US unemployment claims soar as coronavirus slams economy
Last week’s jobless claims hit a record-breaking 3.28 million. FOX Business’ Lauren Simonetti with more.
U.S. equity markets clambered higher Thursday as investors digested record jobless claims and waited for the House to vote on a $2 trillion relief package.
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First-time unemployment filings surged to a record 3.28 million last week, according to the Labor Department, as the COVID-19 pandemic caused businesses to temporarily close their doors and lay off employees. The previous record was 695,000, set in 1982.
The all-time high in claims came hours after the Senate voted 96-0, passing the $2 trillion relief package that would extend aid to individuals, small businesses and corporations hit hardest by the pandemic. The House of Representatives is scheduled to debate the bill on Friday.
The Dow Jones Industrial Average gained as many as 1,022 points, or 4.8 percent, while the S&P 500 and Nasdaq Composite climbed as much as 4.4 percent and 3.9 percent, respectively. A gain of 1,109.77 points or more would lift the Dow out of bear-market territory.
|I:DJI||DOW JONES AVERAGES||22190.06||+989.51||+4.67%|
|I:COMP||NASDAQ COMPOSITE INDEX||7615.449408||+231.15||+3.13%|
Looking at stocks, hard-hit travel-related names are seeking direction as the status of the $2 trillion relief package remains in limbo.
Boeing shares continued to gain, adding to the 67 percent gain they’ve seen this week.
Oil majors Exxon Mobil and Chevron were weaker as West Texas Intermediate crude oil plunged 3 percent to $23.76 a barrel. U.S. shale names Continental Resources and Pioneer Natural Resources also fell.
|XOM||EXXON MOBIL CORPORATION||38.66||+1.37||+3.67%|
Banks gained even as buying across the Treasury complex flattened the yield curve. The yield on the 10-year note was down 5.8 basis points at 0.798 percent while the yield on the 3-month bill, which fell below zero on Wednesday, was little changed at -0.048 percent.
|JPM||JP MORGAN CHASE & CO.||96.48||+4.75||+5.18%|
|BAC||BANK OF AMERICA CORP.||22.25||+1.15||+5.43%|
|WFC||WELLS FARGO & COMPANY||30.01||+1.04||+3.59%|
Ford said it’s aiming to restart production at some North American plants as early as April 6. The company’s credit rating was cut to junk at S&P.
On the earnings front, Micron Technology’s results exceeded expectations and gave a stronger-than-anticipated forecast as the company said it would receive a boost as more people worked from home.
Signet Jewelers reported better-than-expected quarterly results, but suspended its dividend and did not provide financial guidance due to uncertainty caused by the coronavirus.
|F||FORD MOTOR COMPANY||5.44||+0.05||+0.84%|
|MU||MICRON TECHNOLOGY INC.||43.98||+1.48||+3.48%|
|SIG||SIGNET JEWELERS LTD||10.30||+2.97||+40.54%|
In Europe, Germany’s DAX paced the decline, down 1 percent, while France’s CAC and Britain’s FTSE were off 0.6 percent and 0.3 percent, respectively.
Asian markets were lower across the board with Japan’s Nikkei falling 4.5 percent, Hong Kong’s Hang Seng sliding 0.7 percent and China’s Shanghai Composite down 0.6 percent.
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