Stocks Extend Losses on Worries Over Fallout From Covid Restrictions

© TheStreet Stocks Extend Losses on Worries Over Fallout From Covid Restrictions

Stocks declined Thursday for a third day as optimism over a possible coronavirus vaccine was overshadowed by worries that tighter restrictions to control the spread of the virus will lead to further economic damage.

Equities also were pressured by an increase in jobless claims for the first time in five weeks.

The Dow Jones Industrial Average fell 155 points, or 0.53%, to 29,282, the S&P 500 declined 0.57% and the Nasdaq was down 0.26%.

Stocks ended lower Wednesday as the gains that came from Pfizer's more promising vaccine data were erased after New York City moved to close public schools again as virus transmission in the nation's largest school system spiked.

Deaths in the U.S. from Covid-19, the disease caused by the coronavirus, have surpassed 250,000, the most in the world, according to Johns Hopkins University. Experts have predicted the country could soon be reporting 2,000 deaths a day or more, matching or exceeding the spring peak, and that 100,000 to 200,000 more Americans could die in the coming months, The New York Times said in a report.

That's why word from Pfizer and its German partner BioNTech that their coronavirus vaccine candidate reached a 95% efficacy rate was welcome by Wall Street. The companies said they will apply for emergency use authorization from the Food and Drug Administration in the coming days.

But while the world waits for a vaccine to be approved - and then distributed - concerns remain over what fallout growing restrictions on businesses will have on the U.S. and global economies.

New applications for U.S. unemployment benefits unexpectedly rose for the first time in five weeks as Covid-19 infections continued to soar to record levels across the country.

The Labor Department reported Thursday that 742,000 Americans filed for first-time jobless benefits in the week ended Nov. 14, up from a revised 711,000 claims the week earlier. Economists polled by FactSet had been expecting claims of 700,000.

Congress won't be helping those who lost jobs during the pandemic anytime soon - the Senate's decision to recess for the Thanksgiving break signals little progress on a much-needed stimulus bill.

"Compounding the financial pain felt by millions of Americans is that benefits from the Pandemic Unemployment Assistance Program will end in December, affecting more than 7 million people receiving those benefits," said Robert Frick, corporate economist at Navy Federal Credit Union. "Stimulus can alleviate much of this pain, and will help keep the workforce intact for next year when vaccines are expected to add millions of job opportunities."