This is a live blog. Here’s what’s going on:
9:15 am: Delta to retire entire fleet of Boeing 777s
Delta Air Lines disclosed in a filing Thursday that it will retire all 18 of its 777 planes by the end of 2020 in favor of more fuel-efficient A330s and A350-900s made by Boeing rival Airbus. It also disclosed in its government filing that it’s burning about $50 million per day and that it has refunded more than $1.2 billion to customers since the Covid-19 pandemic began. Delta, which fell 3.3% in premarket trading, is set to open at a new seven-year low under $19 a share. Boeing shed 2.1%. — Franck
8:45 am: Dow futures point to 330-point loss after jobless claims report
U.S. stock futures extended losses in the premarket session after the Labor Department reported that more Americans filed for unemployment benefits last week than economists had forecast. Dow futures fell 350 points, suggesting an opening decline of about the same magnitude. S&P 500 futures pointed to a 1.25% slide while the Nasdaq 100 was slated for a 1% loss at the open. — Franck
8:30 am: Jobless claims rose another 2.981 million last week
The Labor Department reported Thursday that 2.981 million more Americans filed for state unemployment benefits during the week ended May 9, adding to the droves of workers who’ve found themselves without employment amid the Covid-19 outbreak. The latest figure brings the eight-week total number of initial jobless claims to over 36 million amid one of the worst employment downturns in American history. — Franck
8:20 am: Powell’s comments not ‘surprising’ but lacked policy specifics, El-Erian says
Allianz chief economic advisor Mohamed El-Erian said on “Squawk Box” that there was “nothing surprising” about Federal Reserve Chairman Jerome Powell’s gloomy comments earlier this week but that investors were looking for more clarity on policy. Powell spoke virtually to the Peterson Institute for International Economics on Wednesday morning, saying that there were downside risks to the economy and that further fiscal policy help may be needed to support the economy. Powell also said that the central bank was not considering using negative interest rates. “What the markets were hoping for was a stronger policy message. They were hoping for stronger policy guidance. And they didn’t get that,” El-Erian said. — Pound
8:18 am: Futures weaken further, suggest 200-point Dow drop
U.S. stock futures weakened further ahead of the Labor Department’s jobless claims report, set for release at 8:30 a.m. ET. As of the latest reading, Dow futures fell 191 points and implied an opening loss of about 195 points. S&P 500 and Nasdaq 100 futures suggested falls of 0.75% each. — Franck
8:12 am: Cisco shares jump on earnings
Shares of Cisco ticked up 2% in premarket trading on Thursday following the networking equipment maker’s better-than-expected quarterly earnings. Cisco reported quarterly profit of 79 cents per share, topping the forecast 69 cents per share, according to Refinitiv. Revenue came in at $11.98 billion, higher than the $11.7 billion forecast on the Street. Cisco also gave an upbeat current-quarter forecast. Cisco has “added many new prospects through free WebEx trials that we anticipate converting to revenue in the future,” CEO Chuck Robbins said on the conference call. He said in April there were over 500 million Webex meeting participants, amid the work-from-home trend during the pandemic. — Fitzgerald
8:08 am: Tesla warns employees who don’t return to work risk losing benefits
Tesla’s Freemont, California plant is open again for business. And if employees who have been called back to work choose to continue staying home, they could risk losing their benefits. “Once you are called back, you will no longer be on furlough so if you choose not to work, it may impact your unemployment benefits as determined by your local government agency – and not by Tesla. We completely respect your decision and will support you, without any penalties from us,” an email from the automaker’s HR chief Valerie Workman said. Musk has been a proponent of easing state-imposed business closures despite ongoing social distancing policies mandated in states including California. Musk initially reopened the Freemont factory in defiance of local orders, and authorities have not yet said if the company will face any repercussions. Shares of Tesla were about 2% lower in Thursday’s premarket trading. — Stevens
8 am: Goldman projects unemployment to hit 25% even as some industries reopen
With jobless claims expected to rise by more than 2 million on Thursday, economists and government officials are warning that the official unemployment rate will rise even higher in the coming months. Goldman Sachs economists now expect the rate to peak at 25% in the U.S. Some sectors may begin to bounce back even as the overall number gets worse, however. Luke Tilley, chief economist at Wilmington Trust, said the construction industry may see a boost in the near-term as the Paycheck Protection Program makes its way to workers. “Equipment that they rent, materials that they are bringing in for any specific job, are sort of a variable cost. So construction companies have an easier time going about taking PPP loans, paying their people,” Tilley said. Goldman was less bullish on the construction sector but said manufacturing could recover relatively quickly, based on what has happened in Asia. — Pound
7:40 am: Wall Street awaits key jobless claims report
Investors await the Labor Department’s latest update on the number of Americans filing for state unemployment benefits. Though economists polled by Dow Jones expect another eye-popping 2.7 million initial claims filed during the week ended May 9, that estimate represents another deceleration in the historic spike in jobless claims amid the Covid-19 outbreak. Last week’s jobless claims report, which showed 3.169 million Americans filed for benefits in the week prior, brought the seven-week tally to 33.5 million. — Franck
