

More states roll back or delay reopenings as cases climb

1:30 p.m. ET — More than 12 states have now paused or rolled back their reopening plans as average new cases in the U.S. jumped 40% over the past week to about 39,750 per day on Monday, based on a seven-day moving average, according to a CNBC analysis of data compiled by Johns Hopkins University.

New cases rose Monday by 5% or more in 40 states across the U.S., based on a seven-day average. Arizona, Florida and California are now seeing an average of more than 5,000 new cases a day.

On Monday, more states rolled back or paused their reopening plans as coronavirus cases continue to spread in states across the West and South.

Arizona Gov. Doug Ducey shuttered the state’s bars, gyms, movie theaters and water parks and said the state will try to reopen the businesses in 30 days. New Jersey Gov. Phil Murphy said Monday that the state’s restaurants won’t be allowed to resume indoor dining on Thursday as originally planned, and New York Gov. Andrew Cuomo said he may make a similar decision for restaurants in New York City. —Noah Higgins-Dunn

U.S. could see 100,000 new cases per day, Fauci says

Dr. Anthony Fauci, director of the National Institute for Allergy and Infectious Diseases, testifies before the Senate Health, Education, Labor and Pensions (HELP) Committee hearing on Capitol Hill in Washington DC on June 30, 2020 in Washington, DC.

Kevin Dietsch | AFP via Getty Images

1:14 p.m. ET — The U.S. is “not in total control” of the country’s coronavirus outbreak and the nation might see daily new cases top 100,000 per day unless action is taken, White House health adviser Dr. Anthony Fauci said.

“I can’t make an accurate prediction, but it’s going to be very disturbing,” Fauci told senators in a hearing held by the Senate Health, Education, Labor and Pensions Committee. “We are now having 40-plus-thousand new cases a day. I would not be surprised if we go up to 100,000 a day if this does not turn around, and so I am very concerned.”

Fauci’s comments come one day after Dr. Anne Schuchat, principal deputy director of the Centers for Disease Control and Prevention, said the U.S. has “way too much virus” to control the outbreak right now. —Will Feuer

Minnesota Amazon warehouse workers were infected with Covid-19 at a higher rate than the surrounding area, memo shows 

12:50 p.m. ET — Coronavirus infection rates at an Amazon warehouse in Minnesota were far higher than the surrounding community, according to an internal memo obtained by CNBC.

At least 45 workers at Amazon’s Shakopee facility, known as MSP1, came down with the coronavirus, resulting in a rate of infection of 1.7%, according to the memo, which was first reported by Bloomberg.

The memo, issued in mid-May, shows that infections were nearly five times the rate of surrounding counties and far higher than the rate of 0.1% in Scott County, where MSP1 is located. 

The memo contradicts Amazon’s previous messaging about the rate of infections at warehouses. The company has previously rebuffed accusations that its warehouses have spread the virus, saying the “overall rate of infection and increase or decrease of total cases is highly correlated to the overall community rate of infection.”

Amazon continues to report new coronavirus cases at its facilities nationwide, including at MSP1, which as of Tuesday, has reported 92 cases total, according to the Minnesota Department of Health. A total of 198 coronavirus cases have been confirmed among Amazon workers throughout Minnesota, the agency said. Outbreaks have been reported at three other facilities in Minnesota. —Annie Palmer

Fauci says new virus in China has traits of swine flu and pandemic flu

12:14 p.m. ET — Dr. Anthony Fauci, the nation’s top infectious disease expert, told lawmakers the new strain of flu carried by pigs in China has characteristics of the 2009 H1N1 virus and the 1918 pandemic flu.

He told the Senate Health, Education, Labor and Pensions Committee that scientists are keeping an eye on the virus, which they call “G4 EA H1N1.”

“It’s something that still is in the stage of examination,” he said. It’s not “an immediate threat where you’re seeing infections, but it’s something we need to keep our eye on, just the way we did in 2009 with the emergence of the swine flu.”

Both H1N1 and the 1918 flu were both considered horrific viruses. Fauci has often compared to Covid-19 to the 1918 flu, which is estimated to have killed between 30 million to 50 million. —Berkeley Lovelace Jr.

