Coinbase Rises in Premarket Trading
Coinbase Rises in Premarket Trading
With the pace of vaccinations rising and pandemic restrictions being loosened, the economy is poised for a dynamic revival. But one measure has continued to frustrate the resurgence: the number of weekly applications for unemployment claims, which have remained stubbornly high for months even as businesses reopen and vaccination rates increase.
After new claims hit a pandemic low in mid-March, initial claims for state unemployment benefits have been ticking up as the effects of the pandemic continue to ripple through the economy. Last week, the Labor Department said a total of 741,000 workers had filed first-time claims for state unemployment benefits.
The Labor Department will release its latest weekly report on jobless claims on Thursday. If the number of claims falls, it will renew confidence in the labor market’s upturn after the recent bumpiness. But if it increases, it will provide a stark indication of the pandemic’s continuing toll on the work force.
Either way, jobless claims for the next few months could remain much higher than they were before the pandemic as the labor market adjusts to a new normal.
“The job market conditions for job seekers have really improved extremely quickly between January and now,” said Julia Pollak, a labor economist at the job site ZipRecruiter. “But there are still huge barriers to returning to work.”
Concerns about workplace safety persist, especially for workers who are not yet vaccinated. Many children are still attending schools remotely, complicating the full-time work prospects for their caregivers.
But there is hope on the horizon as those barriers begin to fall. President Biden moved up the deadline for states to make all adults eligible for vaccination to April 19, and every state has complied. Students who have been learning remotely will begin to return to the classroom in earnest.
“This was the deepest, swiftest recession ever, but it’s also turning into the fastest recovery,” Ms. Pollak said. “And I don’t think we should lose sight of that just because some of the measures are a little stubborn.”
U.S. stocks are set to rise when trading begins on Thursday as more companies report first-quarter earnings and retail sales data is expected to show a big increase in spending in March.
The S&P 500 was expected to open 0.5 percent higher, futures indicated.
After a bumper market debut, Coinbase shares rose 11 percent in premarket trading. On Wednesday, the cryptocurrency exchange ended its first day of trading at $328.28 a share, valuing the company at nearly $86 billion — more than 10 times its last valuation as a private company.
Shares in Bank of America rose 2.5 percent in premarket trading after the company reported better-than-expected revenue from sales and trading. The bank joins its peers in reporting a jump in earnings. On Wednesday, executives at Goldman Sachs, JPMorgan Chase and Wells Fargo all delivered upbeat economic forecasts.
Retail sales rose 5.8 percent in March, according to economists surveyed by Bloomberg, rebounding from a 3 percent drop the previous month.
Elsewhere in markets
Yields on 10-year U.S. Treasury notes dropped to 1.61 percent. On Wednesday, Jerome H. Powell, the chair of the Federal Reserve, reiterated the central bank’s intention of keeping monetary policy accommodative for a long time. He said the bank would probably slow its bond-buying program “well before” it lifts its policy interest rate.
European stock indexes also rose. The Stoxx Europe 600 index increased for a third straight day. It was up 0.3 percent to a record high.
The Russian ruble dropped 1.2 percent against the dollar on Thursday. The Biden administration is expected to announce a string of measures against Russia, including financial sanctions for the hacking of government and private networks and a range of other activity.
Shortages of semiconductors, fueled by pandemic interruptions and production issues at multibillion-dollar chip factories, have sent shock waves through the economy. Questions about chips are reverberating among both businesses and policymakers trying to navigate the world’s dependence on the small components.
Most attention has focused on temporary closings of big U.S. car plants. But the chips are in everything from cash registers and kitchen appliances, and the problem is affecting many other sectors, particularly the server systems and PCs used to deliver and consume internet services that became crucial during the pandemic, Don Clark reports for The New York Times.
“Every aspect of human existence is going online, and every aspect of that is running on semiconductors,” said Pat Gelsinger, the new chief executive of the chip maker Intel who attended the meeting with the president on Monday. “People are begging us for more.”
The chip shortage potentially affects just about any company adding communications or computing features to products. Many examples were described in 90 comments filed by companies and trade groups to a supply chain review by President Biden, including a laundry list of needs from industry giants like Amazon and Boeing.
Dan Rozycki is the president of a small engineering firm, that sells small sensors used to monitor construction sites to ensure concrete is hardening properly. His firm is for now among the lucky chip users. It planned ahead and has enough chips to keep making the roughly 50,000 sensors it supplies each year to construction sites. But his distributor has warned him it might not be able to deliver more of them until late 2022, he said.
“Is that going to halt those projects?” Mr. Rozycki asked. He is scouring the market for other distributors that might have the two needed chips in stock. Other possibilities include redesigning the sensors to use different chips.
An international coalition of 35 children’s and consumer groups called on Instagram on Thursday to scrap its plans to develop a version of the popular photo-sharing app for users under age 13.
Instagram’s push for a separate children’s app comes after years of complaints from legislators and parents that the platform has been slow to identify underage users and protect them from sexual predators and bullying.
But in a letter to Mark Zuckerberg, the chief executive of Facebook — the company that owns the photo-sharing service — the nonprofit groups warned that a children’s version of Instagram would not mitigate such problems. While 10- to 12-year-olds with Instagram accounts would be unlikely to switch to a “babyish version” of the app, the groups said, it could hook even younger users on endless routines of photo-scrolling and body-image shame.
“While collecting valuable family data and cultivating a new generation of Instagram users may be good for Facebook’s bottom line,” the groups, led by the Campaign for a Commercial-Free Childhood in Boston, said in the letter to Mr. Zuckerberg, “it will likely increase the use of Instagram by young children who are particularly vulnerable to the platform’s manipulative and exploitative features.”
The coalition of nonprofit groups also includes the Africa Digital Rights’ Hub in Ghana; the Australian Council on Children and the Media; the Center for Digital Democracy in Washington; Common Sense Media in San Francisco; the Consumer Federation of America; and the 5Rights Foundation in Britain.
Stephanie Otway, a Facebook spokeswoman, said that Instagram was in the early stages of developing a service for children as part of an effort to keep those under 13 off its main platform. Although Instagram requires users to be at least 13, many younger children have lied about their age to set up accounts.
Ms. Otway said that company would not show ads in any Instagram product developed for children younger than 13, and that it planned to consult with experts on children’s health and safety on the project. Instagram is also working on new age-verification methods to catch younger users trying to lie about their age, she said.
“The reality is that kids are online,” Ms. Otway said. “They want to connect with their family and friends, have fun and learn, and we want to help them do that in a way that is safe and age-appropriate.”
A former editor at Vanity Fair has been working to create a new digital publication, in which writers will share in subscription revenue — Vanity Fair meets Substack. The new company behind the publication, Heat Media, hopes to unveil it in the coming months, four people with knowledge of the matter said. The start-up is partly the brainchild of Jon Kelly, a former editor at Vanity Fair. One of the backers is the private equity firm TPG, which would take three seats on the Heat Media board, the people said. Another investor is 40 North, a related investment arm of Standard Industries, a global industrials company, the people said. Heat Media has raised around $7 million so far, according to the people.
Kimberly Godwin, a veteran CBS News executive, was named the next president of ABC News on Wednesday, making her the first Black woman to lead a major broadcast network’s news division. Ms. Godwin succeeds James Goldston, who announced his departure from ABC in January. She will begin in her job in early May. Ms. Godwin most recently served as CBS’s executive vice president of news.