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| U.S. Jobless Claims Pass 40 Million: Live Business Updates | U.S. Jobless Claims Pass 40 Million: Live Business Updates |
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| Another 2.1 million unemployment claims were filed last week, the Labor Department reported Thursday, pushing the total past 40 million — the equivalent of one out of every four American workers — since the coronavirus pandemic grabbed hold in mid-March. | Another 2.1 million unemployment claims were filed last week, the Labor Department reported Thursday, pushing the total past 40 million — the equivalent of one out of every four American workers — since the coronavirus pandemic grabbed hold in mid-March. |
| The report marks the eighth week in a row that new jobless filings dipped from the peak of almost 6.9 million, but the level is still far above historic highs. | The report marks the eighth week in a row that new jobless filings dipped from the peak of almost 6.9 million, but the level is still far above historic highs. |
| The latest claims may be not only a result of fresh layoffs, but also evidence that states are working their way through a backlog. And overcounting in some places and undercounting in others makes it difficult to measure the layoffs precisely. | The latest claims may be not only a result of fresh layoffs, but also evidence that states are working their way through a backlog. And overcounting in some places and undercounting in others makes it difficult to measure the layoffs precisely. |
| Under the Pandemic Unemployment Assistance program, Congress approved an expanded palette of jobless benefits that included freelancers, self-employed and gig workers and others who would not normally qualify under state rules. But many states, flooded with applicants, were slow to put the program into effect, and those eligible may not yet be fully reflected. | Under the Pandemic Unemployment Assistance program, Congress approved an expanded palette of jobless benefits that included freelancers, self-employed and gig workers and others who would not normally qualify under state rules. But many states, flooded with applicants, were slow to put the program into effect, and those eligible may not yet be fully reflected. |
| “When we think about what to do when benefits expire, it would be helpful to know how many people are actually getting them,” said Elizabeth Pancotti, a research assistant at the National Bureau of Economic Research. While the Labor Department reports may be the best source of information, she said, they offer an “incomplete picture.” | “When we think about what to do when benefits expire, it would be helpful to know how many people are actually getting them,” said Elizabeth Pancotti, a research assistant at the National Bureau of Economic Research. While the Labor Department reports may be the best source of information, she said, they offer an “incomplete picture.” |
| Laid-off workers who have not applied for benefits and those who have left the labor force entirely are not included in the Labor Department’s weekly report. Nor are any of the eight million undocumented workers who lost their jobs. They are not eligible for any benefits. Neither are new graduates just entering the labor force. | Laid-off workers who have not applied for benefits and those who have left the labor force entirely are not included in the Labor Department’s weekly report. Nor are any of the eight million undocumented workers who lost their jobs. They are not eligible for any benefits. Neither are new graduates just entering the labor force. |
| Matthew Wilson, 24, who lost his barista job in Philadelphia, was turned down because he had been working in the state for less than a year. | Matthew Wilson, 24, who lost his barista job in Philadelphia, was turned down because he had been working in the state for less than a year. |
| “It doesn’t make any sense — I moved, and now I’m magically not qualified for unemployment?” said Mr. Wilson, who relocated to Pennsylvania after graduating from Tufts University in Massachusetts last year. He appealed the decision and heard last week that his claim had been approved, but he hasn’t received any money. His partner, who also lost her job as a barista, has applied four times but has yet to collect benefits. | “It doesn’t make any sense — I moved, and now I’m magically not qualified for unemployment?” said Mr. Wilson, who relocated to Pennsylvania after graduating from Tufts University in Massachusetts last year. He appealed the decision and heard last week that his claim had been approved, but he hasn’t received any money. His partner, who also lost her job as a barista, has applied four times but has yet to collect benefits. |
| Even now, three states have not put pandemic unemployment insurance program into effect, and several others have yet to report any claims. Thirteen states have not started another federal emergency relief program, to provide an additional 13 weeks of benefits to workers who have exhausted their state benefits. | Even now, three states have not put pandemic unemployment insurance program into effect, and several others have yet to report any claims. Thirteen states have not started another federal emergency relief program, to provide an additional 13 weeks of benefits to workers who have exhausted their state benefits. |
