Investors rated another horrific weekly unemployment report that brought the total of Americans applying for unemployment benefits since mid-March to 22 million. Large growth tech stocks rebounded on their momentum, with Netflix, Amazon and Microsoft outperforming the broad market. This is what happened:
4:14 PM: Thursday’s market movements:
- S&P 500 included 0.58% for its 2nd positive day
- This week: S&P is 0.35% faster than the third positive week of 4
- Nasdaq closed 1.66% for the 5th positive day out of 6
- This week: Nasdaq is up 4.65% for the 2nd consecutive positive week and the 3rd positive week in 4
- 6 of the 11 sectors closed higher under health care, 2.2% higher
- Nasdaq 100 closed 1.93% and is now positive for the year
- West Texas Intermediate, the US oil benchmark, remained unchanged, corresponding to yesterday’s $ 19.87 a barrel, the lowest since February 7, 2002
4:00 pm: Stocks are closing higher and unemployment data is being removed
After spending much of the day in the red, the Dow made a comeback in the last trading hour, closing 33 points higher for a profit of 0.14%. The S&P 500 rose 0.58%, while the Nasdaq Composite rose 1.66%, boosted by Netflix and Amazon, both of which hit new all-time highs. – Stevens
14:48: Last trading hour: Dow falls after bad data, but Netflix leads Nasdaq higher
With about an hour to go during the trading session, the Dow fell slightly as investors struggled with bleak economic data and a longer shutdown in New York and other states. The average of 30 stocks fell 80 points, or 0.3%. However, the Nasdaq Composite rose 1.1% when Netflix reached a record high. –Imbert
2:10 pm: Fed Williams says “our job is not done” to repair economic damage
1.50 pm: Stocks are making the biggest moves
Netflix – The streaming giant’s stock was up nearly 5% to an all-time high of $ 449.52 per share. The stay-at-home share got a boost when Goldman Sachs raised his price target to $ 490 per share, equal to the highest on the street.
Abbott Laboratories – The Abbott share rose more than 4% after the biotechnology company reported quarterly results that exceeded analyst expectations. The company also highlighted three diagnostic tests for coronavirus, including molecular tests.
KeyCorp – KeyCorp shares were down more than 6% after the company posted disappointing earnings and revenues for the previous quarter. The company raised its loan loss provisions from $ 62 million in the prior year period to $ 359 million.
BlackRock – Better than expected earnings drove BlackRock shares by more than 6%. The asset management giant reported earnings of $ 6.60 per share, on top of an estimate by Refinitiv.
View more companies that make the biggest headlines here. – Imbert, Li
12:30 PM: New York and other east coast states extend the closure to May 15
New York and other east coast states extend their shutdown of non-essential companies until May 15 as officials struggle to reopen parts of the economy without triggering a resurgence of coronavirus cases, Governor Andrew Cuomo said Thursday. Cuomo announced the news on Twitter, saying that “New York on PAUSE” will be expanded in partnership with other states. –Higgins-Dunn
12:25 PM: Walmart reaches all-time high
Walmart shares rose to a new all-time high of $ 132.15 on Thursday, as the retailer continues to take advantage of consumers stealing on staples. The big box retailer has gained 15% this year, much better than the SPDR S&P Retail ETF (XRT), which is down 27%, as well as the S&P 500, which is down 14%. – Stevens
11:58 am: Claims show unemployment could be 17%, Citigroup says
With the latest 5.2 million weekly unemployed claims, Citigroup says the 21.5 million claims over the past four weeks equate to an increase in unemployment of about 13 percentage points to about 17%. But Citi economists say the unemployment rate in April tends to be between 10% and 15%. That’s because some workers appear in the monthly government report when they are no longer looking for a job, when they are fired and have returned or plan to return to their jobs. The number of claims may have peaked in the past two weeks, but economists say it is difficult to determine whether this is the case. Some companies will need to be hired again in late June to forgive loans from the Paycheck Protection Program. They expect the unemployment rate to peak in April or May and then decline rapidly if recommissioned and companies start to reopen. Domm
