Actions Reduce Losses As Netflix And Amazon Reach Records

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Weekly US jobless claims and the collapse of new home construction underscored the depth and breadth of the coronavirus’ impact on the national economy, while officials debate a strategy to revive public life . “Data-reactid =” 16 “> Equities closed Thursday’s mixed session slightly higher after renewed spikes in weekly jobless claims in the United States and a collapse in new home construction underscored the depth and depth of the extent of the impact of the coronavirus on the national economy, while officials discuss a strategy to revive public life.

Investors initially reacted badly to the news that new jobless claims exceeded five million for the week ended April 11, bringing the four-week total to more than 22 million. Still, equity traders mostly looked beyond the data to President Donald Trump and state governors toward a consensus on the slow reopening of the economy.

Meanwhile, Wall Street – which has sharply curtailed its actions in anticipation of the coming economic disaster – is gradually envisioning better days.

“The stock market seems to count layoffs the same way they read the curve for new positive coronavirus cases and think 5.245 million jobless claims this week are better and lower than 6.615 million jobless claims last week,” Chris Rupkey , chief economist at MUFG, said in an email.

“The labor market curve is flattening and this is good for the economic outlook because it means a recession this time not a new great depression of the 1930s that lasted three and a half years,” he said. -he adds. “We hope stock market investors are right that the spike in layoffs every week means the worst is over, but somehow it doesn’t seem relevant to know how quickly layoffs are coming let them arrive. And more layoffs are coming. “

GS), Morgan Stanley (MME), Bank of America (BA) and Citigroup (C) reflected a sharp drop in first quarter profits compared to last year, providing some first comprehensive insights into the impact of the coronavirus on business profitability. “Data-reactid =” 21 “> Recent quarterly results from some of the country’s largest financial institutions, including Goldman Sachs (GS), Morgan Stanley (MS), Bank of America (BA) and Citigroup (C) have reflected strong first quarter profit declines compared to last year, providing some first comprehensive insights into the impact of coronavirus on business profitability.

Yet the big banks are mainly setting aside billions to cover what they expect to be heavy loan losses, as the epidemic ravages Main Street and key economic sectors.

catastrophic toll on the national economy, leaving the question of when businesses across the country will reopen. “Data-reactid =” 23 “> Although essential to contain the spread of the coronavirus, social distancing measures have had a catastrophic impact on the national economy, leaving the question of when companies across the countries will reopen pending.

Although federal and state authorities from New York to California are weighing on plans to reopen as new cases of coronavirus stabilize, specific timelines for relaxing the standards for distancing have not yet been established.

announce the guidelines Thursday to facilitate home support measures in parts of the country, after speaking with more than 200 leaders in a series of calls earlier this week. However, testing is the backbone of any reopening strategy, as many observers fear that a premature economic recovery will trigger a new wave of COVID-19 disease. “Data-reactid =” 25 “> President Donald Trump to announce guidelines on Thursday to ease home support measures in parts of the country after speaking with more than 200 leaders on a series of calls earlier this week. However, testing is the backbone of any reopening strategy, as many observers fear a premature economic recovery could trigger a new wave of COVID-19-related illnesses.

Walmart, Dollar General, Eli Lilly, Abbott Laboratories, Citrix Systems and Market Access Holdings also hit record levels during the day during Thursday’s session.

The oil market shouldn’t see much relief as the coronavirus crisis wipes out global demand – creating what an energy CEO told Yahoo Finance on Thursday was a “speed train wreck” for producers of gross.

Here are the main market developments at 12:34 p.m. AND:

  • S&P 500 (^ GSPC): -13.2 points (-0.47%) to 2,770.16

  • Dow (^ DJI): -270.11 points (-1.13%) to 23,239.57

  • Nasdaq (^ IXIC): +19.4 points (+ 0.23%) to 8,413.93

  • Gross (CL = F): + $ 0.05 (+ 0.25%) to $ 19.92 per barrel

  • Gold (GC = F): – $ 5.10 (-0.29%) at $ 1,735.10 per ounce

  • 10-year treasury (^ TNX): -4.1 bps for a yield of 0.6%

hit its $ 349 billion threshold Thursday morning after a barrage of applicants sought funding amid the coronavirus pandemic. The program reached its allocation less than two weeks after its launch on April 3. “Data-reactid =” 65 “> The small business financing program authorized in the Trump administration’s paycheck protection program hit its $ 349 billion threshold Thursday morning after a spate of applicants. sought funds for the coronavirus pandemic. The program reached its allocation less than two weeks after its launch on April 3.

