- The Dow fell 361 points, or 1.38%, its second negative session in three.
- The Dow is down 0.47% week to date, on pace for its second negative week in three
- The S&P 500 fell 0.56%, its second negative session in three
- The S&P 500 is up 0.71% week to date, on pace for its second positive week in a row, third positive week in four
- Nine of 11 S&P Sectors were negative in Thursday's session, led to the downside by energy, down 4.86%.
- Consumer discretionary was the best performer, up 0.77%
- The Nasdaq Composite gained 0.53%, its seventh positive session in eight and another record close
- The Nasdaq is up 3.33% week to date, on pace for its second positive week in a row, third positive week in four
- The Russell 2000 fell 2.00%, its second negative session in three — Jesse Pound
The Nasdaq managed to hold onto a slight gain on Thursday even as the broader market fell. The tech-heavy index rose 0.5%, while the S&P 500 fell 0.6%. The Dow was the laggard for the day, losing 361 points, or 1.4%. — Jesse Pound
Presumptive Democratic nominee Joe Biden criticized President Donald Trump as being too focused on the stock market during a campaign stop in Scranton, Pennsylvania.
"If I am fortunate to be elected president, I'll be laser-focused on working families, middle-class families that I came from here in Scranton. Not the wealthy investor class. They don't need me," Biden said. — Jesse Pound
AlphaOne Capital Partners founding partner Dan Niles told CNBC's "Closing Bell" on Thursday that he has short positions against banks. Niles said that the exposure of bank's to real estate and actions by the Federal Reserve to lower interest are areas of concern.
"The Fed is really putting financial repression on the banks because keeping the 10-year as low as it is, it makes it impossible for the banks to make as much money," Niles said. Many U.S. banks report quarterly earnings next week. — Jesse Pound
The Dow and the S&P 500 were on pace to end the day lower amid growing concerns over the coronavirus outbreak in certain states. The 30-stock Dow dropped 329 points, or 1.3%, and the S&P 500 slid 0.5%. The Nasdaq Composite bucked the negative trend, rising 0.5% and was headed for a record closing high. The Nasdaq's gains came as Amazon jumped more than 2% to an all-time high. —Fred Imbert
The U.S. economy won't get back to pre-pandemic levels until possibly 2022, according to Atlanta Fed President Raphael Bostic. "My outlook always has been as we move into this recovery phase we are going to see bumps along the way," Bostic said Thursday during a Tax Policy Center webinar. Most central bank officials have said they expect the recovery to be slow and that more policy help will be required. The Fed has taken historically aggressive measures in its efforts to pull the economy out of a recession that began in February. "The models that I'm looking at right now suggest that by the end of the year we'll have more jobs and more growth than we have now, but we won't be at a level where we were precrisis. I don't think we're going to be at that stage until mid-2021 or until later, in 2022." He added that the Fed needs to be "mindful" of that time frame when formulating policy. — Jeff Cox
Wells Fargo said that consumers becoming more frugal is likely one of the longer-term themes that will emerge in the wake of the pandemic. "The cumulative uncertainty of two major economic crises in 12 years is likely to lead younger generations to prioritize frugality, and it may reinforce a preference for meaningful experiences over acquiring goods," the firm said in a note to clients Thursday. Wells Fargo added that buy-from-home trends, including online grocery shopping as well as streaming entertainment and games, will likely accelerate. - Pippa Stevens
The Cboe Volatility Index, also known as the VIX or "fear gauge," popped more than 6% to hit a session high of 31.48 on Thursday. The gauge hasn't closed above the 30 threshold this month after declining from a record high above 80 during the historic sell-off in March. The VIX tracks the 30-day implied volatility of the S&P 500 futures via options prices. – Yun Li
Some of the biggest market moves on Thursday are highlighted by Wall Street calls and a rough day for the reopening trades.
United, Delta, American — Airline stocks fell on Thursday as investors worried about the continued impact of the coronavirus pandemic on the travel industry. Shares of Delta Air Lines declined 4.3% after CEO Ed Bastian sent a memo that warned of continued demand weakness. American lost 4.1%, while United sank more than 5%.
F5 Networks – Shares of F5 Networks jumped 5.6% after Morgan Stanley upgraded the technology company to overweight from equal-weight and hiked its forecast for the stock. The bank cited an "uncaptured value" in its software business as well as the diminishing headwinds from hardware.
Read more movers here. — Jesse Pound
Boeing shares dropped more than 3% after Bloomberg News reported the Federal Aviation Administration is launching a probe into the pressures allegedly put on inspectors by the aerospace giant. Bloomberg also said Boeing's 777X could miss its 2021 target debut date, citing Emirates. — Fred Imbert
About five stocks traded lower for every advancer at the New York Stock Exchange as worries about the coronavirus pandemic sent prices lower. Overall, 2,350 NYSE-listed names were down while 462 issues were positive, FactSet data shows. —Fred Imbert
The major averages were under pressure around midday after Florida reported a record number in coronavirus-related hospitalizations. The Dow fell nearly 500 points, or more than 1%. That drop left the 30-stock average down for the week. The S&P 500 slid 1.3% and the Nasdaq was down 0.6%. —Fred Imbert
Even with the new and continuing jobless claims coming in lower than expected, the total receiving benefits hit a new record. That's because those filing under the Pandemic Unemployment Assistance program continue to rise, adding 1.039 million last week for a total of 14.36 million, according to the Labor Department. That brings the number for all those collecting benefits to 32.9 million as of June 20, the most recent period for which data is available. The PUA provides benefits to those who would be ineligible during normal times, such as independent contractors, the self-employed and those looking for part-time work. — Jeff Cox
The Dow and S&P 500 extended their losses on Thursday morning and the Nasdaq joined them in negative territory as major tech stocks rolled over. The Dow last traded 470 points, or 1.8%, lower, and briefly fell more than 500 points. The S&P 500 and Nasdaq were down 1.4% and 0.8%, respectively. Shares of Apple were down 0.5% after rising earlier in the session. — Jesse Pound
Treasury Secretary Steven Mnuchin told CNBC on Thursday morning that efforts by Congress and the Treasury Department to help airlines have provided the industry with significant stability. His comments came even as Delta Air Lines' CEO on Thursday cautioned about air travel recovery and United warned on Wednesday that it could cut more than one-third of its workforce this fall.
