Coffee With Greta: Private Job Growth Slides

DJIA Futures: -39 (-0.1%)

SPX Futures: -8 (-0.2%)

NASDAQ Futures: -15 (-0.1%)

Good morning friends!

Futures are slipping despite new data showing a cool-down in the labor market.

Let’s get right to it!

Private Job Growth Slows

The U.S. private sector added far fewer jobs than expected in March. 

Payroll firm ADP reported private employers hired 145,000 workers last month.

That was down from 261,000 in February and lower than 210,000 expected. 

ADP’s chief economist said, “Our March payroll data is one of several signals that the economy is slowing. Employers are pulling back from a year of strong hiring and pay growth, after a three-month plateau, is inching down.”

Annual pay rose 6.9% in March, down from 7.2% in February. 

Leisure and hospitality added 98,000 workers, trade, transportation, and utilities added 56,000, construction added 53,000, natural resources and mining added 47,000, and education services grew by 17,000. 

Financial activities lost 51,000 workers in March, professional and business services lost 46,000, and manufacturing lost 30,000. 

This data comes ahead of the Labor Department’s official March jobs report on Friday which is expected to show a gain of 238,000 jobs with the unemployment rate unchanged at 3.6%.

February Trade Deficit Jumps

The U.S. trade deficit jumped more than expected in February as both imports and exports declined.

The Commerce Department reported that gap rose 2.7% to $70.5 billion. 

That was a four-month high and above economists’ expectations for $69.1 billion. 

Imports fell 1.5% to $321.7 billion while exports slid 2.7% to $251.2 billion.

Mortgage Demand Drops

Mortgage demand fell last week even amid lower rates as a lack of home listings puts pressure on buyers. 

The Mortgage Bankers Association reported purchase applications fell 4% weekly and 35% year over year. 

That drop came as new listings were down 20% year over year in March with total inventory about half of what it was in March 2019, pre-pandemic.

Refinance applications also dropped 5% weekly and 59% annually. 

The average 30-year fixed contract rate fell to 6.40% from 6.45%.

J&J Reaches Talc Powder Cancer Settlement

Johnson & Johnson (JNJ) shares are rising 2.9% ahead of the open after the company agreed to pay $8.9 billion to settle cancer claims related to its talc-based baby powder products. 

That settlement will be paid over the next 25 years and J&J’s subsidiary LTL Management also refiled for Chapter 11 bankruptcy protection. 

J&J’s worldwide vice president of litigation said, “Resolving this matter through the proposed reorganization plan is both more equitable and more efficient, allows claimants to be compensated in a timely manner, and enables the Company to remain focused on our commitment to profoundly and positively impact health for humanity.”

But he also added, “The Company continues to believe that these claims are specious and lack scientific merit.”

In Case You Missed It

• The Labor Department’s job openings and labor turnover survey shows there were 9.93 million available jobs in February. That was lower than expectations and the first month below 10 million since May 2021. Openings still outnumbered available workers by nearly 1.7 to 1. But the data is a sign the Fed’s fight against inflation is beginning to have an impact on the hot labor market.