Coronavirus live updates: U.S. still in first wave, researchers say; insurers won’t cover virus-related costs for businesses

The number of confirmed coronavirus cases continues to rise in U.S. states that were among the first and most aggressive to reopen, leading some local officials to reconsider reopening plans. In Oregon, Gov. Kate Brown announced a 7-day statewide pause on further reopening as health officials study the data and try to contain budding outbreaks.

In Arizona, however, Gov. Doug Ducey tried to reassure people that the rise in confirmed cases was expected and that the state’s hospitals have the capacity to handle a further surge. 

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 7.54 million
• Global deaths: At least 422,058
• U.S. cases: More than 2.02 million
• U.S. deaths: At least 113,820

The data above was compiled by Johns Hopkins University.

12:05 p.m. ET — American Airlines says it reduced its cash burn to $40 million a day, down from an expected $50 million a day, thanks to an uptick in travel. The Fort Worth-based carrier aims to eliminate its cash burn to near zero by the end of the year.

Through June 8, American has been flying an average of 129,000 passengers a day and its flights are 62% full, though capacity is down 70% from a year ago. In May, the carrier said it flew 85,000 travelers a day with a load factor of 47% and capacity off 75% from May 2019.

Despite the increase in demand, the number of people passing through checkpoints at U.S. airports is down 81% from a year ago, according to the Transportation Security Administration. 

American also reiterated a forecast that it still sees revenue in the second quarter to down 90% from a year ago, when it posted sales of close to $12 billion.  —Leslie Josephs

10:51 a.m. ET — U.S. property and casualty insurers have said they aren’t able nor required to compensate small businesses for the costs created by the coronavirus crisis, Reuters reported.

State and city lawmakers have proposed requiring insurers to pay for the lost income small businesses have faced as a result of the pandemic, according to Reuters. But the American Property Casualty Insurance Association estimated it could cost the industry $255 billion to $431 billion each month, a figure which the trade group warned could make insurers insolvent, the wire service reported.

Insurers have argued their service only covers physical property damage that prevents a business from operating, so requiring them to pay for coronavirus-related issues would be unconstitutional. Legal experts told Reuters there is precedent for insurers to cover physical loss without physical damage.

Approximately 40% of small firms have business interruption coverage, according to the Insurance Information Institute. —Alex Harring

10:45 a.m. ET — For the first time in nearly 40 years, the Federal Reserve Bank of Kansas City’s annual symposium for central bankers and economists will not be held at mountain resort Jackson Hole, Wyoming, due to the coronavirus pandemic, Reuters reported

The bank will instead host a virtual meeting on Aug. 27-28 with the theme: “Navigating the Decade Ahead: Implications for Monetary Policy,” according to Reuters. In April, the bank said it was “considering the implications” for the event upon hearing news the Jackson Lake Lodge in Grand Teton National Park, the site for the annual event since 1982, would not open for the season because of Covid-19.

International central bankers, Federal Reserve officials, academics and private-sector economists will all take part in this year’s virtual event, which will be live-streamed to the public, Reuters said. —Suzanne Blake

10:30 a.m. ET — New coronavirus cases rising in several states isn’t the feared “second wave” – it’s still the first one, scientists and infectious disease specialists say.

While new cases are on the decline in once hot spots like New York state, cases are on the rise in places like Texas and Arizona with the U.S. still seeing roughly 20,000 new cases a day.

A handful of states like New York, New Jersey and Massachusetts have experienced “clear first-wave outbreaks,” said Nicholas Reich, a professor of biostatistics and epidemiology at the University of Massachusetts, Amherst. “However, many states have had more of a first-wave plateau, without a clear decline for many weeks.” —Berkeley Lovelace, Jr.

9:58 a.m. ET — Los Angeles County revealed its list of safety protocols for restarting film and television production late Thursday. The county’s strict rules include health checks, social distancing and the use of personal protective equipment on sets.

Scenes that require prolonged physical contact, like fight scenes or sex scenes, are being discouraged and actors are being instructed to remain “as silent as possible to avoid spreading droplets through talking.” Large gatherings of background actors for scenes are also being discouraged by the county.

Many of the restrictions, while needed for safety, could impede certain productions from restarting, as many scenes in established scripts may not be able to be filmed as written. —Sarah Whitten

9:37 a.m. ET — Stocks started the day higher and clawed back some of the sharp losses from Wall Street’s worst day since March, reports CNBC’s Fred Imbert and Eustance Huang. The Dow Jones Industrial Average opened 684 points higher, or 2.8%. The S&P 500 gained 2.6% while the Nasdaq Composite advanced 2.4%. —Melodie Warner 

8:22 a.m. ET — Coronavirus-related mortgage relief programs saw the number of borrowers decrease for the second straight week, CNBC’s Diana Olick reports.

Borrowers fell by 77,000 from last week and are now down 112,000 since the peak week of May 22, with loans financed by Fannie Mae and Freddie Mac showing the greatest decrease.

These programs allow borrowers to delay monthly payments for up to a year.

“With 4.6 million remaining in forbearance, there is still significant work ahead,” said Andy Walden, director of market research for Black Knight, which tracks the data. “With volumes seemingly cresting, the focus now shifts to helping those homeowners who remain in forbearance get back on track financially.”  —Suzanne Blake

7:18 a.m. ET — British Airways plans to auction off artwork to offset the financial damage from the coronavirus crisis.

The auction will reportedly include works from Damien Hirst, Peter Doig and Bridget Riley, with one piece valued at over £1 million ($1.26 million), The Evening Standard first reported.

The airline has faced immense financial pressure amid the crisis, with the outbreak forcing flights to be grounded and suppressing demand for travel. At least 10 artworks from the airline’s collection, which had previously been on display in its airport lounges, will be put up for sale. —Chloe Taylor

7:12 a.m. ET — Oregon is placing a 7-day pause on county applications to move deeper into reopening amid a spike in new cases, Gov. Kate Brown announced on Twitter late Thursday. 

The governor began to ease restrictions on some outdoor activities on May 5 and allowed some stores to reopen with modifications on May 15. On Thursday, Oregon reported 178 new Covid-19 cases, bringing the state’s total to 5,237. Two more people died due to Covid-19, bringing the state’s death toll to 171.

“This one-week pause will give public health experts time to assess what factors are driving the spread of the virus,” Brown said in a statement on Twitter. “I will use the data we see in the next week to determine whether to lift this pause or extend it.” —Will Feuer

Read CNBC’s previous coronavirus live coverage here: UK GDP posts steepest one-month fall in April, Twitter takes down China-linked accounts spreading disinformation