New York adds eight additional states to travel advisory

11:48 a.m. ET — New York Gov. Andrew Cuomo said eight additional states have now met the metrics to qualify for the state’s travel advisory, requiring all travelers headed to New York from those states to quarantine for 14 days, according to a press release.

The additional states include California, Georgia, Iowa, Idaho, Louisiana, Mississippi, Nevada and Tennessee, which “have significant community spread,” according to the order.

There are now 16 states that qualify for New York’s travel advisory, which was first issued alongside New Jersey and Connecticut on June 24. The quarantine applies to any person arriving from a state with a positive test rate higher than 10 per 100,000 residents over a seven-day rolling average or a state with a 10% or higher positivity rate over a seven-day rolling average, according to the order. —Noah Higgins-Dunn

U.S. consumer confidence for June jumps

Women wearing masks carry shopping bags outside of the Jacadi clothing store as the city moves into Phase 2 of re-opening following restrictions imposed to curb the coronavirus pandemic on June 22, 2020 in New York City.

Alexi Rosenfeld | Getty Images

10:57 a.m. ET — Consumer confidence rose more than expected in June as the U.S. as some stay-at-home and quarantine restrictions were lifted.

The Conference Board’s consumer confidence index surged to 98.1 for the month, compared with economists expectation for a reading of 91 and up from May’s reading of 85.9, CNBC’s Fred Imbert reported.

“The re-opening of the economy and relative improvement in unemployment claims helped improve consumers’ assessment of current conditions,” Lynn Franco, senior director of economic indicators at The Conference Board, said.

Franco noted, however, “the Present Situation Index suggests that economic conditions remain weak. Looking ahead, consumers are less pessimistic about the short-term outlook, but do not foresee a significant pickup in economic activity.” —Terri Cullen

About 25% of NYC likely infected, Dr. Gottlieb says

10:50 a.m. ET — About 25% of people in the New York City area have probably been infected with the coronavirus by now, former Food and Drug Administration Commissioner Dr. Scott Gottlieb told CNBC on Tuesday.

Gottlieb cited a study published Monday by researchers at The Mount Sinai Health System in New York City, which suggested that 19.3% of people in the city had already been exposed to the virus through April 19.

Researchers noted, however, that even if that portion of people has coronavirus antibodies, it would still be well below the estimated 67% required to achieve so-called herd immunity, which is needed to stop the spread of the virus. And scientists are still researching the relationship between coronavirus antibodies and immunity, which remains unclear. —William Feuer 

U.S. hot spots spread in the Sun Belt 

UN labor agency estimates 400 million jobs lost in the second quarter due to coronavirus

9:49 a.m. ET — The coronavirus pandemic is estimated to have resulted in a 14% drop in global working hours in the second quarter of 2020, the International Labour Organization said.

This is the equivalent of 400 million full-time jobs, which marked a “sharp increase” on its previous forecast of 305 million potential job losses.

The UN labor agency outlined three scenarios for the jobs market in the second half of 2020 and in the “pessimistic” model, it projected a 11.9% decline in working hours, the equivalent of 340 million jobs. —Vicky McKeever

Stocks open flat as Wall Street wraps up its best quarter in decades

9:35 a.m. ET — Stocks opened flat as the major averages are headed for their biggest one-quarter gains in years, reports CNBC’s Fred Imbert and Maggie Fitzgerald. The Dow Jones Industrial Average was down 52 points, or 0.2%. The S&P 500 and Nasdaq Composite both hovered around the flatline. 

Both the Dow and S&P 500 were on pace for their best quarterly performance since 1998, surging more than 16% each. Meanwhile, the Nasdaq Composite was up 28.2% quarter to date and was headed for its biggest quarterly gain since 2001. —Melodie Warner

New cases in the U.S. rise

Goldman Sachs says national mask mandate could save economy from a 5% hit

9:02 a.m. ET — Goldman Sachs told clients that a nationwide face mask mandate could both cut the daily growth rate of new confirmed cases of Covid-19 and save the U.S. economy from taking a 5% GDP hit in lieu of additional lockdowns.

