US stocks close mixed as report on viral drug offsets surge in oil market

Reuters

• US stocks closed mixed on Thursday as investors reflected on weekly jobless claims, the rebound in oil prices and a bleak report on a potential coronavirus vaccine.
• Unemployed claims reached 4.4 million in the week ended April 18, down from previous periods, but pushing the five-week total of the measure above 26 million.
• WTI gross soared 33% to $ 18.26 a barrel after President Donald Trump tweeted that the United States “slaughter and destroy“Iranian gunboats if they harassed American ships.
• Drug maker Gilead fell 9% to intraday lows after a report in error on its treatment for developing coronaviruses found that the drug did not help patients.
• Watch the main live index update here.

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The United States closed in a mixed way on Thursday, as markets reflected on the latest economic data detailing the economic fallout from the coronavirus pandemic.

Unemployed claims during the week ended April 18 reached 4.4 million. It was down from previous weeks, but brought the five-week total of the measure to more than 26 million. The latest claims reading is almost six times the peak weekly level seen during the Great Recession.

“It’s another terrible week for layoffs.” James McCann, senior global economist at Aberdeen Standard Investments, said. “The scale of unemployment in the United States is clearly greater than in other economies.”

Here’s where the major U.S. indices closed on Thursday:

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Meanwhile, West Texas Intermediate gross contracts for June delivery jumped 33% to $ 18.26 a barrel. The recovery followed President Donald Trump’s tweet on Wednesday, threatening to “slaughter and destroy“Iranian gunboats should harass American ships. Chevron and Exxon benefited most from the recovery in the energy sector, gaining 5% and 6% respectively.

The measurement of production by American companies by IHS Markit revealed another worrying decline in economic health. The Manufacturing and Services Tracking Index fell to 27.4 from 40.9 in March, the fastest monthly decline since 2009 when the series started.

The coronavirus started economic activity with “ferocity never seen in recent history,” said Chris Williamson, chief economist at IHS, in Thursday’s report.

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Stocks saw in the afternoon after a report on the drug manufacturer GileadThe coronavirus treatment was downloaded in error from the WHO website. The document showed that the drug had no benefit in COVID-19 patients. The large market briefly retreated to the news before making a modest comeback. Gilead Stock slipped up to 9% after a short trading halt.

Gilead responded in a statement that the report contained “inappropriate study characterizations” and that the low enrollment rate did not allow him to “draw statistically significant conclusions”.

Investors are now impatiently anticipating an economic reopening after weeks of disrupted activity and stifled demand. Treasury Secretary Steven Mnuchin said Wednesday that the White House expects “most, if not all, of the economy” to reopen by the end of August.

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Thursday’s employment report suggested that a reboot could face snags as millions of Americans rush to join the workforce.

The lukewarm session followed 450 points gain for the Dow Wednesday. Stabilizing oil prices have raised investor sentiment after the commodity market collapsed earlier this week. Negative oil prices released on Monday increased volatility and prompted investors to flee.

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