Stock market live updates: More losses ahead, waiting on jobless claims

U.S. stocks added to steep week-to-date losses on Thursday after yet another gloomy jobless claims report from the Labor Department. Another 3 million Americans hoping for unemployment benefits added to investor worries about the uncertain path ahead for the global economy.

This is a live blog. Here’s what’s going on:

10:38 am: JPMorgan, other large banks outperforming

Shares of JPMorgan rose 1.5% on Thursday as many of the large bank stocks outperformed the broader market. Wells Fargo jumped 4.8%, while Bank of America gained 0.5% and Citi slipped just 0.3%. Banks have been one of the weakest sectors since the coronavirus sell-off began due to concerns about low interest rates and rising loan losses. — Pound

10:30 am: Dow down 340 points as Apple, Boeing lag; S&P 500 slips 1.5%

The major indexes held firmly in the red one hour into Thursday’s regular session with Dow industrials down about 340 points as Boeing and Apple led blue-chip names lower. The S&P 500 and Nasdaq Composite both fell at least 1.5% as Microsoft slid 2%, Alphabet dipped 1.5% and Intel lost 2.2%. Real estate investment trusts and industrials were the two-biggest laggards among the S&P 500 sectors. — Franck

10:19 am: Dow falls below 50-day moving average 

Thursday’s losses put the Dow on pace to do something it hasn’t done since late April. The 30-stock average broke below its 50-day moving average for the first time since April 27. If it stays below it, it will mark the Dow’s first close below the moving average since April 24. — Imbert, Francolla

10 am: Here are Thursday’s biggest analyst calls of the day: Netflix, Chipotle, Best Buy, Wendy’s & more

9:53 am: Trump says ‘America is getting its life back’

President Donald Trump said in a tweet Thursday morning that he is encouraged by early results from the states where coronavirus rules have been lifted. Trump also said that work on a potential vaccine looks ‘promising’ and could yield results by the end of the year. Many scientists and health officials have said that a widely available vaccine is unlikely until next year. — Pound

9:30 am: Dow slides 250 points at open, S&P 500 loses 1%

U.S. stocks opened lower across the board Thursday morning as jitters over elevated jobless claims and Powell’s comments in the prior session added to recent market losses. The Dow dropped 250 points at the open while the S&P 500 lost 1%; the Nasdaq Composite fell 0.75%. Boeing led the Dow lower while the energy and materials sectors weighed the most on the S&P 500. The Dow lost 516 points on Wednesday after the Fed chief warned of significant downside risks ahead for the U.S. economy. — Franck

9:15 am: Delta to retire entire fleet of Boeing 777s

Delta Air Lines disclosed in a filing Thursday that it will retire all 18 of its 777 planes by the end of 2020 in favor of more fuel-efficient A330s and A350-900s made by Boeing rival Airbus. It also disclosed in its government filing that it’s burning about $50 million per day and that it has refunded more than $1.2 billion to customers since the Covid-19 pandemic began. Delta, which fell 3.3% in premarket trading, is set to open at a new seven-year low under $19 a share. Boeing shed 2.1%. — Franck

8:45 am: Dow futures point to 330-point loss after jobless claims report

U.S. stock futures extended losses in the premarket session after the Labor Department reported that more Americans filed for unemployment benefits last week than economists had forecast. Dow futures fell 350 points, suggesting an opening decline of about the same magnitude. S&P 500 futures pointed to a 1.25% slide while the Nasdaq 100 was slated for a 1% loss at the open. — Franck

8:30 am: Jobless claims rose another 2.981 million last week

The Labor Department reported Thursday that 2.981 million more Americans filed for state unemployment benefits during the week ended May 9, adding to the droves of workers who’ve found themselves without employment amid the Covid-19 outbreak. The latest figure brings the eight-week total number of initial jobless claims to over 36 million amid one of the worst employment downturns in American history. — Franck

8:20 am: Powell’s comments not ‘surprising’ but lacked policy specifics, El-Erian says

Allianz chief economic advisor Mohamed El-Erian said on “Squawk Box” that there was “nothing surprising” about Federal Reserve Chairman Jerome Powell’s gloomy comments earlier this week but that investors were looking for more clarity on policy. Powell spoke virtually to the Peterson Institute for International Economics on Wednesday morning, saying that there were downside risks to the economy and that further fiscal policy help may be needed to support the economy. Powell also said that the central bank was not considering using negative interest rates. “What the markets were hoping for was a stronger policy message. They were hoping for stronger policy guidance. And they didn’t get that,” El-Erian said. — Pound

8:18 am: Futures weaken further, suggest 200-point Dow drop

U.S. stock futures weakened further ahead of the Labor Department’s jobless claims report, set for release at 8:30 a.m. ET. As of the latest reading, Dow futures fell 191 points and implied an opening loss of about 195 points. S&P 500 and Nasdaq 100 futures suggested falls of 0.75% each. — Franck

8:12 am: Cisco shares jump on earnings

Shares of Cisco ticked up 2% in premarket trading on Thursday following the networking equipment maker’s better-than-expected quarterly earnings. Cisco reported quarterly profit of 79 cents per share, topping the forecast 69 cents per share, according to Refinitiv. Revenue came in at $11.98 billion, higher than the $11.7 billion forecast on the Street. Cisco also gave an upbeat current-quarter forecast. Cisco has “added many new prospects through free WebEx trials that we anticipate converting to revenue in the future,” CEO Chuck Robbins said on the conference call. He said in April there were over 500 million Webex meeting participants, amid the work-from-home trend during the pandemic. — Fitzgerald

8:08 am: Tesla warns employees who don’t return to work risk losing benefits

Tesla’s Freemont, California plant is open again for business. And if employees who have been called back to work choose to continue staying home, they could risk losing their benefits. “Once you are called back, you will no longer be on furlough so if you choose not to work, it may impact your unemployment benefits as determined by your local government agency – and not by Tesla. We completely respect your decision and will support you, without any penalties from us,” an email from the automaker’s HR chief Valerie Workman said. Musk has been a proponent of easing state-imposed business closures despite ongoing social distancing policies mandated in states including California. Musk initially reopened the Freemont factory in defiance of local orders, and authorities have not yet said if the company will face any repercussions. Shares of Tesla were about 2% lower in Thursday’s premarket trading. — Stevens

8 am: Goldman projects unemployment to hit 25% even as some industries reopen

With jobless claims expected to rise by more than 2 million on Thursday, economists and government officials are warning that the official unemployment rate will rise even higher in the coming months. Goldman Sachs economists now expect the rate to peak at 25% in the U.S. Some sectors may begin to bounce back even as the overall number gets worse, however. Luke Tilley, chief economist at Wilmington Trust, said the construction industry may see a boost in the near-term as the Paycheck Protection Program makes its way to workers. “Equipment that they rent, materials that they are bringing in for any specific job, are sort of a variable cost. So construction companies have an easier time going about taking PPP loans, paying their people,” Tilley said. Goldman was less bullish on the construction sector but said manufacturing could recover relatively quickly, based on what has happened in Asia. — Pound

7:40 am: Wall Street awaits key jobless claims report 

Investors await the Labor Department’s latest update on the number of Americans filing for state unemployment benefits. Though economists polled by Dow Jones expect another eye-popping 2.7 million initial claims filed during the week ended May 9, that estimate represents another deceleration in the historic spike in jobless claims amid the Covid-19 outbreak. Last week’s jobless claims report, which showed 3.169 million Americans filed for benefits in the week prior, brought the seven-week tally to 33.5 million. — Franck

7:20 am: Stock futures point to more losses on Thursday

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