Stocks fight for gains amid signs America is returning to work

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U.S. equity markets battled for gains Thursday as investors assessed Chinese aggression in Hong Kong and signals that America is getting back to work.

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The Dow Jones Industrial Average gained 142 points, or 0.55 percent, in the opening minutes of trading while the S&P 500 rose 0.29 percent. The tech-heavy Nasdaq Composite fell 0.1 percent.

China passed a national security bill on Thursday that overrides Hong Kong’s autonomy, effectively ending the “one party, two systems” framework it had agreed to keep in place for the 50 years following the city’s 1997 handover from Great Britain.

HONG KONG’S ‘ONE PARTY, TWO SYSTEMS’ RULE IS DEAD, ACTIVIST WARNS

Meanwhile, continuing jobless claims fell to 21.05 million in the week ended May 16, down from the prior week’s revised reading of 24.91 million, a sign Americans are returning to work following lengthy stay-at-home orders aimed at slowing the spread of COVID-19.

Initial claims for the week ended May 23 totaled 2.1 million, the Department of Labor reported Thursday, matching estimates.

Also Thursday morning, data showed the U.S. economy contracted at an annualized rate of 5 percent in the second quarter, according to a second estimate released by the Commerce Department.

Looking at stocks, Dow component Boeing has restarted production of its 737 Max jet at a “low rate.” Production of the aircraft was halted in January, and it has been grounded since March 2019 following two crashes that killed everyone aboard.

Social-media stocks Twitter and Facebook were under pressure as President Trump readies an executive order that targets what he has characterized as political bias on the platforms. Both companies have repeatedly denied such claims.

American Airlines will cut management and support staff by 30 percent and may have to reduce its frontline worker count to navigate the difficult conditions caused by COVID-19, Reuters reports, citing a letter to employees. Additionally, rival Delta will announce two job-reduction programs on Thursday.

On the earnings front, apparel retailer Abercrombie & Fitch reported a larger-than-expected loss and sales that fell short of Wall Street estimates as COVID-19 forced the closure of its stores.

Discount retailers Dollar Tree and Dollar General both beat sales and profit estimates as customers stocked up on goods amid stay-at-home orders.

Nio, the so-called Tesla of China, reported first-quarter sales fell 16 percent from a year ago amid the COVID-19 pandemic, which originated in Wuhan, China.

West Texas Intermediate crude oil edged up 0.06 percent to $32.83 a barrel and gold was up 0.55 percent at $1,737 an ounce.

U.S. Treasurys were little changed, with the yield on the 10-year note holding near 0.68 percent.

In Europe, Britain’s FTSE added 1.07 percent, France’s CAC climbed 1.01 percent and Germany’s DAX was higher by 0.61 percent at $1,737 an ounce.

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Asian markets ended mixed with Hong Kong’s Hang Seng slipping 0.72 percent while China’s Shanghai Composite and Japan’s Nikkei gained 0.33 percent and 2.32 percent, respectively.

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