A man stands near an electronic stock board showing Japan's Nikkei 225 index at a securities firm in Tokyo Thursday, May 7, 2020. Asian shares were mixed Thursday after a decline on Wall Street after more depressing data rolled in on the devastation sweeping the global economy. (AP Photo/Eugene Hoshiko)
Stocks climbed in early trading on Wall Street Thursday as reports suggested that even though the economy is still suffering severely, the pace of pain may be decelerating. The S&P 500 rose 1.3%, following similar gains in Europe. The day’s headliner economic report showed another 3.2 million U.S. workers applied for jobless benefits last week, bringing the total over the last seven weeks to 33.5 million. It’s a shocking number, but it’s also the fifth straight week of decline since hitting a peak in late March. Several companies including Lyft and PayPal said they were seeing some encouraging trends in their businesses.
THIS IS A BREAKING NEWS UPDATE. AP’s earlier story is below:
Stock markets and the price of oil pushed higher on Thursday ahead of the latest weekly jobless claims figures in the U.S. and after China reported a rise in exports as its pandemic lockdown eased.
As more countries start to remove the draconian limits on business and public life, investors are trying to gauge how quickly the global economy might bounce back.
The labor market in the United States has been a focal point. On Thursday, government data will likely show that about 3.5 million people sought jobless aid last week, bringing the total to nearly 34 million since the shutdowns began seven weeks ago. On Friday, a monthly report is expected to show that the unemployment rate jumped to at least 16% in April — from just 4.4% in March.
Wall Street futures were up ahead of the start to trading, with Dow futures up 1.3% and those for the S&P 500 up 1.4%.
In Europe, France’s CAC 40 gained 0.8% to 4,470. Germany’s DAX also added 0.8%, to 10,692, while Britain’s FTSE 100 rose 0.7% to 5,895.
The Chinese trade data showed an encouraging 3.5% rise in exports in April, driven by electronics shipments and textiles, which included a surge in mask exports.
The data show China’s exports to the United States rose 2.2% in April, while imports of American goods fell 11% in a reflection of weak Chinese industrial and consumer demand despite the lifting of most anti-virus controls.
Imports fell 13.7% from a year earlier to $179.6 billion, worse than the first quarter’s 2.9% decline. But total exports rose to $200.3 billion, a turnaround from the 13.3% contraction in the three months ending in March.
Forecasters warned that strength is unlikely to last as the coronavirus pandemic depresses global consumer demand.
Comments by President Donald Trump raising the possibility of further trade friction with Beijing have worried investors hoping for better times as other economies begin to reopen from pandemic shutdowns.
Trump said he would soon assess progress in a preliminary trade agreement with China that took effect in January, extending a truce in a painful tariffs war between the world’s two biggest economies.
The possibility of revived friction over trade at a time when economies have been slammed by the pandemic and resulting travel restrictions has rattled investors in Asia, where China is the main driver for regional growth.
“President Trump’s latest threat to impose additional tariffs on China could also bring some front-loading exports in the near term," Wang said.
Most Asian markets slipped Thursday, but Japan's benchmark Nikkei 225, reopening after Golden Week holidays, gained 0.3% to finish at 19,674.77.
South Korea's Kospi was little changed, inching down less than 0.1% to 1,928.61. Australia's S&P/ASX 200 lost 0.4% to 5,364.20. Hong Kong's Hang Seng fell 0.7% to 23,980.63, while the Shanghai Composite fell 0.2% to 2,871.52.
Benchmark U.S. crude surged $2.51 to $26.50a barrel in electronic trading on the New York Mercantile Exchange. It fell 57 cents, or 2.3%, to $23.99 a barrel Wednesday.
Brent crude oil, the international standard, gained $1.98 to $31.70 a barrel.
The dollar inched up to 106.60 Japanese yen from 106.13 yen Wednesday. The euro weakened to $1.0790 from $1.0795.
The markets opened lower on Thursday as investors hold their breath ahead of the May consumer price index, which will give investors a better picture of the state of inflation in the United States. Michele Schneider, a partner and the director of trading research and education for MarketGauge.com, joined Cheddar to discuss. "If the CPI read is softer than what's expected, we actually might get a rally," she said. "If it's more than expected, then I think it will spook the market."
With real estate being a largely male-dominated industry, Stephanie Shojaee, vice president and chief marketing officer at development company Shoma Group, joined Cheddar News to discuss how she took on the gender gap for women to achieve leadership roles, starting at her own company. “It's been very important to teach all the women that work here, especially the younger ones, that they shouldn't change themselves," she said. "You need to be happy with who you are and just keep breaking barriers."
We are already starting to feel the effects of summer. Heat waves in Texas and California are already sending temperatures soaring. That could spell trouble for the nation's power supply. there are new concerns about outages in many areas of the country. Cheddar's Shannon Lanier explains the two main causes of blackouts, and what states are doing to keep the lights on and the air conditioning running.
Pinterest is making a big move as it pushes further into online shopping. The image-focused social media site is acquiring A.I.-powered shopping platform THE YES as it focuses on enhancing the user shopping experience. THE YES's technology gives users a personalized feed of products based on their preferences, and Pinterest is banking on the tech to give it an advantage among other social media apps with built-in shopping features. Julie Bornstein, founder and CEO of THE YES, joins Closing Bell to discuss the company's unique technology, why it agreed to sell to Pinterest, her vision as she takes over shopping initiatives, and more.
Keith Barr, CEO of InterContinental Hotel Group, says he is expecting an 'incredible' summer for his business as pandemic conditions have normalized and people are ready to travel.
Dann Ryan, Chief Investment Officer at Sincerus Advisory, discusses what drove markets lower on Wednesday, as well as what investors are anticipating when it comes to the upcoming CPI report and Fed decision.
U.S. stocks close Tuesday at session highs after a subpar start to the trading day. Tim Chubb, Chief Investment Officer at the wealth advisory firm, Girard, joins Cheddar News' Closing Bell to discuss. 'We're starting to see the moderation of three core things -- we've seen the moderation of prices, we've seen the moderation of wage growth we've seen in the labor market, and we've also seen a moderation of job openings,' he says.
The victims from the USA gymnastics sexual abuse scandal continue to seek justice. Survivors of Larry Nassar are seeking more than one-billion dollars from the FBI for failing to stop the convicted sports doctor when the agency first received allegations. According to a report released by the Justice Department's Inspector General, FBI agents knew
in July of 2015 that Nassar was accused of abusing gymnasts; however, Nassar wasn't arrested until December of 2016. The group that filed the claim includes Olympic medalist Simone Biles and around 90 other women. Louise Radnofsky, sports reporter at The Wall Street Journal, joins Cheddar News' Closing Bell to discuss.
A controversial professional golf tour backed by Saudi Arabia tees off on Thursday. Today, two-time Major winner Dustin Johnson announced he's resigned from the PGA Tour ahead of headlining the Saudi-backed tour, called the LIV Golf Invitation Series. The announcement comes as the PGA tour has threatened disciplinary action for its golfers who take part in the Saudi golf league event, which will also feature notable golf stars like Phil Mickelson and Sergio Garcia; however, LIV Golf's CEO, Greg Norman, told The Washington Post that Tiger Woods rejected a contract worth 'high nine digits' to play in the tour. Chris Bumbaca, reporter for USA Today Sports, joins Cheddar News' Closing Bell to discuss.
