Stocks rise ahead of September jobs report and ongoing stimulus talks
American Airlines, United and Disney are slashing workers
Mnuchin: 'We're prepared to do' stimulus deal if 'fair compromise'
Treasury Secretary joins 'Lou Dobbs Tonight' to discuss the state of negotiations for coronavirus relief bill.
Stocks locked in gains on the first trading day of October in what was a choppy session as investors look ahead to Friday's jobs report and as they monitored the back and forth of ongoing stimulus talks.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| I:DJI | DOW JONES AVERAGES | 44782 | -128.65 | -0.29% |
| SP500 | S&P 500 | 6047.15 | +14.77 | +0.24% |
| I:COMP | NASDAQ COMPOSITE INDEX | 19403.947849 | +185.78 | +0.97% |
The Dow Jones Industrial Average briefly touched 28,000 but pared gains to close 35 points higher. The S&P 500 rose 0.53% while the Nasdaq Composite gained over 1.4%.
Apple, Facebook Inc., Amazon Inc. Alphabet and Netflix Inc. powered the way for the large-cap tech.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| AAPL | APPLE INC. | 239.59 | +2.26 | +0.95% |
| FB | NO DATA AVAILABLE | - | - | - |
| AMZN | AMAZON.COM INC. | 210.71 | +2.82 | +1.36% |
| NFLX | NETFLIX INC. | 897.74 | +10.93 | +1.23% |
Economic Data Mixed ahead of September Jobs Data
On the economic front, data was mixed.
A weaker read on ISM Manufacturing PMI came in at 55.4 below the 56 level that was expected.
837,000 AMERICANS FILE FOR UNEMPLOYMENT BENEFITS
While U.S. weekly jobless claims came in at 837,000, slightly lower than the 850,000 that was expected but still elevated. And personal Consumption rose 1% stronger than expected, as consumers spend, but income dipped -2.7% as the pandemic crushed jobs. Core PCE for August rose 0.3%.
Investors are also looking ahead to Friday's jobs data in which unemployment is expected to drop to 8.2% as employers added an estimated 850,000 jobs.
Stimulus Talks Keep Going
As for the developments on stimulus talks, in a late-morning news conference, Speaker of the House Nancy Pelosi said she was hopeful Congress would be able to reach a stimulus agreement with the White House, however, both sides are far apart as it pertains to state and local aid.
Treasury Steven Mnuchin, who is handling negotiations for the Trump administration, told FOX Business late Wednesday, the administration would not agree to the $2.2 trillion stimulus deal put forth by congressional Democrats. Instead, President Trump instructed his negotiators to go above and beyond the Republican's initial $1 trillion offer, which Mnuchin described as "in the neighborhood" of $1.5 trillion. The plan may also include another round of payments to Americans of $1,200.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| AAL | AMERICAN AIRLINES GROUP INC. | 14.61 | +0.09 | +0.62% |
| UAL | UNITED AIRLINES HOLDINGS INC. | 97.44 | +0.61 | +0.63% |
| DAL | DELTA AIR LINES INC. | 63.41 | -0.41 | -0.64% |
Also included in the proposal would be an additional $20 billion in aid for the battered airline industry. On Wednesday, both American Airlines and United Airlines said they would furlough 19,000 and 13,000 employees respectively while Delta is moving to avoid furloughs.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| GS | THE GOLDMAN SACHS GROUP INC. | 601.71 | -3.86 | -0.64% |
| ALL | THE ALLSTATE CORP. | 204.39 | -3.00 | -1.45% |
| DIS | THE WALT DISNEY CO. | 117.16 | -0.31 | -0.26% |
Late Wednesday, Goldman Sachs Group and Allstate announced they would resume layoffs. Goldman will cut approximately 1% of its workforce, or 400 people, according to Bloomberg, which first reported the news.
Allstate Inc. will cut 3,800 jobs, taking a $290 million restructuring charge, as it grapples with record low-interest rates and tries to lower costs.
"Implementing this plan is difficult as we still deal with the impact of the pandemic but necessary to provide customers the best value," said Tom Wilson, Chair, President and CEO of Allstate, in a release. "We have expanded transition support for impacted employees including prioritized internal hiring, extended medical coverage, expanded retraining support and help in employment searches."
This comes as Disney announced plans to cut 28,000 employees.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| F | FORD MOTOR CO. | 11.13 | +0.03 | +0.27% |
And Ford CEO Jim Farley announced a restructuring Thursday morning, which included naming a new CFO John Lawler.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| BA | THE BOEING CO. | 156.54 | +1.10 | +0.71% |
Boeing Inc. also said it would consolidate 787 production in South Carolina in 2021, as the airline industry continues to deal with the long-term effects of the pandemic. Production at its facility in North Charleston, S.C. will be impacted, starting the middle of next year, as the company looks to preserve liquidity.
"We recognize that production decisions can impact our teammates, industry and our community partners," Stan Deal, president and chief executive officer of Boeing Commercial Airplanes, said in a statement. "We extensively evaluated every aspect of the program and engaged with our stakeholders on how we can best partner moving forward. These efforts will further refine 787 production and enhance the airplane's value proposition."
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| STM | STMICROELECTRONICS NV | 26.12 | +0.62 | +2.43% |
STMicroelectronics gained after the semiconductor manufacturer raised its 2020 revenue outlook on the back of strong third-quarter results.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| JPM | JPMORGAN CHASE & CO. | 249.72 | -0.07 | -0.03% |
| C | CITIGROUP INC. | 70.87 | +0.71 | +1.01% |
| WFC | WELLS FARGO & CO. | 76.17 | -1.04 | -1.35% |
Bank stocks, including JPMorgan Chase & Co., Citigroup Inc. and Wells Fargo & Co. will be active after the Federal Reserve extended its dividend and buyback cap for Wall Street banks as a result of the coronavirus pandemic.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| MSFT | MICROSOFT CORP. | 430.98 | +7.52 | +1.78% |
| GOOGL | ALPHABET INC. | 171.49 | +2.54 | +1.50% |
Microsoft Inc. unveiled the new Surface Go laptop, aiming to undercut Google Chromebooks and Apple's MacBook Air. The laptop, which will start at $549, has a 12.4-inch display, Intel Core i5 processor, 64GB of storage and 4GB of RAM. Pre-orders are available now and will be available for sale on Oct. 13. On Wednesday, Google announced several new devices, including a new Google Chromecast with Google TV, Nest streaming speaker and several new versions of its Pixel smartphones.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| BBBY | NO DATA AVAILABLE | - | - | - |
In retail news, shares of Bed, Bath and Beyond Inc. soared more than 20% after the home-goods retailer posted its first positive same-store-sales growth since 2016, due to strong e-commerce sales.
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Oil prices dipped, declining more 3.7% to $38.72 a barrel on concerns of oversupply. Gold rose $20.90 an ounce to $1,908.40 per ounce.
The yield on the 10-Year Treasury rose to 0.677%.