Connect with us

Top News

Stocks sharply lower, Dow off nearly 500 points after grim jobless claims, worst GDP reading on record

Published

on

Stocks sharply lower, Dow off nearly 500 points after grim jobless claims, worst GDP reading on record

U.S. stocks traded sharply lower Thursday, dogged by economic reports showed the steepest decline in GDP on record in the second quarter and a weekly jobless claims report that suggests the rebound from the pandemic is losing steam amid a renewed rise in COVID-19 cases.

A lack of progress in talks between congressional Democrats, Republicans and the White House on a new coronavirus aid package was also weighing on sentiment. Stock-index futures also took a leg lower before the bell after President Donald Trump, in a tweet, mused on the idea of delaying the November presidential election.

What are major indexes doing?

The Dow Jones Industrial Average
DJIA,
-1.29%

was trading down about 486 points or 1.8%, near 26,053 while the S&P 500
SPX,
-1.00%

lost about 48 points, 1.5%, to trade near 3,211. The Nasdaq Composite Index
COMP,
-0.50%

dropped 112 points, 1.1%, trading at about 10,431.

At current trading levels, the Dow is on pace to close below its 50-day moving average for the first time since April 24, according to Dow Jones Market Data. If it closes at or below 26039.97 it will reach that level.

On Wednesday, the Dow rose 160.29 points, or 0.6%, to close at 26,539.57, while the S&P advanced 40 points, or 1.2%, finishing at 3,258.44. The Nasdaq Composite  jumped 140.85 points, or 1.4%, to end at 10,542.94.

What’s driving the market?

A first reading on U.S. gross domestic product data for the second quarter confirmed the pandemic pummeled the economy. GDP fell at a 32.9% annualized pace, the Commerce Department said, a bit better than the 34.6% annual decline forecast in a MarketWatch survey, but still the worst in history.

Separately, first-time claims for unemployment benefits rose slightly last week, to 1.43 million from an upwardly-revised 1.42 million, while continuing claims also rose to 17 million in the week ended July 18.

See also  Trump said intelligence about the Russian-Taliban bounty plan cannot be trusted

“This is really a day that will live in infamy,” said Kent Engelke, chief economic strategist and managing director of Glen Allen, Va-based Capitol Securities. The economic data wasn’t as bad as feared, Engelke said in an interview just before the opening bell, but four of five of the largest companies in the market report earnings after the close, an event that could be “pivotal,” he added.

“We have this incredible wall of worry,” Engelke said. “The Fed told us yesterday, we’re going to keep zero interest rates forever and ever. But how is this going to impact us down the road? Gold and the dollar are telling us something. What about November? The election is going to get uglier and uglier. How is this going to weigh on sentiment? I could see the wall of worry increasing to a gargantuan cliff.”

There were no signs of progress toward a spending package as lawmakers face a self-imposed Friday deadline to work out a deal. That’s when supplemental unemployment benefits, which have been credited with helping to cushion the blow of the pandemic, are due to expire.

Stocks extended gains Wednesday after the Fed left interest rates unchanged as expected, and indicated that it planned to keep rates near zero and continue to provide support to the economy — and do more if needed. Fed Chairman Jerome Powell warned that the resurgence in coronavirus cases in many U.S. states may be damping economic growth and said that the path of the recovery depends on the path of the virus.

See also  Zuckerberg said Facebook staff can work from anywhere - for a certain price

It’s the most hectic week of corporate earnings reporting season, with results from dozens of high-profile companies due after the bell on Thursday, including Google parent Alphabet Inc.
GOOG,
-0.53%

GOOGL,
-0.51%
,
Apple Inc.
AAPL,
-0.30%

Facebook Inc.
FB,
-0.51%

and Amazon.com Inc.
AMZN,
-0.18%

Chief executives from those four companies were grilled for hours Wednesday in a virtual hearing before the antitrust subcommittee of the House Judiciary Committee.

Read:Amazon, Apple, Facebook and Google CEOs grilled by House members in historic antitrust hearing

Which companies are in focus?
  • Procter & Gamble Co.
    PG,
    +2.29%

    shares jumped nearly 2% after the consumer products company delivered fiscal fourth-quarter profit and revenue that topped expectations and provided an upbeat outlook, driven by increased demand for household cleaning and personal health products amid the COVID-19 pandemic.

