Covid Cases: California Shutdown Part 2?

covid cases

Covid cases have been surging in 29 states. Several states have been breaking their own daily records for new Covid cases over the past two weeks.

The situation is particularly bad in California. In tallying its Covid cases, he state has reached a new high in the number of COVID-19 hospitalizations.

As of Sunday, there were 3,702 people in the hospital because of COVID-19. And 1,199 Covid cases were in intensive care. There are again worries if the number doesn’t level off, there could be a shortage of respirators.

The situation has gotten so bad that Gov. Gavin Newsom has said California could shut down parts of its economy again. That’s bad news, especially since California’s economy accounts for 14.6% of U.S. gross domestic product.

Newsom has said he doesn’t want to start shutting down again. He went on to say that he believes California residents have become lax about protecting themselves and others.

The governor is calling on Californians to wear masks in public and practice social distancing. If that doesn’t happen, another shutdown due to Covid cases is possible.

California returning to lockdown would be a big blow to the U.S. economy.

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The Big News..

Easing Lockdowns Blamed for Infection Spike

Memorial Day celebrations are being blamed for the spike in Covid cases. According to a panel of infectious disease experts, most of the new Covid cases can be traced back to Memorial Day weekend when many Western states began loosening their lockdowns. The experts also warned that states could have a shortage of ICU beds in the next two weeks following the protests that have swept the county.

University of Michigan Pulls Out of Presidential Debate

The University of Michigan announced that it won’t be holding the second presidential debate. The debate had been scheduled for Oct. 15. However, the university is concerned about bringing spectators and press together. University officials feel the risk is too great as Covid cases continue to spike.

Coronavirus Claims A Cruise Line

Spanish cruise ship operator Pullmantur Cruises has become the first cruise line to fall victim to the coronavirus. Few people are vacationing these days and even fewer are boarding cruise ships. That’s forced Pullmantur, which is 40% owned by Royal Caribbean Cruises (NYSE: RCL), into insolvency. Pullmantur has filed for reorganization in Spanish court, but it’s unclear if it will be able to restart its operations.

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The Coronavirus Numbers

Here are the numbers from Tuesday at 7:35 a.m. ET:

  • 9,218,408 Infected worldwide
  • 474,960 Global deaths
  • 2,388,225 Infected in the U.S.
  • 122,611 Deaths in the U.S.

What’s Next?

What’s true in California is true across the country.

Now isn’t the time to get lax about observing social distancing and wearing masks.

That’s not just good advice to keep yourself healthy. Most of the market dips over the past few weeks have been tied to spikes in Covid cases.

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Yours in Health and Wealth,

Ben Shepherd

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