| Before the coronavirus pandemic, the TV networks were expecting a strong 2020. The presidential election and Tokyo Olympics would keep people watching, and companies would spend more than usual on commercial time. | |
| But with the Summer Games postponed and campaign rallies on lockdown, television advertising revenue is likely to drop 12 percent this year, according to a projection by the research firm MoffettNathanson. Networks will lose out on $25.5 billion in spending, according to a report released on Thursday by the WARC research group. | |
| Viewership is not the problem now that millions of homebound people have limited entertainment options. But the economic fallout of the pandemic has caused companies to slash TV ad budgets by more than 40 percent, according to the research firm Kantar. In response, networks have offered commercial time at double-digit discounts. | |
| Many companies have cut back on the big-budget commercial productions out of necessity, with filming largely shut down. In the first weeks of lockdown, new commercials were cobbled together out of old footage. More recently, the tone has shifted, with commercials focused on a return to normalcy and praise for essential workers. | |
| The Treasury Department said on Thursday that it is setting aside $10 billion in funds from a $660 billion small business lending program to be used only by a group of lenders that focus specifically on disadvantaged communities. | The Treasury Department said on Thursday that it is setting aside $10 billion in funds from a $660 billion small business lending program to be used only by a group of lenders that focus specifically on disadvantaged communities. |
| The money, which Congress allocated for a coronavirus response effort known as the Paycheck Protection Program, will go to loans made by community development financial institutions. These special lenders, many of which are nonprofits, work in poor communities and often provide capital to minority-owned businesses that otherwise could not get loans. | The money, which Congress allocated for a coronavirus response effort known as the Paycheck Protection Program, will go to loans made by community development financial institutions. These special lenders, many of which are nonprofits, work in poor communities and often provide capital to minority-owned businesses that otherwise could not get loans. |
| The announcement follows weeks of pressure from lawmakers, including Senator Chuck Schumer of New York, the minority leader, who have been worried that minority-owned business owners were being shut out of the lending program. A spokesman for Mr. Schumer said that the senator had held numerous on-on-one phone calls with Treasury Secretary Steven Mnuchin to discuss the matter. | The announcement follows weeks of pressure from lawmakers, including Senator Chuck Schumer of New York, the minority leader, who have been worried that minority-owned business owners were being shut out of the lending program. A spokesman for Mr. Schumer said that the senator had held numerous on-on-one phone calls with Treasury Secretary Steven Mnuchin to discuss the matter. |
| “I want to thank Secretary Mnuchin for heeding our calls to set aside a pool of funding specifically designated for lending by CDFIs,” Mr. Schumer said in a statement. He said he and other lawmakers are now pushing for a separate pool of money to be reserved only for use in the program by minority-run banks. | “I want to thank Secretary Mnuchin for heeding our calls to set aside a pool of funding specifically designated for lending by CDFIs,” Mr. Schumer said in a statement. He said he and other lawmakers are now pushing for a separate pool of money to be reserved only for use in the program by minority-run banks. |
| Twitter on Thursday added new fact-checking labels to hundreds of tweets, even as the Trump administration prepared an executive order to curtail the legal protections that shield social media companies from liability for the content posted on their platforms, Kate Conger and Mike Isaac reported. | Twitter on Thursday added new fact-checking labels to hundreds of tweets, even as the Trump administration prepared an executive order to curtail the legal protections that shield social media companies from liability for the content posted on their platforms, Kate Conger and Mike Isaac reported. |
| Twitter’s move escalated the confrontation between the company and President Trump, who has fulminated this week over actions taken by his favorite social media service. | Twitter’s move escalated the confrontation between the company and President Trump, who has fulminated this week over actions taken by his favorite social media service. |
| Twitter on Tuesday had appended fact-checking labels for the first time to two of Mr. Trump’s tweets about mail-in ballots, refuting their accuracy. In response, Mr. Trump accused Twitter of stifling speech and declared that he would put a stop to the interference. | Twitter on Tuesday had appended fact-checking labels for the first time to two of Mr. Trump’s tweets about mail-in ballots, refuting their accuracy. In response, Mr. Trump accused Twitter of stifling speech and declared that he would put a stop to the interference. |
| Since then, White House officials have drafted an executive order that would make it easier for federal regulators to argue that companies like Facebook, Google and Twitter are suppressing free speech when they move to suspend users or delete posts. The executive order may come as early as Thursday. | Since then, White House officials have drafted an executive order that would make it easier for federal regulators to argue that companies like Facebook, Google and Twitter are suppressing free speech when they move to suspend users or delete posts. The executive order may come as early as Thursday. |
