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Weekly Unemployment Claims Rose to 1.4 Million in U.S.: Live Updates

Credit…Saul Loeb/Agence France-Presse — Getty Images

The authorities reported on Thursday that extra 1.4 million employees filed new claims for state unemployment benefits final week, the primary time that the weekly tally has risen in greater than three months. The upturn comes simply days earlier than an additional $600-a-week jobless profit is ready to expire.

An extra 975,000 claims have been filed by freelancers, part-time employees and others who don’t qualify for normal state jobless support however are eligible for advantages underneath an emergency federal program, the Labor Department mentioned. Unlike the state figures, that quantity isn’t seasonally adjusted.

The report on Thursday has explicit resonance: It displays the week that can be utilized by the division to calculate the June jobs knowledge and unemployment fee.

The stubbornly excessive fee of latest weekly claims greater than 4 months into the coronavirus pandemic “suggests that the nature of the downturn has changed from early on,” mentioned Ernie Tedeschi, a coverage economist at Evercore ISI. It might imply that companies are shutting down once more as circumstances surge in some locations, or that funds from emergency federal loans via the Paycheck Protection Program are working out, he mentioned — or worse, one thing extra basic.

“It might be that businesses are running through their first line of credit,” he mentioned, “and now they’re facing the music of an economy that has recovered a little bit but nearly enough.”

Rubeela Farooqi, chief U.S. economist at High Frequency Economics, warned that unemployment may rise in the approaching months. “Now the risk is coming from temporary job losses that could become permanent,” she mentioned.

The Knight family outside their home in Alexandria, Va. The coronavirus pandemic added full-time home-schooling to their work load.
Credit…Michael A. McCoy for The New York Times

Daniella Knight referred to as it “tag-team parenting.” She labored half time at a property-management firm through the day whereas her husband took care of their three kids — 3, 5 and 9 years previous. She took over throughout his Four p.m.-to-midnight shift as a litigation knowledge analyst. After kissing the kids good evening, she labored her second job as a pediatric sleep guide.

“We were already barely making it,” Ms. Knight mentioned. But she thought she may briefly put up with the exhaustion and stress so they might save sufficient to cease renting in Alexandria, Va., and purchase a home with multiple rest room.

The coronavirus pandemic added full-time home-schooling to their load. She stopped going to the small property-management workplace through the day to keep away from contagion, as a substitute driving there at evening when it was much less crowded or empty.

“Mom and Dad were at the end of our ropes, beyond exhausted,” she mentioned. “I started to have panic attacks.”

Then, in June, her husband was laid off. He utilized for unemployment insurance coverage, Ms. Knight mentioned, however “we have not gotten one dollar.”

Her husband discovered one other job, working for the federal government, however has to wait six to eight weeks for his safety clearance.

“We still have to pay our bills, our utilities, our rent, everything,” she mentioned. The month-to-month value of their well being care alone is $1,600, which that they had to faucet their financial savings to pay, and they’re relying on the unemployment advantages to kick in. “We can’t get by with another two months without that,” Ms. Knight mentioned.

Losses reported by Southwest Airlines and American Airlines represent a reversal of fortune for both airlines, which earned hundreds of millions of dollars in profit during the same three months in 2019.
Credit…Mark Ralston/Agence France-Presse — Getty Images

Southwest Airlines and American Airlines on Thursday reported deep losses in the second quarter of the 12 months, as a meek rebound in journey slowed in latest weeks with the unfold of coronavirus infections and journey restrictions nationwide.

For Southwest, income declined 83 % from the identical quarter final 12 months, ensuing in an total lack of $915 million. American noticed income fall 86 %, giving approach to a $2 billion loss. The losses signify a reversal of fortune for each airways, which earned lots of of thousands and thousands of {dollars} in revenue throughout the identical three months in 2019.

“The current environment is more unpredictable and more volatile than anything we ever could have imagined,” American’s chief govt, Doug Parker, mentioned in an e mail to employees on Thursday.

Demand for flying will in all probability “remain depressed” till a vaccine or therapy for the virus is developed, mentioned Southwest’s chief govt, Gary Kelly, echoing his counterpart at United Airlines.

