The United States gained 4.8 million jobs in June, eliminating a portion of the job losses recorded during the worst coronavirus pandemic. The number of jobs was good news to boost the Dow Jones Industrial Average (DJINDICES: ^ DJI) 1% higher at 12:55 pm EDT on Thursday.
The concentration of the Dow generated shares of Apple (NASDAQ: AAPL)McDonald’s (NYSE: MCD), ExxonMobil (NYSE: XOM)and Boeing (NYSE: BA) higher despite mixed news. Apple and McDonald’s withdrew plans to reopen the store due to an increase in COVID-19 cases, Exxon revealed it would take a big hit in earnings in the second quarter, and the FAA completed certification test flights for 737. Boeing Max.
Image source: Getty Images.
Apple and McDonald’s slow down store opening plans
The increase in confirmed cases of COVID-19 in various US states is causing some companies to reevaluate their plans to reopen physical locations. Apple has been gradually reopening its retail stores, but the tech giant has changed course in areas where the virus is spreading rapidly.
Apple will re-close 30 stores in the United States on Thursday, adding 47 stores in the United States that have already been closed due to the virus. Stores are located in Alabama, California, Georgia, Idaho, Louisiana, Nevada, and Oklahoma. While there are many ways to buy Apple devices, Apple stores serve as a key source of branding for the company.
McDonald’s is also reacting to the increase in COVID-19 cases. The fast-food chain is delaying the reopening of dinner service at its U.S. restaurants, saying it will wait three weeks before allowing customers to eat inside its restaurants. McDonald’s currently offers a combination of cars, takeaways, and delivery at most of its locations in the United States.
Apple shares rose approximately 0.9% in early Thursday afternoon, while McDonald’s shares rose 0.1%.
Exxon reveals expected profit hit
In a filing with the SEC on Thursday, major oil company Exxon revealed estimates on how various factors will affect its second-quarter results relative to its first-quarter numbers. Falling oil prices will affect earnings of the company’s upstream business in the amount of $ 2.1 billion to $ 2.5 billion, while the decline in gas prices will provide an additional blow of $ 0.4 billion to $ 0.6 billion.
Meanwhile, the downstream business will see a negative impact on earnings somewhere between $ 2 billion and $ 2.8 billion. Much of the impact will come from tagging derivatives to the market, while some will come from lower refining margins and North American crude oil logistics differentials.
While Exxon’s earnings will drop significantly in the second quarter, the market responded positively to the update. Exxon’s shares rose 1.7% early Thursday afternoon.
Full certification test flights for Boeing’s 737 Max
Boeing’s 737 Max, grounded in early 2019 after two fatal crashes linked to a flight control system, is now one step closer to returning to the skies. The Federal Aviation Administration has completed certification test flights intended to test changes made to the faulty system. Test flight data has yet to be evaluated.
Getting the 737 Max to fly again will solve one of Boeing’s problems. The other problem, the depressed demand due to the pandemic, could affect the company for years. Boeing recently lost some orders for the 737 Max, and the airline industry is unlikely to return to normal soon.
Boeing shares rose 1.7% early Thursday afternoon. Even after a powerful rally from its March lows, the stock continues to drop 53% from its 52-week high.
