Wall Street's rally stalls, stocks mixed in early trading

Wall Street's rally stalls, stocks mixed in early trading

Wall Street's rally stalls, stocks mixed in early trading

Nonetheless, despite Thursday's tottering in the Wall St., all three major indices of the Wall St.

The S&P 500 lost 10.52 points, or 0.3%, to 3,112.35 after being on track earlier in the day for its longest winning streak since December.

The Dow Jones Industrial Average was up 873 points, or 3.3%, at 27,155, as of 11:11 a.m.

In the USA, the S&P 500 lost ground as investors took profits in advance of Friday's jobs report, which is expected to show the USA unemployment rate skyrocket to a historic 19.7 per cent. That had raised hopes that some companies were rehiring workers. The index has gained almost 40% since late March.

Stocks began their tremendous rally in late March after the Federal Reserve came to the rescue once again with promises of enormous aid to keep markets running smoothly.

Investors are hoping that the worst of the recession has already passed, or will soon, as governments around the country and around the world slowly lift restrictions meant to corral the outbreak.

On Thursday, U.S. stocks lacked upward momentum as seen in prior sessions.

The next big piece of economic data to bolster or weaken the market's optimism about the economy's prospects lands early Friday, when the Labor Department releases its monthly jobs report for May.

US official data showed that the latest Initial Jobless Claims declined to 1.877 million (1.843 million expected). The recovery for the economy is likely to be much slower than the sharp rebound the stock market has just undertaken, which could be setting investors up for disappointment. The Nasdaq composite, which is heavily weighted with technology companies, added 0.6%, to 9,608.37 after dipping as much as 0.8%.

Other falling stay-at-home winners included Netflix, down 1.8%, and Clorox, down 0.8%.

American Airlines Group jumped 29%, tacking even more gains onto its 41.1% surge a day before when it said it would fly more of its regular US schedule in a bet that fliers will return to the skies. That's up from only 20% in April, as demand for travel inches back toward normal amid the pandemic.

Charles Schwab Corp gained 1.5%, after it received an anti-trust approval from the Department of Justice for its purchase of TD Ameritrade Holding Corp.

The S&P 500 is now down less than 6% from its record set in February after being down almost 34% earlier this year when recession worries were peaking.

Stocks have now recouped most of their losses after the initial economic fallout from the coronavirus knocked the market into a breathtaking 34% skid in February and March.

The yield on the 10-year Treasury rose to 0.81% from 0.76% late Wednesday. "Risk appetite for equities has been helped by optimism in the economy, as well as investors having few other alternatives".

European stocks were weaker after the European Central Bank said it expects the region's economy to shrink 8.7% this year due to the pandemic.

Teleconferencing firm Zoom Communications Inc almost doubled its annual sales expectations, but also reported a sharp rise in costs. Britain's FTSE 100 added 0.9%.

Asian stocks were stronger.

The Shanghai Composite Index lost 0.2% to 2,917.56 and the Hang Seng in Hong Kong shed 0.2% to 24,282.19 amid U.S.

Oil prices rose. Benchmark U.S. crude oil for July delivery was up 3.8% to $36.78 a barrel.

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