{"id":61204,"date":"2022-05-04T09:01:04","date_gmt":"2022-05-04T13:01:04","guid":{"rendered":"https:\/\/www.t3live.com\/blog\/?p=61204"},"modified":"2022-05-04T09:06:46","modified_gmt":"2022-05-04T13:06:46","slug":"coffee-with-greta-private-job-growth-tumbles","status":"publish","type":"post","link":"https:\/\/blog.t3live.com\/2022\/05\/04\/coffee-with-greta-private-job-growth-tumbles\/","title":{"rendered":"Coffee With Greta: Private Job Growth Tumbles"},"content":{"rendered":"

Editor's Note:<\/strong> Coffee With Greta is a FREE morning update from our newest contributor Greta Wall. Want to get it by email every day? Click here<\/span><\/a><\/strong>.<\/p>\n

********<\/p>\n

DJIA Futures: <\/b>+86 (+0.3%)<\/span><\/p>\n

SPX Futures: <\/b>+12 (+0.3%)<\/span><\/p>\n

NASDAQ Futures: <\/b>+27 (+0.2%)<\/span><\/p>\n

Good morning friends!<\/span><\/p>\n

Futures are higher as traders are laser-focused on the Fed meeting following the release of fresh jobs data this morning.<\/span><\/p>\n

Let\u2019s get right to it!<\/span><\/p>\n

Private Job Growth Slows Sharply<\/span><\/h2>\n

Job growth in the U.S. private sector slowed in April as the labor market remains historically tight.\u00a0<\/span><\/p>\n

Payroll firm ADP reported private employers added 247,000 workers last month.\u00a0<\/span><\/p>\n

That missed economists\u2019 expectations for 390,000 and was a sharp decline from 479,000 in March.\u00a0<\/span><\/p>\n

The slowdown was mostly due to a drop off in hiring at small businesses.\u00a0<\/span><\/p>\n

Companies with less than 50 employees lost 120,000 workers in April while those with 500 or more employees added 321,000.\u00a0<\/span><\/p>\n

The leisure and hospitality sector continued to lead the gains, adding 77,000 jobs last month.\u00a0<\/span><\/p>\n

This comes ahead of the official April jobs report from the Labor Department on Friday.\u00a0<\/span><\/p>\n

That report is expected to show the U.S. economy added 400,000 workers last month with the unemployment rate slipping to 3.5%.\u00a0<\/span><\/p>\n

ADP\u2019s chief economist said, \u201cIn April, the labor market recovery showed signs of slowing as the economy approaches full employment. While hiring demand remains strong, labor supply shortages caused job gains to soften for both goods producers and services providers.\u201d<\/span><\/p>\n

Fed Decision Day<\/span><\/h2>\n

The Federal Open Market Committee releases its rate hike decision at 2:00 p.m. ET.\u00a0<\/span><\/p>\n

The Fed is expected to vote in favor of a 0.5% rate hike today and begin the process of drawing down its balance sheet.\u00a0<\/span><\/p>\n

The March minutes showed most officials support that runoff happening at a pace of $95 billion per month.\u00a0<\/span><\/p>\n

But several Fed officials have since expressed support to be more aggressive and start selling off assets on the balance sheet.\u00a0<\/span><\/p>\n

57% of respondents to <\/span>CNBC<\/span><\/a>\u2019s May Fed Survey said they believe the bank\u2019s aggressive tightening action will lead to a recession.<\/span><\/p>\n

Moderna Reports Blowout Q1<\/span><\/h2>\n

Moderna <\/b>(MRNA) shares are rallying 6.4% ahead of the open after crushing Q1 expectations.<\/span><\/p>\n

The pharmaceutical giant reported adjusted earnings of $8.58 per share on $6.07 billion in revenue.\u00a0<\/span><\/p>\n

That smashes analysts\u2019 expectations for adjusted EPS of $5.21 on $4.62 billion in revenue.\u00a0<\/span><\/p>\n

Moderna sold $5.9 billion worth of its Covid vaccine in Q1, more than triple from $1.7 billion a year ago.\u00a0<\/span><\/p>\n

