It is Thursday, June 3 and the market is set for a lower opening today after a strong 3-day rally. The unemployment level was worse than expected for the week, but came in under 2 million for the first time since March 14. In addition, the Senate approved changes to the PPP loan program. We are also reading that American Airlines and other carriers are adding summer flights as passengers slowly return and the biggest mall owner in the U.S., Simon Properties, is suing Gap over skipped rent payments. Lastly, we see that 1 in 4 Americans are skipping meals or relying on food donations during the coronavirus pandemic.
Dow futures turned lower again after weekly jobless claims came in higher than expected. Building on a 3.5% three-session rally, the Dow Jones Industrial Average surged 527 points, or just over 2%, on Wednesday after better-than-expected economic data bolstered optimism over the recovery from coronavirus-led shutdowns.
Filings for unemployment insurance claims totaled 1.877 million last week in a sign that the worst is over for the coronavirus-related jobs crisis but that the level of unemployment remains stubbornly high. This was the first time the government’s weekly jobless claims report came under 2 million since the week ended March 14.
The Senate cleared changes to the popular Paycheck Protection Program on Wednesday that will allow small businesses more flexibility in using the rescue loan funds. The bill, which passed the House last week on a 471-1 vote, now heads to President Donald Trump’s desk for his signature.
Slowly, the airline business is coming back to life as airlines set schedules for July that include more flights. The latest is American Airlines, which says it plans to fly 55% of its domestic schedule in July, up dramatically from May when it flew 20% of its schedule from a year earlier.
The biggest mall owner in the country, Simon Property Group, is suing one of its biggest tenants, Gap, saying it failed to pay more than $65.9 million in rent and other charges due during the coronavirus pandemic.
With tens of millions of Americans unemployed, it’s no surprise that many are facing shortfalls when it comes to purchasing food for their families during the coronavirus pandemic. Since February, 26% of Americans report they or a member of their household have gone without meals or relied on charities or government programs to obtain groceries.