  • Shares of United Parcel Service Inc.
    UPS,
    +17.10%

    surged nearly 13%, after the package delivery giant reported second-quarter profit and revenue that easily topped forecasts, driven by a surge in residential demand and health care shipments that emerged from the COVID-19 pandemic.

  • ConocoPhillips
    COP,
    -5.48%

    reported a quarterly loss that was wider than Wall Street had expected. Stay-at-home orders and the slumping oil price pushed earnings down sharply, management said. Shares were more than 9% lower mid-morning.

  • Keurig Dr. Pepper Inc.
    KDP,
    -3.83%

    reported adjusted earnings that beat analyst forecasts as consumers increasingly used its K-cup coffeemakers at home during the pandemic. Shares fell 2.3%.

  • Yum Brands Inc.
    YUM,
    -3.34%

    shares were down 2.8% after the parent company of Taco Bell, KFC and Pizza Hut reported earnings that weren’t as bad as analysts had anticipated.

  • Eli Lilly shares
    LLY,
    -6.12%

    were down more than 4% after the drugmaker beat profit expectations and raised its full-year outlook, while revenue fell short of forecasts.

  • Northrop Grumman
    NOC,
    +4.13%

    Shares of  
    jumped 4% after the defense contractor delivered larger-than-expected profit and sales for the second quarter and raised its full-year guidance.

  • DuPont shares
    DD,
    -2.39%

    were down more 4.8% after the chemical company reported a wider-than-expected loss.

  • Dunkin’ Brands
    DNKN,
    -4.95%

    reported second-quarter adjusted profit that fell below expectations, but revenue that fell less than forecast and announced the reinstatement of its dividend program.

See also  The Mets World Series hurts the Mets among the biggest what-ifs
What are other markets doing?

In Asia, China’s CSI 300 index
000300,
-0.48%

fell 0.5%, the Shanghai Composite
SHCOMP,
-0.23%

declined 0.2%, Hong Kong’s Hang Seng Index
HSI,
-0.69%

lost 0.7% and Japan’s Nikkei 225
NIK,
-0.25%

gave up 0.3%.

European bourses widened their losses, with the Stoxx 600 Europe index
SXXP,
-2.40%

down 2.5% and the U.K.’s FTSE 100
UKX,
-2.61%

2.9% lower.

Gold futures
GCQ20,
-0.89%

were off 0.3% at $1,948.00 an ounce, on track to snap a nine-session winning streak, while the ICE U.S. Dollar Index
DXY,
-0.13%

edged down 0.1%. Oil futures
CLU20,
-3.61%

were lower on demand concerns, with the U.S. benchmark
CLU20,
-3.61%

falling 4% to $39.59 a barrel on the New York Mercantile Exchange.

The yield on the 10-year U.S. Treasury note
TMUBMUSD10Y,
0.551%

dropped 2.6 basis points to 0.55%. Yields move in the opposite direction of prices.

Read next:‘The stock market no longer thinks it needs the economy if it has the Fed,’ David Rosenberg says

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Top News

Lucas Chazarreta becomes the Portuguese market leader Japan Tobacco International – Marketing Specialist

Published

on

Lucas Chazarreta becomes the Portuguese market leader Japan Tobacco International - Marketing Specialist

Lucas Chazarreta has become the new CEO of Japan Tobacco International (JTI) for the Portuguese market. The professional replaced Yannick Giraud as the head of a team of 46 professionals at the Japanese multinational corporation that produces the tobacco brands Winston and Camel.

Lucas Chazarreta, 42, born in Argentina, has been with JTI since 2004. He holds a business administration degree from the Pontifical Catholic University of Rio de Janeiro and a degree in marketing from Martin College in Australia, and attended the Swiss School of Rio de Janeiro in January.

Lucas Chanzarreta has over 15 years of experience at JTI, having come to Portugal from Mexico. Previously, he has served as General Manager of the JTI Americas Cluster (Argentina, Bolivia and Peru) and Director of Marketing and Trade Marketing for Brazil, Peru and Argentina.

