SelectQuote, Inc. (NYSE: SLQT) virtually rings The Opening Bell on Thursday, May 21, 2020 in New York. The New York Stock Exchange welcomes SelectQuote, Inc. (NYSE: SLQT), as they officially begin trading today. (New York Stock Exchange via AP Images)
By Alex Veiga
U.S. stock indexes were mixed in early trading Thursday, giving back some of their gains after a solid rally a day earlier.
The S&P 500 was up less than 0.1% in choppy trading as investors weighed more dismal news about the economic fallout from the coronavirus epidemic and the latest build-up of tensions between the U.S. and China. Bond yields were mixed. Oil prices rose.
The Labor Department said more than 2.4 million people applied for U.S. unemployment benefits last week in the latest wave of layoffs from the outbreak. That brings the running total of Americans who have lost their jobs in the two months since the coronavirus led to a near shutdown of the economy to 38.6 million.
Meanwhile, investors had an eye on the latest flareup in tensions between Washington and Beijing. The White House issued a report attacking China's economic and military policies, and its human rights violations. The report expands on President Donald Trump’s get-tough rhetoric that he hopes will resonate with voters angry about China’s handling of the disease outbreak.
The Dow Jones Industrial Average gained 86 points, or 0.3%, to 24,653. The Nasdaq composite fell 0.3%.
Health care and financial stocks took some of the heaviest losses, outweighing gains in industrial companies, banks and elsewhere.
Wall Street is on track to recoup its losses from last week amid fresh hopes for a U.S. economic recovery in the second half of the year and optimism about a potential vaccine for COVID-19. A strong rally on Monday reversed all of the market’s losses for the month. The index is still down about 12% from its all-time high in February.
Investors are betting that the economy and corporate profits will begin to recover from the coronavirus pandemic as the U.S. and countries around the world slowly open up again. However, concerns remain that the relaxing of stay-at-home mandates and the reopening of businesses could lead to another surge in infections, potentially ushering in another wave of shutdowns.
Oil prices headed higher for the sixth day in a row. Benchmark U.S. crude oil was up 1.8%, to $34.26 a barrel. Brent crude oil, the international standard, was up 2.7%, to $36.71 a barrel.
Crude oil started the year at about $60 a barrel but plummeted earlier this year as demand sank due to widespread travel and business shutdowns related to the coronavirus. The price has risen this month as oil-producing nations cut back on output and the gradual reopening of economies around the globe have driven up demand.
Bonds yields were mixed. The yield on the 10-year Treasury note, a benchmark for interest rates on many consumer loans, fell to 0.66% from 0.68% late Wednesday.
European stock indexes were mixed on weak economic data in Europe and Asia, and as Chinese trade tensions with Washington and Australia worsened. Asian stock markets finished lower.
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A rare magnum of Dom Pérignon Vintage 1961 champagne that was specially produced for the 1981 wedding of Prince Charles and Lady Diana has failed to sell during an auction. Danish auction house Bruun Rasmussen handled the bidding Thursday. The auction's house website lists the bottle as not sold. It was expected to fetch up to around $93,000. It is one of 12 bottles made to celebrate the royal wedding. Little was revealed about the seller. The auction house says the bids did not receive the desired minimum price.
The New York Times and President Donald Trump are fighting again. The news outlet said Wednesday it won't be deterred by Trump's “false and inflammatory language” from writing about the 79-year-old president's health. The Times has done a handful of stories on that topic recently, including an opinion column that said Trump is “starting to give President Joe Biden vibes.” In a Truth Social post, Trump said it might be treasonous for outlets like the Times to do “FAKE” reports about his health and "we should do something about it.” The Republican president already has a pending lawsuit against the newspaper for its past reports on his finances.
OpenAI has appointed Slack CEO Denise Dresser as its first chief of revenue. Dresser will oversee global revenue strategy and help businesses integrate AI into daily operations. OpenAI CEO Sam Altman recently emphasized improving ChatGPT, which now has over 800 million weekly users. Despite its success, OpenAI faces competition from companies like Google and concerns about profitability. The company earns money from premium ChatGPT subscriptions but hasn't ventured into advertising. Altman had recently announced delays in developing new products like AI agents and a personal assistant.
President Donald Trump says he will allow Nvidia to sell its H200 computer chip used in the development of artificial intelligence to “approved customers” in China. Trump said Monday on his social media site that he had informed China’s leader Xi Jinping and “President Xi responded positively!” There had been concerns about allowing advanced computer chips into China as it could help them to compete against the U.S. in building out AI capabilities. But there has also been a desire to develop the AI ecosystem with American companies such as chipmaker Nvidia.
