(Bloomberg) – Initial jobless claims are expected to top 1 million again; Biden is steadily moving toward the center, and contagion cases continue to hit records in the U.S.
The trend of more than 1 million initial jobless claims is projected to continue this morning, with an estimate of 1,375 million new claims from economists; Existing claims are also forecast to drop below 19 million. The data, released at 8:30 a.m., New York time, will add to what is becoming a mixed picture for the job market, where job offers are rising and unemployment is falling faster than expected. However, continued failure to control the virus has resulted in warnings that the rate of recovery could slow down.
Step by Step
Democratic supporters expecting a big bang stimulus proposal from Joe Biden when he delivers his economic speech today are likely to be disappointed. While his advisers say the plan will be ambitious, the Democratic nominee favors a more gradual approach to give a boost to what is likely to be a very weak economy if he wins in November. A document released yesterday by task forces created to forge a united policy-based platform by Biden and Bernie Sanders dodged a significant shift to the left.
More cases, more deaths
Texas, which has seen an increase in cases in recent weeks, reported a record death from covid-19 for the second day. The Los Angeles County director of public health said the area was at a “critical juncture” as cases skyrocketed. Tulsa, Oklahoma’s top health official is linking a rally there to the recent President Donald Trump rally in the city. Mexico is also registering an increase in contagion, and the country reported a third increase in record cases in a week yesterday. Hong Kong registered a new rebound, and the number of new daily infections in Tokyo rose to a record high.
There were new signs of optimism in world markets this morning, and the momentum from the tech sector remains strong. The MSCI Asia-Pacific Index added 0.6%, while Japan’s Topix closed unchanged. In Europe, the Stoxx 600 was up 0.3% at 5:50 am, driven by better-than-expected results from the region’s largest software company, SAP SE. S&P 500 futures signal a somewhat ambiguous start to the day, the yield on 10-year Treasuries was 0.656% and gold was glowing strongly.
Also today …
The number of jobless claims is followed by the May wholesale inventory data in the United States, at 10:00 am. Also at that time, the Supreme Court will issue the ruling on access to President Trump’s financial records. Atlanta Fed President Raphael Bostic speaks later, and Joe Biden weighs in on the economy. Walgreens Boots Alliance Inc. is one of the companies reporting results.
Original Note: Five Things You Need to Know to Start Your Day
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