Cisco, a Dow component, fell 11.2%, dragging the Dow down after the company announced a 5% year-on-year drop in revenue. Shares of companies that will benefit from the economic recovery also generally fell. Gap fell 2.3%, American Airlines and Southwest Airlines fell 1.3%.
Apple closed up 1.8%, setting a new closing record. Nike was up 1.2%, Merck was up 1.1%, and Minnesota Mining Manufacturing was up 1%.
some analysts believe that despite economic and political uncertainty, the slowdown in the growth of coronavirus cases in the United States and better than expected performance of major companies have supported us stocks. On Wednesday, Texas’s number of hospitalized coronavirus cases fell to its lowest level since early July, and California’s number of hospitalized cases also showed a downward trend, with governor Gavin Newsom suggesting that the state’s virus epidemic is “turning around.”.
ed clissold, chief U.S. strategist at ned David research group, said: “it is conceivable that there will be no more large-scale downtime. The growth of coronavirus infections has also improved across the sunshine zone
he added: “the whole earnings season is coming to an end, and the rate of outperformance (that is, the percentage of companies that exceed expectations) is actually on the verge of reaching an all-time high of 84%. So that’s good news for market trading. ”
after the closing of the market on Wednesday, LYFT (LYFT) reported a lower than expected loss in the second quarter, with revenue falling 61% in the second quarter than expected, which was due to the sharp drop in travel demand caused by the coronavirus epidemic. The company said passenger travel increased 78% in July from its April low. The company maintains its outlook and expects adjusted EBITDA earnings by the end of next year.
last week, the number of people applying for unemployment benefits for the first time in the United States since the outbreak of the pandemic in March was less than 1 million, indicating that as the spread of coronavirus slows down, the momentum for economic recovery has increased.
data released by the U.S. Department of labor on Thursday showed that the number of first-time jobless claims under the regular state unemployment relief program fell by 228000 to 963000 in the week ending August 8. Continued claims for unemployment benefits fell to 15.5 million in the week ending August 1, the lowest level since early April.
the median forecast of economists was that 1.1 million people applied for unemployment relief for the first time and 15.8 million people continued to apply for unemployment relief.
the drop in the number of people applying for unemployment benefits for the first time came after the decline of new cases of coronavirus infection, which highlights the importance of controlling the virus for the economy. By most indicators, the US economy is still far below its pre crisis level. At the same time, the recent drop in initial jobless claims may also reflect a weakening willingness to file for unemployment benefits after the $600 weekly additional federal unemployment benefits expire.
the labor market is still facing challenges, including students’ online learning, forcing Americans to stay at home to take care of their children, and the lack of progress in the new economic stimulus package.
U.S. President trump last weekend authorized $300 a week in federal aid to unemployed Americans, less than the $600 weekly relief due in July, and the program could run out of money in two months.
state governments can choose to add $100 to $300, but the labor department clarified on Wednesday that $100 could include regular unemployment benefits already paid by States. The legitimacy and validity of Trump’s action, as well as the decision to postpone the payment of pay tax for four months, is unclear.
investors also continue to hope that members of Parliament will finally reach a compromise and pass another epidemic relief plan. However, as policymakers continue to argue verbally rather than return to the negotiating table, the prospects for a near-term agreement look bleak.
U.S. Treasury Secretary manuchin hinted in an interview on Thursday that the White House would not give in despite calls from lawmakers for at least $2 trillion in aid, and would stick to the $1 trillion plan proposed by Senate Republicans.
Senate leader Chuck Schumer and House Speaker Nancy Pelosi said in a joint statement in response to Mr. manuchin’s speech that they “clearly” stated that “if the Senate plan can increase $1 trillion, it will be willing to reduce $1 trillion.”
Pelosi said she had rejected the “proposal” by Treasury Secretary manu munchin to restart a new round of stimulus negotiations because the White House demanded a reduction in the size of the stimulus and would not give in on the issue. But Mr. mnuchin said it was Pelosi who refused to compromise, and the talks remained deadlocked and showed no signs of easing up.
