Here are the top news, trends, and analysis investors need to get their trading day started:
1. Stock futures fall the day after a comeback on Wall Street
Traders working on the New York Stock Exchange (NYSE) today, Wednesday, April 21, 2021.
US stock futures fell slightly on Thursday after Wall Street bounced back from a two-session loss. Wednesday’s Dow Jones Industrial Average rose 316 points, or 0.9%. The S&P 500 was also up 0.9% and the Nasdaq was up 1.2%. The Dow and S&P 500 fell slightly short of their record closings on Friday. The Nasdaq was 1% off its all-time high in February. The 10-year government bond yield, which hit a 14-month high in March and made tech stocks tenacious, rose early Thursday to stay below 1.6%.
The Department of Labor reported 547,000 new unemployment benefits claims last week on Thursday, lower than expected and a new low in the Covid pandemic. The previous week’s initial unemployment claims were revised up to 586,000. However, these are the first readings below 600,000 since the 256,000 reported for the week ending March 14, 2020.
2. Southwest, American stocks rise on quarterly results
Travelers wearing protective masks cross a street outside a Southwest Airlines Co. check-in area at Oakland International Airport in Oakland, California, United States on Monday, October 19, 2020.
David Paul Morris | Bloomberg | Getty Images
Southwest Airlines announced Thursday that vacation bookings continue to rise and that cash flow “or better” is expected to break even by June. The Dallas-based airline posted net income of $ 116 million for the first quarter, compared to a loss of $ 94 million a year earlier. The first quarter profit came from more than $ 1 billion in federal aid that offset labor costs. Revenue of $ 2.1 billion was down nearly 52% from the same period last year. In the pre-market, the shares rose by 1.5%.
American Airlines recorded a net loss of $ 1.25 billion for the fifth consecutive year. The airline, like its major competitors Delta and United, was forced to forego much of the business and international travel revenues it had long relied on. American sales were just over $ 4 billion, down nearly 53% from more than $ 8.5 billion a year ago. The shares rose 2.3%.
3. Credit Suisse announces a quarterly loss after the Archegos scandal
A Credit Suisse logo in the window of a bank branch of Credit Suisse Group AG in Zurich, Switzerland.
Bloomberg | Bloomberg | Getty Images
Credit Suisse reported a net loss of $ 275 million in the first quarter on Thursday after warning of heavy losses in the collapse of US hedge fund Archegos Capital earlier this month. The shares of the Swiss bank, which are traded on Wall Street, fell around 7% in the pre-market. However, the quarterly loss was less than expected. Thomas Gottstein, CEO of Credit Suisse, said that without Archegos, the first quarter would have been “one of our best quarters in history” for the bank. “Definitely the best quarter in 10 years,” he told CNBC, describing Archegos’ losses as unacceptable.
4. Biden promises a drastic reduction in greenhouse gas emissions by 2030
United States President Joe Biden speaks out on combating climate change before signing executive measures in the State Dining Room of the White House in Washington on January 27, 2021.
Kevin Lamarque | Reuters
President Joe Biden promises to cut greenhouse gas emissions in the US in half by 2030, the White House said ahead of hosting a global climate summit on Thursday and Friday. This goal roughly doubles the US commitment to date under the Paris Climate Agreement of 2015. All 40 world leaders invited to the virtual meeting, including those from China and India, will be present. The summit is an opportunity for the US to rejoin global climate change efforts after the Trump administration pulled out of the Paris Agreement.
5. India reports worldwide record of new one-day Covid cases
A patient with breathing problems is seen in an ambulance waiting to be admitted to a COVID-19 hospital for treatment while coronavirus disease (COVID-19) spreads in Ahmedabad, India on April 20, 2021.
Amit Dave | Reuters
India reported a record number of daily Covid cases on Thursday as the country’s second wave of coronavirus shows no signs of slowing. There were 314,835 new cases in 24 hours. This exceeded the world’s highest one-day increase in the US in January. There are also growing concerns about the double mutation of a variant of Covid discovered in India, which could make the virus more contagious. India ranks second in terms of cumulative infections after the US – nearly 16 million, roughly half the US total and about 2 million more than Brazil No. 3, as opposed to India and Brazil, which are in the middle of the boom however, the daily incidence in the US tends to be lower.