More than 1.62 million applications have been approved, totaling $ 349 billion in loans from more than 4,900 lenders, according to the Small Business Association.

READ MORE“Data-reactid =” 67 “>READ MORE

As Thursday’s jobless claims show, the coronavirus has affected the US economy with devastating speed and an impact that is nothing short of brutal. Every week, Wall Street analysts do not lack means (claims) to describe the carnage.

In the midst of a debate on how and when to restart the economy picks up speed, the price for the most colorful understatement belongs to market veteran Peter Boockvar:

“Weekly torture must look at the number of weekly jobless claims and think about the people behind these figures. Fortunately, they are receiving help through expanded benefits, but of course we want this to reverse and reopening would start to do so. When this reopening begins, hopefully in a few weeks, when the testing capabilities are more complete, we all understand how difficult the process will be, the setbacks we will see and the danger of a new wave of spread that it entails. But I don’t see any other way and wearing a mask will be the key to all of this. “

Brian Coulton, chief economist at Fitch Ratings, believes April’s employment report could see $ 25 million, representing 15% of the workforce – a new post-war high.

Meanwhile, Nick Bunker, director of economic research at the Indeed Hiring Lab, has an open question about what will happen to these workers once businesses are reopened:

“The question of whether these workers will be called back to their old jobs or hired in new jobs is a question of when the public feels safe to return to a semblance of normalcy. Only then can companies start to accelerate hiring and the number of unemployed can start to decrease. ”

AMZN) [groceries, online shopping and streaming] and Netflix (NFLX) [the market leader in streaming] “Data-reactid =” 88 “> Wall Street has mostly abandoned an early rally as investors digest the latest batch of data on coronaviruses that heralds a short-term loss to the economy. The Dow Jones is now down more than 200 points, but the Nasdaq is up almost 2% – highlighting how some high-tech stocks outperform in the current pandemonium. The two Amazon (AMZN) [groceries, online shopping and streaming] and Netflix (NFLX) [the market leader in streaming] hit new records early in the session.

9:30 a.m.ET: stocks open slightly higher

Stocks opened slightly higher even after economic data showed another spike in jobless claims last week.

Here are the main market movements at 9:32 a.m.ET:

  • S&P 500 (^ GSPC): +17.55 points (+ 0.63%) to 2800.91

  • Dow (^ DJI): +44.44 points (+ 0.19%) to 23,548.79

  • Nasdaq (^ IXIC): +97.99 points (+ 1.17%) to 8,490.77

  • Gross (CL = F): + $ 0.22 (+ 1.11%) to $ 20.09 per barrel

  • Gold (GC = F): + $ 8.10 (+ 0.47%) to $ 1,748.30 per ounce

  • 10-year treasury (^ TNX): -3.3 bps for a yield of 0.608%

8:35 a.m.ET: The Philadelphia Fed index drops to -56.6 in April, the lowest in 40 years

The Philadelphia Fed economic conditions index fell to -56.6 in April from -12.7 in March. It was much worse than the -32 expected by economists, and was the lowest level since July 1980.

Philly Fed: “This is the lowest reading of the activity index since July 1980. The percentage of companies reporting declines (60%) this month far exceeded the percentage of increases (4 %). The new orders index fell further into negative territory, dropping from -15.5 to -70.9, its lowest level on record. Also reaching a historic low, the current shipments index fell 74 points after remaining slightly positive in March. Unfilled orders fell further by 6 points in negative territory, while delivery times increased by 13 points to 4.1, suggesting longer delivery times. “” Data-reactid = “103”> From the Philadelphia Fed: “This is the lowest reading of the current activity index since July 1980. The percentage of companies reporting decreases (60% ) this month far exceeded the percentage reporting increases (4%). The new orders index fell further into negative territory, dropping from -15.5 to -70.9, its lowest value ever. At an all-time low, the index for current deliveries fell 74 points after remaining slightly positive in March. Unfilled orders fell further by 6 points in negative territory, while delivery times increased by 13 points to 4.1, suggesting longer delivery times.

It’s the worst reading ever.

8:31 a.m.ET: New home construction has declined the most since 1984 in March

Housing starts in the United States fell in March compared with February by the largest margin since 1984, highlighting the early devastation of the coronavirus in the domestic housing market.