11:55 am: Markets at 12:00 pm: Nasdaq and S&P 500 rise, led by Amazon and Netflix
Around noon, the Nasdaq and S&P 500 were driven higher by huge gains from Netflix and Amazon, which were trading at record highs. The Nasdaq was up over 1%, while the S&P 500 was up 0.5%. The Dow fell about 50 points, or 0.2%. –Imbert
11:53 AM: Netflix reaches its all-time high
Netflix streaming platform reached an all-time high of $ 449.52 per share on Thursday, reaching nearly 5% on the day. The at-home share got a boost when Goldman Sachs raised his price target to $ 490 per share, the highest on the street with Pivotal. The company said that Netflix will take advantage of the discontinuation of COVID-19 and will have better than expected profits next week. Netflix shares have risen more than 35% this year. – Fitzgerald
11:34 AM: Mutual funds and ETFs see the largest outflow of investor money ever recorded
Investors collected their mutual funds and ETFs in March three times faster than what happened during the financial crisis. Long-term fund redemptions totaled $ 326 billion for the month, or about 2% of total assets, according to Morningstar. That was by far the biggest month ever, exceeding the peak of the Great Recession of $ 104 billion in October 2008, the month after Lehman Brothers failed. Despite stock exhaustion, which ended the longest bull market in history, investors put in net $ 10.5 billion in share-based funds. The largest contributor to the outflow came from taxable bonds, which delivered $ 240.3 billion in redemptions. Money market funds saw a record $ 685 billion in inflows, bringing total safe harbor assets to $ 4.3 trillion. – Cox
11:05 am: Tech has the biggest winners to date this week
More than 30 stocks in the Russell 1000 have risen more than 10% a week, including Roku, Tesla, Amazon, Moderna, Coupa Software, Netflix, Abbott Labs, Carvana, Zscaler, RingCentral, DocuSign, MondoDB, Match Group and Smartsheet. Roku had the best week, achieving over 33%. The Nasdaq Composite is up 4% in the week so far, the S&P 500 is slightly negative and the Dow is down more than 1%. – Francolla, pounds
10:43 am: Small business loan program runs out of money
The $ 349 billion program to provide loans to small businesses affected by the coronavirus crisis has run out of money. The loans, which can be converted into grants when used largely for labor costs, were distributed on a first-come, first-served basis.
The Small Business Administration tapped banks across the country to help implement the program, and many banks complained that the guidance on the loans was unclear, causing banks to start processing applications at different times. The SBA website now says it cannot accept new applications for the program, although it is unclear how much of the money has been distributed. – Lb
10:12 am: Hedge fund Elliott says stocks may drop 50% from February highs
Billionaire Paul Singer’s Elliott Management said global stocks could tumble more – and eventually lose half their value from their February highs – as the world braces for the deepest recession since the 1930s , according to a letter sent to customers and reviewed by Reuters on Wednesday. “Our gut tells us that a 50% or deeper drop from the February peak could be the ultimate path for global equity markets,” the letter said. The New York-based hedge fund manages $ 40.4 billion in assets. – Li
10:10 am: Analysts say they are buying at-home stocks like Netflix and Kraft Heinz in Thursday’s calls
- Goldman Sachs raised its price target on Netflix from $ 430 to $ 490.
- JPMorgan raised the Netflix target price from $ 410 to $ 480.
- Wells Fargo upgraded Kraft Heinz to the same weight overweight.
- Bank of America resumed Monster Beverage coverage as a purchase.
- JPMorgan lowered Twitter from overweight to neutral.
- Berenberg initiated Roku as a purchase.
- Raymond James has downgraded Square to underperformance from market performance.
- Credit Suisse upgraded Smucker from neutral to underperform.
