Dow stages comeback, as S&P 500, Nasdaq post modest losses

Stock investors took a pause after four days of gains

U.S. equity markets ended the session mixed as investors weighed the state of the U.S. job market as losses topped 42 million due to the coronavirus fallout.

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The Dow Jones Industrial Average, in a late-session comeback, posted fractional gains while the S&P 500 shed 0.34 percent.

TickerSecurityLastChangeChange %
I:DJIDOW JONES AVERAGES25827.36+92.39+0.36%
SP500S&P 5003130.01+14.15+0.45%
I:COMPNASDAQ COMPOSITE INDEX10207.628547+53.00+0.52%

The Nasdaq Composite slipped 0.69 percent after nearing an intraday record.

Initial jobless claims for the week ended May 30 totaled 1.88 million, according to data released by the Labor Department on Thursday morning. Continuing claims were 21.5 million, up from last week’s reading of 20.8 million.

Following the report, AutoNation confirmed to FOX Business it would be eliminating 3,500 employees, 50 percent of the initial 7,000 furloughed due to the coronavirus.

TickerSecurityLastChangeChange %
ANAUTONATION37.08+0.10+0.27%

Friday's jobs report for May is expected to show about 8 million job eliminations. While steep, the cuts are less than the 20+ million seen in April. The unemployment rate is expected to hit 19.8 percent.

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Meanwhile, demonstrations following the death of George Floyd were mostly peaceful for a second straight night aside from some violence in New York City.

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Looking at stocks, casino operators were in focus as gaming reopens on the Las Vegas Strip after more than two months of shutdowns due to COVID-19.

TickerSecurityLastChangeChange %
LVSLAS VEGAS SANDS CORP46.34+1.30+2.89%
MGMMGM RESORTS INTERNATIONAL16.86+0.09+0.54%
WYNNWYNN RESORTS LIMITED77.32+3.53+4.78%

American Airlines will increase its U.S. flight schedule to 55 percent capacity in July, from 25 percent in June, amid a pickup in demand as COVID-19 lockdowns ease. The jump in the stock was the largest percentage increase on record.

The announcement comes as major U.S. airlines have received government approval to suspend service to 75 regional airports amid a drop in demand for air travel.

TickerSecurityLastChangeChange %
AALAMERICAN AIRLINES GROUP INC.12.50-0.31-2.42%
UALUNITED AIRLINES HLDG.34.14-0.31-0.90%
DALDELTA AIR LINES INC.27.72+0.02+0.07%

Elsewhere, French luxury goods maker LVMH is exploring ways to renegotiate its $16.2 billion deal for Tiffany, Reuters reported.

Amazon is in talks for a $2 billion stake in Indian telecommunications giant Bharti Airtel, according to the news service.

TickerSecurityLastChangeChange %
TIFTIFFANY & CO122.22-0.01-0.01%
AMZNAMAZON.COM INC.2,890.30+11.60+0.40%

Costco reported May sales at stores open at least a year rose 5.4 percent from 2019, as online sales soared 108 percent.

On the earnings front, J.M. Smucker posted record sales in the fourth quarter as consumers stocked up on food products while hunkered down at home.

TickerSecurityLastChangeChange %
COSTCOSTCO WHOLESALE CORPORATION305.74+0.99+0.32%
SJMJ.M. SMUCKER CO.105.02-0.20-0.19%

West Texas Intermediate crude oil ticked up 0.12 percent to $37.41 a barrel while gold gained 1.24 percent to $1,718.90 an ounce.

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U.S. Treasurys dropped, pushing the yield on the 10-year note to 0.818 percent.

European ended lower after the European Central Bank announced plans to increase its bond-buying program by 600 billion euros ($674 billion). Germany’s DAX shed 0.45 percent, Britain’s FTSE lost 0.64 percent and France's CAC 40 slid 0.21 percent.

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In Asia, Japan’s Nikkei and Hong Kong’s Hang Seng climbed 0.36 percent and 0.17 percent, respectively, while China’s Shanghai Composite slipped 0.14 percent.