US stocks snap 2-day losing streak: April 2, 2020

Discount retailer Ross Stores (ROST) is putting a "majority" of its employees on furlough beginning Sunday.

The company employs 92,500 people across its 1,546 stores in 39 states, according to regulatory filings. Affected employees will still continue to receive their company-funded healthcare.

Ross stores are closed and it's unclear when they will reopen. In a press release, the company said that furloughs will help it "further enhance liquidity and strengthen its ability to manage through these challenging times."

Millions more Americans filed for unemployment benefits last week, as businesses continue to lay off and furlough workers amid the coronavirus outbreak.

6.6 million workers filed for their first week of unemployment benefits in the week ending March 28 -- a new historic high. A week earlier, 3.3 million Americans filed for their first week of benefits, which was the largest number ever at the time.

It was the highest number of initial claims filed in history, surpassing last week’s 3.3 million claims.

Oil prices spiked off 18-year lows Thursday after President Donald Trump predicted Saudi Arabia and Russia could soon make peace in their disastrous oil war.

US crude soared more than 10% to $22.50 a barrel on hopes the two nations will stop flooding the market with cheap oil.

Brent, the world benchmark, also climbed 10% to $27.30 a barrel even though no deal has yet been announced.

Trump said Wednesday that he believes "Russia and Saudi Arabia are going to make a deal at some time in the not-too-distant future."

"It's very bad for Russia. It's very bad for Saudi Arabia. It's very bad," the US president said of the oil crash.

Trump raised the issue with Russian President Vladimir Putin in a phone call earlier this week. The two leaders agreed to hold further talks.

But even if Russia and Saudi Arabia agree to supply cuts, it won't solve all that ails the oil market. Beyond the excess supply, the biggest problem is that coronavirus travel restrictions have caused unprecedented declines in demand for oil.

And that's something that not even Trump and Putin can solve overnight.

US stock futures are pointing to a higher open on Thursday.

But before the opening bell rings, the Department of Labor is releasing initial jobless claims for the week ended March 28. It's looking to be another one for the history books, with the consensus estimate at 3.5 million people filing for unemployment benefits. That would outpace last week's historical record of nearly 3.3 million.

But last week, stocks shrugged off the dramatic data point and rallied, proving that the market has already priced in much of the bad news to come.

Dow futures are up 1.9%, or nearly 400 points. S&P 500 futures are also 1.9% higher, while those for the Nasdaq Composite are up 1.6%.

Demand for used cars was very strong at CarMax earlier this year. The dealer said Thursday that sales rose nearly 15% in the three month period that ended in February. Earnings topped forecasts too.

But that was before the coronavirus became a huge problem for America's economy. Stores (including some CarMax dealerships) throughout the country have shut down and many consumers have resorted to online shopping. That's bad news for CarMax.

The company said in its earnings report that it had strong sales in the first week of March too but that since then "sales have dropped significantly."

"Over the past few weeks, approximately half of our stores have closed or are running under limited operations. For our stores that are open, consumer demand has progressively deteriorated," the company added.

Investors seemed to be focusing on the positive though. CarMax (KMX) shares rose nearly 5% in early trading. The broader market was higher too.

But CarMax CEO Bill Nash, like many other corporate executives, was not afraid to say he has no idea what's coming next. That's one reason why the stock is still down about 40% so far this year.

"The situation is dynamic and changing quickly, making it difficult to predict what the immediate future holds," Nash said in the earnings release.

The nation's airlines are preparing to file for $50 billion in federal assistance to help see them through the coronavirus crisis. But they're also turning to lines of credit they arranged from major banks to provide them with the cash they need.

American Airlines disclosed in a filing that it had drawn down $2.7 billion on Wednesday from three revolving lines of credit that it had agreed to between 2013 and 2016. Southwest disclosed it drew down $2.3 billion from a recent credit line. The airline also confirmed it would file for help from the federal government.

The economic rescue package passed by Congress last week provides for $25 billion in grants and $25 billion in borrowing assistance for the nation's passenger airlines. The number of passengers going through TSA screening at US airports has fallen by 93% compared to a year ago, leaving them with virtually no revenue coming in.

Starbucks (SBUX) is extending the closures of its cafes for another month. Drive-thru and delivery options are still available.

The company originally announced the closures for its US and Canada stores in mid-March because of the coronavirus pandemic.

Beyond May 3, Starbucks intends to "slowly begin to adjust back to more normal operating models and benefits plans, recognizing that the COVID-19 situation in each community is still incredibly different and fluid," it said in a release.

Employees that are working will receive additional $3 per hour and the company is offering benefits to all workers whether they are working or not during this period.

Government data to be published at 8:30 a.m. ET will reveal just how much damage efforts to contain the pandemic have done to the US labor market.

Economists surveyed by Reuters estimate that 3.5 million people filed initial unemployment claims last week.

Some Wall Street banks put the number even higher; Goldman Sachs (GS) predicts that a shocking 6 million Americans filed initial unemployment claims, nearly twice the record set during the previous week.

Kevin Giddis, the chief fixed income strategist at Raymond James, said in a research note that investors are still getting to grips with a wave of sobering news about the coronavirus, and realizing the economic recovery may take much longer than expected.

A global stocks sell-off spurred by coronavirus fears eased on Thursday ahead of a report that is expected to show that millions more Americans lost their jobs last week.

Asian markets were mixed following a rough start to the second quarter:

European markets opened with small gains: