Coffee With Greta: Wage Gains Ease Up
DJIA Futures: +289 (+0.9%)
SPX Futures: +35 (+0.9%)
NASDAQ Futures: +91 (+0.8%)
Good morning friends!
Futures are rising as traders shake off a hotter-than-expected jobs report and focus on the lighter wage gains.
Let’s get right to it!
Job Growth Runs Hot, Wage Gains Cool
The U.S. economy added more jobs than expected in December with the unemployment rate falling unexpectedly.
The Labor Department reported employers added 223,000 workers last month vs economists' expectations for 200,000.
The unemployment rate fell to 3.5% from 3.7% vs economists’ expectations for that to be unchanged.
But average hourly earnings rose less than expected, up 0.3% monthly and 4.6% year over year.
Economists were estimating wages would gain 0.4% monthly and 5% annually.
The sectors with the largest job gains were leisure and hospitality at 67,000, healthcare at 55,000, construction at 28,000, and social assistance at 20,000.
WWE Rallies As McMahon Returns
World Wrestling Entertainment (WWE) shares are rallying 10.4% ahead of the open after Vince McMahon announced his return to the company on Thursday.
McMahon said he elected himself executive chairman on Thursday and also brought on two former WWE co-presidents and board members.
His return comes after he previously retired from the company over a sexual misconduct scandal.
But he said his return is necessary as WWE prepares for media rights negotiations.
In a statement, McMahon said, “The only way for WWE to fully capitalize on this opportunity is for me to return as Executive Chairman and support the management team in the negotiations for our media rights and to combine that with a review of strategic alternatives. My return will allow WWE, as well as any transaction counterparties, to engage in these processes knowing they will have the support of the controlling shareholder.”
Bed Bath & Beyond Still Collapsing
Bed Bath & Beyond (BBBY) shares are plunging 13.6% in premarket trade, extending the 29.9% drop from Thursday.
The plunge comes after the company warned it is low on cash and considering filing for bankruptcy.
The Wall Street Journal later reported Bed Bath & Beyond is in the “early stages” of readying a bankruptcy filing.
But a spokeswoman for the company said, “no determinations have been made as of this time” as the company works with advisers to secure financing.
Tesla Cuts Prices In China
Tesla (TSLA) shares are falling 6.3% ahead of the open after the electric automaker cut its prices in China.
The Model 3 in China will now be priced at 229,900 yuan ($33,541) while the Model Y will cost 259,900 yuan ($37,887).
This is the second time in less than three months that Tesla has cut car prices in China.
According to a Reuters calculation, the latest cut amounts to a 13% to 24% reduction in prices from September.
A Tesla executive said the cuts were meant to boost demand.
She said the moves “respond to the government’s call with practical actions to promote economic development and encourage consumption.
The China Passenger Car Association also reported on Thursday that Tesla’s sales of China-made cars fell to 55,796 vehicles in December.
That was the lowest level in five months.
In Case You Missed It
- Stitch Fix (SFIX) shares rallied 9.4% Thursday after announcing layoff plans. Founder Katrina Lake told employees the company will cut 20% of its salaried workforce and reassumed her role as CEO. Lake said, “I will be stepping in as interim CEO and leading the search process for our next CEO. Despite the challenging moment we are in right now, the board and I still deeply believe in the Stitch Fix business, mission and vision.”