Housing starts fell 22.3% in March to an seasonally adjusted annual rate of 1.216 million from 1.564 million revised in February. Consensus economists expected an 18.7% drop in housing starts, according to data compiled by Bloomberg.

Building permits, which serve as an indicator for future housing construction, also declined in March, albeit less than expected. Licenses fell 6.8% to 1.353 million seasonally adjusted in March, continuing the 6.3% drop in February from the previous month.

Housing starts are falling.

8:30 a.m.ET: new jobless claims totaled 5,245 million last week, bringing the four-week total to more than 22 million

New unemployment claims totaled 5,245 million for the week ended April 11, the Labor Department said on Thursday. This follows an increase of 6.615 million requests for the previous week, which have been revised upwards from the 6.606 million previously reported.

According to data compiled by Bloomberg, the overall figure for new jobless claims was significantly lower than consensus estimates of 5.5 million. In the past four weeks, new jobless claims have surpassed 22 million, as the coronavirus pandemic has prompted businesses across the country to temporarily close and remove or fire workers.

Jobless claims totaled 11.976 million, surpassing 7.446 million the previous week for a new record.

Unemployment demands are on the rise.

7:20 a.m.ET: Morgan Stanley 1T profits down from last year, sales and trading revenues exceed expectations

MME) reported earnings per share of $ 1.01 in the first quarter, down from $ 1.39 in the same quarter last year. The bank said spending has increased in part due to higher provisions for credit losses on unfunded loan commitments. The bank said spending has increased in part due to higher provisions for credit losses on unfunded loan commitments.

Morgan Stanley’s head office is seen in New York on January 9, 2013. REUTERS / Shannon Stapleton

Morgan Stanley joined peers, including Goldman Sachs and Bank of America, to release strong sales and trading numbers as the bank benefited from increased client activity amid market volatility in March . Morgan Stanley bond trading revenues were $ 2.2 billion compared to $ 1.77 billion expected by consensus reached by Bloomberg. Share sales and trading revenues of $ 2.42 billion exceeded estimates by $ 2.3 billion.

Overall, however, company-wide net sales of $ 9.5 billion were below expectations of $ 9.6 billion, and were down from 10.3 billion dollars last year.

declaration. “While it is too early to predict how it will turn out, Morgan Stanley did well in the quarter given the conditions, and our results demonstrate the strength of our balanced business model. “” Data-reactid = “199”> “Over the past two months, we have witnessed more market volatility, uncertainty and anxiety due to the devastation of COVID-19 than at any other moment since the financial crisis, “said CEO James Gorman in a statement. Although it is too early to predict how it will happen. given the conditions, Morgan Stanley managed the quarter well and our results demonstrate the solidity of our balanced business model. “

7:14 a.m.ET Thursday: Stock futures advance ahead of jobless claims report

Equity futures rose slightly on Thursday morning, which led to the latest Labor Department report on weekly jobless claims.

Here are the main market movements at 7:14 a.m.ET:

  • S&P 500 Futures (ES = F): up 13.25 points, or + 0.48% to 2,788.25

  • Dow Futures (YM = F): up 86 points, or + 0.37% to 23,477.00

  • Nasdaq Futures (NQ = F): up 68.75 points, or + 0.79% to 8,662.25

  • Gross (CL = F): + $ 0.22 (+ 1.11%) to $ 20.09 per barrel

  • Gold (GC = F): + $ 21.40 (+ 1.23%) to $ 1,761.60 per ounce

  • 10-year treasury (^ TNX): -1.3 bps for a yield of 0.628%

6:01 p.m. ET Wednesday: Equity futures open lower

Here are the main steps you took at the start of the overnight trading session for the US equity futures market, at 6:01 p.m. ET Wednesday

  • S&P 500 Futures (ES = F): down 3.5 points, or -0.13% to 2,771.5

  • Dow Futures (YM = F): down 37 points, or -0.16% to 23,354.00

  • Nasdaq Futures (NQ = F): down 9.5 points, or -0.11% to 8,584.50

NEW YORK, NY – MARCH 12: A woman wearing a protective mask walks past the New York Stock Exchange on March 12, 2020 in New York. The Dow Jones industrial average fell 2,352.60 points, a drop of almost 10% and the largest since 1987. (Photo by Pablo Monsalve / VIEWpress / Corbis via Getty Images)

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