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Benchmarks closed mixed on Thursday, as investors struggled with poor jobs data and a selloff among tech shares. Nevertheless, the Dow booked its straight fourth-day gain and its longest run since mid-April.
The Dow Jones Industrial Average (DJI) gained 11.93 points, or less than 0.1%, to close at 26,281.82 and the S&P 500 slided 10.52 points, or 0.3% to close at of 3,112.35. While, the Nasdaq Composite Index closed at 9,615.81, shedding 67.10 points, or 0.7%. The fear-gauge CBOE Volatility Index (VIX) increased 0.6%, to close at 25.81. Advancing issues outnumbered declining ones for 1.08-to-1 ratio on the NYSE and a 1.14-to-1 ratio on the Nasdaq favored advancers.
How Did the Benchmarks Perform?
In the past few days markets have shown remarkable resilience since it plunged in late March. The Nasdaq, S&P 500 and Dow are still 3%, 9% and 12% lower than their respective record highs in February this year.
Of the 11 major sectors of the S&P 500, financials, industrials and materials sectors ended in the positive. Decline in shares of big tech companies weighed on the broader market. Shares of Facebook, Inc. and Netflix, Inc. (NFLX - Free Report) closed 1.7% and 1.8% lower, respectively.
On the contrary, reopening of the economy has helped the airlines industry rise. On Thursday, American Airlines Group Inc. (AAL - Free Report) reported plans to boost flights by 74% in July, indicating that the worst effects of the coronavirus pandemic-led travel standstill has passed. This cheered investors, helping shares close 41.3% higher, yesterday. Shares of United Airlines Holdings, Inc. (UAL - Free Report) , Delta Air Lines, Inc. (DAL - Free Report) and Southwest Airlines Co. (LUV - Free Report) closed 16.2%, 13.7% and 5.1% higher, respectively.
On Thursday, the Labor Department said that initial jobless claims have tapered off slowly since it had hit peak of almost 7 million in late March. Initial claims came in at 1,877,000, a decline of 249,000 from the previous week's revised level of 2,126,000 claims.
The figures surpass the consensus estimate of 1,822,000 but showed that the number of Americans filing for unemployment benefits dipped below 2 million for the first time since mid-March.
Continuing jobless claims rose by 437,072 for the week ending May 23, and continued to stabilize after a historic surge. While the data is still bleak, it also suggests that the US economy may have seen the worst of the coronavirus pandemic’s impact.
Investors await the Labor Department’s jobs report scheduled for release on Friday. Analysts expect the U.S. unemployment rate to hit a historic 19.5%.
ECB Approves Stimulus Package
On Jun 4, the European Central Bank delivered further stimulus to the economy, officials reported expansion of its Pandemic Emergency Purchase Program by $674.5 billion. The central bank also said announced that the program will be extended till June 2021. Officials also believe that the economy is showing signs to reach a lowest point, and expects the region’s economy to contract 8.7% in 2020.
The American counterpart, Federal Reserve is scheduled to hold its two-day policy meeting next week.
Charles Schwab’s (SCHW - Free Report) deal to acquire TD Ameritrade Holding (AMTD - Free Report) for $26 billion has received consent from the U.S. Department of Justice (“DOJ”). (Read More)
Broadcom (AVGO - Free Report) reported second-quarter fiscal 2020 non-GAAP earnings of $5.14 per share, which surpassed the Zacks Consensus Estimate by 0.2%. (Read More)
eBay’s (EBAY - Free Report) shares gained 6.3% after the company raised its second-quarter 2020 guidance. (Read More)
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2019, while the S&P 500 gained and impressive +53.6%, five of our strategies returned +65.8%, +97.1%, +118.0%, +175.7% and even +186.7%.
This outperformance has not just been a recent phenomenon. From 2000 – 2019, while the S&P averaged +6.0% per year, our top strategies averaged up to +54.7% per year.
Image: Bigstock
Stock Market News for June 5, 2020
Benchmarks closed mixed on Thursday, as investors struggled with poor jobs data and a selloff among tech shares. Nevertheless, the Dow booked its straight fourth-day gain and its longest run since mid-April.
