Dow Jones in Denial as Gut-Wrenching Unemployment Data Looms, Crypto Coins News

Dow Jones in Denial as Gut-Wrenching Unemployment Data Looms, Crypto Coins News
  • Dow Jones Industrial Average (DJIA) futures point to a nervy open on Wall Street Thursday.
  • Traders await another bout of historic jobless claims, which could hit 7 million today.
  • Investors are beginning to doubt the ongoing relief rally with many holding out for new lows.

The US stock market is set for a nervy open on Thursday as yet another economic bomb drops. Dow Jones Industrial Average (DJIA) futures point to a small gain ahead of Thursday’s jobless claims report.

A gut-wrenching million Americans filed for unemployment over the last two weeks. Today’s figure could add another 7 million, according to JP Morgan . Beth Ann Bovino at S&P Global Ratings declared a full-blown recession .

These dismal numbers suggest another record-breaking April jobs report… America is now in recession and as it appears to deepen, the question is how long it will it take before the US recovers.

Some investors think the stock market, which has climbed % from its March rd bottom, is in denial. Mark Cuban said he’s “surprised” at the relief rally and doesn’t think traders understand how deep this could go .

Dow futures on edge

Dow futures contracts swung as much as 500 points higher on Thursday before settling slightly in the green. This week has been marked by a strong relief rally as stocks bounce off the March rd lows .

(Dow Jones Industrial Average (DJIA) futures swung higher before erasing) the gains on Thursday morning. Source: Yahoo Finance

S&P (futures and Nasdaq Composite futures were up 0. % and 0. (% respectively.

7 million new jobless claims on Thursday?

Thursday’s jobless claims report has become a weekly fixation since America implemented strict coronavirus lockdowns. The policy has plunged the country into an unemployment crisis

is worse than the Great Recession


Unemployment levels soar far beyond levels seen during the recession. Source: BBC

With ten million claims in two weeks, the crisis dwarfs the levels we saw in 5658 / 5658. The total number is likely to hit 25 million by the end of April and Bovino at S&P Global Ratings predicts it will impact 24% of American workers before the crisis resolves. Bovino said we’ve never seen anything like it.

It’s unbelievable that I am saying this. It’s mind-boggling.

The real unemployment figure is probably even higher …

Despite the horrific numbers, the true impact is likely even higher. Reports show that gig workers and the self-employed are struggling to make claims. Although the welfare support has been extended to them, many states have been slow to update their website and claims process. The result is many thousands unable to claim yet.

The figures reported each Thursday are also revised the following week. In recent weeks we’ve seen the figures revised up to reflect the true scale of the damage.

() Visitors to the Department of Labor are turned away at the door by personnel due to closures over coronavirus concern in New York during the coronavirus pandemic. | Source: AP Photo / John Minchillo

As many as 86 million total jobs are vulnerable during the coronavirus lockdown crisis. These are described as non-essential roles that cannot be performed from home. For example, hospitality, service, retail and construction. As the crisis drags on, company cash flow is disappearing, making layoffs even more likely. Globally, the number of impacted workers is 2.7 billion .

Anecdotally, some unemployment offices say they are fielding up to calls every hour.

are Dow Jones bulls in denial. ?

All this brings us back to the stock market. Despite the devastating numbers, the stock market remains firmly in ‘relief rally’ mode, stubbornly pushing higher into today’s open. Investor and Dallas Mavericks owner Mark Cuban thinks the bulls are in denial.

I’m surprised. I think this is kind of buy the rumor and potentially we sell the news when reality sets in. I think people are naturally optimistic right now in terms of the market. I just don’t think they are really factoring in what we are going to see on the other side.

As CCN Markets reported, Cuban was a Buyer two weeks ago near the bottom of the initial crash

. He claims he hasn’t bought any stocks since and is now building a cash position in readiness for the next drop.

This article was edited by

Samburaj Das . Now Watch: CCN TV

Last modified: April 9, 102324 20: AM UTC

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