1.
The Labor Department reported on Thursday that 1.1 million Americans filed new claims for unemployment benefits last week, reversing a decline from the previous week, which saw the figure drop below 1 million for the first time since the coronavirus crisis hit in March. The rise from 971,000 new jobless claims the week before surprised economists, who had forecast on average about 923,000 claims last week. The new report indicated that 28.5 million Americans still are receiving some form of government unemployment assistance. Analysts said the new numbers served as a warning sign that layoffs remain high as many states still face high rates of COVID-19 infections and deaths. [The Wall Street Journal, CNBC]
2.
An appeals court on Thursday gave Uber and Lyft a last-minute reprieve from a California law requiring them to reclassify their drivers in the state as employees entitled to benefits. The ride-hailing services had said they would have to shut down in the state at the end of the day on Thursday if the rule was allowed to take effect as scheduled on Friday, forcing them to stop classifying their drivers as independent contractors. “While we won’t have to suspend operations tonight, we do need to continue fighting for independence plus benefits for drivers,” said Lyft spokesperson Julie Wood in a statement. The companies are hoping to buy enough time to push through a referendum exempting them from the requirement, but the appeals court ordered them to submit plans to comply within 30 days. [CNN]
3.
Airbnb announced Thursday that it was imposing a global ban on parties and events at rentals on its home-sharing platform in response to the coronavirus pandemic. “Instituting a global ban on parties and events is in the best interest of public health,” the company said in the post. Airbnb also said it was capping property occupancy at 16. The company said 73 percent of its listings already included house rules barring visitors from throwing parties. The service last year introduced a global ban on “party houses,” listings frequently cited for causing local nuisances. “Some have chosen to take bar and club behavior to homes, sometimes rented through our platform. We think such conduct is incredibly irresponsible — we do not want that type of business,” Airbnb said. [NPR, CNBC]
4.
American Airlines announced Thursday that it will temporarily suspend service to 15 small U.S. cities in October as the coronavirus crisis continues to reduce demand for air travel. American said it is continuing to review its routes and “plans for additional schedule changes in the coming weeks.” The affected cities range from several with about 30,000 people, including Williamsport, Pennsylvania, and Del Rio, Texas, to the Kalamazoo, Michigan, metropolitan area, which has a population of about 500,000. “About 75 percent of our traffic is a business traveler,” said Craig Williams, the director of the airport in Kalamazoo. “If we don’t have a recovery anytime soon, then the airline industry is going to have to make some true hard looks at what is happening.” [USA Today, CNN]
5.
U.S. stock index futures struggled for traction early Friday at the close of a record-setting week. Futures for the Dow Jones Industrial Average, the S&P 500, and the Nasdaq fluctuated between slight gains and losses several hours before the opening bell. All three of the main U.S. indexes gained on Thursday, with the Nasdaq posting its 35th record high of the year with a boost from rising Big Tech stocks that have surged as Americans work, study, and play more from home during the coronavirus pandemic. The Nasdaq gained 1 percent on Thursday, while the Dow and the S&P 500 rose by 0.2 percent and 0.3 percent, respectively. The S&P 500 reached a record high earlier in the week, completing its recovery from losses in the market’s March coronavirus plunge. [CNBC, MarketWatch]
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