Latest news with #labor market
Washington Post
5 days ago
- Business
- Washington Post
Job openings increased in April, even as trade war heated up
Job openings in the United States rose unexpectedly in April, suggesting that the labor market remained healthy despite economic headwinds, fueled by President Donald Trump's tariff policy, which drove the financial markets into turmoil during that same period. The number of available jobs rose to 7.39 million, up from a revised 7.2 million in March, according to data released Tuesday by the Bureau of Labor Statistics, surpassing expectations. 'The labor market is returning to more normal levels despite the uncertainty within the macro outlook,' said Jeffrey Roach, Chief Economist for LPL Financial, referring to an ongoing cooldown in the jobs market. The jump in openings was driven by white collar industries and health care. Meanwhile, demand for workers dropped off in tariff-sensitive industries such as manufacturing and construction, as well as state and local government, as tax revenue have fallen. The new data paints a more optimistic view of the economy in April, which was rattled by a cascade of tariff announcements that rocked Wall Street and Main Street. Consumer spending, which had already been sluggish, cooled significantly in April, as families exercised caution amid tariff uncertainty. Corporate profits also fell sharply, by $118 billion, in the first quarter, the largest drop since early in the pandemic, the GDP report showed. But the labor market appears to be on solid ground, with unemployment hovering new historic lows at 4.2 percent. The rate of hiring also regained lost ground, reaching its highest point in April since September, according to Tuesday's data. And inflation has also fallen from recent peaks, easing pressure on households. The Bureau of Labor Statistics will release its jobs report for May on Friday, providing a fresh view on the state of the labor market. Economists predict employers added 175,000 jobs and the unemployment rate may tick up to 4.3 percent.
CNN
6 days ago
- Business
- CNN
Job openings unexpectedly increased in April, a sign of US labor market resilience
The number of available jobs in the US unexpectedly increased in April, signaling a potential undercurrent of strength in the labor market despite broader economic uncertainty. Job openings totaled an estimated 7.39 million at the end of April, up from 7.2 million in March, according to new data released Tuesday by the Bureau of Labor Statistics. President Donald Trump's sweeping (and frequently shifting) policy moves, especially related to global trade, have injected incredible uncertainty into the US economy, rattling markets, shaking consumer confidence and freezing business decisions. Economists were expecting that job openings — a measurement of labor market demand — would fall for the third consecutive month to 7.1 million, according to FactSet consensus estimates. This story is developing and will be updated.
Yahoo
22-05-2025
- Business
- Yahoo
Magnificent Seven Shareholder Meetings On Tap: Taking Stock of the Economy
Investors can pause to catch their breath after a wild last few months. Cooler heads appear to have prevailed in the trade war, the Q1 earnings season was better than expected, and (for now) economic data is hanging in there. According to Econoday, the last few US payrolls reports point to a slowing, but not halting, labor market. Warning! GuruFocus has detected 4 Warning Signs with TAP. The US unemployment rate has been steady around the 4.2% mark, while average hourly earnings have drifted down to 3.8% on a year-on-year basis. Moreover, CPI inflation data from February through April were largely below estimates. Now more than ever, though, both company-specific and economy-wide data are seen as less relevant. Last week's Retail Sales report, while light, didn't raise recession flags, and next week's April Personal Consumption Expenditure (PCE) Price Index print (which comes alongside the Personal Income and Outlays report) won't fully reflect the impact of tariffs. Mark your calendar for several macro updates, according to Wall Street Horizon's new Economic Calendar data. First, the minutes from the May 6-7 Fed meeting are set to be released on Wednesday, May 28th. Following that, the June FOMC gathering could be livelier as we'll get fresh forecasts from voting members via the Summary of Economic Projections (SEP) and the always-revealing Fed dot plot. Lastly, recession fears have ebbed in the last few months but be on guard for possible volatility around the second look at Q1 GDP, which hits the tape on Thursday, May 29. Yes, plenty of macro volatility catalysts are in the offing, but don't sleep on the long list of key shareholder meetings ahead. Specifically, several Magnificent Seven companies have Annual General Meetings (AGM) over the coming weeks. Beyond those glamour stocks, a handful of other large-cap bellwethers host events to update equity owners on company performance, strategic plans, and firm-specific and macro