US Stocks end higher

The US equity market finished session higher on Thursday, 07 May 2020, as risk appetite buying bolstered on the gradual reopening of the US economy and hopes of an economic recovery after a surprise rise in Chinese exports. However, market gains capped after another gloomy weekly jobless claims report. At closing bell, the Dow Jones Industrial Average added 211.25 points, or 0.9%, to 23,875.89. The S&P 500 - a gauge of US retirement and education savings accounts - added 32.77 points, or 1.2%, to 2,881.19. The tech-heavy Nasdaq Composite Index rose 125.27 points, or 1.4%, to 8,979.66.

Markets drew some comfort from the latest round of economic results out of China. Data on Thursday showed an unexpected surge in export activity in the world's second-largest economy in April, growing 3.5% from the previous year

 

Filings for unemployment continued at historically high levels, but fell from the prior week. Latest data from Labor Department showed 3.2 million Americans applied for state unemployment benefits last week, bringing the total job losses amid the COVID-19 pandemic to over 33 million, but the number marked the fifth straight weekly decrease in applications and raised hopes the worst of the outbreak's impact on the labor market was over. The weekly claims report followed news on Wednesday that private payrolls fell by a record 20.2 million in April, which set up the overall labor market for historic job losses. The Labor Department's more comprehensive nonfarm payroll report is due on Friday.

Tech stocks again led stocks higher as Facebook stock rose 1.3% and Apple stock grew 1%.

Shares of Moderna jumped after an announcement from biotech company Moderna that it received clearance from the US Food and Drug Administration for a phase-two study of a vaccine for the novel coronavirus.

Lyft Inc surged as the ride-hailing company posted higher-than-expected revenue and vowed to further cut costs to become profitable.

Exxon Mobil Corp and Chevron Corp rose on optimism around future oil demand after China's overseas shipments in April rose for the first time this year as factories raced to make up for lost sales.

Weapons maker Raytheon Technologies Corp jumped as Chief Financial Officer Toby O'Brien said he expected positive free cash flow in 2020, primarily driven by its defense business.

Peloton Interactive was up as it lifted its full-year forecast in light of strong demand for at-home exercise equipment.

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