{"id":65760,"date":"2023-01-05T09:02:40","date_gmt":"2023-01-05T14:02:40","guid":{"rendered":"https:\/\/blog.t3live.com\/?p=65760"},"modified":"2023-01-05T09:02:40","modified_gmt":"2023-01-05T14:02:40","slug":"coffee-with-greta-strong-private-job-growth-spooks-traders","status":"publish","type":"post","link":"https:\/\/blog.t3live.com\/2023\/01\/05\/coffee-with-greta-strong-private-job-growth-spooks-traders\/","title":{"rendered":"Coffee With Greta: Strong Private Job Growth Spooks Traders"},"content":{"rendered":"

DJIA Futures: <\/b>-165 (-0.5%)<\/span><\/p>\n

SPX Futures: <\/b>-22 (-0.6%)<\/span><\/p>\n

NASDAQ Futures:<\/b> -72 (-0.6%)<\/b><\/p>\n

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

Futures are falling after the release of strong labor market data.<\/span><\/p>\n

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

Private Payrolls Surge In December<\/span><\/h2>\n

Private sector job growth blew past expectations in December.\u00a0<\/span><\/p>\n

Payroll firm ADP reported private employers added 235,000 employees last month.\u00a0<\/span><\/p>\n

That was sharply higher than 153,000 expected and up from 127,000 in November.\u00a0<\/span><\/p>\n

The services sector led those gains, adding 213,000 workers. <\/span>
\n<\/span>
\n<\/span>Leisure and hospitality added 123,000, professional and business services grew by 52,000, and education and health services added 42,000.<\/span><\/p>\n

Wages also continued strong gains with annual pay across all categories up 7.3% year over year.\u00a0<\/span><\/p>\n

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

That\u2019s expected to show the U.S. economy added 200,000 jobs last month with the unemployment rate unchanged at 3.7%.\u00a0<\/span><\/p>\n

Weekly Jobless Claims Drop<\/span><\/h2>\n

Weekly jobless claims fell to a 14-week low at the end of 2022.\u00a0<\/span><\/p>\n

The Labor Department reported 204,000 Americans filed initial claims for unemployment benefits last week.\u00a0<\/span><\/p>\n

That was down by 19,000 from the week before and better than 223,000 expected.\u00a0<\/span><\/p>\n

Continuing claims also dipped by 30,000 to 1.69 million in the week ending December 24.<\/span><\/p>\n

Trade Deficit Tumbles In November<\/span><\/h2>\n

The U.S. trade deficit narrowed more than expected in November.\u00a0<\/span><\/p>\n

The Commerce Department reported that gap tumbled 21% to $61.5 billion.\u00a0<\/span><\/p>\n

That was down from $77.8 billion in October and better than $63.1 billion expected.\u00a0<\/span><\/p>\n

Bed Bath & Beyond Sinks After Warning<\/span><\/h2>\n

Bed Bath & Beyond <\/b>(BBBY) shares are plummeting 18.7% ahead of the open after the company warned about slower than expected sales.\u00a0<\/span><\/p>\n

The home goods retailer said it now expects fiscal Q3 sales of $1.26 billion vs analysts\u2019 expectations for $1.41 billion.\u00a0<\/span><\/p>\n

That\u2019s down from $1.88 billion in the same quarter one year ago.\u00a0<\/span><\/p>\n

Bed Bath & Beyond also expects to report a $385.8 million net loss in the quarter, up from $276.4 million a year ago.\u00a0<\/span><\/p>\n

The company also issued a \u201cgoing concern\u201d which is a warning that it likely will not have the cash to cover expenses in the upcoming months.\u00a0<\/span><\/p>\n

BBBY is set to report full quarterly results on Tuesday.<\/span><\/p>\n

Silvergate Capital Tanks<\/span><\/h2>\n

Silvergate Capital <\/b>(SI) shares are tanking 35.5% in premarket trade after the crypto bank released preliminary Q4 results.\u00a0<\/span><\/p>\n

That report showed total crypto deposits plunged 68% at the end of Q4 to $3.8 billion vs $11.9 billion at the end of Q3.\u00a0<\/span><\/p>\n

The massive withdrawals came as crypto exchange FTX, which was a Silvergate customer, collapsed.\u00a0<\/span><\/p>\n

The bank also said $150 million of its deposits at the end of December were held by customers who had filed for bankruptcy.\u00a0<\/span><\/p>\n

Silvergate said it sold $5.2 billion of debt securities to raise cash.\u00a0<\/span><\/p>\n

That put its total cash and cash equivalents held at the end of December at $4.6 billion.<\/span><\/p>\n

The CEO said, \u201cIn response to the rapid changes in the digital asset industry during the fourth quarter, we took commensurate steps to ensure that we were maintaining cash liquidity in order to satisfy potential deposit outflows, and we currently maintain a cash position in excess of our digital asset related deposits.\u201d<\/span><\/p>\n

The bank also announced it\u2019s laying off 200 employees, representing about 40% of its workforce.<\/span><\/p>\n

