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Stocks - Dow Cuts Losses as Traders Eye Trump Update on Reopening Economy

Published 04/16/2020, 04:10 PM
Updated 04/16/2020, 04:14 PM
© Reuters.

© Reuters.

By Yasin Ebrahim 

Investing.com – The Dow cut its losses and ended higher Thursday, shrugging off a surge in jobless claims as investors awaited an update from President Donald Trump on the prospect of reopening the economy, even as several states extended lockdown measures.

The Dow rose 0.14%, or 33 points, theS&P 500 was up 0.58% and the Nasdaq Composite rose 1.66%.

Trump is set to detail guidelines for opening up America again in a news conference at 6 PM ET (2200 GMT). The press conference comes as the president has recently claimed "ultimate authority" on making the call to restart the economy, much to the bemusement of several governors, including New York Governor Andrew Cuomo.

Cuomo, as well as several other governors of Northeastern states, agreed to extended current lockdown measures into mid-May.

The lockdown measures across the country to stem the Covid-19 pandemic have wreaked havoc on the economy, particularly in the labor market, as shuttered businesses have led to a surge in unemployment claims.

Jobless claims surged by 5.2 million last week, the Labor Department reported Thursday, taking the four-week total to 22 million, wiping out nearly all of the 22.442 million jobs created since November 2009.

In manufacturing, the Philadephia Fed's manufacturing index fell to a reading of -56.6, the lowest reading since reading since July 1980.

The gloomy economic background was reflected in the earnings seen so far this week from Wall Street banks.  

Morgan Stanley (NYSE:MS) ended down 0.1% after reporting a 30% drop in profit, adding to a string of poor quarterly results from Wall Street banks, including JPMorgan Chase (NYSE:JPM), Wells Fargo (NYSE:WFC) and Citigroup (NYSE:C), showing steep declines in profit.

BlackRock (NYSE:BLK), meanwhile, rose 3.5%, even as the asset manager reported that funds under management fell below $7 trillion after profit slumped 23%.

Just days after agreeing a  $50 billion bailout package with the Treasury, airline stocks slumped sharply amid concerns the sector is set for a long road to recovery.

"I don’t think air travel will snap right back to where it was here this year, maybe it will come back next year," said Southwest CEO Gary Kelly. "If this is a real recession and a bad recession, it could take four or five years."

United Airlines (NASDAQ:UAL) fell 11%, American Airlines (NASDAQ:AAL) dropped 10% and Southwest Airlines (NYSE:LUV) slipped 6.5%.

Tech, however, was up sharply thanks to a surge in chip stocks underpinned by encouraging quarterly results from chip bellwether Taiwan Semiconductor Manufacturing (NYSE:TSM).

For the quarter, Taiwan Semi reported earnings and revenue that topped analysts' consensus estimates.

Netflix (NASDAQ:NFLX) was also in the spotlight as the streaming device maker is expected to report a jump in new users amid a favorable backdrop as more people turn to streaming giant to pass the time during the government-imposed lockdown measures. Shares rose nearly 3%.

Latest comments

await and see. don't blame me if it backfires
china signed the tariff deal fully knowing they have an out due to pandemic. if this is proven can we start bombing?
Ya let's bomb… see which loss more
Naif guy
Let’s see here. Based on what was said this evening, the first 4-5 states to “open up” account for a whomping 4% of the US GDP. All the money is in the states that will open up last. And Trump knows this, but he’s banking his whole re-election campaign on the fact that his base never made it much past two years of high school and don’t have the first clue about economics. Just ask Steven Gitt.....
Still got 600,000 patients inside hospital ? Want to reopen business now ? Are u daydreaming ?
Mike Tan, Where dis you get the info that there are currently 600,000 patients in hospitals today?
Who?
https://www.worldometers.info/coronavirus/country/us/
Trump has brought to surface how corrupt Congress is.
He tried this, but failed miserably. And you know why? Because Moscow Mitch blocked Obama’s Supreme Court nominee. Just one of many reasons why Donny Boy will not win re-election. Oh, and did I mention people who win presidental elections don’t read from prepared notes like a 7-year-old. Unless, of course, you’re trying to reach people of like mind. LOL!
You must be the smart one.
a corona virus is NOT an influenza virus
yea it's less bad.
Actually they're mix coronavirus with influenza
Influenza is a coronavirus, Kenny.
This is all fun and games until some of the big corps start to fall. That is when the market wont be able to be propped anymore by Trump's soundbites and this mythical 'cash' on the horizon that wont reach small businesses anyway.
Here are some updated numbers for you folks- Fed has spent $2.2trillion so far, it is costing $25billion a day in GDP(according t9o the fed) or we've lost around $750billion in GDP or only about a third of the $2.2trillion spent so far. That $2.2 trillion is also- $100mill per US covid death. $10mill per life saved at the 200,000 model guess of expected deaths. $1mill per life saved at the 2.2mill model guess of expected US covid deaths.
I've been saying this from the very beginning... the virus is a small flu! all these lockdowns will do more harm than the virus itself! look at the protests in Michigan, brothers and sisters are suffering!
ridiculous
not necessary. Some unlucky youth will die too
you said 1 year, not 2 mths. Plus this figure will rise fast
step 1. go back to workstep 2. refer to step 1
let's go back to work! let's go theatres, shopping malls, concerts! everything is coming back to life!
Hey, easy does it...
let's be smart about it, as our president states!
I hope the early reopening, then we can retest the bottom.
the second surge is as mythical as those shovel ready jobs from 2010. But keep hope alive.
I recall those jobs mentioned! I also recall the guy that mentioned them over and over actually admit they never existed -
and the always wrong leftist continues to get their faces ripped off daily. yea folks Dow 14,000 here we come-get just one right in the next 100yrs please.
lol
I'm sure you weren't short before the crash!!!;)
haven't been short since they started paying zero percent on the cash short sales generate. I was lucky to have ostly bailed in January but did jump back in too soon on the virus sell off.
another millions of unemployed and market goes UP, wow. where are we?
The data man-made
How'd it go? "much to the bemusement" of Son of Mario and other governor's ? I have honestly never used that big word...
nothing matters
company reports 30% loss and it moved 0,1% ? what a H ell
it was already expected, so... wasn't such a surprise
it was already expected, so... not a big surprise
open up
Open up
Great , we are going out off jail to have normal life we want .
This is a one big big joke
These headlines are smoke. The author can make up anything. How would you know the true cause of a rise or decline in a market? The real story is missing.
The author does indeed tend to "make up anything" but he's simply following the First Rule of Journalism:  Be Provocative (even if you reveal your ignorance).
I'm sure it's to this and other authors "bemusement" - this is great...
nice one
correction 23% loss only 7t left to manage and loose.
This is such Bull Schmitt it's like John's town keep drinking the cool aid. A 7 trillion $$ loss how are they still operating.
Trump is a very smart guy
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