US stocks close higher, even as millions more file for unemployment: May 7, 2020

By CNN Business

Updated 7:59 p.m. ET, May 7, 2020
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7:31 a.m. ET, May 7, 2020

Peloton's revenue jumps 66% as people look for home workout solutions

From CNN Business' Jordan Valinsky

Becky Friese Rodskog rides her Peloton exercise bike at her home on April 6 in San Anselmo, California. 
Becky Friese Rodskog rides her Peloton exercise bike at her home on April 6 in San Anselmo, California.  Ezra Shaw/Getty Images

The number of Peloton (PTON) diehards are growing.

Revenue jumped 66% in its fiscal third quarter, largely benefitting from closed gyms and workout studios because of the coronavirus pandemic.

Peloton doesn't just sell in-home bikes and treadmills. Its app, which features several types of workouts that don't need its machines or even gyms, also grew 30% to 2.6 million members.

App growth was spurred by a 90-day free trial that began when shelter-in-place orders were issued in much of the country.

Peloton also raised its full-year forecast, noting that demand hasn't declined: "During the last few weeks of Q3, we saw a significant increase in demand for our bike which has continued into Q4 so far," the company said.

Shares rose nearly 20% in premarket trading.

6:48 a.m. ET, May 7, 2020

Holiday Inn-owner's first quarter revenue sank 25%

From CNN Business' Jordan Valinsky

Naomi Baker/Getty Images
Naomi Baker/Getty Images

Intercontinental Hotels (IHG) put it bluntly in its first quarter earnings report: The coronavirus pandemic is the "most significant challenge both IHG and our industry have ever faced."

And the numbers show it. Occupancy levels sunk to "historic lows" in March and April. Revenue also dropped 25% for the quarter, with the company anticipating an 80% drop for April.

Roughly 1,000 hotels in its global chain, which includes Holiday Inn, are temporarily closed. More than half of those closed are in North and South America.

IHG shares are flat in premarket trading.

6:22 a.m. ET, May 7, 2020

US stock futures rise ahead of new jobless claims data

From CNN Business' Jordan Valinsky

US stock futures are moving higher ahead of the weekly initial jobless claims report at 8:30 am ET.

Here's where futures stand at 6:15 am ET:

6:22 a.m. ET, May 7, 2020

Another 3 million initial jobless claims are expected today

From CNN Business' Anneken Tappe

There's no end in sight for coronavirus-related job losses.

Economists expect that another 3 million Americans filed for first-time unemployment benefits in the week ended May 2. That would bring the total of first-time filings since mid-March to more than 33 million.

These figures are staggeringly high: Before the crisis, weekly jobless claims hovered around 200,000. It would also be the fifth week in a row that claims have fallen.

Economists say downward trend is a good sign, but doesn't help the brutal overall picture of the job market during the pandemic.

Weekly jobless claims data will be released at 8:30 am ET.

6:25 a.m. ET, May 7, 2020

'Animal Crossing' boosts Nintendo profits as demand for games soars

From CNN Business'  Kaori Enjoji

The success of the Nintendo Switch during the coronavirus pandemic propelled the Japanese video company to a banner year.

Nintendo (NTDOF) said on Thursday that it made 352 billion yen ($3.3 billion) in operating profit for the fiscal year ended in March — a 41% surge from a year ago. Profit in the three months to March more than tripled compared with the previous quarter.

Sales were driven this spring in large part by the breakout success of "Animal Crossing: New Horizons," a game set on an island utopia. The company sold more than 13 million units of the game in its first six weeks of release.

Read more here.

6:25 a.m. ET, May 7, 2020

The UK economy is heading for its worst crash in 300 years

From CNN Business' Charles Riley

The UK economy is heading for its worst crash in more than 300 years because of the coronavirus pandemic, according to a new forecast from the Bank of England.

The central bank said Thursday that the British economy could shrink by 14% this year. That would be the biggest annual contraction since 1706, based on the bank's own best estimate of historical data.

Governor Andrew Bailey said it would respond as necessary to support the economy as the coronavirus threat evolves, but stopped short of announcing any new stimulus measures.

Read more here.