"We wanted to make sure that the airlines had backstops so that they had liquidity, and that's something that we've been very focused on. And between the payroll support and the loans, we've created a lot of stability for that industry," Mnuchin said."Some of these airlines have never had furloughs, they're committed to that. Other airlines are in more difficult economic scenarios. So, I've spoken to all the CEOs, I know they want to keep as many people as they can. I do consider the programs a success," he added.
Mnuchin also told "Squawk on the Street" that he expects China to honor its Phase One purchase commitments and defended President Donald Trump's use of tariffs.
"I think the president has used tariffs as a way of getting free and fair and reciprocal trade. So, the tariffs we put on China were all about: It was not a level playing field," Mnuchin said. "We wanted China to open up, that was the intent of Phase One. They are following Phase One. We expect them to adhere to that." — Thomas Franck
Credit card data shows big restaurant chains getting back to last year's levels, says Bank of America
Bank of America credit card data shows that large restaurant chains have largely recovered to last year's spending trends, while the rest of the industry remains pressured due to the Covid-19 shutdowns. "The spread in y/y spending b/w the two categories has narrowed from a peak in the low-30% range in mid-April to a recent 20%," Bank of America told clients. — Maggie Fitzgerald
Wells Fargo shares were down about 1% in early trading after Bloomberg News reported the bank is preparing to lay off thousands of workers starting this year. CEO Charlie Scharf hinted at the possibility of layoffs last month, saying the company plans to get to "as lean as state as we can responsibly operate." The company is scheduled to report earnings next week. —Fred Imbert
The Nasdaq Composite rose about 0.7% to an all-time high of 10,576.75 on Thursday. In the previous session, the tech-heavy benchmark notched a record closing high of 10,492.50. Amazon, Apple and Microsoft were among the biggest gainers.—Yun Li
The market got a small boost after data showed a larger-than-expected fall in weekly jobless claims. The Dow began regular trading slightly higher, and the S&P 500 gained 0.2%. The Nasdaq Composite climbed 0.7% at the open, boosted by the strong performance in Big Tech. Shares of Amazon Netflix and Microsoft all rose at least 1% each. Amazon, Netflix and Apple all hit new all-time high at the open. — Yun Li
Continuing claims, or those who have been collecting for at least two weeks, dropped 698,000 from a week ago to 18.06 million. Wall Street had been expecting 18.9 million continuing claims, according to FactSet. This number is a clearer picture of how many workers are still sidelined. The previous week's total itself was revised down by 530,000. —Yun Li
Initial jobless claims hit 1.314 million last week, lower than a Dow Jones estimate of 1.39 million. The number marked a small decline from the previous week's total of 1.43 million, but weekly claims have stayed above 1 million for 15 consecutive weeks as workers struggle to get back to their jobs amid rising coronavirus cases. — Yun Li
Democratic candidate Joe Biden is launching a $700 billion economic plan, pushing to buy American and create manufacturing jobs. Biden will unveil a campaign calling for a $400 billion, four-year increase in government purchasing of U.S.-based goods and services plus $300 billion in new research and development in U.S. technology concerns. He is also proposing tightening current "Buy American" laws that are intended to benefit U.S. firms but can be easily circumvented by government agencies.—Yun Li
New filings for unemployment insurance were expected to hit 1.39 million last week, according to economists surveyed by Dow Jones. That would be a modest decline from the previous week's total of 1.43 million. Weekly claims have topped 1 million for 14 consecutive weeks as states work through backlogs and workers struggle to get back to their jobs, particularly as coronavirus cases continue to rise. The more closely watched continuing claims figure for those who have been collecting benefits at least two weeks was 19.3 million last week and was expected to dip to 18.9 million for the most recent reporting period, according to FactSet. — Jeff Cox
Shares of Wallgreens Boots Alliance dropped 3% after the retail chain reported weaker-than-expected results for its fiscal third quarter. The company earned 83 cents in adjusted earnings per share. Analysts were looking for $1.17, according to Refinitiv. The company said the pandemic hit non-U.S. sales by $700 million to $750 million. Walgreens increased its quarterly dividend but suspended buybacks. —Jesse Pound
Stock futures traded slightly lower on Thursday as investors await the weekly jobs data for insights on the pace of the economic recovery amid rising coronavirus cases. Dow Jones Industrial Average futures fell about 70 points, implying an opening loss of about 40 points. S&P 500 futures were flat, while Nasdaq-100 futures rose about 0.4% after the tech-heavy Nasdaq Composite notched a new record close in the previous session. Another 1.388 million workers are expected to have filed jobless claims during the week ended July 4, which would be a decline from a total of 1.427 million in the week prior, according to Dow Jones. — Yun Li