CNBC Pro subscribers can read more here. – Bloom
10:05 am: ConocoPhillips reduces production by 225,000 barrels of oil per day
ConocoPhillips said on Thursday it will voluntarily cut production by 225,000 gross barrels of oil per day. The announcement came as part of a broader statement in which the exploration company outlined additional savings of $ 3 billion, bringing the total cost savings to more than $ 5 billion. “These actions reflect our belief that oil prices will remain weak in the short term, largely due to the impact of demand from COVID-19 and continued oil oversupply,” said CEO Ryan Lance in a statement. The shares were about 3% lower on the news. – Stevens
9:36 am: Stocks are giving up gains, Dow is now down 100 points
The 30-share Dow quickly blotted out the opening gains, now by about 120 points. The S&P 500 and Nasdaq were still in the green as big tech gains provided some support. – Li
9:31 am: Dow opens slightly higher
Shares rose slightly after the opening bubble, as investors digested a new batch of corporate earnings and another dismal unemployment claims report. The Dow Jones Industrial Average was up about 50 points, while the S&P 500 was up 0.6%. The Nasdaq Composite traded 1% higher, plus a 2% jump in Netflix stock. – Li
9:04 am: Costco increases dividend by 7.7%
Against the trend in American business, Costco is increasing its dividend. The big box retailer said it would increase its dividend by 7.7%, equivalent to 70 cents per share, or $ 2.80 annually. The shares were about 1% higher in premarket trading and have gained more than 5% this year. For comparison, the S&P 500 has lost about 14% this year. – Stevens
9:00 am: Goldman becomes one of the biggest bulls on Netflix, says earnings blow past Street
Netflix’s stock has more room to turn around, ready to get a boost from the streaming platform’s massive earnings next week, according to Goldman Sachs. The Wall Street firm raised its 12-month price target on Netflix from $ 430 per share to $ 490 per share, representing an increase of nearly 15% from Tuesday’s closing price of $ 426.75 per share. Goldman’s new price target makes it street-bound for the highest forecast on Netflix, according to FactSet. Pivotal also has a target price of $ 490. “As one of the few companies with increasing demand in the current environment, we expect stocks to continue to perform,” Goldman Sachs equity analyst Health Terry said in a note to clients. In addition, Goldman has high expectations of the streaming company’s earnings next week. “We expect Netflix to report 1Q results well above expectations, with over 10 million net subscribers, and provide initial guidance for 2Q prior to the FactSet consensus,” said Terry. Goldman believes Netflix will report 10.3 million paid subscribers in the first quarter, well ahead of the forecast of 7 million and a consensus of 7.8 million. – Fitzgerald
8:54 am: March The number of homes in the U.S. is down 22.3% to 1.216 million versus 1.3 million expected
8:52 AM: United Airlines cuts May schedule by 90%
With aircraft grounded worldwide, United Airlines said it would cut May’s schedule by 90%. “To help you understand how few people fly in this area, fewer than 200,000 people flew with us in the first two weeks of April this year, compared to more than 6 million in the same time in 2019, down 97 percent , “CEO Oscar Munoz said in a statement. “We expect to fly fewer people throughout the month of May than in one day in May 2019,” he added. Munoz said the airline would also likely cut back its schedule for June, as well as warning of potential job losses. United shares fell more than 2% during Thursday’s premarket trading and fell 63% this year. – Stevens
8:41 am: The bottom of the market is probably in there, says strategist Tom Lee
Tom Lee, founder of Fundstrat Global Advisors, says the market is likely to fall after the S&P 500 reverses half of its downward movement from February 19 to March 23. “We are in a bull market recovery, no matter how bizarre it may sound,” Lee wrote in a note to customers. “The market has shifted to” buyers “, while sellers had full control from 2/19/2020 to 3/23/2020.” – Imbert
8:31 am: U.S. weekly unemployment claims total 5.245 million versus 5.0 million estimated
The Department of Labor said a total of 5.245 million Americans had applied for state unemployment benefits for the week ending April 11, compared to Dow Jones’ estimate of 5 million. The number is down from 6.6 million in the previous week. The new notifications bring the total of the crisis to just over 22 million, wiping out nearly all job gains since the Great Recession. “Li
8:25 am: Jeff Bezos: Widespread coronavirus testing needed before the economy can get going again
Jeff Bezos released Amazon’s annual shareholder letter on Thursday, detailing how the company has responded so far to the coronavirus pandemic. Bezos emphasized the importance of testing to get the public back to work and to protect his own employees from the virus. He noted Amazon’s efforts to develop “incremental testing capability,” which the company announced last week. As part of that announcement, Amazon said it hopes to test all of its employees, including those who show no symptoms. “Regular testing on a global scale, across all industries, would help protect people and get the economy going again,” said Bezos. “For this to work, we as a society need much more testing capacity than is currently available.” Palmer
8.20 am: the market has lost momentum in recent days, says strategist
The rip-roaring rally at the March 23 lows has lost some momentum in recent days, technical strategist Mark Newton said in a note. “While the trends remain fairly positive in the short term, there is some lag in both latitude and momentum … and the rally to Tuesday’s highs ahead of Wednesday’s decline showed clear signs of negative momentum divergence while the latitude is weaker become. ” The major averages all rose by more than 2% on Tuesday, but fell by more than 1% on Wednesday.