“My mission is to drive sustainable growth in the organization’s profitability and market share, and to provide professional growth opportunities for my team members. JTI has a very successful track record in Portugal, being the fastest growing company in the sector for several consecutive years. This growth is based on a portfolio of world famous brands and a very well trained and professional team of employees,” Lucas Chazarret said in a statement.

See also  Trump said intelligence about the Russian-Taliban bounty plan cannot be trusted
Continue Reading

Top News

Portimonense beat Pacos de Ferreira to become Portuguese champion

Published

on

This Monday, Portimonense took their first win of the season at Portuguese Championship when visiting Pacos de Ferreira. The guests came out victorious, defeating the hosts with a score of 3:0.

Pacos de Ferreira takes on Estoril in the next round. The match will take place next Friday at 16:15 (Brazil time). With the defeat, the hosts continue without points and occupy the 15th position.

Portimonense finishes the second round of the Portuguese Championship in seventh position with three points. The team’s next match will be against Vitoria de Guimarães on Sunday at 16:30 at the Municipal Stadium of Portimão.

The first goal of the match was scored in the 31st minute. Iago Cariello shot on goal and fired into the right corner. Guests only increased their advantage in the final segment of the match, when in the 35th minute of the second half, Lukinha received at the entrance to the penalty area and hit hard.

The third and final goal of the game was scored four minutes later, in the 39th minute: Everton got a free kick in the penalty area and hit the net.

Check out the results of this Monday in the championship of Portugal:

nautical 1 x 2 Chavez
Aroca 1 x 0 Gil Vicente

Leave your comment

See also  Black Lives Matter protested throughout the US and the world: Immediate renewal
Continue Reading

Top News

Is there an exam in Brazilian Portuguese?

Published

on






if you are studying Brazilian Portuguese more likely than European Portuguese, you might be wondering which exam you can work on. Most people are familiar with the Portuguese CAPLE system, which corresponds to the A1, A2, B1, B2, C1 and C2 format of the European CEFR (Common European Framework of Reference for Languages) standard.

Although there are many crossovers between European Portuguese and Brazilian Portuguese and they are essentially the same language, many people choose to focus on Brazilian Portuguese rather than European Portuguese. In most cases, if you’re planning to live in Portugal, you should probably focus on European Portuguese, as that’s what you’ll be in the most contact with. However, there are several reasons why you might decide that Brazilian Portuguese is the right choice for you.

The first and main reason if you are planning to move to Brazil is mainly for work or study. CELPE-Bras is the only language proficiency test recognized by the Brazilian Ministry of Education that may be required for a position or vacancy at a Brazilian university. Another reason could be that you don’t spend much time in Portugal and speak more Brazilians than Portuguese.

CELPE-Bras exam levels: Intermediate, Upper Intermediate, Advanced and Upper Advanced. They roughly correspond to B1, B2, C1 and C2. Once you have decided which level you want to test at (eg B2), the next step is to find a course that will take you to that level. Portuguese Pod101 e Portuguese semantics both offer content at this level, for example.

See also  Portuguese environmentalists argue that the General Agricultural Policy Plan does not promote more sustainable agriculture.

It is recommended to sign up for the test in advance or at least set a date for the test. You should also read about what the test includes, which is a 20 minute oral component and a 3 hour written component based on the texts you read and the video and audio you listen to.

Some people are tempted by Brazilian Portuguese as it seems to be easier than European Portuguese, but that is not a good reason to learn it instead of Portuguese Portuguese. In addition, if you plan to apply for citizenship in Portugal – for example, if you qualify after five years of residence in Portugal – you will need to submit Portuguese level A2, which is actually a level below the easiest level you can get through in CELPE-Bras: Intermediate.

If you are interested in Brazilian Portuguese but want to learn Portuguese as a world language, there is a book dedicated to this: Meeting point: Portuguese as a world language. You can also find Brazilian and Portuguese teachers on websites like Italki which can help you practice your conversation and correct it when you confuse the two. However, in general, most courses focus on one or the other, so you need to figure out how to learn and support both.

Continue Reading

Trending