{"id":61601,"date":"2022-06-02T08:55:38","date_gmt":"2022-06-02T12:55:38","guid":{"rendered":"https:\/\/www.t3live.com\/blog\/?p=61601"},"modified":"2022-06-02T08:55:38","modified_gmt":"2022-06-02T12:55:38","slug":"coffee-with-greta-the-labor-market-is-almost-full","status":"publish","type":"post","link":"https:\/\/blog.t3live.com\/2022\/06\/02\/coffee-with-greta-the-labor-market-is-almost-full\/","title":{"rendered":"Coffee With Greta: The Labor Market Is Almost Full"},"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>+119 (+0.4%)<\/span><\/p>\n

SPX Futures: <\/b>+17 (+0.4%)<\/span><\/p>\n

NASDAQ Futures: <\/b>+59 (+0.5%)<\/span><\/p>\n

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

Futures are rebounding as the market digests fresh jobs data that shows the labor market nearing full employment.<\/span><\/p>\n

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

Private Job Growth Tumbles In May<\/strong><\/h2>\n

Private payrolls increased less than expected in May, as the U.S. labor market nears full employment.<\/span><\/p>\n

Payroll firm ADP reported today that private employers added 128,000 workers last month.\u00a0<\/span><\/p>\n

That was lower than economists\u2019 expectations for a gain of 299,000.<\/span><\/p>\n

April was also revised lower to 202,000 from 247,000.<\/span><\/p>\n

May was the slowest pace of job growth since the beginning of the pandemic.\u00a0<\/span><\/p>\n

Small businesses actually lost 91,000 employees in May while businesses with 500 or more employees added 122,000 and mid-size businesses added 97,000.<\/span><\/p>\n

The leisure and hospitality sector no longer led job gains last month, adding just 17,000 workers.\u00a0<\/span><\/p>\n

The Labor Department releases the official May jobs report on Friday.<\/span><\/p>\n

That\u2019s expected to show the U.S. economy added 328,000 jobs last month with the unemployment rate slipping to 3.5%.<\/span><\/p>\n

Weekly Jobless Claims Fall<\/strong><\/h2>\n

Weekly jobless claims fell more than expected last week.\u00a0<\/span><\/p>\n

The Labor Department reported 200,000 Americans filed initial claims for unemployment benefits.\u00a0<\/span><\/p>\n

That was down 11,000 from the previous week and lower than expectations for 210,000.\u00a0<\/span><\/p>\n

The data indicates the labor market is in a strong position, with layoffs hovering around record lows.\u00a0<\/span><\/p>\n

Continuing claims fell by 34,000 to 1.31 million in the week ending May 21.<\/span><\/p>\n

Gamestop Slips On Steep Q1 Loss<\/strong><\/span><\/h2>\n

Gamestop <\/b>(GME) shares are down 0.2% ahead of the open after missing Q1 expectations.<\/span><\/p>\n

The video game retailer reported a loss of $2.08 per share on $1.38 billion in revenue.\u00a0<\/span><\/p>\n

That was worse than analysts\u2019 expectations for a loss of $1.45 per share but beat revenue estimates of $1.34 billion.<\/span><\/p>\n

It was also a steeper loss than $1.01 per share a year ago.\u00a0<\/span><\/p>\n

GameStop said its inventories jumped to $918 million at the end of Q1, up from $571 million at the end of Q1 2021.\u00a0<\/span><\/p>\n

That increased inventory is part of an effort \u201cto meet increased customer demand and offset supply-chain headwinds.\u201d<\/span><\/p>\n

The company ended the quarter with $1.035 billion in cash on hand.\u00a0<\/span><\/p>\n

Chewy Rallies On Surprise Q1 Profit<\/strong><\/h2>\n

Chewy Inc <\/b>(CHWY) shares are jumping 16% in premarket trade after reporting a surprise profit in the first quarter.\u00a0<\/span><\/p>\n

The online pet-products retailer reported earnings of $0.04 per share on $2.43 billion in revenue.\u00a0<\/span><\/p>\n

That crushed analysts\u2019 expectations for a loss of $0.11 per share on $2.41 billion in revenue.\u00a0<\/span><\/p>\n