conditions they see. At the events, investors exercise their voting rights and engage with management, usually friendly but sometimes hostile. We detailed notable shareholder meeting events in April when volatility was near its zenith. Today, as panic has subsided and with the carrot of tax cuts dangling and hopes revived for deregulation, there could be a more upbeat tone. Here are the headline shareholder meetings scheduled: May 20: JPMorgan Chase & Company The Financials sector faces challenges and opportunities. On the positive side, last week's major IPO, eToro (ETOR), was quite encouraging for capital markets. Shares soared on their first day of trading, while the day before, fintech company Chime filed for a Nasdaq IPO.1 Moreover, KKR (KKR) received an upgrade from Morgan Stanley, and fellow capital markets company Carlyle (CG) got a boost from TD Cowen.2 And all of a sudden, M&A is kicking up in the shoe space (see: Skechers and Foot Locker). Good news for the JPM Investment Banking department. Unfortunately, last week's quarterly report on household debt from the Federal Reserve Bank of New York underscored a deterioration in consumer finances, including lower collective credit scores as household debt swells.3 JPM is arguably the most important global financial institution, headed by Jamie Dimon, dubbed America's banker. Investors should pay attention to what transpires today at JPM's AGM. May 21: Amazon Turning to the Mag 7, Amazon (NASDAQ:AMZN) had a load lifted off its back when the US and China chose to roll back most tariffs earlier this month. Shares soared by more than 8% on Monday last week, though they remain far below their $242 all-time high notched in February. The company also confirmed a small workforce reduction, adding to the list of recent layoff announcements. Still, its most recent earnings report was solida double beatwith Amazon Web Services (AWS) growing 17% YoY.4 Be on the lookout for any updates from CEO Andy Jassy this Wednesday. May 28: Meta Platforms Next week, before the PCE report and three-day weekend, Meta Platforms (NASDAQ:META) welcomes shareholders to its virtual event. It, too, beat Q1 sales and earnings estimates, helping to lift shares off their April 21 low under $500. META is the top-performing mega-cap tech stock year to date, with some arguing that it is executing the best on AI strategy. Despite fears of reduced ad spending amid all the macro uncertainty, it grew profits by 35% in the first quarter and issued solid guidance for the balance of the year. The kicker was a significant increase in its FY 2025 capex forecast.5 We'll see if executives, including CEO Mark Zuckerberg, discuss those plans in more detail next Wednesday. June 5: Netflix Netflix (NASDAQ:NFLX), while not officially a member of the Magnificent Seven, is among 2025's best stocks. Through last Wednesday, shares were up 29% on the year, ranking it 13th best among all S&P 500 companies YTD. The Movies and Entertainment industry company within the Communication Services sector ruffled some feathers a month ago when it was reported that a $1 trillion market cap was targeted by co-CEO Ted Sarandos.6 That doesn't seem so out of line today, with NFLX knocking on the door of a $500 million equity valuation. Last week, the firm said its ad tier now has 94 million monthly active users, up 34% just since November and higher by a whopping 135% from 12 months ago.7 Seen as a recession-resistant and tariff-buffered asset-light company, investors will surely be upbeat heading into the June AGM. June 6: Alphabet The Mag 7 is not a monolith. Alphabet (NASDAQ:GOOGL) has struggled in 2025, with the stock down by more than 10%, a strong Q1 report notwithstanding. Earlier this month, news broke that Apple's (AAPL) Eddy Cue testified that Safari searches were down for the first time in 22 years.8 That was bad news for Alphabet since its search engine is the default for Apple products. It will be critical to hear from CEO Sundar Pichai and other top executives on not just search, but also ongoing Justice Department probes and how the $2 trillion market cap company plans to make inroads into AI as the competition grows fiercer. June 25: NVIDIA Last but not least, NVIDIA (NASDAQ:NVDA) has been on a heater in the past several weeks. Through May 21, the stock was up by more than 50% from the April nadir. CEO Jensen Huang appears to be in President Trump's good graces as he joined the POTUS and other tech leaders in a pivotal business trip to the Middle East. To wit, BofA noted that NVIDIA was among the top beneficiaries from deals inked in Saudi Arabia last week.9 The bulls hope such capital investments and new orders will be the next leg of the AI boom. Expect to hear more about the broader outlook on June 25, and NVIDIA reports quarterly results on Wednesday night next week. The bulk of Q1 earnings season is in the books, and we have some stability on the trade front. That makes upcoming shareholder meetings all the more important as investors look ahead to the year's second half. There are individual company stories and macro trends that shape capital project plans and dictate shareholder-friendly initiatives like stock buybacks and dividends. Be sure to take detailed notes during the Mag 7 AGM season. 