Today is Thursday, July 9th and markets ticked up and the Nasdaq notched another record close on big tech stock gains. On Wednesday, the US reported another daily record of more than 59K new confirmed COVID-19 cases, totaling 3 million. Weekly jobless claims were slightly lower than expected this week and Bed, Bath & Beyond plans to close 200 of its stores over the next 2 years as a result of the pandemic. We also see that the Ivy League has canceled fall sports and United warns 36,000 employees of potential job cuts.
Weekly jobless claims were lower than expected last week as workers slowly returned to their jobs in the wake of rising coronavirus cases.Claims totaled 1.314 million, compared to the 1.39 million expected from economists surveyed by Dow Jones.The trend of elevated filings for claims comes just a few weeks ahead of the expiration for enhanced benefits through the CARES Act
United is warning about 36,000 front-line employees about potential furloughs. The terms of $25 billion in federal aid prohibit airlines from laying off or furloughing workers until Oct. 1. Airlines are urging employees to take buyouts or early retirement packages to avoid involuntary cuts.
U.S. regulators have long sought more transparency from Chinese companies with shares trading on U.S. exchanges, but Beijing has resisted. More than a decade ago, hundreds of Chinese companies went public in the U.S. via reverse mergers, merging into public but mostly dormant U.S. companies, and many turned out to be frauds. Efforts to solve the problem are getting more traction due to the escalation of trade disputes with China.
Bed Bath said its net loss narrowed to $302.29 million, or $2.44 per share, from $371.09 million, or $2.91 a share, a year ago. Sales fell 49% to $1.31 billion from $2.57 billion a year ago. The company said it plans to permanently close roughly 200 of its namesake stores over the next two years.
The Ivy League officially canceled fall athletic programs, including all football games, due to Covid-19. The league previously became the first conference to cancel its men’s and women’s basketball tournament on March 10.
Democratic candidate Joe Biden is proposing sweeping new uses of the federal government’s regulatory and spending power to bolster U.S. manufacturing and technology firms. Biden calls 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. Biden is proposing tightening current “Buy American” laws that are intended to benefit U.S. firms but can be easily circumvented by government agencies.