The quarterly outcomes are in line with their trade friends: Revenue fell 88 % for United and 87 % for Delta Air Lines. United suffered a $1.6 billion loss, down from a $1 billion revenue final 12 months. Delta misplaced $5.7 billion, down from a $1.4 billion revenue in 2019.

The second quarter is probably going to be the worst of the pandemic for the trade, which was blindsided by a greater than 90 % decline in passenger visitors in March. Air journey remained beneath that stage via April. Airlines began to claw their approach again in May and June, however the restoration has since stagnated as coronavirus infections unfold throughout the nation. The variety of individuals screened at federal airport checkpoints stays about 75 % beneath final 12 months’s ranges.

A federal stimulus in March delivered emergency funding, which protected jobs via September, however each main airline has warned of deep cuts to come. American has warned that it may furlough as many as 20,000 workers this fall, whereas United has warned that it may furlough up to 36,000. Delta has mentioned related cuts might comply with, although it’s working to keep away from them, whereas Southwest mentioned on Thursday that it didn’t plan to furlough or lay off workers — or reduce pay or advantages — via the tip of the 12 months.

Airlines are shoring up emergency reserves for what is predicted to be an extended, uneven restoration. American mentioned it ended the quarter with greater than $10 billion in money available, not together with a $4.75 billion Treasury Department mortgage it expects to take and one other $1.2 billion it raised on Thursday. Southwest mentioned it had about $14.5 billion, whereas United and Delta every have greater than $15 billion available.

American averaged day by day losses of $55 million in the second quarter, in contrast with $43 million for Delta, $40 million for United and $23 million for Southwest.

Twitter executives blamed falling revenues on the pandemic, and said some marketers also became skittish about promoting their products during the Black Lives Matter protests.
Credit…Richard Drew/Associated Press

Twitter’s day by day customers surged to 186 million in the second quarter, up 34 % from a 12 months in the past.

But income fell 19 % to $683 million, lacking Wall Street estimates of $700 million. The firm additionally had a web lack of $124 million, it mentioned on Thursday (not Wednesday, as this merchandise initially said.)

Twitter executives blamed the promoting droop attributable to the pandemic, and mentioned some entrepreneurs additionally grew to become skittish about selling their merchandise through the Black Lives Matter protests. Twitter mentioned it noticed promoting return as soon as the protests started subsiding.

The firm additionally mentioned it was engaged on constructing extra “direct-response” advert options, which might enable individuals to buy or obtain issues straight from their Twitter timelines. Twitter has historically largely targeted on brand-awareness campaigns. On Facebook, direct-response promoting makes up the majority of the social community’s advert income.

The firm continues to cope with the fallout of final week’s breach in which hackers took over dozens of accounts of outstanding Twitter customers in a haphazard Bitcoin fraud. On Thursday, the corporate mentioned the hackers had gained entry the direct messages of up to 36 of the 130 of the hacked accounts.

Twitter lately began labeling a few of President Trump’s messages to point out that he was spreading falsehoods or glorifying violence. On Tuesday, Twitter mentioned it could take down accounts related to QAnon, the pro-Trump conspiracy idea, citing issues about how such content material may incite violence. It was the primary time a big social media service took sweeping motion in opposition to QAnon. Facebook is planning an analogous takedown in coming weeks, individuals with information of the plans have mentioned.

In New York, futures suggested a modest gain when trading begins on Wall Street.
Credit…Mark Lennihan/Associated Press

European shares gained on Thursday, after a combined day in Asia, as buyers appeared heartened by some company earnings stories that signaled strengthening economies.

Markets in Paris, London and Frankfurt all reported positive factors of 0.5 % to 1 %. In New York, futures advised a modest acquire when buying and selling begins on Wall Street.

Elsewhere, the yield on a 10-year U.S. Treasury word fell barely, and oil futures have been greater, with Brent crude reaching greater than $44 a barrel, a four-month excessive. Gold was having one other good day, up 0.6 %.

The client merchandise big Unilever reported on Thursday that underlying gross sales fell 0.Three % in the earlier quarter, which was a a lot better end result than had been anticipated amid pandemic lockdowns. It was sufficient to push its shares up greater than 7 %. Daimler, the automaker, mentioned it misplaced 1.9 billion euros, or about $2.2 billion, in the second quarter as gross sales fell a few third, however the firm informed buyers that it anticipated a revenue for the complete 12 months; its shares rose greater than 5 %.

