Shares declined on Thursday as the US set another record for new coronavirus cases and raised doubts about a rapid recovery in the economy.
The Dow Jones Industrial Average fell 470 points, or 1.8%, to 25,596, the S&P 500 fell 1.38%, and the Nasdaq fell 0.79%. The tech-heavy index had hit an intraday record high on Thursday.
Walgreens Boots Alliance (WBA) – Get the report led the Dow down after the drug store chain posted weaker-than-expected earnings in the third quarter and discontinued its share buyback program as orders to stay at home in key markets around the world hit the company’s income statement.
Unemployment claims declined as US employers continued their reopening and reinstatement efforts, although the coronavirus continued to flare up in various states and cities.
The Department of Labor said that 1
While numbers have been falling and below economists’ expectations, nearly 50 million Americans have applied for unemployment insurance in the past four months.
“Unemployment claims declined, but despite increasing bankruptcies and layoffs from large retailers,” said Robert Frick, a corporate economist with the Navy Federal Credit Union.
“This second wave of layoffs will keep claims high and painfully slow. As the job market improves, claims show that over a million workers lose their jobs each week,” added Frick. “The better news is that claims have continued to decline, and that is a more reliable number for net job losses.”
Continuing entitlements, which are the number of people who not only claim unemployment benefits but retain them, were 18.062 million in the week ending June 27.
Shares traded higher on Wednesday, rising for the sixth time from the past seven, despite ongoing concerns that the outbreak of the corona virus could slow the economic recovery.
The increases are recorded, although the United States set another record for new coronavirus cases on Wednesday. According to a database compiled by the New York Times, more than 59,400 infections have been announced. It was the fifth national record in nine days.
In the U.S., there are nearly 3.06 million confirmed cases of the virus, according to Johns Hopkins University, and the number of deaths has increased to over 132,000, most worldwide.