Chewy warned, \u201cinflationary pressures and supply-chain disruptions are expected to persist and the consumer\u2019s post-pandemic behavior continues to evolve.\u201d<\/span><\/p>\n

The company forecast Q2 revenue between $2.43 billion and $2.46 billion and full-year revenue between $10.2 billion and $10.4 billion.\u00a0<\/span><\/p>\n

Both were in line with analysts\u2019 expectations.<\/span><\/p>\n

Hewlett Packard Drops On Earnings Miss<\/strong><\/h2>\n

Hewlett Packard <\/b>(HPE) shares are down 4% ahead of the open after missing fiscal Q2 expectations.\u00a0<\/span><\/p>\n

The company reported adjusted earnings of $0.44 per share on $6.7 billion in revenue.\u00a0<\/span><\/p>\n

That was shy of analysts\u2019 expectations for adjusted EPS of $0.45 on $6.8 billion in revenue.\u00a0<\/span><\/p>\n

Hewlett Packard\u2019s CFO said, \u201cWe are particularly pleased with the resiliency of our gross margins (34%) despite the inflationary environment and ongoing supply-chain disruptions\u201d.<\/span><\/p>\n

The company did incur a $126 million charge during the quarter related to suspending its business in Russia.\u00a0<\/span><\/p>\n

HPE forecast adjusted fiscal Q3 earnings between $0.44 and $0.54 per share, roughly in line with expectations for $0.51.<\/span><\/p>\n

Meta COO Steps Down<\/strong><\/h2>\n

Meta Platforms <\/b>(FB) shares are up 0.7% in premarket trade after the company\u2019s COO announced she is stepping down.\u00a0<\/span><\/p>\n

Sheryl Sandberg announced her departure in a Facebook <\/span>post<\/span><\/a> on Wednesday.\u00a0<\/span><\/p>\n

Meta\u2019s chief growth officer will take over as COO in the fall and Sandberg will remain on the company\u2019s board of directors.<\/span><\/p>\n

CEO Mark Zuckerberg <\/span>said<\/span><\/a> the company is planning an internal reorganization with her departure. <\/span>
\n<\/span>
\n<\/span>Zuckerberg said, \u201cI don\u2019t plan to replace Sheryl\u2019s role in our existing structure. I\u2019m not sure that would be possible since she\u2019s a superstar who defined the COO role in her own unique way.\u201d<\/span><\/p>\n

Sandberg told CNBC that stepping down from the position will allow her to focus more on her philanthropic work.<\/span><\/p>\n

Oil Prices Slip<\/strong><\/h2>\n

Oil prices are slipping on reports that Saudi Arabia is prepared to increase its production if Russia\u2019s output falls significantly.\u00a0<\/span><\/p>\n

West Texas Intermediate crude futures are down over 1% at $114 bbl while Brent crude futures are falling 0.9% at $115 bbl.<\/span><\/p>\n

The <\/span>Financial Times<\/span><\/a> reported Saudi Arabia would stepup production if the EU\u2019s ban of Russian oil imports caused a severe shortage of supply.\u00a0<\/span><\/p>\n

Sources say Saudi Arabia has not yet seen genuine oil shortages in the market but it is \u201cnot in their interests to lose control of oil prices\u201d.<\/span><\/p>\n

OPEC+, which is led by Saudi Arabia, is holding its monthly meeting today to discuss production goals.<\/span><\/p>\n

U.S. Gas Prices Surge to Fresh Record<\/strong><\/h2>\n

The national average for a gallon of regular gas jumped sharply again overnight.<\/span><\/p>\n

AAA<\/span><\/a> shows that price jumped to $4.715\/gal today.\u00a0<\/span><\/p>\n

That was an increase of more than 4 cents from yesterday.\u00a0<\/span><\/p>\n

The state with the lowest average price currently is Georgia, at $4.194\/gal.\u00a0<\/span><\/p>\n

The highest state average is in California at $6.213\/gal.<\/span><\/p>\n

U.S. Factory Orders Expected To Slow<\/strong><\/h2>\n

The Commerce Department reports factory orders for April at 10:00 a.m. ET.\u00a0<\/span><\/p>\n

That report is expected to show orders rose just 0.6% compared to 1.8% in March, as manufacturers face pressure from rising costs.\u00a0<\/span><\/p>\n