The company maintained its full-year guidance for $21 billion in Covid vaccine sales.<\/span><\/p>\n

CVS Rises on Q1 Earnings Beat<\/span><\/h2>\n

CVS <\/b>(CVS) shares are up 1.6% in premarket trade after beating Q1 expectations.\u00a0<\/span><\/p>\n

The pharmacy chain reported adjusted earnings of $2.22 per share on $76.83 billion in revenue.\u00a0<\/span><\/p>\n

That was better than analysts\u2019 expectations for adjusted EPS of $2.15 on $75.39 billion in revenue.\u00a0<\/span><\/p>\n

CVS saw declining demand for Covid related products during the quarter.\u00a0<\/span><\/p>\n

The company administered more than 6 million Covid tests and 8 million vaccines in Q1.\u00a0<\/span><\/p>\n

That\u2019s down from 8 million tests and more than 20 million vaccines in Q4.\u00a0<\/span><\/p>\n

Same-store sales rose 10.7% year-over-year, pharmacy same-store sales were up 10.1% and front store same-store sales rose 13.2%.<\/span><\/p>\n

CVS hiked its full-year guidance, forecasting earnings will range between $8.20 and $8.40 per share.<\/span><\/p>\n

Advanced Micro Devices Earnings<\/span><\/h2>\n

Advanced Micro Devices <\/b>(AMD) shares are jumping 6.7% ahead of the open after a Q1 earnings beat and strong outlook.\u00a0<\/span><\/p>\n

The chipmaker reported adjusted earnings of $1.13 per share on $5.89 billion in revenue.\u00a0<\/span><\/p>\n

That beat analysts\u2019 expectations for adjusted EPS of $0.91 on revenue of $5.01 billion.<\/span><\/p>\n

It was the first time revenue has topped $5 billion as sales surged 71% compared to a year ago.<\/span><\/p>\n

Sales from the company\u2019s computing and graphics segment jumped 33% year-over-year to $2.8 billion while data-center sales skyrocketed 88% to $2.5 billion.<\/span><\/p>\n

AMD forecast Q2 revenue between $6.3 billion and $6.7 billion and hiked its full-year forecast to $26.3 billion.\u00a0<\/span><\/p>\n

That\u2019s higher than analysts\u2019 estimates for Q2 revenue of $5.14 billion and full-year revenue of $21.48 billion.<\/span><\/p>\n

Starbucks Reports Strong U.S. Sales<\/span><\/h2>\n

Starbucks <\/b>(SBUX) shares are 6.8% higher in premarket trade after reporting fiscal Q2 results after-hours on Tuesday.\u00a0<\/span><\/p>\n

The coffee chain reported adjusted earnings of $0.59 per share on $7.64 billion.\u00a0<\/span><\/p>\n

That was in line with analysts\u2019 EPS expectations but beat estimates for $7.6 billion in revenue.\u00a0<\/span><\/p>\n

The company suspended its full-year outlook as Covid lockdowns in China dent international sales.<\/span><\/p>\n

Starbucks\u2019 same-store sales in the U.S. jumped 12% year-over-year, which helped offset a 23% drop in China.\u00a0<\/span><\/p>\n

The company is making big investments in its workers to fend off a union push.<\/span><\/p>\n

Starbucks plans to spend $1 billion on higher wages, improved training, and store innovation in fiscal 2022.\u00a0<\/span><\/p>\n

Employees who have been with the company between 2 to 5 years will get a 5% raise or be paid 5% above the market\u2019s start rate, whichever is higher.\u00a0<\/span><\/p>\n

Those with more than 5 years of tenure will get a 7% raise or be paid 10% above the market\u2019s start rate.<\/span><\/p>\n

Those enhanced benefits will not be offered to workers at the stores that have voted to unionize.\u00a0<\/span><\/p>\n

Starbucks is also adding more drive-through locations to boost its sales.<\/span><\/p>\n

Airbnb Revenue Surges as Travel Rebounds<\/span><\/h2>\n

Airbnb <\/b>(ABNB) shares are up 5.1% ahead of the open after reporting strong Q1 sales.<\/span><\/p>\n

The short-term rental company reported a loss of $0.03 per share on $1.51 billion in revenue.\u00a0<\/span><\/p>\n

That was better than analysts\u2019 expectations for a loss of $0.29 on $1.45 billion in revenue.\u00a0<\/span><\/p>\n

Airbnb reported 102.1 million nights and experiences booked in the first quarter, topping pre-pandemic levels and crossing the 100 million mark for the first time ever.<\/span><\/p>\n

Revenue was up 70% compared to Q1 2021.\u00a0<\/span><\/p>\n

Airbnb expects that strong growth to continue, forecasting Q2 revenue between $2.03 billion and $2.13 billion.\u00a0<\/span><\/p>\n

That beat analysts\u2019 estimates for $1.96 billion.<\/span><\/p>\n

Uber Drops on Q1 Loss<\/span><\/h2>\n

Uber <\/b>(UBER) shares are falling 3.4% in premarket trade after reporting an unexpected Q1 loss.\u00a0<\/span><\/p>\n

The ride-share company reported a loss of $3.04 per share, which was not comparable to analysts\u2019 expectations.\u00a0<\/span><\/p>\n

The company\u2019s $6.85 billion in revenue beat expectations for $6.13 billion.\u00a0<\/span><\/p>\n

Uber said the loss was caused by its investments in Southwest Asian delivery company <\/span>Grab <\/b>(GRAB), autonomous car company <\/span>Aurora <\/b>(AUR), and Chinese ride-hailing company <\/span>DiDi <\/b>(DIDI).<\/span><\/p>\n

Q1 adjusted EBITDA was $168 million while gross bookings came in at $24.6 billion.<\/span><\/p>\n

The company forecast Q2 gross bookings between $28.5 billion and $29.5 billion with adjusted EBITDA between $240 million and $270 million.<\/span><\/p>\n

Lyft Plunges as Q1 Riders, Forecast Come in Short<\/span><\/h2>\n

Lyft <\/b>(LYFT) shares are plunging 24.5% ahead of the open after reporting weaker than expected rider numbers in Q1.\u00a0<\/span><\/p>\n

The ride-hailing giant reported adjusted earnings of $0.07 per share on $875.6 million in revenue.\u00a0<\/span><\/p>\n

That was in line with analysts\u2019 EPS expectations and higher than estimates for $848.9 million in revenue.<\/span><\/p>\n

Lyft had 17.8 million active riders last quarter, shy of analysts\u2019 expectations for 17.9 million and down from 18.73 million in Q4.<\/span><\/p>\n

Revenue per rider came in at $49.18, beating analysts\u2019 estimates of $47.20.\u00a0<\/span><\/p>\n

The company forecast Q2 revenue between $950 million and $1 billion, below analysts\u2019 expectations for $1.02 billion.\u00a0<\/span><\/p>\n

Oil Prices Jump as EU Plans Russian Oil Ban<\/span><\/h2>\n

Oil prices are rallying today after the EU laid out plans to phase out Russian oil imports.\u00a0<\/span><\/p>\n

West Texas Intermediate crude futures are up 4% to over $106 bbl while Brent crude futures are up 3.8% to $109 bbl.<\/span><\/p>\n

The European Commission President proposed a phased-in ban of Russian oil and sanctions against Russia\u2019s largest bank today.\u00a0<\/span><\/p>\n

The plan would phase-out Russian crude within six months and refined products by the end of the year.<\/span><\/p>\n

U.S. crude and fuel stockpiles also fell last week.\u00a0<\/span><\/p>\n

The American Petroleum Institute reported crude supplies fell by 3.5 million barrels in the week ended April 29.<\/span><\/p>\n

That was higher than expectations for a drop of 800,000 barrels.<\/span><\/p>\n

Natural Gas Prices Extend Rally<\/span><\/h2>\n

U.S. natural gas prices are sitting at the highest level since September 2008.\u00a0<\/span><\/p>\n

Prices are up 5.4% today to $8.39 per million British thermal units after surging on Tuesday.<\/span><\/p>\n

The jump comes as natural gas production is down in the U.S. and the amount of gas in storage is down 21% compared to a year ago.<\/span><\/p>\n

Natural gas prices surged 30% in April.<\/span><\/p>\n

Trade Deficit Hits Fresh Record<\/span><\/h2>\n

The U.S. trade deficit surged 22.3% in March, hitting a fresh record high at $109.8 billion.\u00a0<\/span><\/p>\n

That\u2019s the first time that gap has ever surpassed $100 billion and was higher than economists\u2019 expectations for $106.7 billion.\u00a0<\/span><\/p>\n

Imports skyrocketed 10.3% in March to a record $351.5 billion, while exports rose just 5.6% to $241.7 billion.<\/span><\/p>\n

In Case You Missed It<\/span><\/h2>\n
    \n
  • The U.S. labor market was historically tight in March. The Labor Department\u2019s Job Openings and Labor Turnover Survey (JOLTS) showed there were a record-high 11.55 million available jobs in March. A record 4.54 million workers also quit their jobs. The gap between openings and unemployed workers to fill those jobs hit a new record-high at 5.6 million.<\/span><\/li>\n
  • The Commerce Department reported U.S. factory orders jumped 2.2% in March. That was more than double economists\u2019 expectations. Durable goods orders rose 1.1% while nondurable goods orders were up 3.2%.\u00a0<\/span><\/li>\n<\/ul>\n

     <\/p>\n","protected":false},"excerpt":{"rendered":"

    Editor’s Note: Coffee With Greta is a FREE morning update from our newest contributor Greta Wall. Want to get it by email every day? Click here. ******** DJIA Futures: +86 (+0.3%) SPX Futures: +12 (+0.3%) NASDAQ Futures: +27 (+0.2%) Good morning friends! Futures are higher as traders are laser-focused on the Fed meeting following the release of fresh jobs data this morning. Let\u2019s get right to it! Private Job Growth Slows Sharply Job growth in the U.S. private sector slowed in April as the labor market remains historically tight.\u00a0 Payroll firm ADP reported private employers added 247,000 workers last month.\u00a0 That missed economists\u2019 expectations for 390,000 and was a sharp decline from 479,000 in March.\u00a0 The slowdown was mostly due to a drop off in hiring at small businesses.\u00a0 Companies with less than 50 employees lost 120,000 workers in April while those with 500 or more employees added 321,000.\u00a0 The leisure and hospitality sector continued to lead the gains, adding 77,000 jobs last month.\u00a0 This comes ahead of the official April jobs report from the Labor Department on Friday.\u00a0 That report is expected to show the U.S. economy added 400,000 workers last month with the unemployment rate slipping to 3.5%.\u00a0 ADP\u2019s chief economist said, \u201cIn April, the labor market recovery showed signs of slowing as the economy approaches full employment. While hiring demand remains strong, labor supply shortages caused job gains to soften for both goods producers and services providers.\u201d Fed Decision Day The Federal Open Market Committee releases its rate hike decision at 2:00 p.m. ET.\u00a0 The Fed is expected to vote in favor of a 0.5% rate hike today and begin the process of drawing down its balance sheet.\u00a0 The March minutes showed most officials support that runoff happening at a pace of $95 billion per month.\u00a0 But several Fed officials have since expressed support to be more aggressive and start selling off assets on the balance sheet.\u00a0 57% of respondents to CNBC\u2019s May Fed Survey said they believe the bank\u2019s aggressive tightening action will lead to a recession. Moderna Reports Blowout Q1 Moderna (MRNA) shares are rallying 6.4% ahead of the open after crushing Q1 expectations. The pharmaceutical giant reported adjusted earnings of $8.58 per share on $6.07 billion in revenue.\u00a0 That smashes analysts\u2019 expectations for adjusted EPS of $5.21 on $4.62 billion in revenue.\u00a0 Moderna sold $5.9 billion worth of its Covid vaccine in Q1, more than triple from $1.7 billion a year ago.\u00a0 The company maintained its full-year guidance for $21 billion in Covid vaccine sales. CVS Rises on Q1 Earnings Beat CVS (CVS) shares are up 1.6% in premarket trade after beating Q1 expectations.\u00a0 The pharmacy chain reported adjusted earnings of $2.22 per share on $76.83 billion in revenue.\u00a0 That was better than analysts\u2019 expectations for adjusted EPS of $2.15 on $75.39 billion in revenue.\u00a0 CVS saw declining demand for Covid related products during the quarter.\u00a0 The company administered more than 6 million Covid tests and 8 million vaccines in Q1.\u00a0 That\u2019s down from 8 million tests and more than 20 million vaccines in Q4.\u00a0 Same-store sales rose 10.7% year-over-year, pharmacy same-store sales were up 10.1% and front store same-store sales rose 13.2%. CVS hiked its full-year guidance, forecasting earnings will range between $8.20 and $8.40 per share. Advanced Micro Devices Earnings Advanced Micro Devices (AMD) shares are jumping 6.7% ahead of the open after a Q1 earnings beat and strong outlook.\u00a0 The chipmaker reported adjusted earnings of $1.13 per share on $5.89 billion in revenue.\u00a0 That beat analysts\u2019 expectations for adjusted EPS of $0.91 on revenue of $5.01 billion. It was the first time revenue has topped $5 billion as sales surged 71% compared to a year ago. Sales from the company\u2019s computing and graphics segment jumped 33% year-over-year to $2.8 billion while data-center sales skyrocketed 88% to $2.5 billion. AMD forecast Q2 revenue between $6.3 billion and $6.7 billion and hiked its full-year forecast to $26.3 billion.\u00a0 That\u2019s higher than analysts\u2019 estimates for Q2 revenue of $5.14 billion and full-year revenue of $21.48 billion. Starbucks Reports Strong U.S. Sales Starbucks (SBUX) shares are 6.8% higher in premarket trade after reporting fiscal Q2 results after-hours on Tuesday.\u00a0 The coffee chain reported adjusted earnings of $0.59 per share on $7.64 billion.\u00a0 That was in line with analysts\u2019 EPS expectations but beat estimates for $7.6 billion in revenue.\u00a0 The company suspended its full-year outlook as Covid lockdowns in China dent international sales. Starbucks\u2019 same-store sales in the U.S. jumped 12% year-over-year, which helped offset a 23% drop in China.\u00a0 The company is making big investments in its workers to fend off a union push. Starbucks plans to spend $1 billion on higher wages, improved training, and store innovation in fiscal 2022.\u00a0 Employees who have been with the company between 2 to 5 years will get a 5% raise or be paid 5% above the market\u2019s start rate, whichever is higher.\u00a0 Those with more than 5 years of tenure will get a 7% raise or be paid 10% above the market\u2019s start rate. Those enhanced benefits will not be offered to workers at the stores that have voted to unionize.\u00a0 Starbucks is also adding more drive-through locations to boost its sales. Airbnb Revenue Surges as Travel Rebounds Airbnb (ABNB) shares are up 5.1% ahead of the open after reporting strong Q1 sales. The short-term rental company reported a loss of $0.03 per share on $1.51 billion in revenue.\u00a0 That was better than analysts\u2019 expectations for a loss of $0.29 on $1.45 billion in revenue.\u00a0 Airbnb reported 102.1 million nights and experiences booked in the first quarter, topping pre-pandemic levels and crossing the 100 million mark for the first time ever. Revenue was up 70% compared to Q1 2021.\u00a0 Airbnb expects that strong growth to continue, forecasting Q2 revenue between $2.03 billion and $2.13 billion.\u00a0 That beat analysts\u2019 estimates for $1.96 billion. Uber Drops on Q1 Loss Uber (UBER) shares are falling 3.4% in premarket trade after reporting an unexpected Q1 loss.\u00a0 The ride-share company reported<\/p>\n","protected":false},"author":41,"featured_media":61205,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[739],"tags":[],"class_list":["post-61204","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-coffee-with-greta"],"_links":{"self":[{"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts\/61204","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/users\/41"}],"replies":[{"embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/comments?post=61204"}],"version-history":[{"count":4,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts\/61204\/revisions"}],"predecessor-version":[{"id":61209,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts\/61204\/revisions\/61209"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/media\/61205"}],"wp:attachment":[{"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/media?parent=61204"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/categories?post=61204"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/tags?post=61204"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}