“The takeaway is that markets DO prove that there are internal problems that” could “lead to a decline. However, this could also just lead to a small consolidation that eventually leads to higher stocks until the end of April,” said Newton, Newton’s managing director Advisers. – Imbert
8:16 am: Oil in green after it has fallen to its lowest level in over 18 years
US oil rose Thursday, a day after dropping $ 19.87, a level since February 2002. West Texas Intermediate, the US benchmark, rose 19 cents to trade at $ 20.06, while international benchmark Brent crude oil was $ 1 .03 higher was trading at $ 28.72 a barrel. If WTI can maintain its gains throughout the session, it will be the first positive day of the contract at 5. The oil fell Wednesday after the US Energy Information Administration said the stock rose by a record 19.2 million barrels for the week ending April 10 as the coronavirus pandemic continues to undermine demand. In addition, the IEA said in its monthly report that demand for oil could drop by 29 million barrels per day in April, increasing demand for the lowest level in 25 years. On Sunday, OPEC and its allies announced record production of 9.7 million bpd, starting on May 1, but the move has done little to allay traders’ fears of a slowdown in demand. Since the deal was closed on Sunday, WTI has fallen by more than 12%. – Stevens
7:55 a.m .: Worldwide virus cases exceed 2 million, Trump announces reopening guidelines
According to Johns Hopkins University data, there are now over 2 million confirmed cases of the coronavirus worldwide. The United States has the most confirmed cases with over 630,000. Spain, Italy, Germany and France have all seen over 100,000. President Donald Trump said on Wednesday evening that he would release guidelines for states to reopen their economies on Thursday. There have been at least 138,008 deaths worldwide from the virus, including more than 30,000 in the US, according to Johns Hopkins. – Lb
7:50 am: Schumer, Pelosi to continue talks with Treasury about additional virus reduction
7:48 a.m.: U.S. unemployment claims are expected to reach 5 million, released at 8:30 a.m.ET.
The Department of Labor is expected to publish its report on the number of Americans who claimed unemployment benefits last week at 8:30 am ET. Economists surveyed by Dow Jones expect initial claims for the week ending April 11 to be a total of 5 million, down from 6.6 million in the previous week, but still a historical record . Thursday’s release could mean the U.S. economy is reaching a major milestone amid the coronavirus outbreak: erasing all non-agricultural job gains since the crisis and financial crisis if claims exceed 5,662 million. – Franck
7:45 am: S&P 500 ‘back to duration,’ says Bank of America
The S&P 500 looks expensive again, Bank of American equity and quantitative strategist Savita Subramanian said in a note to clients on Thursday. Looking at 20 valuation frameworks, including lagging PE, EV / EBITDA and EV / sales, the company found that the benchmark index is “richer” than average on many of these key metrics. The three exceptions are ‘lower than the average free cash flow price, cheaper compared to bonds and compared to gold’. From a momentum and value point of view, Bank of America said that healthcare, technology and communications services look best, while materials, energy and consumer goods are worst. “Today’s valuations suggest that S&P 500 is 10-year annualized price returns of 4% -5% year-on-year. This is lower than the average return in previous decades and about half of the 8% annualized return that we have seen since enjoyed World War II (1947) … But looking at a total return of 6% to 8% (assuming a dividend yield of 2% to 3%), the annualized returns of US stocks are still highly competitive with other comparable quality ratings, “said Subramanian. –Stevens
7:42 a.m.: Morgan Stanley’s earnings fall short, but trade exceeds estimates
Morgan Stanley made a first-quarter profit on Thursday that missed analyst expectations, but the company’s trading desks generated approximately $ 700 million more than expected. The bank reported a release that profit was down 30% to $ 1.7 billion, or $ 1.01 per share, compared to the $ 1.14 analyst estimate that Refinitiv surveyed. Morgan Stanley shares fell 0.8% during premarket trading. – Son, Li
07:25: Stock futures point to modest outdoor earnings
Equity futures rose slightly on Thursday, after a large sell-off in the previous session, as both operating results and economic data raised concerns about an economic downturn caused by the coronavirus pandemic. Dow Jones industrial average futures wiped out previous losses and implied an opening gain of approximately 90 points. S&P 500 and Nasdaq futures also turned positive. Investors are bracing for the Labor Department report on last week’s first unemployed claims at 8:30 am ET, which economists by Dow Jones expected to total $ 5 million. – Li
– Covered by Noah Higgins-Dunn, Patti Domm, Jeff Cox, Gina Francolla, Thomas Franck, Michael Bloom, Hugh Son, Jesse Pound, Fred Imbert and Lauren Hirsch.
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