The ISM Manufacturing PMI rose unexpectedly to 56.1% in May on Wednesday.<\/span><\/p>\n

But that survey also showed manufacturers plan to slow hiring in the next six months with the employment index dropping to 49.6%.\u00a0<\/span><\/p>\n

Any reading below 50 signals a slowdown.\u00a0<\/span><\/p>\n

The S&P Global Manufacturing PMI, formerly the IHS Markit PMI, slipped to a 4-month low of 57 as costs rose at the fastest pace since November 2021.<\/span><\/p>\n

Optimism among manufacturers tumbled to the lowest level since October 2020.\u00a0<\/span><\/p>\n

In Case You Missed It<\/strong><\/h2>\n
    \n
  • JPMorgan Chase <\/b>(JPM) CEO Jamie Dimon cautioned investors to \u201cbrace yourself\u201d for an \u201ceconomic hurricane\u201d as the Fed tightens. Speaking at an event in New York Wednesday, Dimon said, \u201cJPMorgan is bracing ourselves and we\u2019re going to be very conservative with our balance sheet.\u201d The Fed started the reduction of its $9 trillion balance sheet on Wednesday at a pace of $47.5 billion per month.\u00a0<\/span><\/li>\n
  • The Federal Reserve Beige Book shows most of the U.S. saw \u201cslight or modest\u201d economic growth over the past two months. The report said the \u201cpace of growth had slowed\u201d in four of the 12 Fed districts from mid-April through May 22. Most districts continued to see \u201cstrong or robust\u201d price increases during the period while two cited \u201crapid inflation\u201d, and three said prices had \u201cmoderated somewhat.\u201d<\/span><\/li>\n
  • The Labor Department\u2019s Job Openings and Labor Turnover Survey shows there were 11.4 million available jobs in April. That was down from the record 11.855 million in March. But openings still outnumber available workers. There were 5.46 million more job openings than unemployed workers in April. 4.4 million employees quit their jobs during the month.<\/span><\/li>\n<\/ul>\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: +119 (+0.4%) SPX Futures: +17 (+0.4%) NASDAQ Futures: +59 (+0.5%) Good morning friends! Futures are rebounding as the market digests fresh jobs data that shows the labor market nearing full employment. Let\u2019s get right to it! Private Job Growth Tumbles In May Private payrolls increased less than expected in May, as the U.S. labor market nears full employment. Payroll firm ADP reported today that private employers added 128,000 workers last month.\u00a0 That was lower than economists\u2019 expectations for a gain of 299,000. April was also revised lower to 202,000 from 247,000. May was the slowest pace of job growth since the beginning of the pandemic.\u00a0 Small businesses actually lost 91,000 employees in May while businesses with 500 or more employees added 122,000 and mid-size businesses added 97,000. The leisure and hospitality sector no longer led job gains last month, adding just 17,000 workers.\u00a0 The Labor Department releases the official May jobs report on Friday. That\u2019s expected to show the U.S. economy added 328,000 jobs last month with the unemployment rate slipping to 3.5%. Weekly Jobless Claims Fall Weekly jobless claims fell more than expected last week.\u00a0 The Labor Department reported 200,000 Americans filed initial claims for unemployment benefits.\u00a0 That was down 11,000 from the previous week and lower than expectations for 210,000.\u00a0 The data indicates the labor market is in a strong position, with layoffs hovering around record lows.\u00a0 Continuing claims fell by 34,000 to 1.31 million in the week ending May 21. Gamestop Slips On Steep Q1 Loss Gamestop (GME) shares are down 0.2% ahead of the open after missing Q1 expectations. The video game retailer reported a loss of $2.08 per share on $1.38 billion in revenue.\u00a0 That was worse than analysts\u2019 expectations for a loss of $1.45 per share but beat revenue estimates of $1.34 billion. It was also a steeper loss than $1.01 per share a year ago.\u00a0 GameStop said its inventories jumped to $918 million at the end of Q1, up from $571 million at the end of Q1 2021.\u00a0 That increased inventory is part of an effort \u201cto meet increased customer demand and offset supply-chain headwinds.\u201d The company ended the quarter with $1.035 billion in cash on hand.\u00a0 Chewy Rallies On Surprise Q1 Profit Chewy Inc (CHWY) shares are jumping 16% in premarket trade after reporting a surprise profit in the first quarter.\u00a0 The online pet-products retailer reported earnings of $0.04 per share on $2.43 billion in revenue.