Walgreens Tops Fiscal Q1 Expectations, Hikes Outlook<\/span><\/h2>\n

Walgreens <\/b>(WBA) shares are falling 4.8% ahead of the open despite beating fiscal Q1 expectations.\u00a0<\/span><\/p>\n

Here\u2019s how the drugstore chain\u2019s results compared to analysts\u2019 expectations:<\/span><\/p>\n

    \n
  • Adjusted EPS: $1.16 vs $1.14 expected<\/span><\/li>\n
  • Revenue: $33.38 billion vs $32.84 billion expected<\/span><\/li>\n<\/ul>\n

    But Walgreens reported an unadjusted loss of $3.7 billion, or $4.31 per share, driven by a $5.2 billion settlement for opioid-related litigation.\u00a0<\/span><\/p>\n

    An early cold and flu season drove strong sales in the quarter as demand surged for over-the-counter medications.\u00a0<\/span><\/p>\n

    Walgreens hiked its full-year sales guidance to $137.5 billion from $133.5 billion previously.<\/span><\/p>\n

    The company maintained its full-year EPS guidance of $4.45 to $4.65 vs analysts\u2019 estimates of $4.50.<\/span><\/p>\n

    GM Reclaims America\u2019s Top Automaker Title<\/span><\/h2>\n

    General Motors <\/b>(GM) shares are slipping 0.8% in premarket trade after the company reclaimed the title of America\u2019s top automaker from Toyota in 2022.\u00a0<\/span><\/p>\n

    GM reported its total 2022 sales in the U.S. on Wednesday.<\/span><\/p>\n

    The automaker said it sold 2.27 million vehicles in the U.S. last year, up 2.5% year over year.\u00a0<\/span><\/p>\n

    That topped Toyota\u2019s U.S. sales of 2.1 million vehicles in 2022.\u00a0<\/span><\/p>\n

    GM sold 623,261 vehicles in the fourth quarter, up 41.4% year over year.\u00a0<\/span><\/p>\n

    The automaker\u2019s EV sales also surged in Q4, with the company selling 16,108 vehicles vs just 25 a year ago.<\/span><\/p>\n

    In Case You Missed It<\/span><\/h2>\n
      \n
    • The minutes of the Fed\u2019s December 2022 meeting showed officials are committed to lowering inflation and expect higher interest rates to remain in place for \u201csome time\u201d. The meeting summary said, \u201cParticipants generally observed that a restrictive policy stance would need to be maintained until the incoming data provided confidence that inflation was on a sustained downward path to 2 percent, which was likely to take some time.\u201d The Fed\u2019s latest dot plot showed no interest rate cuts beginning until 2024.\u00a0<\/span><\/li>\n
    • The number of job openings in the U.S. was relatively unchanged in November, a sign the labor market is maintaining strength in the face of the Fed\u2019s rate hikes. The Labor Department\u2019s Job Openings and Labor Turnover Survey showed there were 10.46 million unfilled jobs in November, down just slightly from the upwardly revised 10.51 million in October. The number of job openings outnumbered unemployed workers by 1.7 to 1. That\u2019s well above pre-pandemic levels of 1.2 to 1.<\/span><\/li>\n<\/ul>\n
        \n
      • <\/li>\n
      • Apple <\/b>(AAPL) reclaimed its $2 trillion market cap on Wednesday. The iPhone maker\u2019s stock closed 1.03% higher at $126.36 per share. That put its valuation at $2.088 trillion. The company\u2019s market cap slipped under that key level Tuesday for the first time since May 2021.\u00a0<\/span><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"

