US open: Stocks turn red as jobless claims surge again
US stocks opened mostly lower on Thursday as market participants digested more dismal economic data.
As of 1540 BST, the Dow Jones Industrial Average was down 0.52% at 24,505.04 and the S&P 500 was 0.43% weaker at 2,926.85, while the Nasdaq Composite started out the session 0.02% firmer at 0.02%.
The Dow opened 128.82 points lower on Thursday, taking back some of the gains recorded in the previous session after market participants cheered positive data from a potential coronavirus treatment from Gilead Sciences and an update from the Federal Reserve.
The main focus for Thursday's session was the latest jobless claims report from the Labor Department, with initial jobless claims for the week ended 25 April rising another 3.83m.
Meanwhile, the four-week moving average for initial claims, which aims to smooth out the variations in the data from one week to the next, declined by 757,000 to 5.03m.
Secondary unemployment claims, those which are not being filed for the first time and referencing the week ending on 18 April, increased by a further 2.17m to reach 17.99m.
Also in focus, Gilead Sciences posted positive results from two tests on its drug remdesivir on Thursday that indicated it may be a suitable treatment for Covid-19. The National Institute of Allergy and Infectious Diseases' Dr Anthony Fauci added that remdesivir showed a "clear-cut" positive effect when treating the coronavirus.
Oanda's Craig Erlam said: "We appear to be seeing some profit-taking after a surprisingly strong start to the week, with European markets slightly lower as US futures a little flat.
"It's been really interesting to see investors navigate a potentially huge banana skin of a week. The normal caution has been replaced by an unshakable belief that bad news is old news and good news is a buying opportunity. Everlasting stimulus from the central banks around the world naturally encourages such behaviour but the approach can seem rather reckless at times."
Elsewhere on the macro front, a measure of business conditions in the Chicago region fell sharply in April to its lowest reading since 2009. The Chicago purchasing manager's index fell to 35.4 this month, well and truly short of March's reading of 47.8.
In corporate news, Microsoft and Facebook shares were leading a tech rally at the bell after both firms reported promising revenue figures despite the global Covid-19 pandemic.
Tesla shares accelerated at the open after also posting some well-received first-quarter figures last night, registering a profit of $16m, while Twitter stocks slumped in early trade despite topping expectations on earnings and user growth.
Dunkin' Brands, Six Flags and Stanley Black & Decker will all report earnings on Thursday.