Thursday May 7th

7-05-2020

Stock futures point to market rebound, Dow futures jump 300 points

U.S. stock index futures jumped in early trading Thursday as investors bet on the U.S. economy reopening soon and as oil prices rebounded. Dow Jones Industrial Average futures rose 300 points, or more than 1%, and implied an opening gain of about 260 points. S&P 500 futures jumped 1.3% along with Nasdaq futures. Energy stocks were among the biggest premarket gainers as oil prices jumped nearly 10% on Thursday, bringing their gain for the week to more than 30%. Stocks that would benefit from the reopening of the economy also gained in early trading, including Hilton Worldwide and MGM Resorts. Thursday’s gains came even as another 3.17 million Americans filed for unemployment benefits last week, bringing the seven-week total to 33.5 million. But while jobless claims continue to rise, last week’s tally was the lowest since shortly after the coronavirus was declared a pandemic. Meanwhile, China posted better-than-expected exports for April. Data from the General Administration of Customs released on Thursday showed exports rose 3.5% in April, versus expectations of a 15.7% decrease from economists in a Reuters poll. Recent data out of China, where the earliest cases of the coronavirus were reported, have been closely watched by investors as the country was one of the first to ease lockdown measures. In corporate news, Peloton reported revenues surged 66% during its fiscal third quarter as more Americans bought fitness equipment for at-home use during the coronavirus pandemic. Critically, Peloton said it is seeing demand from new customers who’ve been inspired to buy one of its bikes amid the Covid-19 outbreak. The S&P 500 and Dow were coming off their first decline in three days. Stocks in Asia Pacific were little changed on Thursday as a data release showed China’s exports for April exceeding expectations, though a private survey showed the country’s services sector slumping in the same month. In Japan, the Nikkei 225 added 0.28% to close at 19,674.77 while the Topix index shed 0.32% to end its trading day at 1,426.73. South Korea’s Kospi closed largely flat at 1,928.61. Mainland Chinese stocks dipped on the day, with the Shanghai composite 0.23% lower at about 2,871.52 while the Shenzhen composite slipped 0.115% to around 1,788.21. Hong Kong’s Hang Seng index shed 0.74%, as of its final hour of trading. Oil prices jumped on Thursday on news that China’s exports unexpectedly rose last month, and on the back of U.S. output cuts and the slow return of some activity in Europe. Brent crude rose $1.87, or 6.3%, to trade at $31.59 per barrel, after dropping 4% on Wednesday. U.S. West Texas Intermediate futures gained $2.40, or 10%, to trade at $26.39 per barrel, after declining more than 2% in the previous session. Gold prices gained on Thursday after a batch of sombre economic data heightened fears over global growth, while a stronger dollar and the easing of coronavirus-driven lockdowns by many countries limited the upside. Spot gold was up 0.4% at $1,691.95 per ounce. U.S. gold futures rose 0.6% to $1,698.