        DJIA Futures: -165 (-0.5%) SPX Futures: -22 (-0.6%) NASDAQ Futures: -72 (-0.6%) Good morning friends! Futures are falling after the release of strong labor market data. Let\u2019s get right to it! Private Payrolls Surge In December Private sector job growth blew past expectations in December.\u00a0 Payroll firm ADP reported private employers added 235,000 employees last month.\u00a0 That was sharply higher than 153,000 expected and up from 127,000 in November.\u00a0 The services sector led those gains, adding 213,000 workers. Leisure and hospitality added 123,000, professional and business services grew by 52,000, and education and health services added 42,000. Wages also continued strong gains with annual pay across all categories up 7.3% year over year.\u00a0 This data comes ahead of the official December jobs report from the Labor Department on Friday.\u00a0 That\u2019s expected to show the U.S. economy added 200,000 jobs last month with the unemployment rate unchanged at 3.7%.\u00a0 Weekly Jobless Claims Drop Weekly jobless claims fell to a 14-week low at the end of 2022.\u00a0 The Labor Department reported 204,000 Americans filed initial claims for unemployment benefits last week.\u00a0 That was down by 19,000 from the week before and better than 223,000 expected.\u00a0 Continuing claims also dipped by 30,000 to 1.69 million in the week ending December 24. Trade Deficit Tumbles In November The U.S. trade deficit narrowed more than expected in November.\u00a0 The Commerce Department reported that gap tumbled 21% to $61.5 billion.\u00a0 That was down from $77.8 billion in October and better than $63.1 billion expected.\u00a0 Bed Bath & Beyond Sinks After Warning Bed Bath & Beyond (BBBY) shares are plummeting 18.7% ahead of the open after the company warned about slower than expected sales.\u00a0 The home goods retailer said it now expects fiscal Q3 sales of $1.26 billion vs analysts\u2019 expectations for $1.41 billion.\u00a0 That\u2019s down from $1.88 billion in the same quarter one year ago.\u00a0 Bed Bath & Beyond also expects to report a $385.8 million net loss in the quarter, up from $276.4 million a year ago.\u00a0 The company also issued a \u201cgoing concern\u201d which is a warning that it likely will not have the cash to cover expenses in the upcoming months.\u00a0 BBBY is set to report full quarterly results on Tuesday. Silvergate Capital Tanks Silvergate Capital (SI) shares are tanking 35.5% in premarket trade after the crypto bank released preliminary Q4 results.\u00a0 That report showed total crypto deposits plunged 68% at the end of Q4 to $3.8 billion vs $11.9 billion at the end of Q3.\u00a0 The massive withdrawals came as crypto exchange FTX, which was a Silvergate customer, collapsed.\u00a0 The bank also said $150 million of its deposits at the end of December were held by customers who had filed for bankruptcy.\u00a0 Silvergate said it sold $5.2 billion of debt securities to raise cash.\u00a0 That put its total cash and cash equivalents held at the end of December at $4.6 billion. The CEO said, \u201cIn response to the rapid changes in the digital asset industry during the fourth quarter, we took commensurate steps to ensure that we were maintaining cash liquidity in order to satisfy potential deposit outflows, and we currently maintain a cash position in excess of our digital asset related deposits.\u201d The bank also announced it\u2019s laying off 200 employees, representing about 40% of its workforce. Walgreens Tops Fiscal Q1 Expectations, Hikes Outlook Walgreens (WBA) shares are falling 4.8% ahead of the open despite beating fiscal Q1 expectations.\u00a0 Here\u2019s how the drugstore chain\u2019s results compared to analysts\u2019 expectations: Adjusted EPS: $1.16 vs $1.14 expected Revenue: $33.38 billion vs $32.84 billion expected But Walgreens reported an unadjusted loss of $3.7 billion, or $4.31 per share, driven by a $5.2 billion settlement for opioid-related litigation.\u00a0 An early cold and flu season drove strong sales in the quarter as demand surged for over-the-counter medications.\u00a0 Walgreens hiked its full-year sales guidance to $137.5 billion from $133.5 billion previously. The company maintained its full-year EPS guidance of $4.45 to $4.65 vs analysts\u2019 estimates of $4.50. GM Reclaims America\u2019s Top Automaker Title General Motors (GM) shares are slipping 0.8% in premarket trade after the company reclaimed the title of America\u2019s top automaker from Toyota in 2022.\u00a0 GM reported its total 2022 sales in the U.S. on Wednesday. The automaker said it sold 2.27 million vehicles in the U.S. last year, up 2.5% year over year.\u00a0 That topped Toyota\u2019s U.S. sales of 2.1 million vehicles in 2022.\u00a0 GM sold 623,261 vehicles in the fourth quarter, up 41.4% year over year.\u00a0 The automaker\u2019s EV sales also surged in Q4, with the company selling 16,108 vehicles vs just 25 a year ago. In Case You Missed It The minutes of the Fed\u2019s December 2022 meeting showed officials are committed to lowering inflation and expect higher interest rates to remain in place for \u201csome time\u201d. The meeting summary said, \u201cParticipants generally observed that a restrictive policy stance would need to be maintained until the incoming data provided confidence that inflation was on a sustained downward path to 2 percent, which was likely to take some time.\u201d The Fed\u2019s latest dot plot showed no interest rate cuts beginning until 2024.\u00a0 The number of job openings in the U.S. was relatively unchanged in November, a sign the labor market is maintaining strength in the face of the Fed\u2019s rate hikes. The Labor Department\u2019s Job Openings and Labor Turnover Survey showed there were 10.46 million unfilled jobs in November, down just slightly from the upwardly revised 10.51 million in October. The number of job openings outnumbered unemployed workers by 1.7 to 1. That\u2019s well above pre-pandemic levels of 1.2 to 1. Apple (AAPL) reclaimed its $2 trillion market cap on Wednesday. The iPhone maker\u2019s stock closed 1.03% higher at $126.36 per share. That put its valuation at $2.088 trillion. The company\u2019s market cap slipped under that key level Tuesday for the first time since May 2021.\u00a0<\/p>\n","protected":false},"author":41,"featured_media":65767,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[739],"tags":[],"class_list":["post-65760","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\/65760","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=65760"}],"version-history":[{"count":2,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts\/65760\/revisions"}],"predecessor-version":[{"id":65770,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts\/65760\/revisions\/65770"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/media\/65767"}],"wp:attachment":[{"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/media?parent=65760"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/categories?post=65760"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/tags?post=65760"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}