Pelosi said in a joint statement with Senate leader Schumer on Wednesday. “We have made it clear to the government that if they are willing to increase $1 trillion, we are willing to reduce $1 trillion, and when they start to take this procedure seriously, we are willing to resume negotiations.”
one of the biggest arguments between the two sides is aid to state and local governments. People have proposed to cut the size of the original $3.5 trillion proposal by about a third, but insist on retaining nearly $1 trillion for governments outside Washington. The trump administration and congressional Republicans say they have provided enough help to state and local officials and provided $150 billion more than the original proposal of about $1 trillion.
one member said there would be no negotiations unless the White House increased its size. In response, mnuchin said in a statement that Pelosi misinterpreted their dialogue.
mnuchin said: “she had made it clear that she would not continue negotiations unless we agreed with her proposal in advance, which costs at least $2 trillion.” He added that the government wanted to agree on a package of measures to meet the needs of a range of outbreaks, but “there is no interest in consultation.”
Mr. mnuchin said earlier that Congress could pass a “little more than $1 trillion” stimulus plan first, and then discuss the additional stimulus measures needed next.
Mr. mnuchin reiterated on Wednesday that the government hoped that Congress would finally approve the exemption of the salary tax that trump had allowed to pay late in his administrative memorandum over the weekend. According to estimates by the federal budget accountability Committee, the cost could be $100 billion.
mnuchin also said that the Ministry of finance was studying the guidelines for delayed payment of salary tax. The main challenge for the Department is that some employers are concerned that if they send money to employees for tax deferral, they will face huge payment needs once the delay period is over.
US President trump said on Thursday that Biden’s accession to the White House would collapse the market, bring “the largest tax increase in history” to the United States and lead the economy back to the 1929 style great depression.
trump said: “they want to tax $4 trillion, which will be the biggest tax increase ever. This is not going to work. We’re going to have an unprecedented depression, just like 1929. I don’t think it will work. It can’t be worse. ”
trump did not forget to praise the performance of the US stock market during his tenure. “We are in the middle of a pandemic, but the stock market is still going to set new records, and the NASDAQ has been (record setting) many times.”
trump said: “in the past, politicians talked about tax cuts, not tax increases. I’ve never heard an elected politician say, “we’re going to tax you more.”
according to the analysis of the tax foundation, Biden’s tax policies (including increasing taxes on individuals with an annual income of more than $400000) will increase tax revenue by $3.8 trillion in the next 10 years.
Biden announced its tax plan in January. Researchers at the Wharton School of business at the University of Pennsylvania estimated that the program would raise only $2.3 trillion to $2.6 trillion, at least $600 billion less than Biden’s target. In addition, the impact of the tax plan on GDP and the overall economy is negligible. The study estimates that the tax plan will reduce economic growth by 0.1% by 2030 and 0.1% by 2050.
Apple plans to launch “apple one” subscription bundle to improve service level. According to media reports, Apple will launch a series of bundled subscription services called “apple one” as soon as October, which will allow users to subscribe to multiple Apple digital services at a price lower than that of individual subscription to these services.
gold futures closed higher on Thursday. U.S. initial jobless claims data released today fell below 1 million for the first time since the outbreak of the coronavirus five months ago. Gold prices overcame the negative impact of the data, recording a second consecutive day of gains.
the U.S. Labor Department said on Thursday that the number of U.S. initial jobless claims fell to 963000 last week. This is the second consecutive week of decline in Tai Fu, and also the first time in more than 20 weeks that it has dropped below 1 million. This week’s initial jobless claims improved compared with 1.19 million initial jobless claims at the end of July.
will Cai, partner and director of the Wilshire Phoenix fund, said: “in the current uncertain period, we expect gold prices to fluctuate. This week’s gold price correction is not unexpected, and some even hope it will, as profit taking, price retracement and consolidation may lay the foundation for further gains. ”
the price of gold futures for December delivery on the New York Mercantile Exchange rose $21.40, or 1.1%, to $1970.40 an ounce, with an intraday low of $1923.
analysts said the news of the diplomatic agreement between the United Arab Emirates and Israel also put pressure on crude oil prices, as the agreement eased the risk of crude oil supply in the Middle East.
WTI for September delivery on the New York Mercantile Exchange fell 43 cents, or 1%, to $42.24 a barrel.