\u00a0 That crushed analysts\u2019 expectations for a loss of $0.11 per share on $2.41 billion in revenue.\u00a0 Chewy warned, \u201cinflationary pressures and supply-chain disruptions are expected to persist and the consumer\u2019s post-pandemic behavior continues to evolve.\u201d The company forecast Q2 revenue between $2.43 billion and $2.46 billion and full-year revenue between $10.2 billion and $10.4 billion.\u00a0 Both were in line with analysts\u2019 expectations. Hewlett Packard Drops On Earnings Miss Hewlett Packard (HPE) shares are down 4% ahead of the open after missing fiscal Q2 expectations.\u00a0 The company reported adjusted earnings of $0.44 per share on $6.7 billion in revenue.\u00a0 That was shy of analysts\u2019 expectations for adjusted EPS of $0.45 on $6.8 billion in revenue.\u00a0 Hewlett Packard\u2019s CFO said, \u201cWe are particularly pleased with the resiliency of our gross margins (34%) despite the inflationary environment and ongoing supply-chain disruptions\u201d. The company did incur a $126 million charge during the quarter related to suspending its business in Russia.\u00a0 HPE forecast adjusted fiscal Q3 earnings between $0.44 and $0.54 per share, roughly in line with expectations for $0.51. Meta COO Steps Down Meta Platforms (FB) shares are up 0.7% in premarket trade after the company\u2019s COO announced she is stepping down.\u00a0 Sheryl Sandberg announced her departure in a Facebook post on Wednesday.\u00a0 Meta\u2019s chief growth officer will take over as COO in the fall and Sandberg will remain on the company\u2019s board of directors. CEO Mark Zuckerberg said the company is planning an internal reorganization with her departure. Zuckerberg said, \u201cI don\u2019t plan to replace Sheryl\u2019s role in our existing structure. I\u2019m not sure that would be possible since she\u2019s a superstar who defined the COO role in her own unique way.\u201d Sandberg told CNBC that stepping down from the position will allow her to focus more on her philanthropic work. Oil Prices Slip Oil prices are slipping on reports that Saudi Arabia is prepared to increase its production if Russia\u2019s output falls significantly.\u00a0 West Texas Intermediate crude futures are down over 1% at $114 bbl while Brent crude futures are falling 0.9% at $115 bbl. The Financial Times reported Saudi Arabia would stepup production if the EU\u2019s ban of Russian oil imports caused a severe shortage of supply.\u00a0 Sources say Saudi Arabia has not yet seen genuine oil shortages in the market but it is \u201cnot in their interests to lose control of oil prices\u201d. OPEC+, which is led by Saudi Arabia, is holding its monthly meeting today to discuss production goals. U.S. Gas Prices Surge to Fresh Record The national average for a gallon of regular gas jumped sharply again overnight. AAA shows that price jumped to $4.715\/gal today.\u00a0 That was an increase of more than 4 cents from yesterday.\u00a0 The state with the lowest average price currently is Georgia, at $4.194\/gal.\u00a0 The highest state average is in California at $6.213\/gal. U.S. Factory Orders Expected To Slow The Commerce Department reports factory orders for April at 10:00 a.m. ET.\u00a0 That report is expected to show orders rose just 0.6% compared to 1.8% in March, as manufacturers face pressure from rising costs.\u00a0 The ISM Manufacturing PMI rose unexpectedly to 56.1% in May on Wednesday. But that survey also showed manufacturers plan to slow hiring in the next six months with the employment index dropping to 49.6%.\u00a0 Any reading below 50 signals a slowdown.\u00a0 The S&P Global Manufacturing PMI, formerly the IHS Markit PMI, slipped to a 4-month low<\/p>\n","protected":false},"author":41,"featured_media":61603,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[739],"tags":[],"class_list":["post-61601","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\/61601","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=61601"}],"version-history":[{"count":3,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts\/61601\/revisions"}],"predecessor-version":[{"id":61605,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts\/61601\/revisions\/61605"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/media\/61603"}],"wp:attachment":[{"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/media?parent=61601"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/categories?post=61601"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/tags?post=61601"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}