US Stock Markets Edge Higher Despite Job Losses

US equity markets finished higher on Thursday despite another round of bleak economic data as President Donald Trump vowed to press ahead with reopening the economy.

The Dow Jones Industrial Average added 0.1 percent at 23,537.

The S&P 500 gained 0.6 percent to 2,799, while the Nasdaq Composite Index jumped 1.7 percent to 8,532.

Another 5.2 million US workers filed for unemployment benefits last week, the government reported on Thursday, taking the four-week total to 22 million jobs in the wake of sweeping lockdown measures to contain the coronavirus.

US housing starts fell 22.3 percent in March, while permits for new construction fell 6.8 percent, according to Census Bureau data.

The reports, while the latest to paint a dark picture of the US economy's prospects, were not unexpected, analysts said.

"The market is looking ahead, and understanding this is what we have to deal with, and looking forward to at least an attempt to open the economy," said Quincy Krosby, chief market strategist for Prudential Financial.

Trump was expected later in the day to outline his steps to bring the US economy back online, saying on Twitter, "We are having very productive calls with the leaders of every sector of the economy who are all-in on getting America back to work, and soon."

But business leaders have said more widespread testing for coronavirus is essential before the economy can move significantly towards normalcy.

S&P further reduced its outlook for the US economy on Thursday, projecting a 2020 contraction of 5.3 percent, worse than the previous decline of 1.3 percent.

"Recovery will be gradual as fears linger and social distancing endures, but we expect the economy will at least partly reopen in the third quarter," said Beth Ann Bovino, US chief economist for S&P Global Economics.

Netflix jumped 2.9 percent following a note from Goldman Sachs, which lifted its price target and predicted the streaming company would see record subscriber additions from consumers forced to stay home.

Petroleum-linked companies had another bruising session, with Apache and Halliburton both falling more than four percent, while airlines also fell sharply, along with Boeing, which lost 8.1 percent. (AFP)