This archive report was first published on 22 May 2020.
On Thursday, May 21, 2020, the US stock markets closed lower due to rising tensions between China and the US. The US government confirmed that it was working on a bill to sanction Communist Party of China officials and entities that endorse new Chinese legislation about Hong Kong, as well as banks that collaborate with China.
Despite the market volatility, Amazon and Facebook shares reached all-time highs. Amazon's stock price hit $2,499 after the company announced the reopening of its warehouses in France and plans to acquire movie theatre chain AMC Entertainment Holdings. Facebook's stock also reached an all-time high of $231.34, driven by the acquisition of GIF company Giphy and the launch of a new e-commerce business called Shops.
According to the US Department of Labor, the number of initial jobless claims in the United States decreased by 249,000 in the week ending May 15, 2020, to 2,438,000. This brings the total number of claims to 38.6 million over the past nine weeks.
The Composite Purchasing Managers' Index in the United States increased in May to 36.4, up from 27.0 in April, according to IHS Markit's preliminary report. The Services Business Activity Index was at 36.9, and the Manufacturing PMI was at 39.8. The Manufacturing Output Index stood at 34.1.
US media reported that Tesla plants in the United States will return to normal operations this week. Additionally, construction work at Tesla Gigafactory Shanghai has reopened. Earlier this week, it was reported that Tesla's car registrations in China plummeted 63.5% in April compared to the month prior.
Chinese e-commerce company Alibaba Group reported its earnings on Friday, May 22, 2020, with its revenue for the final quarter of 2020 rising by 22% to $16.14 billion. Net income fell 99% to $49 million, driven by a net loss in investment income. For the FY period ended March 31, 2020, revenue rose 35% to $71.99 billion, with net income growing at 42% to $19.82 billion. The company's total annual active consumer base has hit 960 million globally.
