Shares of industrial and transportation companies fell after weak U.S. jobs data cast doubts on the prospects of a "V-shaped recovery."
The number of new jobless claims applications held steady last week at 884,000, dashing hopes for a steady recovery in the U.S. labor market. One strategist said the U.S. went into recession by proclamation when the economy shut down, and it could return to its former peak by proclamation, too.
"The recent unprecedented bounce in the economy suggests a large portion of the damage done by a 'proclaimed recession' (but, of course, not all) may be quickly and dramatically reversible," said Jim Paulsen, chief investment strategist at money manager The Leuthold Group, in a note to clients.
Large manufacturers such as Lockheed Martin and Micron Technology that depend on complex global networks for parts and services are providing monetary support to smaller businesses to keep their supply chains running.
Republican senators voted to approve a "skinny" fiscal stimulus package, but the bill was blocked by the Democrats, who are seeking a more comprehensive measure.
Write to Rob Curran at rob.curran@dowjones.com
