Oil continues to recover in early trading
US stocks were mixed at the open Friday, but oil continued to recover from an unprecedented selloff after demand collapsed amid the coronavirus pandemic.
Oil rose for the third day in a row, recovering from a historic collapse that saw futures contracts flip negative for the first time in history. Supply outstripped demand, further depressing prices.
In early trading, the Dow Jones Industrial Average edged up 44.57 points, or 0.19 percent, to 23,556.67/ The S&P 500 gained 0.05 percent. The Nasdaq Composite slid 0.22 percent.
West Texas Intermediate crude, the guide for US oil prices, rose 7.03 percent. Brent crude, the worldwide benchmark, gained 2.30 percent.
US President Donald Trump said he will extend national social-distancing guidelines until early summer and possibly longer. "Until we feel safe, we're going to be extending," he said Thursday at a White House news briefing on the coronavirus. The federal guidelines, first offered in mid-March, were scheduled to expire at the end of April.
The governor of Georgia has relaxed guidelines to allow some business owners to reopen if they wish. Protests throughout the nation have urged governors to relax the shutdown.
Consumer spending, which represents about 70 percent of the US economy, has withered as unemployment soared. Despite volatility, the market has rallied in the last two weeks – the strongest rebound since the Great Depression.
On Thursday, the House approved a $484 billion bill to provide aid for small businesses and hospitals. Trump is scheduled to sign the bill Friday.
The measure follows a $2.2 trillion package intended to boost the economy and the Federal Reserve's decision to slash interest rates and pump money into the economy. Additional stimulus measures are likely
About 26 million people have filed unemployment claims following shutdown orders intended to curb the spread of the coronavirus. There have been about 50,000 coronavirus-related deaths in the US.
There may be more market volatility ahead as companies cut or eliminate dividends, lower earnings expectations and some file for bankruptcy protection in the economic downturn.
Boeing's 737 MAX, grounded worldwide after two fatal crashes killed a total of 346 passengers and crew, isn't expected to be re-certified for commercial service until late summer or early fall, The Wall Street Journal reported. In early trading, Boeing's stock fell 2.58 percent.
Bloomberg News reported that Apple plans to develop its own chips by 2021 rather than rely on Intel. Intel said first-quarter earnings beat expectations but warned that profit would fall in the second quarter. In early trading, Intel's stock lost 3.56 percent.
Verizon said it beat earnings estimates, but warned that the coronavirus outbreak is dragging down sales of new phones. In early trading, Verizon's stock declined 0.29 percent.
