US stocks rebound as oil prices rise

US stocks rebounded Wednesday from a two-day decline as oil prices made up some lost ground, but two major companies reported downbeat coronavirus-related news.

"The psychology is 'buy on the dip' and that's what's fueling this bear-market rally," Gregory Perdon, co-chief investment officer at Arbuthnot Latham, told The Wall Street Journal. "The disappointment when that wall of unemployment does not dissipate quickly will be a rude awakening for risk assets, especially the equity market."

About 22 million people nationwide have filed unemployment claims, an unimaginable loss of jobs that has erased a decade of steady job growth. The current level of joblessness hasn't been seen since the Great Depression.

In New York, Governor Andrew Cuomo, a Democrat, said Tuesday that the tidal wave of workers filing claims had "collapsed" the state's unemployment website.

In early trading, the Dow Jones Industrial Average rose 435.62 points, or 1.89 percent, to 23,430.93. The S&P 500 gained 1.68 percent. The Nasdaq Composite rose 1.81 percent.

West Texas Intermediate crude, the gauge for US prices, rose 19.45 percent in early trading to $13.82 a barrel after turning negative earlier in the week. Brent crude, the global benchmark for oil, gained 8.33 percent to $20.94 a barrel after falling to levels not seen since 1999. The price of oil is a proxy for future economic activity.

The COVID-19 continues to pound the US economy.

Macy's, the nation's largest department store chain with about 775 stores, seeks to raise as much as $5 billion in a debt offering, CNBC reported.

Citing "people familiar with the matter", the cable network said Macy's plans to use inventory as collateral to raise $3 billion and real estate to raise an additional $1 billion to $2 billion. The company won't pledge its iconic Herald Square store on 34th street in Manhattan as part of the deal.

The retailer isn't considering bankruptcy and has retained investment Lazard to punch its balance sheet into better shape.

Macy's has closed its stores and lost most of its revenue, but remains active online. The company has drawn on its line of credit, suspended its quarterly dividend, deferred capital spending, cut executive pay and furloughed most sales staff.

The company also owns Bluemercury and Bloomingdale's. Its shares have fallen about 70 percent this year. In early trading, Macy's stock ticked up 0.38 percent to $5.24 a share. The 52-week range if $4.38 - 25.76 a share.

Delta Airlines reported its first quarterly loss in five years after the coronavirus killed demand for air travel.

The Atlanta-based airline said revenue dropped 18 percent to $8.6 billion resulting in a pretax loss of $607 million. The company expects second-quarter revenue to plunge about 90 percent.

Airlines have been hit hard by stay-at-home orders intended to curb the spread of the coronavirus.

Prior to the outbreak, Delta had reported an annual profit for 10 consecutive years and expected strong demand this year. It last posted a quarterly loss in the fourth quarter of 2014.

In early trading, Delta's stock rose 2.60 percent to $23.70 a share. The 52-week range is $19.10 - $63.43 a share