Share it now!!
Text size

Positive sentiment in the airlines sector lifted shares of aerospace giant Boeing, a Dow component. About 2 million people filed for unemployment benefits last week, which pushed the S&P 500 slightly into the red.

Stocks closed Thursday essentially flat after the latest jobs data were released.

Dow Jones Industrial Average
gained 11.93 points, or 0.05%, to close at 26281.82. The
S&P 500
lost 10.52 points, or 0.34%, to end at 3112.35, and the
Nasdaq Composite
fell 67.10 points, or 0.69%, to close at 9615.81.

Once again, a surge in
stock (ticker: BA) lifted the Dow and helped it eke out a gain. The aerospace giant gained on positive sentiment in the airlines sector.

Despite today’s minor setback, the S&P 500 has risen nearly 40% in the last 50 trading days, marking the biggest 50-day rally on record. Historical data suggest that following such moves, stocks were higher 100% of the time both six and 12 months later, according to LPL Financial. The index returned an average of 10.2% six months later, and 17.3% after one year.

Nearly 1.9 million Americans filed for first-time unemployment insurance last week, the Labor Department said Thursday. That’s down from a revised 2.13 million a week earlier, and marks the ninth straight weekly decline in the number of new claims. While the slowing rate is a positive sign, the weekly claims numbers remain massive and came slightly worse than what economists had expected.

Editor’s Choice

Stocks went up in the morning as the European Central Bank expanded its 750 billion euros Pandemic Emergency Purchase Program by yet another 600 billion euros, higher than the previous expectations. The length of the program was also extended until June 2021 to support the economic recovery of the region into next year. The ECB also said that maturing securities under its PEPP program will be reinvested until at least the end of 2022.

The German government also extended its pandemic fiscal stimulus by 130 billion euros to further boost consumer spending and business investment. The new package, which includes a cut in the value-added tax, topped recent expectations in its size.

Airline stocks have been on the rise amid hopes of recovering flight traffic. China agreed to lift its ban on foreign airlines starting next week after the Trump administration said on Wednesday that it would block Chinese airlines from flying in and out of the U.S. beginning in mid-June.

American Airlines Group
(AAL) said on Thursday it planned to fly 55% of the domestic schedule and nearly 20% of the international routes in July, compared with last year. The airline said demand rose sharply in May with a daily average of 110,000 passengers—up from just 32,000 in April. The news pushed American’s stock up more than 41% on Thursday. Other airlines rose as well.

Write to Evie Liu at

This content was originally published here.