Another automaker, Tesla, reported an sudden revenue on Wednesday, a end result that defied the depressed earnings all through the trade. Its shares have been on a roll, and have been buying and selling practically 5 % greater in premarket buying and selling.

In Asian markets, buying and selling was combined on Thursday. The Hang Seng in Hong Kong gained 0.eight %, the Shanghai Composite slipped 0.2 %, and the Nikkei in Japan and Kospi in South Korea each completed 0.6 % decrease.

Elon Musk said Tesla would build its pickup truck, the “Cybertruck,” and a semi truck, along with Model 3 and Model Y, at the company’s new plant in Texas.
Credit…Ringo H.W. Chiu/Associated Press

Tesla on Wednesday reported a revenue of $104 million, a end result that stunned analysts, who have been anticipating the electrical carmaker to lose cash because the coronavirus pandemic squeezed the corporate on two fronts.

Sales for the second quarter, which ended in June, slowed whereas a lot of the economic system shut down and as thousands and thousands of individuals misplaced their jobs and in the reduction of on spending. And for practically two months, the corporate was compelled to halt manufacturing at its essential plant in Fremont, Calif.

“We were able to achieve a fourth consecutive profitable quarter,” the corporate’s chief govt, Elon Musk, mentioned in a convention name with analysts. “Although the auto industry was down about 30 percent year-over-year, we managed to grow deliveries in the first half of the year.”

Tesla has began work on a fourth automotive manufacturing unit at a website close to Austin, Texas, Mr. Musk mentioned, the place it would produce its forthcoming pickup truck, the Cybertruck, and a brand new semi truck, together with its Model Three and Model Y.

Tesla’s shock revenue set it up for one more main milestone: potential inclusion in the S&P 500 index. The index is one essentially the most broadly adopted measures of the efficiency of the American inventory market, with greater than $11 trillion value of mutual funds and different investments measured in opposition to it.

It’s uncommon for firms with market values as giant as Tesla — roughly $290 billion — not to be included in the S&P 500. But the corporate’s incapability to persistently generate earnings has made it ineligible thus far. (Criteria for inclusion require the sum of the corporate’s totally audited earnings in the 4 most up-to-date quarters to be constructive.)

  • 🧪Dow, the American chemical compounds firm, introduced plans to reduce 6 % of its international work pressure, practically 2,200 jobs, because it revealed its second quarter earnings on Thursday. The Michigan-based firm mentioned it aimed to save $500 million this 12 months, growing the earlier goal from $350 million. Its gross sales declined 24 % in the second quarter, in contrast with final 12 months.

  • 🤖 Microsoft on Wednesday mentioned its income rose 13 % in the final quarter regardless of the droop in the economic system. The firm’s progress was led by massive positive factors in its cloud software program choices as extra individuals make money working from home. For the three months ended in June, its fiscal fourth quarter, Microsoft generated income of $38 billion. Its working revenue elevated eight % to $13.Four billion, or $1.46 a share. LinkedIn, the hiring {and professional} networking website owned by Microsoft, mentioned on Tuesday that it was chopping 962 jobs, or 6 % of its work pressure, partly as a result of hiring has fallen sharply.

  • 💉 With revenue bolstered by lots of of thousands and thousands of {dollars} in federal stimulus cash, HCA Healthcare, the large for-profit hospital chain, reported much higher second-quarter earnings on Wednesday, at the same time as its income fell when its big community of hospitals handled fewer sufferers through the pandemic. The firm reported $1.1 billion in web revenue for the three months that ended June 30, a 38 % leap from the identical interval in 2019, on decrease income of $11.1 billion. HCA, already a serious beneficiary of hospital bailout cash, mentioned it had acquired a complete of $1.7 billion from the federal authorities thus far.

  • 🛬 United Airlines mentioned its income will max out at about 50 % of final 12 months’s haul if a vaccine doesn’t turn into obtainable. The airline expects passenger income in July, August and September to be down about 83 % from the identical interval final 12 months, a slight enchancment over the practically 94 % decline the airline reported for the second quarter on Tuesday.

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