The CML Close - Stocks rose sharply; Microsoft cut its guidance due to currency headwinds; Saudi Arabia will pump; Hiring stalls
Markets
Stocks rose sharply even though Microsoft (NASADQ:MSFT) cut its guidance citing currency headwinds.
Saudi Arabia is ready to pump more oil if Russian output sinks, but oil prices still rose.
| • SPX | 4,176.82 | +75.59 | (+1.84%) |
| • NASD | 12,316.90 | +322.44 | (+2.69%) |
| • DJIA | 33,248.28 | +435.05 | (+1.33%) |
| • R2K | 1,897.67 | +42.85 | (+2.31%) |
| • VIX | 24.72 | -0.97 | (-3.78%) |
| • Oil | 117.42 | +2.16 | (+1.87%) |
• Private businesses in the United States hired the least since the job losses in 2020, and well below forecasts.
• US-based companies announced plans to cut 20,712 jobs from their payrolls in May of 2022, the lowest reading in three months.
• Jobless claims numbers still signal a tight labour market.
Headlines of the Day
Unit-labor costs, a key measure of U.S. wage inflation, was revised up to a 12.6% gain in the first quarter from the initial estimate of an 11.6% gain, the Labor Department said Thursday.
Over the past year, labor costs are up 8.2%, the largest four-quarter gain since 1982. Overall, U.S. first-quarter worker productivity shrank a revised 7.3%, slightly better than the initial estimate of a negative 7.5% rate. This is the largest quarterly decline in productivity since the third quarter of 1947.
US Economy Shows Signs of Downshifting as Rates, Inflation Bite
Beige Book: Four districts noted that the pace of growth had slowed. Three districts said price increases had ‘moderated somewhat’
Saudi Arabia ready to pump more oil if Russian output sinks under ban
Riyadh aware it must not ‘lose control’ of oil prices as energy sanctions hit Moscow
World’s Biggest Truck Manufacturer Says Chip Crunch Easing
Daimler Truck says factories busy amid signs of slowing growth. Comments chime with Mercedes indicating improving chip supply.
Supply Snarls Promise Southeast Asia Bigger Slice of Trade Pie
EU, Japan seen leading efforts to diversify supply chains. Asean presents cost-effective option to tweak linkages.
Economic Data Results for 6-2-2022
United States ADP Employment Change
Private businesses in the United States hired 128K workers in May of 2022, the least since the job losses in 2020, and well below forecasts of 300K.
April Factory Orders
April factory orders rose 0.3% versus 0.7% estimates and 1.8% in prior month (which was revised down from +2.2%).
United States Challenger Job Cuts
US-based companies announced plans to cut 20,712 jobs from their payrolls in May of 2022, the lowest reading in three months. It is 15.8% lower than the 24,586 cuts announced in May of 2021. So far this year, employers announced plans to cut 100,694 job cuts, the lowest on record for the first five months of the year. Hoever, the tech sector announced 4,044 cuts in May, up 781% from the 459 cuts in January thru April (highest monthly total since Dec 2020 when sector announced 5,253 cuts)
United States Initial Jobless Claims
The number of Americans filing new claims for unemployment benefits fell by 11 thousand to 200 thousand in the week ended May 28th, from the previous week's revised level of 211 thousand and below market expectations of 210 thousand, signaling a tight labour market.
Economic Data Due Tomorrow on 6-3-2022
Unemployment Rate
Non Farm Payrolls
ISM Non-Manufacturing PMI
Participation Rate
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