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Stocks - Wall Street Opens Higher as Jobless Claims Ease Slightly

Published 04/23/2020, 09:28 AM
Updated 04/23/2020, 09:34 AM
© Reuters.

By Geoffrey Smith 

Investing.com -- U.S. stock markets opened higher on Thursday amid signs that the flood of initial jobless claims due to various state-wide lockdowns may be easing. 

By 9:35 AM ET (1335 GMT), the Dow Jones Industrial Average was up 193 points or 0.8% at 23,669 points. The S&P 500 was up 0.9%, while the Nasdaq Composite was up 1.0%.

Earlier, the Bureau of Labor Statistics had said that the number of Americans filing initial claims for unemployment benefits fell to 4.43 million last weeks from a downwardly revised 5.23 million the week before. Continuing claims also came in slightly lower than expected at 15.98 million. 

The numbers mean that over 26 million people had filed for benefits in the five weeks since the wave of coronavirus-related shutdowns began. 

"With the pain spreading from retail and hospitality to other sectors less than half of the working age population of America will be earning a wage by May," ING's chief international economist James Knightley said in a note to clients. "We have to remember that one third of Americans aged 18-.65 are not classified as employed or unemployed – they are students, early retirement, homemakers, carers or sick."

That background explains the urgency of calls from politicians to reopen the economy as fast as possible. Among the biggest gainers in early trading on Thursday were casino stocks, after Las Vegas Mayor Carolyn Goodman said in an interview with CNN she wanted to reopen the town's hospitality-driven economy as soon as possible. Her comments were criticized by Governor Steve Sisolak, and President Donald Trump - who has missed few opportunities to endorse a speedy reopening - pointedly declined to be drawn into the debate.

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Even so, Las Vegas Sands (NYSE:LVS) stock rose 8.5%, while Wynn Resorts (NASDAQ:WYNN) stock rose 8.4% and MGM Resorts (NYSE:MGM) stock rose 4.0%.

Away from gambling - well, a bit anyway - TD Ameritrade (NASDAQ:AMTD) stock fell 0.4% after it missed estimates for earnings in its fiscal second quarter. Charles Schwab (NYSE:SCHW), which has agreed to buy the brokerage, also fell 0.5%.

Domino’s Pizza (NYSE:DPZ) stock fell 5.5% and Target (NYSE:TGT) stock fell 3.2%, both after disappointing updates. Domino's said it expected international sales to have fallen in the first four weeks of this quarter, while Target said higher staff costs and a shift towards lower-margin items by customers stockpiling essentials would hit profitability.

Elsewhere, the dip in Netflix (NASDAQ:NFLX) stock proved short-lived as bargain-hunters drove it up 4.4%, to within 4% of its all-time high. 

Oil and gas stocks also benefited from the rebound in U.S. crude futures, which rose by nearly one-quarter to $17.16 by 10 AM. Occidental Petroleum (NYSE:OXY) stock was up 5.1%, while Exxon Mobil (NYSE:XOM) stock was up 3.5% and Chevron (NYSE:CVX) stock was up 2.5%.

 

 

 

 

 

Latest comments

the trend is your friend. there is now a perfect channel formed since third week in March. economy looks like s@%! but that doesn't translate directly to the stock market. bears be careful. good luck to all with your trading
does this make sense to anyone. stocks only go up no matter what even with a reccesion in progress? and every nation I can think of for all purposes bankrupt by any reasonable accounting standard.
What happens with article news title nowadays.....? World has gone crazy..
If there were no corona virus, and we were in normal times. The market would be down based on the economy the way it was and oil would be way up because of the probably conflict with IRAN. Just proves the people that are propping up the market, whoever they are, are either stupid or extremely devious.
the economy was doing great before the virus, which is why the market was at all-time highs...oh those pesky facts
I wish i had a nickle every time i heard someone say that “this just proves the market is manipulated” the market is valued at exactly what it should be at any point in time because the market is a living organism...there is no oracle controling this looking through a one sides mirror...this is cause and effect and once you learn how to ride the waves you will make money...i see far too often individuals trying to fight the current and its due to their inability to learn how to move and stay afloat in the rip tide of the ocean
total almost 25m jobless, America population around 400m. That 6.25%. OMG
you forget that of the 328million, you have to subtract those that are too young or too old to work, not seeking employment willingly, students, etc. so the actual potential working population by age is much lower than 328million. and the 25m jobless claims is in the past few weeks. so in reality your 6.25% figure is much much lower than the actual unemployment rate
very good point. Working population is about 150million. So the figure is about 17% easily in pace to 20%. Not to mention the number of people who arent even aware of unempoyment benefits.
how did they arrived at those figures amids lockdown?
Mad world....
This market is broken!!
Yep that's reality
actually bullish on usdjpy
20% of the population unemployed, very bullish!
Such good news, only 4 million more people unemployed. What a relief!
USD bullish?
Wow!Unemployed easy?!What is wrong with you people?!
Ya seem like want to celebrate with this freaking data. People are sick
26 million eqal bullish
Bullish market is confirmed.
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