1 Stock trading app eToro pops 29% in Nasdaq debut after pricing IPO above expected range, CNBC, Samantha Subin, May 14, 2025, Morgan Stanley Upgrades KKR (KKR), Nasdaq, George Maybach, May 14, 2025, As student loan default rate spikes, some borrowers face grave consequences,' New York Fed says, CNBC, May 13, 2025, Announces First Quarter Results, Amazon Inc, May 1, 2025, Meta Reports First Quarter 2025 Results, Meta Inc., April 30, 2025, Netflix aims to be a trillion-dollar company, says co-CEO, TechCrunch, Lauren Forristal, April 23, 2025, Netflix says its ad tier now has 94 million monthly active users, CNBC, Sara Salinas, May 14, 2025, Searches on Safari dipped for the first time in 22 years, Apple's Eddy Cue admits, and it's because more people are using AI instead of Google, Fortune, Sasha Rogelberg, May 8, 2025, Nvidia, AMD 'top beneficiaries' from Saudi deals, but Broadcom and Marvell will benefit: BofA, Seeking Alpha, Chris Ciaccia, May 14, 2025, Copyright 2025 Wall Street Horizon, Inc. All rights reserved. Do not copy, distribute, sell or modify this document without Wall Street Horizon's prior written consent. This information is provided for information purposes only. Neither TMX Group Limited nor any of its affiliated companies guarantees the completeness of the information contained in this publication, and we are not responsible for any errors or omissions in or your use of, or reliance on, the information. This publication is not intended to provide legal, accounting, tax, investment, financial or other advice and should not be relied upon for such advice. The information provided is not an invitation to purchase securities, including any listed on Toronto Stock Exchange and/or TSX Venture Exchange. TMX Group and its affiliated companies do not endorse or recommend any securities referenced in this publication. This publication shall not constitute an offer to sell or the solicitation of an offer to buy, nor may there be any sale of any securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. TMX, the TMX design, TMX Group, Toronto Stock Exchange, TSX, and TSX Venture Exchange are the trademarks of TSX Inc. and are used under license. Wall Street Horizon is the trademark of Wall Street Horizon, Inc. All other trademarks used in this publication are the property of their respective owners. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Forbes
07-05-2025
- Business
- Forbes
Fed Officials Fail To Cut Rates After U.S. Economy Contracts In Q1
Fed officials left the benchmark funds rate intact today. (Photo by) Getty Images Federal Reserve officials left the highly visible benchmark federal funds rate unchanged during this month's policy meeting even after government data showed the U.S. economy contracted during the first quarter. The feds fund rate, which has significant implications for broader borrowing costs, has generated countless headlines since Federal Open Market Committee members started hiking it in 2022. Further, it could have significant implications for risk assets, for example stocks and many cryptocurrencies like bitcoin, which do not pay yields like fixed-income securities. After boosting rates several times, the target range for the fed funds rate reached 525 to 550 basis points in 2023, its highest level in more than 20 years. Since then, FOMC officials have reined in the fed funds rate, decreasing it to a range of 425 to 450 basis points in December 2024 and leaving it unchanged since then. These government officials spoke to recent economic developments this afternoon, specifying in a statement that 'Although swings in net exports have affected the data, recent indicators suggest that economic activity has continued to expand at a solid pace.' 'The unemployment rate has stabilized at a low level in recent months, and labor market conditions remain solid,' the officials continued. 'Inflation remains somewhat elevated.' They offered this guidance after government data provided by the U.S. Bureau of Economic Analysis indicated that the nation's real GDP shrank 0.3% during the first three months of 2025. The U.S. economy grew 2.4% in the final three months of 2024, so the outcome of the latest BEA report did not signify the start of a recession. The fed funds rate has generated significant visibility because of the implications it has for a wide range of lending rates, including those tied to mortgages, credit cards and auto loans. It can also impact investment behavior by bolstering yields and therefore giving market participants additional incentive to seek fixed-income securities, for example bonds, that make regular payments to their owners. This makes risk assets, for example cryptocurrencies like bitcoin that do not make such payments, less attractive in comparison, potentially sapping demand and placing downward pressure on their prices.
