Equities began with a plunge in the stock market today. However, buyers stepped in on Thursday, bidding up the losses and pushing stocks higher on the day. The S&P 500 ended higher by 1.15% as a result.
The initial move lower was not helped by the latest report from the labor market.
The weekly jobless claims report came in at 2.98 million against estimates for 2.7 million claims. That brings the total to a whopping 36.5 million claims amid the novel coronavirus crisis. While the weekly amount has been decreasing for the past six weeks, there is still a long way to go on the road to recovery.
However, Connecticut reportedly overstated its total by 200,000. If true, it would bring the total down to 2.78 million, making the miss notably smaller.
Delta and Boeing
With the coronavirus outbreak continuing to wreak havoc on air travel, Delta Air Lines (NYSE:DAL) will be retiring its Boeing (NYSE:BA) 777 fleet. This move implies the company doesn’t expect to have international long-haul travel returning anytime soon. To add to its issues, Delta believes it will have 7,000 more pilots than it needs by fall. The company is currently burning $50 million a day.
Boeing CEO Dave Calhoun is trying to calm things after saying that a major airline will most likely be out of business due to the pandemic. He has caught an ear-full from some airlines on his recent comments and is now trying to smooth things over after hearing from an executive at United Airlines (NASDAQ:UAL), as well as American Airlines (NASDAQ:AAL) CEO Doug Parker.
Some positive news for Boeing comes as the company secured two U.S. Navy contracts valued at $2.6 billion. The contracts will support Boeing producing Harpoon and Standoff Land Attack Missile Expanded Response weapons systems.
Movers in the Stock Market Today
Cisco Systems (NASDAQ:CSCO) was one of our Top Stock Trades on Thursday after the company reported earnings. Earnings of 79 cents per share beat estimates by 8 cents, while revenue of $11.98 billion beat estimates by $130 million despite slumping 7.6% year-over-year. At the midpoint, guidance for next quarter beat estimates for both revenue and earnings, too.
The report drew a bullish reaction among the analyst community. Citi analysts raised their price target to $48 from $40 and reaffirmed their buy rating. Jefferies analysts took their price target higher too, up to $49 from $45. Raymond James also has a $49 price target, while Barclays and UBS now have price targets of $50 and $51, respectively.
After Starbucks (NASDAQ:SBUX) reportedly lost roughly $915 million in its fiscal second quarter, the company is reaching out for help. It’s asking its landlords for rent concessions for the next 12 months, starting June 1.
3M (NYSE:MMM) saw sales slip in April to $2.3 billion, representing an 11% decline year-over-year. According to CEO Mike Roman, “April sales results were largely in line with month-to-date trends we discussed during our first quarter earnings call.” Recall that 3M pulled its full-year guidance last month, opting for monthly updates until it’s able to accurately forecast its performance.