{"id":63594,"date":"2022-08-31T09:06:35","date_gmt":"2022-08-31T13:06:35","guid":{"rendered":"https:\/\/blog.t3live.com\/?p=63594"},"modified":"2022-08-31T09:06:35","modified_gmt":"2022-08-31T13:06:35","slug":"coffee-with-greta-private-job-growth-misses-big-in-august","status":"publish","type":"post","link":"https:\/\/blog.t3live.com\/2022\/08\/31\/coffee-with-greta-private-job-growth-misses-big-in-august\/","title":{"rendered":"Coffee With Greta: Private Job Growth Misses Big In August"},"content":{"rendered":"

DJIA Futures: <\/b>+90 (+0.3%)<\/span><\/p>\n

SPX Futures: <\/b>+18 (+0.5%)<\/span><\/p>\n

NASDAQ Futures: <\/b>+102 (+0.8%)<\/span><\/p>\n

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

Futures are higher as the market looks to recover from three straight days of losses but traders are digesting some disappointing data.\u00a0<\/span><\/p>\n

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

Private Sector Job Growth Disappoints<\/span><\/h2>\n

Job growth in the U.S. private sector sharply missed expectations in August.\u00a0<\/span><\/p>\n

Payroll firm ADP reported the U.S. economy added just 132,000 private jobs last month vs 300,000 expected.\u00a0<\/span><\/p>\n

That was down from 270,000 in July.\u00a0<\/span><\/p>\n

ADP\u2019s chief economist said the data \u201csuggests a shift toward a more conservative pace of hiring, possibly as companies try to decipher the economy\u2019s conflicting signals. We could be at an inflection point, from super-charged job gains to something more normal.\u201d<\/span><\/p>\n

The report also adds to inflation worries as wages jumped 7.6% year over year.\u00a0<\/span><\/p>\n

The services sector added 110,000 jobs, leisure and hospitality gained 96,000 and trade, transportation and utilities added 54,000.\u00a0<\/span><\/p>\n

But several sectors saw decreases.\u00a0<\/span><\/p>\n

Financial activities lost 20,000 jobs, education and health services list 15,000, and professional and business services lost 14,000.<\/span><\/p>\n

This comes ahead of the official August jobs report on Friday which is expected to show a gain of 318,000 jobs and the unemployment rate unchanged at 3.5%.<\/span><\/p>\n

Bed Bath & Beyond Plunges After Announcing Layoffs, Store Closures<\/span><\/h2>\n

Bed Bath & Beyond <\/b>(BBBY) shares are cratering 31.4% ahead of the open after <\/span>announcing<\/span><\/a> store closures and layoffs.\u00a0<\/span><\/p>\n

The retailer said today it will close about 150 \u201clower producing\u201d stores and layoff 20% of its corporate and supply chain staff.\u00a0<\/span><\/p>\n

The company also announced it has secured more than $500 million in new financing as it works to turnaround its business.\u00a0<\/span><\/p>\n

Bed Bath said its sales have continued to slow sharply in the current fiscal quarter, with same-store sales down 26% so far in Q3.\u00a0<\/span><\/p>\n

The retailer said it will overhaul its merchandise and bring back popular national brands in an effort to win back customers.\u00a0<\/span><\/p>\n

The interim CEO said, \u201cWe are embracing a straight-forward, back-to-basics philosophy that focuses on better serving our customers, driving growth, and delivering business returns.\u201d<\/span><\/p>\n

Bed Bath also announced its COO is leaving the company and it has eliminated that role and the chief stores officer role.\u00a0<\/span><\/p>\n

Snap Plans Massive Layoffs<\/span><\/h2>\n

Snap <\/b>(SNAP) shares are tumbling 10.2% in premarket trade after reports the company is planning a massive round of layoffs.\u00a0<\/span><\/p>\n

The Verge first <\/span>reported<\/span><\/a> on Tuesday the social media company plans to lay off 20% of its employees.\u00a0<\/span><\/p>\n

The cuts are expected to begin today, impacting nearly 1,300 employees.\u00a0<\/span><\/p>\n

The hardware and developer products divisions will likely see the largest impact.\u00a0<\/span><\/p>\n

Snap hired aggressively during the pandemic-era tech boom but its business has taken a hit coming out of the pandemic.\u00a0<\/span><\/p>\n

Oil Prices Drop on Recession Fears<\/span><\/h2>\n

Oil prices are lower today as recession fears once again grip the market.\u00a0<\/span><\/p>\n

West Texas Intermediate crude futures are down 2.9% to under $89 bbl while Brent crude futures are down 3.5% to under $96 bbl.<\/span><\/p>\n

The drop comes as factory activity continued to contract in China in August and amid ongoing worries about aggressive rate hikes at Central Banks around the world.\u00a0<\/span><\/p>\n

Hawkish Fed Comments Continue<\/span><\/h2>\n

Cleveland Fed President Loretta Mester struck a hawkish tone in a speech this morning.\u00a0<\/span><\/p>\n

Mester said, \u201cMy current view is that it will be necessary to move the fed funds rate up to somewhat above 4 percent by early next year and hold it there. I do not anticipate the Fed cutting the fed funds rate target next year.\u201d<\/span><\/p>\n

Benchmark rates are currently in a range of 2.25% to 2.5%.\u00a0<\/span><\/p>\n

Mester also said she expects the rate hikes to slow economic growth and predicted higher unemployment and continued volatility in the financial market.\u00a0<\/span><\/p>\n

She said the bank must remain aggressive on inflation until substantial progress is seen.\u00a0<\/span><\/p>\n

\u201cIt would be a mistake to declare victory over the inflation beast too soon. Doing so would put us back in the stop-and-go monetary policy world of the 1970s, which was very costly to households and businesses,\u201d she said.<\/span><\/p>\n

In Case You Missed It<\/span><\/b><\/h2>\n