Stocks are mixed in early trading on Wall Street Thursday after the government reported that millions more workers lost their jobs last week, though not as many as had been feared.
The report was universally regarded as awful, with 5.2 million more Americans filing for unemployment benefits last week as layoffs sweep the country amid the coronavirus outbreak.
Markets had braced for a number that was even more awful. The S&P 500 initially rose but the gains faded after the first half-hour of trading, leaving the index down 0.5%. The tech-heavy Nasdaq rose.
Economists had told investors to expect hundreds of thousands more claims, and the number was also a touch lower than the tally of each of the two prior weeks, which were both over 6.6 million.
Treasury yields fell again and remain extremely low, which shows how pessimistic investors are about the economy’s prospects.
Markets are still unsettled following a downdraft Wednesday, when the S&P 500 fell 2.2% following reports on the economy that were worse than investors were expecting, including a record drop for U.S. retail sales last month.
Markets have been stuck in an up-and-down cycle for weeks as traders try to guess how long and how deep the upcoming recession will be.
On one hand, investors see the severe economic damage caused by the pandemic. On the other, optimistic investors are focusing on massive aid for the economy promised by the Federal Reserve and the U.S government. They also point to recent signs that the outbreak may be leveling off in some of the world’s hardest-hit areas, which could open the path to reopening parts of the economy.
Ultimately, many professional investors say they expect the market to remain volatile until the worst of the outbreak passes.
The Dow Jones Industrial Average was down 224 points, or 1%, at 23,292 after the first half-hour of trading. The Nasdaq was up 0.6%.
Tech stocks, health care companies and several retailers rose, while banks and energy companies notched more losses.
In Europe, Germany’s DAX rose 1.1%, France’s CAC 40 rose 0.7% and the FTSE 100 in London added 0.6%.
In Asia, where markets closed before the release of the U.S. jobless report, Japan’s Nikkei 225 fell 1.3%. Hong Kong’s Hang Seng dropped 0.6%, and the Kospi in South Korea slipped 0.1%.
The yield on the 10-year Treasury fell to 0.60% from 0.64% late Wednesday. Yields fall when bond prices rise. Investors tend to bid up Treasurys when they’re worried about the economy.
A Michigan judge is putting sponges in the hands of shoplifters and ordering them to wash cars in a Walmart parking lot when spring weather arrives. Genesee County Judge Jeffrey Clothier hopes the unusual form of community service discourages people from stealing from Walmart. The judge also wants to reward shoppers with free car washes. Clothier says he began ordering “Walmart wash” sentences this week for shoplifting at the store in Grand Blanc Township. He believes 75 to 100 people eventually will be ordered to wash cars this spring. Clothier says he will be washing cars alongside them when the time comes.
The State Department had been in talks with Elon Musk’s Tesla company to buy armored electric vehicles, but the plans have been put on hold by the Trump administration after reports emerged about a potential $400 million purchase. A State Department spokesperson said the electric car company owned by Musk was the only one that expressed interest back in May 2024. The deal with Tesla was only in its planning phases but it was forecast to be the largest contract of the year. It shows how some of his wealth has come and was still expected to come from taxpayers.
At 100 years old, the Goodyear Blimp is an ageless star in the sky. The 246-foot-long airship will be in the background of the Daytona 500 — flying roughly 1,500 feet above Daytona International Speedway, actually — to celebrate its greatest anniversary tour. Even though remote camera technologies are improving regularly and changing the landscape of aerial footage, the blimp continues to carve out a niche. At Daytona, with the usual 40-car field racing around a 2½-mile superspeedway, views from the blimp aptly provide the scope of the event.
You'll just have to wait for interest rates (and prices) to go down. Plus, this deal's a steel, the big carmaker wedding is off, and bribery is back, baby!
Japanese automakers Honda, Nissan and Mitsubishi are dropping their talks on business integration.
It’s a chicken-and-egg problem: Restaurants are struggling with record-high U.S. egg prices, but their omelets, scrambles and huevos rancheros may be part of the problem. Breakfast is booming at U.S. eateries. First Watch, a restaurant chain that serves breakfast, brunch and lunch, nearly quadrupled its locations over the past decade to 570. Fast-food chains like Starbucks and Wendy's added more egg-filled breakfast items. In normal times, egg producers could meet the demand. But a bird flu outbreak that has forced them to slaughter their flocks is making supplies scarcer and pushing up prices. Some restaurants like Waffle House have added a surcharge to offset their costs.
