The number of Americans who filed new claims for unemployment benefits last week totaled 1.434 million, the Labor Department reported Thursday, roughly in line with expectations, as the coronavirus pandemic continues to ravage the U.S. economy. It was the 19th straight week in which initial claims totaled at least 1 million and the second consecutive week in which initial claims rose after declining for 15 straight weeks.
Economists polled by Dow Jones had expected claims to rise to 1.45 million for the week ending July 25.
In a separate report, the government said second-quarter gross domestic product plunged a historic 32.9% on an annualized basis. Although it wasn’t as bad as the expected 34.7% decline, it was the worst drop ever, with the closest previously coming in mid-1921.
Stocks fell for a second day on Thursday following the release of disappointing unemployment data while traders grappled with a rising number of coronavirus cases. The Dow Jones Industrial Average traded 200 points lower, or 0.8%. The S&P 500 slid 0.7% while the Nasdaq Composite dropped 0.8%. An additional 1.48 million Americans filed for unemployment benefits last week, the Labor Department said. Economists polled by Dow Jones expected a print of 1.35 million. This marks the second straight week that U.S. jobless claims data were worse than expected.
“No matter which way you look at it, over a million unemployed is a very bad thing,” said Mike Loewengart, managing director of investment strategy at E-Trade. “It will take some time to unwind the structural damage COVID has caused across the world.”
“While it’s certainly uncomfortable, the everyday investor should be used to ongoing market volatility at this point,” Loewengart said.
The Dow Jones Industrial Average was down around 500 points, or 2 percent, shortly after market open. The tech-heavy Nasdaq was down 108 points, and the Standard & Poor’s 500 index was down 57 points.
The downturn continued last week’s slide, which was the sharpest plummet since mid-March, prompted by the health and economic crises, despite a hopeful Friday rebound.
As of Monday, at least 114,000 people had died in the United States from covid-19, the disease caused by the coronavirus, in every state since February. At least 2,087,000 cases have been reported. Public health officials fear new surges after large Memorial Day crowds and protests in cities across the U.S. and states launch reopenings.
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An internal Trump administration report expects about 200,000 daily cases by June. The White House bars coronavirus task force officials from testifying to Congress without approval.
A Trump administration projection and a public model predict rising death tolls.
As President Trump presses for states to reopen their economies, his administration is privately projecting a steady rise in the number of coronavirus cases and deaths over the next several weeks. The daily death toll will reach about 3,000 on June 1, according to an internal document obtained by The New York Times, a 70 percent increase from the current number of about 1,750.
The projections, based on government modeling pulled together by the Federal Emergency Management Agency, forecast about 200,000 new cases each day by the end of the month, up from about 25,000 cases a day currently.
The numbers underscore a sobering reality: The United States has been hunkered down for the past seven weeks to try slowing the spread of the virus, but reopening the economy will make matters worse.
“There remains a large number of counties whose burden continues to grow,” the Centers for Disease Control and Prevention warned.
3,606,038 confirmed infections, up from 3,529,408 yesterday.
252,151 confirmed deaths, up from 248,025 yesterday.
1,180,634 confirmed infections, up from 1,159,245 yesterday.
68,934 confirmed deaths, up from 67,710 yesterday.
The Dow is up over 350 points, rising again into the 24k range.
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A Florida Woman who insisted to cops that she was allowed to go topless while cleaning out her garage–in full view of her neighbors–was arrested for indecent exposure, according to a police report.
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U.S. stock benchmarks on Tuesday rose at the open, buoyed by optimism about the easing of restrictions on economic activity, in states like California, and a sharp rally in crude-oil prices. Wall Street also was watching for updates on corporate results from the likes of Dow component Walt Disney & Co. DIS, +1.72% and others. The Dow Jones Industrial Average DJIA, 1.48% rose 300 points, or 1.3%, at 24,051, the S&P 500 index was up 1.4% at 2,880, while the Nasdaq Composite Index COMP, 1.79% was rising 1.4% at 8,835. Gains on the morning were coming as West Texas Intermediate crude-oil prices CL.1, 16.53% for June surged nearly 15% early Tuesday. California Gov. Gavin Newsom on Monday said that clothing stores and a number of other retailers could open for curbside pickup on Friday, among a number of states that are slowly attempting to unwind measures put in place to limit the COVID-19 disease. Meanwhile, in economic news, the U.S. trade deficit widened by almost 12% in March as the coronavirus pandemic grounded international flights, froze the global tourism industry and caused massive disruptions in the exchange of goods such as new cars and iPhones.