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Stocks mixed amid fruitless stimulus talks, strong tech earnings

Stocks mixed amid fruitless stimulus talks, strong tech earnings
© UPI Photo

Stocks were muted Friday after a week of dismal economic data and fruitless stimulus negotiations among the Trump administration, Senate Republicans and Democratic leaders.

The Dow Jones Industrial Average opened with a loss of more than 100 points, falling roughly 0.5 percent. The S&P 500 was roughly even with its Thursday close, while the Nasdaq rose nearly 0.9 percent after blockbuster earnings reports Thursday from Apple, Amazon and Facebook.

The market took broad losses beyond the tech-heavy Nasdaq on Thursday after the Commerce Department reported a record-shattering decline in gross domestic product during the second quarter and the Labor Department reported a second consecutive week of rising weekly new claims for unemployment benefits.

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While the Commerce Department reported Friday a 5.6-percent increase in consumer spending in June, a decline in personal incomes last month and a lack of progress toward another coronavirus economic rescue package laid bare the risks facing the U.S. economy.

The $600 boost to weekly jobless benefits enacted in March is set to formally expire Friday after effectively lapsing last week due to the technological limitations of state unemployment insurance systems. Economists have warned that the lack of additional support could be devastating for the more than 30 million Americans on unemployment insurance and plunge the U.S. economy into a deeper downturn.

The lack of additional income also poses severe risks for Americans that may also face eviction or foreclosure after a national moratorium on each expired last week. More than 20 million Americans may be evicted from their homes without additional support or legal protection, according to experts.