| The Trump administration will not issue a midyear update to its economic forecasts this summer, breaking decades of tradition amid the uncertainty of a pandemic recession, officials confirmed on Thursday. | The Trump administration will not issue a midyear update to its economic forecasts this summer, breaking decades of tradition amid the uncertainty of a pandemic recession, officials confirmed on Thursday. |
| The decision, first reported by The Washington Post, will spare the administration from having to reveal its internal projections for how deeply the recession will damage economic growth and how long the pain of high unemployment will persist. | The decision, first reported by The Washington Post, will spare the administration from having to reveal its internal projections for how deeply the recession will damage economic growth and how long the pain of high unemployment will persist. |
| When the administration last published official projections in February, it forecast economic growth of 3.1 percent from the fourth quarter of 2019 to the fourth quarter of 2021, and growth rates at or around 3 percent for the ensuing decade. It forecast an unemployment rate of 3.5 percent for the year. | When the administration last published official projections in February, it forecast economic growth of 3.1 percent from the fourth quarter of 2019 to the fourth quarter of 2021, and growth rates at or around 3 percent for the ensuing decade. It forecast an unemployment rate of 3.5 percent for the year. |
| The virus has rendered those projections obsolete. Unemployment could hit 20 percent in June, White House economic adviser Kevin Hassett told CNN this week. The Congressional Budget Office said in April that it expects the economy will contract by 5.6 percent this year and end with unemployment above 11 percent. | The virus has rendered those projections obsolete. Unemployment could hit 20 percent in June, White House economic adviser Kevin Hassett told CNN this week. The Congressional Budget Office said in April that it expects the economy will contract by 5.6 percent this year and end with unemployment above 11 percent. |
| The White House is required by law to issue both an annual budget and a midyear update to it, called a “mid-session review.” Updating economic projections in the mid-session review is optional, but it is a practice that administrations — including President Trump’s — have widely followed since the review was mandated by Congress in 1970. | The White House is required by law to issue both an annual budget and a midyear update to it, called a “mid-session review.” Updating economic projections in the mid-session review is optional, but it is a practice that administrations — including President Trump’s — have widely followed since the review was mandated by Congress in 1970. |
| A senior administration official defended the decision not to publish updated forecasts, saying the economic uncertainty caused by the virus “would produce a less instructive forecast.” The official, who declined to be identified, also said the White House was under no legal obligation to release the revised forecast. | A senior administration official defended the decision not to publish updated forecasts, saying the economic uncertainty caused by the virus “would produce a less instructive forecast.” The official, who declined to be identified, also said the White House was under no legal obligation to release the revised forecast. |
| U.S. stocks pushed higher on Thursday, a third day of gains that has brought the S&P 500 to its highest level in nearly three months. | U.S. stocks pushed higher on Thursday, a third day of gains that has brought the S&P 500 to its highest level in nearly three months. |
| The benchmark index was up less than 1 percent, but added to back-to-back gains that have come as bullish investors looked past the immense economic damage wrought by the coronavirus pandemic toward signs of a recovery. This week’s climb has been fueled by optimism about a return to normal, with companies that have been hit hardest by pandemic-related closures leading the gains. | The benchmark index was up less than 1 percent, but added to back-to-back gains that have come as bullish investors looked past the immense economic damage wrought by the coronavirus pandemic toward signs of a recovery. This week’s climb has been fueled by optimism about a return to normal, with companies that have been hit hardest by pandemic-related closures leading the gains. |
| Cruise lines, retailers and airlines have all posted double digit gains this week as they rebounded from steep declines earlier in the year. More broadly, the S&P 500 is up about 3 percent so far this week. | Cruise lines, retailers and airlines have all posted double digit gains this week as they rebounded from steep declines earlier in the year. More broadly, the S&P 500 is up about 3 percent so far this week. |
| European markets were up about 1 percent after a mixed day in Asia. | European markets were up about 1 percent after a mixed day in Asia. |
| Investors on Thursday were parsing the rising tensions between the United States and China and another bleak report on the U.S. labor market. | Investors on Thursday were parsing the rising tensions between the United States and China and another bleak report on the U.S. labor market. |
| The U.S. Labor Department’s weekly report on unemployment claims, released Thursday morning, showed more than 2 million filings last week as the surge of layoffs continued, bringing the tally since mid-March, when the coronavirus pandemic took hold, to over 40 million. | The U.S. Labor Department’s weekly report on unemployment claims, released Thursday morning, showed more than 2 million filings last week as the surge of layoffs continued, bringing the tally since mid-March, when the coronavirus pandemic took hold, to over 40 million. |
| Also on Thursday, the Commerce Department said the U.S. economy shrank at a 5 percent pace in the first three months of the year, revising its earlier estimate of a 4.8 percent drop. In a separate report, the department said new orders for U.S. manufactured goods plunged by 17.2 percent in April, after a 16.6 percent drop in March. | Also on Thursday, the Commerce Department said the U.S. economy shrank at a 5 percent pace in the first three months of the year, revising its earlier estimate of a 4.8 percent drop. In a separate report, the department said new orders for U.S. manufactured goods plunged by 17.2 percent in April, after a 16.6 percent drop in March. |
| Heated rhetoric between the United States and China over Hong Kong drove the Hang Seng Index in the semiautonomous Chinese city down 0.8 percent late in the trading day. China’s legislature on Thursday approved a plan that would see many of mainland China’s security practices broadened to Hong Kong. The Trump administration signaled Wednesday that it was likely to end some or all of the U.S. government’s special trade and economic relations with Hong Kong because of the move. | Heated rhetoric between the United States and China over Hong Kong drove the Hang Seng Index in the semiautonomous Chinese city down 0.8 percent late in the trading day. China’s legislature on Thursday approved a plan that would see many of mainland China’s security practices broadened to Hong Kong. The Trump administration signaled Wednesday that it was likely to end some or all of the U.S. government’s special trade and economic relations with Hong Kong because of the move. |
| The staggering unemployment figures — devastating as they are — do not fully capture the degree to which the coronavirus has disrupted professional life across the country. | The staggering unemployment figures — devastating as they are — do not fully capture the degree to which the coronavirus has disrupted professional life across the country. |
| Since March, when the crisis began to shut businesses en masse, a generation of professionals has seen careers enter a state of suspended animation. Hiring has dried up, advancement has ceased, job searches have been put on hold and new ventures are in jeopardy. As a result, even well-connected high earners are suddenly in unfamiliar territory. | Since March, when the crisis began to shut businesses en masse, a generation of professionals has seen careers enter a state of suspended animation. Hiring has dried up, advancement has ceased, job searches have been put on hold and new ventures are in jeopardy. As a result, even well-connected high earners are suddenly in unfamiliar territory. |
| “There is deep uncertainty,” said Alisa Cohn, an executive coach who works with companies including Google and Pfizer. “We’re not just in a holding pattern. We’re on our way somewhere new, but we don’t know what it looks like.” | “There is deep uncertainty,” said Alisa Cohn, an executive coach who works with companies including Google and Pfizer. “We’re not just in a holding pattern. We’re on our way somewhere new, but we don’t know what it looks like.” |
| In March, Hasti Nazem, 35, left a start-up she helped found. Two months later, the job market has imploded, promising leads have dried up, and she is stuck in limbo. She is mining her network for introductions, but still without a full-time job. | In March, Hasti Nazem, 35, left a start-up she helped found. Two months later, the job market has imploded, promising leads have dried up, and she is stuck in limbo. She is mining her network for introductions, but still without a full-time job. |
| “I’m mostly having Zoom calls with strangers,” she said. | “I’m mostly having Zoom calls with strangers,” she said. |
| Nissan said on Thursday it would close plants in Spain and Indonesia and cut global production by 20 percent as it seeks to remake itself into a smaller, more efficient automaker, an announcement that comes as it reported its first annual loss in 11 years. | Nissan said on Thursday it would close plants in Spain and Indonesia and cut global production by 20 percent as it seeks to remake itself into a smaller, more efficient automaker, an announcement that comes as it reported its first annual loss in 11 years. |
| The Japanese automaker said it needed to cut 300 billion yen ($2.8 billion) in costs as it works to recover from a year marked by plunging sales, a drawn out legal fight with its former chairman Carlos Ghosn, and a bruising falling out with Renault, its partner in the world’s largest auto-making alliance. | The Japanese automaker said it needed to cut 300 billion yen ($2.8 billion) in costs as it works to recover from a year marked by plunging sales, a drawn out legal fight with its former chairman Carlos Ghosn, and a bruising falling out with Renault, its partner in the world’s largest auto-making alliance. |