Jan Hatzius, Goldman’s chief economist, said a national mask mandate could raise the percentage of people who wear masks by 15 percentage points and found that the rule could substitute for lockdowns that would subtract nearly 5% from GDP growth. —Thomas Franck

A rise in nationalism could lead to an even deadlier pandemic, professor warns

8:22 a.m. ET — A rise in nationalism and inward-looking politics could lead to another, even deadlier, pandemic in the future, according to Ian Goldin, professor of Globalisation and Development at the University of Oxford.

Goldin, who previously served as an advisor to Nelson Mandela and is a former vice president of the World Bank, told CNBC that if more protectionism arises from the coronavirus crisis, the world will face a slew of risks including an even bigger pandemic, more financial crises and “Cold War 2.0.”

“We face a choice,” he said. “Either the pandemic teaches us to be more globalized in politics, to stop the next pandemic, to cooperate, to restore global growth, or we get more national, in which case we’re in a downward spiral.”

Goldin has been predicting a pandemic for several years, warning in his 2014 book “The Butterfly Defect” and a 2018 BBC series that a disease outbreak would be the most likely cause of the next global economic crisis. —Chloe Taylor

U.K.’s Boris Johnson promises to ‘build, build, build’ announcing investment surge

Britain’s Prime Minister Boris Johnson speaks during a daily briefing to update on the coronavirus disease (COVID-19) outbreak, at 10 Downing Street in London, Britain June 3, 2020.

Andrew Parsons | 10 Downing St | via Reuters

7:34 a.m. ET — U.K. Prime Minister Boris Johnson has announced a program of public investment that the government hopes will help the British economy recover from the coronavirus crisis.

“We cannot continue simply to be prisoners of the crisis,” Johnson said as he announced £5 billion ($6.15 billion) of government spending on various public infrastructure projects, ranging from hospitals to roads to schools. “We must work fast because we’ve already seen the vertiginous drop in GDP (gross domestic product).”

Promising to “build, build, build”, Johnson announced plans to increase government infrastructure spending and to cut bureaucracy around construction and development. He compared his plan to former U.S. President Franklin D. Roosevelt’s “New Deal” program of public works in the 1930s. –Holly Ellyatt

Fauci, other health officials to testify in Congress

Director of the National Institute for Allergy and Infectious Diseases Dr. Anthony Fauci wears a face mask while he waits to testify before the House Committee on Energy and Commerce on the Trump Administration’s Response to the COVID-19 Pandemic, on Capitol Hill in Washington, DC, U.S. June 23, 2020.

Kevin Dietsch | Reuters

7:13 a.m. ET — White House health advisor Dr. Anthony Fauci is scheduled to testify before members of Congress Tuesday at 10:00 a.m ET.

Fauci will be joined by Dr. Robert Redfield, the director of the Centers for Disease Control and Prevention, and Admiral Brett Giroir, assistant secretary for health in the Department of Health and Human Services. Dr. Stephen Hahn, the commissioner of the Food and Drug Administration, is also scheduled to testify.

The hearing, an “update on progress toward safely getting back to work and back to school,” will be held by the Senate’s health and education committee. 

All four officials scheduled to speak testified in a full-day hearing before members of the House just a week ago when the officials offered an overview of the U.S. response to the pandemic so far and warned of a difficult Autumn season. —Will Feuer

Read CNBC’s previous coronavirus live coverage here: New flu strain found in China; WHO warns ‘the worst is yet to come’

Judge orders Mary Trump to explain why her tell-all shouldn’t be barred from publication

Mary L. Trump book


A New York judge on Tuesday ordered attorneys for President Donald Trump’s niece to respond to a lawsuit filed by Robert Trump, the president’s brother, seeking to halt the publication of her forthcoming tell-all memoir.

Judge Hal Greenwald of the New York Supreme Court also issued an order prohibiting Simon & Schuster from publishing the book before the case is decided, and scheduled a hearing in the matter as soon as July 10. 

The book, “Too Much and Never Enough: How My Family Created the World’s Most Dangerous Man,” by Mary Trump, is scheduled for release July 28.

The book “shines a bright light on the dark history of their family in order to explain how her uncle became the man who now threatens the world’s health, economic security, and social fabric,” according to Simon & Schuster.

