US Stock Market Overview – Stocks Rise, Led by Nasdaq Energy Shares Buck the Trend

US stocks closed higher on Thursday despite a weaker than expected jobless claims result in that did decline week over week but also showed more than 5-million new applications. In fact, the current loss of 22-million jobs all but wipes out all the job gains since the Great Recession. Sectors in the S&P 500 index were higher, led by Healthcare, energy bucked the trend. The stocks that should outperform during a prolonged crisis continued to outperform, led by gains in Amazon, Netflix, and Akamai, with Wal-Mart joining in. Oil prices continued to move lower closing below $20 dollars per barrel for the first time since 2002, which weighed on energy shares.

Initial Jobless Claims Fall

New applications for Initial jobless claims increased by 5.245 million according to the US Labor Department. The rise increases the total to just over 22 million, wiping out most of the job gains since the Great Recession. The total was a bit worse than the 5 million expected. Last week’s initially reported a total of 6.606 million was revised up slightly to 6.615 million. The four-week moving average, jumped to 6.066 million, an increase of 2.568 million the previous week. The total claims of 22.03 million filed since social distancing measures took effect reflect a 13.5% drop in household employment.

New York State Extends Lockdown Trump Wants to Open Economy

In New York, Governor Andrew Cuomo extended shutdown orders for nonessential businesses and public gatherings until at least May 15, though the rate of infections and hospitalizations has slowed and the number of new confirmed cases stabilized. On Thursday evening President Trump is expected to announce his plan for opening the US economy. The early release shows that the first phase would be gyms and work. This will likely be a bone of contention with the North Eastern State which has agreed to bond together before eliminating a shelter in place.