WASHINGTON (AP) — The U.S. economy shrank at a dizzying 32.9% annual rate in the April-June quarter — by far the worst quarterly plunge ever — when the viral outbreak shut down businesses, throwing tens of millions out of work and sending unemployment surging to 14.7%, the government said Thursday.
The Commerce Department’s estimate of the second-quarter decline in the gross domestic product, the total output of goods and services, marked the sharpest such drop on records dating to 1947. The previous worst quarterly contraction, a 10% drop, occurred in 1958 during the Eisenhower administration.
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.
U.S. stock benchmarks held in positive territory midday Friday, but traded well off their opening peaks, as Wall Street attempted to recapture losses from the sharpest selloff for the market since mid-March on Thursday.
How are benchmarks faring?
The Dow Jones Industrial Average US:DJIA gained 202 points, or 0.8%, to trade at around 25,330 early afternoon after earlier touching an intrasession peak at 25,965.55 and a low at 25,183.
Meanwhile, the S&P 500 index US:SPX was up 12 points, or 0.4%, at about 3,014, off its intraday peak at 3,088 but also off its low at 3,003.10. The Nasdaq Composite Index US:COMP climbed 27 points, or 0.3%, to roughly 9,520, after briefly slipping into negative territory at 9,485.04.
On Thursday, the Dow closed down 1,861.82 points, or 6.9%, to 25,128.17, the S&P 500 US:SPX was down 188.04 points, or 5.9%, to finish at 3,002.10, and the Nasdaq Composite US:COMP ended down about 527.62 points, or 5.3%, at 9,492.73, one day after charting a record above 10,000.
A report that China has halted some U.S. farm imports sent U.S. stock futures lower ES00, -0.04% early on Monday. Bloomberg News reported China told state-run companies to pause purchases of U.S. products including soybeans, as pork products orders also were cancelled, the report said. European stocks SXXP, +0.79% also moved off the highest levels of the session.
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3,139,415 confirmed infections, up from 3,061,521 yesterday.
218,456 confirmed deaths, up from 212,083 yesterday.
Trump issues Executive Order forcing meat packing plants to stay open or re-open, citing DPA.
Editorial: US GDP fell 4.8 percent in the first quarter, which is really bad since we didn’t shut down businesses until March.
That figure could be 3x higher. Or worse. In July, when we’re still sheltered in place, let’s see what the Q2 figure is. I bet it’s FAR WORSE than 4.8 percent.
I hope I’m wrong.
The Dow is up about 400, hitting the mid-24k range.
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Editorial: I’m leaving this one here because it got a ton of play last week and over the weekend. I even lost a few friends over it because they believe him. I don’t know which stance they believe (that he was spit-balling solutions, he was being serious, he was being sarcastic), but they believe him.
This is, of course, proof that Trumplodytes are members of a cult.
ANNAPOLIS, Md. — Maryland’s health department fielded hundreds of calls from residents asking about ingesting disinfectants after President Donald Trump wondered aloud if that could fight COVID-19, Gov Larry Hogan said Sunday.
The Republican governor spoke about the emergency hotline calls and Trump’s offhand comment during appearances on CBS’ “Face The Nation” and ABC’s “This Week” on Sunday morning. On Friday, the Maryland Emergency Management Agency tweeted a “reminder” that under no circumstances should any disinfectant be injected or ingested.
Hogan said “communicating very clearly on the facts” has been important to him since the COVID-19 pandemic began.
“I think when misinformation comes out or you just say something that pops in your head, it does send a wrong message. We had hundreds of calls come into our emergency hotline at our health department asking if it was right to ingest Clorox or alcohol cleaning products, whether that was going to help them fight the virus,” he said during his ABC appearance.
During a press briefing on Thursday, Trump said research was underway into the effect that disinfectants have on the virus and questioned if they could be injected into people.
“Is there a way we can do something like that, by injection inside or almost a cleaning?” Trump asked. “Because you see it gets in the lungs and it does a tremendous number on the lungs. So it would be interesting to check that.”
The White House accused the media of misrepresenting the president’s comments. Trump said he had been speaking sarcastically.
Hogan said Trump needs to “stick to a message and make sure that these press conferences are fact-based.”
“I think other people in the administration have been trying to make that clear to him, as well,” he added.Source
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