Here are five things you need to know about Thursday March 26:
1. – Securities futures slide as investors look for unemployment benefit claims
Stock futures traded on Thursday after the Senate approved a $ 2 trillion coronavirus aid proposal, but investors looked towards the release of unemployment benefit claims that could jump to millions as the pandemic broke out. coronavirus has forced companies and businesses to close.
Dow Jones industrial average contracts fell 266 points, S&P 500 futures decreased 40 points and Nasdaq futures fell 106 points.
The S&P 500 posted its first consecutive earnings on Wednesday since the coronavirus-induced selloff started about five weeks ago.
The massive stimulus package voted 96-0 in the Senate. The Assembly was due to vote on the legislation on Friday.
President Donald Trump said he will immediately sign the bill that includes direct payments to most Americans and aid for the industries most affected by the pandemic.
United States Treasury Secretary Steven Mnuchin asked how long the help would keep the economy afloat, he said, “We have advanced three months. Hopefully we won’t need it for three months.”
2. – Applications for unemployment benefits could reach 4 million
The U.S. Thursday economic calendar includes weekly unemployment benefit claims at 8:30 am ET, the second estimate for the fourth quarter GDP at 8:30 am and the international trade in goods for February at 8:30 am of the morning.
Economists interviewed by Econoday expect 1 million unemployment benefit claims for the week ending March 21, a week that saw major arrests in recreational activities, food services and production due to the coronavirus epidemic. The highest estimate for the week was 2.737 million requests. The claims for unemployment benefits the week before were 281,000.
Forecasts in a Reuters survey ranged from 250,000 requests down to 4 million.
Economists at RBC Capital Markets initially expected unemployment claims of over 1 million, but said he was now “ready to be many multiples of this”.
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3. – Coronavirus – The latest
The number of confirmed global coronavirus cases has risen to 472,109, according to the Johns Hopkins Center for Systems Science and Engineering, and deaths have increased to 21,307.
The United States has 69,197 virus cases and deaths have risen to over 1,030. More than half of the cases in the United States are in the state of New York.
The death toll in the United States is just behind France, which has 1,331 deaths. Italy has the highest death toll of any country, 7,503, due to the pandemic, according to Johns Hopkins.
The World Health Organization earlier this week said that the United States has the “potential” to become the epicenter of the crisis.
Anthony Fauci, director of the National Institute of Allergy and Infectious Diseases, said Wednesday that Americans should prepare for a second wave of infections in the United States.
“Could it become a seasonal cyclical thing? I’ve always indicated to you that I think it could very well, “Fauci said at a meeting with the White House press.
Fauci stressed how important it was to develop a vaccine “so that we can have it ready for the next cycle”.
4. – Micron Technology’s revenue forecasts exceed estimates
Micron Technology MU climbed 4.14% to $ 44.26 in the premarket trade Thursday after the chipmaker posted second-quarter fiscal earnings that exceeded analysts’ estimates and forecast higher-than-expected third-quarter revenue.
The company gained 45 cents on an adjusted basis in the second quarter, beating estimates by 37 cents. Revenue of $ 4.8 billion declined 17.8% from $ 5.84 billion the previous year.
Micron forecast revenue for the quarter ending May of $ 4.6 to $ 5.2 billion, the midpoint of which slightly exceeds Wall Street expectations.
During a conference call, Chief Financial Officer Dave Zinsner said that demand for Micron products remains strong with favorable price developments, particularly when employees are working from home due to the coronavirus epidemic. But it has not been able to answer how strong the demand for devices such as computers, servers, smartphones and connected cars would be once the flow of coronaviruses decreases, the Wall Street Journal reported.
Micron is “an indicator lagging behind final demand and macro projections have weakened significantly in the short term,” said Zinsner.
5. – Reportedly, Apple may delay the launch of the iPhone 5G
Apple (AAPL) – Reportedly, Get Report is considering rejecting the launch of its new iPhone 5G.
Apple executives discussed a possible delay of several months in the introduction of the long-awaited phone, according to Nikkei Asian Review.
According to Nikkei, Apple is weighing both barriers in the supply chain and sinking global demand for coronavirus pandemic-related smartphones.
The arrival of the technology giant’s iPhone 5G was expected in September, helping to reinvigorate iPhone sales, which have seen a downward trend in recent years.