US OPEN: Wall Street opens lower due to unemployment concerns

• President Trump supports strong U.S. dollar
• US Jobless Claims rose more than expected
• 3M (MMM.US)  sales fell 11%

President Trump during an interview on Fox Business Network, said that he  supports a strong dollar. "It's a great time to have a strong dollar ... Everybody wants to be in the dollar because we kept it strong. I kept it strong." "From a trade standpoint, it's tougher. But from a country standpoint and an inflation standpoint - you don't have inflation, you don't have problems," he said. "Right now it's good to have a strong dollar. Right now having a strong dollar is a great thing."  This statement  came just one day after Federal Reserve Chair Jerome Powell rejected the idea of introducing negative interest rates despite Trump's vocal support. Previously, the US president called on the Fed to move interest rates into a negative territory to limit the strength of the dollar and maintain the competitiveness of US exports.

The dollar index on Thursday extended its gains, rising 0.3% to a three-week high of 100.47 after the jobless claims report showed that 2.981 million people in the US applied for unemployment benefits, while continuing claims hit a new record of 22.833 million. Today's reading came in above market estimates of 2.5 million, and is raising further concerns regarding global recession. Also bearish comments from two major investors Stan Druckenmiller and David Tepper regarding overvalued stock market and equity risks also worsened market sentiment.

S&P500 (US 500) broke below important level at 2828.3 pts after today's weak jobless claims report. Index is heading south towards 2727.7 pts support, however bulls may find some support at 200 MA (red line). Source: xStation5

3M (MMM.US)  sales figures plunged  11% last month. Company recorded high demand for face masks, however demand for other product lines  dropped significantly. Health-care sales rose 5%, while transportation and electronics sinked 20%  and safety and industrial sales dropped 11%.

3M (MMM.US) shares dropped due to weak sales figures. Price broke below $140.05 per share level and should downbeat moods prevail, support at $129.93 per share  may come into play. Source: xStation5

Cisco Systems (CSCO.US)  reported better than expected third-quarter results. The company earned of 79 cents per share excluding some items on revenue of $11.98 billion, while  markets expected earnings of 69 cents per share with revenue of $11.70 billion. According to a company statement revenue dropped  8%  from the same quarter last year.  Company’s stock rose 2% in extended trading.

Jack in the Box (JACK.US)   earned of 50 cents per share excluding some items on revenue of $216.2 million, well below market expectations. Analysts expected earnings of 66 cents per share with revenue of $211.1 million. Burger chain also suspended its quarterly cash dividend and withdrew its long-term guidance due to the pandemic. Stocks of the burger chain sliped 4% in extended trading.

Coty (COTY.US)— The beauty reported disappointing quarterly results this week and announced it was selling a majority stake in its professional beauty and retail hair businesses to investment firm KKR in a $4.3 billion deal.  Company's stock plunged 13% on Tuesday.

Starbucks (SBUX.US) wants landlords to lower rent for the next year due to  the economic disruption caused by the Covid-19 pandemic, according to a letter from Chief Operating Officer Roz Brewer and reported by the Seattle Times.

Tesla (TSLA.US)  warned workers which decided to stay at home even after being ordered back to work, that they could lose their unemployment benefits.

Mastercard (MA.US)  noted a slight increase in credit card usage during the two weeks ended May 7 due to loosening of social distance rules in some areas, as well as a fiscal stimulus.