Even in this new stay-at-home, increasingly jobless economy, some businesses are making out as clear winners, and gains for Amazon, health care companies and stocks in other pockets of the market helped prop up Wall Street Thursday.
The S&P 500 rose 0.6% after flipping between small gains and losses following a government report that 5.2 million Americans filed for unemployment benefits last week. The report was universally regarded as awful, and it brought the total for the last month to roughly 22 million. But markets had braced for a number that was even more awful, which helped limit losses for stocks.
The day's move for the S&P 500 was one of its mildest since the coronavirus outbreak began knocking stocks lower two months ago. But it belied some churn underneath, as losers in the index outnumbered winners.
"We know the numbers are not going to be good, but companies can show they've taken steps to stop the cash drain or that they've positioned themselves well," said Sal Bruno, chief investment officer at IndexIQ.
Amazon, Dollar General and Walmart all closed at record highs as people stock up on staples. Netflix also reached an all-time high as people spend more time than ever at home, while health care stocks in the S&P 500 rose 2.2% for the biggest gain among the 11 sectors that make up the index.
A currency trader watches computer monitors at the foreign exchange dealing room in Seoul, South Korea, Thursday, April 16, 2020. Asian stocks were mostly lower Thursday after unexpectedly weak U.S. retail and other data added to gloom about the impact of the coronavirus pandemic. (AP Photo/Lee Jin-man)The losers in the coronavirus pandemic, meanwhile, took yet more hits. United Airlines sank 11.5% for the one of the worst slides in the S&P 500 after its CEO told employees that demand for travel "is essentially zero and shows no sign of improving in the near term."
As a sector, financial stocks weighed heaviest on the market with banks continuing their weeklong slide. Worries are high that business-shutdown orders - and the punishing sweep of layoffs they're causing - will force households and businesses to default on billions of dollars of loans. JPMorgan Chase lost 3.8%, and Citigroup slid 5.5%.
Energy companies and owners of shopping malls were also hard hit as people stay at home amid efforts to slow the spread of the virus. Simon Property Group lost 13.3%, and Occidental Petroleum fell 10.4%.
Analysts see the separation of winners and losers as an encouraging sign for the market. Earlier in the sell-off, fears about the impending recession pulled the plug for stocks across sectors.
"We had a market that was dotted with indiscriminate selling," said Quincy Krosby, chief market strategist at Prudential Financial. "Now you have a differentiation within the market, which indicates a healthier backdrop."