Stock markets down after historic jobless claims

Shares fell on Thursday, reporting gains after a long-awaited coronavirus rescue package cleared the US Senate and made its way to the House, with investors focusing more on the damage caused by COVID-19 at the most the world’s largest economy only on tax measures designed to strengthen it.

The weekly report of the labor departments on the new unemployment claims showed the growing balance sheet of the coronavirus on the economy. New claims reached a record $ 3.283 million, far more than consensus economists had expected and well above levels seen after the 2008 financial crisis.

said in a statement. Almost all of the States that provided comments cited the impacts of the COVID-19 virus. States continued to widely cite the service industries, particularly accommodation and food services. “Data-reactid =” 18 “> The increase in unemployment is due to the effects of the COVID-19 virus, according to the Labor Department. said in a statement. Almost all of the States that provided comments cited the impacts of the COVID-19 virus. States continued to widely cite the service industries, particularly accommodation and food services.

On Wednesday, during the regular session, the S&P 500 and Dow posted their first consecutive sessions of advances in over a month. At the session highs, the Dow Jones added 1,315 points.

suggested he would be willing to delay the bill in the middle a dispute with Republican lawmakers who called for changes to the package’s unemployment benefits. “data-reactid =” 20 “> However, at the close of the market on Wednesday, stocks registered some gains after the bill with $ 2 trillion in relief for the coronavirus – In the late afternoon, the Democratic presidential candidate and Vermont senator Bernie Sanders suggested he would be willing to delay the bill in the middle a dispute with Republican lawmakers who called for changes to the package’s unemployment benefits.

And others outside Capitol Hill have voiced their concerns about the legislation. New York State Governor Andrew Cuomo called the legislation terrible for his state and suggested that the aid would not close the budget gap created by the coronavirus epidemic.

according to Johns Hopkins data. Over 69,000 of them were in the United States, with New York State accounting for the bulk of the national cases. “Data-reactid =” 22 “> Meanwhile, the epidemic of coronavirus has continued to intensify at the national level and abroad, the number of global cases exceeding 480,000 cases. according to Johns Hopkins data. Over 69,000 of them were in the United States, with New York State accounting for the bulk of the national cases.

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Crude oil (CL = F) took another leg lower after jobless claims soared to an historic high of 3.3 million following the coronavirus crisis, and are now testing $ 23 per barrel. Oils Swoon highlights what analysts widely believe to be a demand shock that will challenge all OPEC efforts to support prices.

As Goldman Sachs wrote on Wednesday:

Global isolation measures lead to an unprecedented collapse in demand for oil, which we predict will decrease by 10.5 mb / d in March and 18.7 mb / d in April (our demand forecast in 2020 is now -4.25 mb / d). A demand shock of this magnitude will overwhelm any supply response, including any potential freeze or cut in core-OPEC production.

…

The scale of the collapse in demand will necessitate the shutdown of a large amount of production, up to several million barrels per day. However, such an impact on production will not be reversed quickly, as the closure can often permanently damage conventional production wells and reservoirs. We therefore see more and more risks that the price rebound will be much more marked than our benchmark rally at $ 40 / bbl Brent in 4Q20, with a normalization of activity more and more likely to be accompanied by a major inflationary oil shock.

The unprecedented word has been launched a lot lately … and for good reason.

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The story continues

New jobless claims hit a record 3.283 million for the week ending March 21, according to the Labor Department’s weekly report. This figure was more than four times the record high of 695,000 reached in 1982.

Consensus economists expected new jobless claims to total 1.7 million, according to data compiled by Bloomberg. For the previous week, new jobless claims were revised slightly to 282,000 from 281,000 previously reported.

Meanwhile, persistent jobless claims, which are flagged one week later, rose to 1.803 million for the week ending March 14. Consensus economists expected them to reach 1.791 million.

For the previous week, jobless claims amounted to 1.702 million, slightly revised compared to the 1.701 million previously reported.

Federal Reserve Chairman Jerome Powell, speaking in a rare television interview on the NBCs Today show Thursday morning, promised that the central bank would continue to use the tools at its disposal to help fight the economic turbulence caused by the coronavirus epidemic.

Regarding continued credit flows, Powell said the Fed still has the option of applying additional support to the financial markets.

They were not going to run out of ammunition, he said during the interview.

Powell also said he expects economic activity to pick up and go back up in the second half, noting that the virus will dictate the timing of a rebound.

The contracts for the three main indices remained lower during the pre-market session Thursday morning, one day after the S&P 500 and Dow released their first consecutive gain sessions in a month.

Heres where the indices were trading Thursday morning at 7:10 a.m.ET:

• S&P 500 Futures (ES = F): 2,449.5, -17.5 (-0.71%)

• Dow Futures (YM = F): 20,971.00, -55 (-0.26%)

• Nasdaq Futures (NQ = F): 7,425.25, -42.5 (-0.57%)

• Gold (GC = F): + $ 0.20 (+ 0.01%) at $ 1,633.60 an ounce

• 10-year treasury (^ TNX) Note: yield 0.811%, down 4.5 basis points

The equity futures seemed ready to open on Thursday, when the $ 2 trillion stimulus package was finally passed by the Senate and directed to the House. The coronavirus rescue plan has been mired in partisan politics for days, but investors have pushed stocks to two consecutive days of gains. With the bill to be passed, the markets appear to have bought the rumor and are now selling the fact.

Here is where the indices were trading just before midnight Eastern time:

• S&P 500 Futures (ES = F): 2,447.50, -19.50 (-0.79%)

• Dow Futures (YM = F): 20,936.00, -90.00 (-0.43%)

• Nasdaq Futures (NQ = F): 7,429.00, -38.75 (-0.52%)

• Gold (GC = F): + $ 8.50 (+ 0.53%) at $ 1,642.00 per ounce

• 10-year treasury (^ TNX) Note: yield 0.869%

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The bank is once again kicking off its recession in the United States, the world’s largest economy plunging by an annualized rate of -10% in the first quarter and -25% in the second. JPMorgans economists also expect the unemployment rate to reach 8.5% by the end.

JPMorgan is also slightly less optimistic about the recovery process:

A growing gap between federal and state approaches to contain or mitigate the spread of the virus suggests that the Chinese experience may no longer be an appropriate comparison. At the very least, this should further depress sentiment and confidence in the institutions on which the market economy is based.

6:01 p.m. ET Wednesday: Stock futures roughly flat as night session starts

The future of each of the three main indices changed little on Wednesday evening, investors hoping for progress towards the adoption of a stimulus law in the face of the escalating epidemic of domestic coronavirus.

Here are the main market developments, from 6:01 p.m. AND:

• S&P 500 Futures (ES = F): up 0.06% or 1.5 points to 2,468.5

• Dow Futures (YM = F): up 0.04% or 8 points to 21,034.00

• Nasdaq Futures (NQ = F): up 0.11% or 8.25 points to 7,476.00

• Gold (GC = F): + $ 8.50 (+ 0.53%) at $ 1,642.00 per ounce

• 10-year treasury (^ TNX) Note: yield 0.869%

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