The Dow Jones Industrial Average (DJI) gained 11.93 points, or less than 0.1%, to close at 26,281.82 and the S&P 500 slided 10.52 points, or 0.3% to close at of 3,112.35. While, the Nasdaq Composite Index closed at 9,615.81, shedding 67.10 points, or 0.7%. The fear-gauge CBOE Volatility Index (VIX) increased 0.6%, to close at 25.81. Advancing issues outnumbered declining ones for 1.08-to-1 ratio on the NYSE and a 1.14-to-1 ratio on the Nasdaq favored advancers.
How Did the Benchmarks Perform?
In the past few days markets have shown remarkable resilience since it plunged in late March. The Nasdaq, S&P 500 and Dow are still 3%, 9% and 12% lower than their respective record highs in February this year.
Of the 11 major sectors of the S&P 500, financials, industrials and materials sectors ended in the positive. Decline in shares of big tech companies weighed on the broader market. Shares of Facebook, Inc. and Netflix, Inc. (NFLX - Free Report) closed 1.7% and 1.8% lower, respectively.
On the contrary, reopening of the economy has helped the airlines industry rise. On Thursday, American Airlines Group Inc. (AAL - Free Report) reported plans to boost flights by 74% in July, indicating that the worst effects of the coronavirus pandemic-led travel standstill has passed. This cheered investors, helping shares close 41.3% higher, yesterday. Shares of United Airlines Holdings, Inc. (UAL - Free Report) , Delta Air Lines, Inc. (DAL - Free Report) and Southwest Airlines Co. (LUV - Free Report) closed 16.2%, 13.7% and 5.1% higher, respectively.
American Airlines, Delta Air Lines and United Airlines carry a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Disappointing Jobs Data
On Thursday, the Labor Department said that initial jobless claims have tapered off slowly since it had hit peak of almost 7 million in late March. Initial claims came in at 1,877,000, a decline of 249,000 from the previous week's revised level of 2,126,000 claims.
The figures surpass the consensus estimate of 1,822,000 but showed that the number of Americans filing for unemployment benefits dipped below 2 million for the first time since mid-March.
Continuing jobless claims rose by 437,072 for the week ending May 23, and continued to stabilize after a historic surge. While the data is still bleak, it also suggests that the US economy may have seen the worst of the coronavirus pandemic’s impact.
Investors await the Labor Department’s jobs report scheduled for release on Friday. Analysts expect the U.S. unemployment rate to hit a historic 19.5%.
ECB Approves Stimulus Package
On Jun 4, the European Central Bank delivered further stimulus to the economy, officials reported expansion of its Pandemic Emergency Purchase Program by $674.5 billion. The central bank also said announced that the program will be extended till June 2021. Officials also believe that the economy is showing signs to reach a lowest point, and expects the region’s economy to contract 8.7% in 2020.
The American counterpart, Federal Reserve is scheduled to hold its two-day policy meeting next week.
Stocks that Made Headline
Schwab-Ameritrade Deal Gets DOJ & Shareholder Nod, Stocks Up
Charles Schwab’s (SCHW - Free Report) deal to acquire TD Ameritrade Holding (AMTD - Free Report) for $26 billion has received consent from the U.S. Department of Justice (“DOJ”). (Read More)
Broadcom Q2 Earnings & Revenues Surpass Estimates
Broadcom (AVGO - Free Report) reported second-quarter fiscal 2020 non-GAAP earnings of $5.14 per share, which surpassed the Zacks Consensus Estimate by 0.2%. (Read More)
eBay Lifts Q2 Guidance Amid Coronavirus Pandemic
eBay’s (EBAY - Free Report) shares gained 6.3% after the company raised its second-quarter 2020 guidance. (Read More)
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2019, while the S&P 500 gained and impressive +53.6%, five of our strategies returned +65.8%, +97.1%, +118.0%, +175.7% and even +186.7%.
This outperformance has not just been a recent phenomenon. From 2000 – 2019, while the S&P averaged +6.0% per year, our top strategies averaged up to +54.7% per year.
See their latest picks free >>