The publisher and an attorney for Mary Trump said they planned to appeal the order immediately. 

Robert Trump challenged the publication of the book on the grounds that a nondisclosure agreement reached in connection with litigation over his father’s will prohibits those involved from from publishing anything “concerning the litigation or their relationship with each other.” 

In a statement, Charles Harder, Robert Trump’s attorney, said his client was “very pleased” with the order. 

“We look forward to vigorously litigating this case, and will seek the maximum remedies available by law for the enormous damages caused by Mary Trump’s breach of contract and Simon & Schuster’s intentional interference with that contract,” Harder said. “Short of corrective action to immediately cease their egregious conduct, we will pursue this case to the very end.”

Harder has represented President Trump in high-profile cases, including in litigation against the adult film actress Stormy Daniels. The president has said that his niece is subject to a nondisclosure agreement and is “not allowed” to publish the book. 

In a statement, Simon & Schuster said it was “disappointed” in the order. 

“We plan to immediately appeal this decision to the Appellate Division, and look forward to prevailing in this case based on well-established precedents regarding prior restraint,”  the publisher said.

Theodore Boutrous Jr., an attorney for Mary Trump, said in a statement that the order “is only temporary but it still is a prior restraint on core political speech that flatly violates the First Amendment.”

“We will immediately appeal. This book, which addresses matters of great public concern and importance about a sitting president in election year, should not be suppressed even for one day,” Boutrous said. 

This is breaking news. Check back for updates. 

Dr. Anthony Fauci says new virus in China has traits of 2009 H1N1 and 1918 pandemic flu

Anthony Fauci, director of the National Institute of Allergy and Infectious Diseases, wears a Washington Nationals protective mask while waiting to begin a Senate Health, Education, Labor and Pensions Committee hearing in Washington, D.C., U.S., on Tuesday, June 30, 2020.

Al Drago | Bloomberg | Getty Images

White House coronavirus advisor Dr. Anthony Fauci said Tuesday that U.S. health officials are keeping an eye on a new strain of flu carried by pigs in China that has characteristics of the 2009 H1N1 virus and 1918 pandemic flu.

The virus, which scientists are calling “G4 EA H1N1,” has not yet been shown to infect humans but it is exhibiting “reassortment capabilities,” Fauci, director of the National Institute of Allergy and Infectious Diseases, told the Senate Health, Education, Labor and Pensions Committee during a hearing. 

“In other words, when you get a brand new virus that turns out to be a pandemic virus it’s either due to mutations and/or the reassortment or exchanges of genes,” he told lawmakers. “And they’re seeing virus in swine, in pigs now, that have characteristics of the 2009 H1N1, of the original 1918, which many of our flu viruses have remnants of that in it, as well as segments from other hosts like swine.”

The H1N1 swine flu and 1918 pandemic flu were both considered horrific viruses that spread across the globe.

The H1N1 swine flu emerged in Mexico in April 2009, infecting 60.8 million people in the United States alone and at least 700 million worldwide. An estimated 151,700 to 575,400 people died from the virus across the globe, according to the Centers for Disease Control and Prevention. It is now seen as one of a variety of seasonal flu viruses. 

The 1918 flu, which Fauci has often compared to Covid-19, is estimated to have killed between 30 million to 50 million, according to the CDC. More than 20 million people died in World War I by comparison. 

The new strain that is spreading in pig farms in China has been identified as having “all the essential hallmarks of a candidate pandemic virus,” scientists say.

Fauci said Tuesday there’s always “the possibility that you might have another swine flu type outbreak as we had in 2009.”

“It’s something that still is in the stage of examination,” he said.  It’s not “an immediate threat where you’re seeing infections, but it’s something we need to keep our eye on, just the way we did in 2009 with the emergence of the Swine Flu.”

The comment by Fauci came as the coronavirus continues to rapidly spread across the U.S., with the seven-day average of new cases growing by 5% or more in at least 40 states across the U.S., including Arizona, Texas, Florida and Oklahoma, according to a CNBC analysis of data compiled by Johns Hopkins University.