| In a statement, Nissan said it took a net loss of $6.2 billion, its worst performance since the 2008 financial crisis. It joined Japan’s other major automakers in declining to provide an earnings forecast for the coming year because of uncertainty surrounding the coronavirus’s economic effects. | In a statement, Nissan said it took a net loss of $6.2 billion, its worst performance since the 2008 financial crisis. It joined Japan’s other major automakers in declining to provide an earnings forecast for the coming year because of uncertainty surrounding the coronavirus’s economic effects. |
| Nissan’s chief executive, Makoto Uchida declined to say how many jobs would be lost because of the plant closings in Spain and Indonesia. | Nissan’s chief executive, Makoto Uchida declined to say how many jobs would be lost because of the plant closings in Spain and Indonesia. |
| Nissan was already struggling before the pandemic hit. Sales volume dropped by 10.6 percent through the end of the fiscal year in March, significantly outpacing the overall decline in the global market. | Nissan was already struggling before the pandemic hit. Sales volume dropped by 10.6 percent through the end of the fiscal year in March, significantly outpacing the overall decline in the global market. |
| On Wednesday, Nissan and Renault said they had put their differences aside as they are forced to pull closer together to survive the worst economic crisis in a generation. To help achieve that goal, Nissan said it would need to winnow down its product lineup and reduce production capacity through restructuring and closures. | On Wednesday, Nissan and Renault said they had put their differences aside as they are forced to pull closer together to survive the worst economic crisis in a generation. To help achieve that goal, Nissan said it would need to winnow down its product lineup and reduce production capacity through restructuring and closures. |
| J.C. Penney, the 118-year-old retailer that filed for bankruptcy this month, said on Thursday that it has reopened 304 of its stores, roughly one-third, and plans to have almost 500 stores open by June 3. The chain said that it was offering curbside pickup at its opened stores and special shopping hours for “at-risk customers” on Wednesdays and Fridays. | J.C. Penney, the 118-year-old retailer that filed for bankruptcy this month, said on Thursday that it has reopened 304 of its stores, roughly one-third, and plans to have almost 500 stores open by June 3. The chain said that it was offering curbside pickup at its opened stores and special shopping hours for “at-risk customers” on Wednesdays and Fridays. |
| The British low-price airline easyJet said on Thursday that it planned to reduce staff by up to 30 percent and that it expected to fly in the July-September period at nearly 30 percent of the capacity a year earlier. When flights restart, staff and passengers will be required to wear masks and, at least initially, no onboard food service will be offered, the company said. | |
| It wasn’t a total blackout, but for one minute on Wednesday night, a cluster of billboards in the northern section of Times Square went dark. The shut-off was designed to pressure insurance companies to cover pandemic-related losses incurred by businesses. The effort was coordinated by the Business Interruption Group, which was founded by celebrity chefs including Wolfgang Puck and Thomas Keller along with a Louisiana lawyer who has helped sue several insurers over the scope of their policies during the coronavirus crisis. | It wasn’t a total blackout, but for one minute on Wednesday night, a cluster of billboards in the northern section of Times Square went dark. The shut-off was designed to pressure insurance companies to cover pandemic-related losses incurred by businesses. The effort was coordinated by the Business Interruption Group, which was founded by celebrity chefs including Wolfgang Puck and Thomas Keller along with a Louisiana lawyer who has helped sue several insurers over the scope of their policies during the coronavirus crisis. |
| The activist investor Carl Icahn sold his 55 million-share stake in the car rental giant Hertz, in what he described in a securities filing on Wednesday as a “significant loss.” The Hertz stock had traded at $15 per share for months before spiking in February and then crashing, resulting in a bankruptcy filing last week. Mr. Icahn sold the shares at $0.72 each. | The activist investor Carl Icahn sold his 55 million-share stake in the car rental giant Hertz, in what he described in a securities filing on Wednesday as a “significant loss.” The Hertz stock had traded at $15 per share for months before spiking in February and then crashing, resulting in a bankruptcy filing last week. Mr. Icahn sold the shares at $0.72 each. |
| Reporting was contributed by Patricia Cohen, Kate Conger, Maggie Haberman, Niraj Chokshi, Ben Dooley, Sapna Maheshwari, Geneva Abdul, Mohammed Hadi, Emily Flitter, Jim Tankersley, David Gelles, David Yaffe-Bellany, Tiffany Hsu, Carlos Tejada, Katie Robertson and Gregory Schmidt. | Reporting was contributed by Patricia Cohen, Kate Conger, Maggie Haberman, Niraj Chokshi, Ben Dooley, Sapna Maheshwari, Geneva Abdul, Mohammed Hadi, Emily Flitter, Jim Tankersley, David Gelles, David Yaffe-Bellany, Tiffany Hsu, Carlos Tejada, Katie Robertson and Gregory Schmidt. |