Stocks were lower Thursday after jobless claims unexpectedly rose for the first time in a couple of months. Katherine Ross spoke to Jim Cramer about today's latest jobless claims and more stock market news on Street Lightning.
The Labor Department said Thursday that first-time claims for unemployment benefits rose to 1.416 million in the week ended July 18, as U.S. employers retrenched on their efforts to reopen and rehire amid renewed coronavirus flare-ups in various states and cities. Economists had expected claims of about 1.3 million.
Wall Street is weighing the possibility of more government stimulus against a rise in tensions between the U.S. and China.
Beijing called Washington's order to close its consulate in Houston an “unprecedented escalation” by the U.S., and reports said Beijing was considering shutting the U.S. consulate in either Wuhan or Chengdu in retaliation.
Meanwhile, Senate Republicans have ironed out their differences with the White House on a fifth coronavirus relief package, The Wall Street Journal reported, and negotiations with Democrats will begin just days before a $600 weekly supplement to unemployment benefits expires on July 31.
And, in earnings news...
Microsoft reported earnings of $1.46 per share and a 13% increase in revenue to $38 billion. Analysts were expecting the company to report earnings of $1.37 per share on revenue of $36.5 billion.
And Tesla beat analyst consensus estimates for revenues and earnings, maintaining its ambitious target of delivering 500,000 vehicles this year despite the disruptions of the coronavirus pandemic and reporting a fourth straight quarter of GAAAP profits, making it eligible for inclusion in the S&P 500.
Cramer said this round of jobless claims should be seen as a warning sign for what happens to the markets without further stimulus from the federal government.
Watch Cramer break down what worries him most in the video above.
You can follow Katherine Ross on Twitter at @byKatherineRoss.