Public health officials and physicians have criticized the Trump administration’s lack of coordinated response to the virus. In recent weeks, President Donald Trump has downplayed the virus, saying the U.S. is nearing the end of the pandemic, contrary to experts in his own administration.

Earlier this month, Fauci said Covid-19 turned out to be his “worst nightmare” come to life as the coronavirus continues to rapidly spread across the globe.

He said the virus is “very different” from other outbreaks such as Ebola and HIV. The virus jumped from an animal host and has a high degree of transmissibility and mortality, he said. It is historically one of the worst pandemics the world has ever experienced, he said, adding people have compared it to the 1918 flu.

First detected in Wuhan, China about six months ago, the new coronavirus has already infected more than 10.4 million people across the globe, killing more than 500,000.

On Tuesday, Fauci told lawmakers the rise in new cases in places such as Texas and Florida. 

He said reopening schools in the fall season will depend on the dynamics of the outbreak and the particular location the school in question. 

Supreme Court says religious schools can get scholarships funded by tax credits

People wait in line outside the U.S. Supreme Court in Washington, March 18, 2019.

Erin Scott | Reuters

The Supreme Court ruled 5-4 on Tuesday that a Montana scholarship program that indirectly provided state funds to religious schools is protected by the Constitution, weighing in on a high-profile dispute over the separation of church and state. 

Chief Justice John Roberts wrote for the court. He was joined by fellow conservative Justices Clarence Thomas, Samuel Alito, Neil Gorsuch and Brett Kavanaugh. The court’s four Democratic appointees dissented. 

Roberts wrote that a decision by the Montana Supreme Court to invalidate a scholarship program on the basis that it would provide funding to religious schools in addition to secular schools “bars religious schools from public benefits solely because of the religious character of the schools.”

“The provision also bars parents who wish to send their children to a religious school from those same benefits, again solely because of the religious character of the school,” Roberts wrote. 

The decision comes after a string of cases in which Roberts sided with the court’s liberal wing on issues involving LGBT rights, immigration and abortion. 

The case concerned a scholarship program enacted in Montana in 2015, which provided individuals and businesses with up to $150 in tax credits to match donations to private, nonprofit scholarship organizations.

Shortly after the program was enacted, the Montana Department of Revenue put in place a rule that barred scholarship recipients from using funds from the program to pay for religious schools. 

That rule was intended to comply with a provision of the Montana Constitution, which forbids “any direct or indirect appropriation or payment from any public fund or monies … for any sectarian purpose,” including “to aid any church, school, academy, seminary, college, university, or other literary or scientific institution.”  

Similar prohibitions, known as Blaine Amendments, exist in the constitutions of 36 other states, and in many cases stemmed from anti-Catholic sentiments. 

Three mothers who relied on the scholarship program to help pay for their childrens’ tuition at a  nondenominational Christian school challenged the department’s rule, arguing that it violated the First Amendment’s religious protections. 

A trial court in Montana sided with the mothers, but the Montana Supreme Court reversed the decision, reasoning that the tax-credit program was in effect indirectly paying for tuition at religious schools, in violation of the state constitution. 

The Montana court struck down the tax-credit program in its entirety. 

The mothers took the case to the Supreme Court, arguing that the lower court decision was impermissibly hostile to religion. 

“Prohibiting all religious options in otherwise generally available student-aid programs rejects that neutrality and shows inherent hostility toward religion,” their attorney, Richard Komer, told the justices in a filing.

The Montana Department of Revenue countered that the state Supreme Court decision “protects religious freedom.”

The state constitution’s prohibition on funding religious schools “does not restrain individual liberty,” wrote Adam Unikowsky, an attorney for the state. “Rather, it restrains the government by barring state aid to religious schools.” 

Montana’s tax-credit scholarship program was similar to programs run in 18 states, according to a friend-of-the-court brief submitted to the justices. 

The case is Espinoza v. Montana Department of Revenue, No. 18-1195.

This is breaking news. Check back for updates. 

Americans to remain barred from European travel

American Air staff stands among empty ticketing kiosks at Los Angeles International Airport in Los Angeles, California, on Friday, May 22, 2020.

