The euphoria subsides on Wall Street, but the indices are reluctant to abandon their recent and sustained comeback. Not even evidences of economic slowdown as evident as those that are coming to light in the US this Thursday cause a deep correction in the New York parquet.
In the past week, another 2.13 million Americans have applied for federal unemployment benefits. In total, more than 40 million citizens have lost their jobs since the coronavirus arrived in the country, which is the highest number since the Great Recession. It is not surprising that with these figures the GDP estimate for the first quarter of the year has been revised downwards, down to -5%.
With this backdrop, the Dow Jones rises 0.1% and revalidates 25,500 points. 0.2% adds the S&P 500, which revalidates above 3,000 integers. The tech Nasdaq, more hesitant in recent days, is up 0.1% to stay above 9,400 points.
This is how Wall Street opens
In the results season it is time to quote the HP accounts. The printer manufacturer has announced a net profit of 764 million dollars in its second fiscal quarter, which is 2.3% less than a year ago. The coronavirus translates into a drop in sales of 11.2% between February and April in the multinational led by the Spanish Enrique Lores.
Auto maker Tesla is in focus after a report by consulting firm IHS Markit has pinpointed it as a leader in the electric vehicle market. In the first four months of the year, the American captured a market share of 24%, well ahead of the following in the ranking: the German BMW and Volkswagen, with 7% each.
Less friendly are the news coming from the White House for social media companies like Twitter and Facebook. The Wall Street Journal publishes this Thursday that the Trump administration is preparing an executive order to limit the broad federal legal protection that these platforms enjoy, which would be a response to the decision of the bird network to mark a message from the presidents as potentially misleading.
As for the de-escalation, Under Armor goes up after learning that the textile retailer is finalizing the reopening of its stores in the US for this weekend. The company has announced a comprehensive health and hygiene prevention plan to reopen with full guarantees.