Irfan Khan | Getty Images

Travelers from a list of 15 nations will be allowed entry to the European Union starting Wednesday, but the United States is not on the list.

Thirty countries in Europe (26 of which are members of the EU) closed their external borders in March to mitigate the spread of Covid-19. As most of them reopen their economies, they are also starting to welcome external visitors — though at a much slower rate than before the pandemic.

European Union governments decided Tuesday to open their external borders to Algeria, Tunisia, Australia, Canada, New Zealand, Georgia, Japan, Montenegro, Morocco, Rwanda, Serbia, South Korea, Thailand and Uruguay. Chinese travelers will also be allowed in the EU, but only if China announces that it will also accept European visitors.

The decision was taken based on the health situation of the countries of origin and will be reviewed every two weeks.

For each country on the list, the EU said the following criteria needed to be met: the number of new Covid-19 cases over the last 14 days and per 100 000 inhabitants needed to be close to or below the EU average; there should be a stable or decreasing trend of new cases over this period in comparison to the previous 14 day; and the overall response to Covid-19 needed to be considered.

The recommendation was given to all EU member states and the Schengen-associated countries (Iceland, Lichtenstein, Norway and Switzerland).

However, it is non-binding, meaning that EU member states can reopen their borders to whichever countries they want. The European Commission, the executive arm of the EU, has insisted that external borders should be reopened in a coordinated way to avoid any travel chaos, but ultimately it is a national decision. 

In this context, European governments have been advised to not lift the travel restrictions for non-listed countries until it has been decided in a coordinated manner.

The United States currently has the highest number of coronavirus infections — nearly 2.6 million — in the world, according to Johns Hopkins University. The U.S. has set records for daily new infections in recent days as outbreaks surge mostly across the South and West. Dr. Anne Schuchat, principal deputy director of the Centers for Disease Control and Prevention, said Monday that the virus is spreading too rapidly and too broadly for the U.S. to bring it under control.

In March, President Donald Trump suspended travel from Europe into the United States. At the time, the EU criticized the decision for being taken “unilaterally and without consultation.”

—CNBC’s William Feuer contributed to this article.

Interpol shuts down Iran’s request for Trump arrest

Roslan Rahman | AFP | Getty Images

Interpol has resoundingly rejected the Iranian government’s request for help in carrying out an arrest warrant for U.S. President Donald Trump, in a statement sent to CNBC late Monday.

“Under Article 3 of INTERPOL’s constitution ‘it is strictly forbidden for the Organization to undertake any intervention or activities of a political, military, religious or racial character’,” the Lyon-based international organization said in the emailed statement.

“Therefore, if or when any such requests were to be sent to the General Secretariat, in accordance with the provisions of our constitution and rules, INTERPOL would not consider requests of this nature.”

Iran on Monday issued an arrest warrant for Trump over the killing of its top commander, Gen. Qasem Soleimani, in January. Tehran Attorney General Ali Alghasi-Mehr was quoted in local press as naming Trump and 35 other people, who Iran has accused of involvement in Soleimani’s death, as facing “murder and terrorism charges.” He also reportedly asked Interpol to issue “red notices” for them — the highest-level notice the organization can issue on an individual to pursue their arrest. 

Red notices enable local law enforcement authorities to arrest individuals on behalf of the requesting country, though they can’t force countries’ governments to arrest or extradite suspects. Still, they can cause diplomatic problems and restrict the travel and free movement of suspects. 

U.S. Special Envoy for Iran, Brian Hook, called the Iranian announcement a “propaganda stunt that no-one takes seriously,” describing it as “political” and having “nothing to do with national security.”

Soleimani led Iran’s Quds Force, the foreign operations wing of the elite paramilitary Islamic Revolutionary Guard Corps. The Trump administration labeled him a terrorist, and Washington deemed him responsible for the deaths of hundreds of U.S. troops in Iraq — but in Iran, he was widely revered as a hero.

The 62-year-old Soleimani was killed in a drone strike directed by Trump in early January while in the Iraqi capital of Baghdad. News of his death sent regional tensions and oil prices soaring and triggered a retaliatory attack by Iran and its proxies on Iraqi bases housing U.S. troops.