US Economy Beats Expectations in May, Adds 339,000 New Jobs
Video Credit: Wibbitz Top Stories - Duration: 01:31s - Published
US Economy Beats Expectations in May, Adds 339,000 New Jobs
US Economy , Beats Expectations in May, , Adds 339,000 New Jobs.
On June 2, the United States Labor Department's latest
update showed the U.S. economy continued to add
jobs in May, exceeding economists' expectations.
.
On June 2, the United States Labor Department's latest
update showed the U.S. economy continued to add
jobs in May, exceeding economists' expectations.
.
NBC reports that payrolls in both the public
and private sectors grew by 339,000, well over
the 190,000 predicted by the Dow Jones.
NBC reports that payrolls in both the public
and private sectors grew by 339,000, well over
the 190,000 predicted by the Dow Jones.
The gain marks the 29th consecutive
month of positive job growth.
Meanwhile, the unemployment rate climbed
3.7% in May, more than anticipated,
which is the highest it's been since October of 2022.
.
NBC reports that average hourly
earnings increased in May, rising 0.3%
to match economists' expectations.
The report had a positive impact
on markets, sending Dow Jones
futures up about 200 points.
In May, professional and business
service jobs added 64,000
new positions, leading job creation.
.
Both the government and health care
contributed to the higher-than-expected
numbers, adding over 50,000 jobs each.
Both the government and health care
contributed to the higher-than-expected
numbers, adding over 50,000 jobs each.
NBC reports that the good news for the job market
comes amid lingering uncertainty about the economy,
with many economists predicting a possible recession.
.
Since March of 2022, the Federal Reserve
has increased interest rates 10 times as part
of its effort to combat persistent inflation.
March Retail Sales , Exceeded Expectations.
New Commerce Department data surprised
some analysts on April 15, 'The Hill' reports. .
The agency's latest estimates indicate
that March retail sales increased by 0.7%.
They were only expected
to rise 0.3% last month.
While sales exceeded estimates for March, the jump
was still below the 0.9% increase in February.
Compared to the same time last year, total sales
for the first three months of 2024 were up 2.1%.
On April 10, the Labor Department released data showing that inflation rose last month. .
The consumer price index (CPI)
increased 0.4% in March and 3.5% annually.
In February, consumer prices
increased 3.2% year-over-year. .
Still, the newest Commerce Department data suggests that Americans continue to spend despite prolonged inflation, 'The Hill' reports.
Credit: Wibbitz Top Stories Duration: 01:30Published
Data Shows , US Wages Falling , at a 'Striking' Pace.
Fox News reports that wage growth
in the United States has slowed
significantly over the past year. .
According to new data from Indeed,
wage growth is beginning
to near pre-pandemic levels. .
Indeed's wage tracker showed that salaries have had
a marked drop since January 2022, suggesting that
employers are seeing less competition for new hires.
The pace of deceleration
is striking. Posted wage growth
has fallen by almost 3 percentage
points over the past year, Nick Bunker, Indeed labor economist, via Fox News.
Fox News reports that the most pronounced
deceleration was found in low-wage sectors. .
Given the huge run-up in posted
wages for those sectors, wage growth
is still above its pre-pandemic pace.
How long this will last is uncertain, Nick Bunker, Indeed labor economist, via Fox News.
After remaining historically tight throughout the last
year, the labor market is expected to continue slowing
in the coming months amid elevated interest rates.
Since March of 2022, the Federal Reserve has increased interest rates 11 times in an attempt to slow down inflation and cool the labor market.
Since March of 2022, the Federal Reserve has increased interest rates 11 times in an attempt to slow down inflation and cool the labor market.
In 2024, there have already been a number of significant layoffs, with major companies like Alphabet, Amazon and Citigroup cutting jobs. .
In 2024, there have already been a number of significant layoffs, with major companies like Alphabet, Amazon and Citigroup cutting jobs. .
In 2024, there have already been a number of significant layoffs, with major companies like Alphabet, Amazon and Citigroup cutting jobs. .
Despite this, job growth has
remained resilient, with employers
adding 275,000 jobs in February. .
At the same time, Labor Department
data shows that the unemployment
rate for the month also rose to 3.9%.
Credit: Wibbitz Top Stories Duration: 01:31Published
Stock Markets Rally , Amid Investor Hopes for , Interest Rate Cuts in 2024.
On the morning of May 15, both the S&P and the
Nasdaq hit all-time highs after new data suggested
inflation may be easing in line with expectations.
Quartz reports that the Dow Jones Industrial Average
is also inching toward the record-breaking
40,000 mark, which it almost hit in March. .
According to the latest Bureau of Labor
Statistics data, April saw the Consumer Price
Index, a key gauge of inflation, rise by 3.4%.
At the same time, consumer prices
increased by 0.3%, slowing slightly
from March's 0.4% increase.
The latest data also shows that core prices,
which don't include food and energy, saw the lowest
increase since April of 2021, rising just 3.6%. .
As a result, investors have a sense of
renewed hope that the Federal Reserve will
begin to cut interest rates at some point in 2024.
The latest inflation data was released one day
after the Producer Price Index, which
measures wholesale inflation, increased 0.5%. .
Over the past year, the
index has increased 2.2%.
Shortly after markets opened, the Dow
jumped up 147 points, hitting 39,705, while the
S&P 500 and the Nasdaq saw 0.5% increases.
Shares in GameStop were down 30% after
experiencing a boost earlier this week by
the online return of investor "Roaring Kitten."
Credit: Wibbitz Top Stories Duration: 01:30Published
Consumer Outlook , Plunges Amid Fears of , More Price Hikes Ahead.
CNN reports that sentiment about the economy among
consumers in the United States has plummeted
to the lowest level in the past six months.
According to the latest consumer survey by the
University of Michigan, consumers are also bracing
for more price increases in the year ahead. .
The consumer expectations gauge,
which is closely monitored by the White House,
dropped 13%, representing the most significant
single month decline since mid-2021.
The latest news is still better than
last May when inflation was at 4%
compared to the current 3.5% reading.
However, CNN points out that despite inflation
being lower than the same time last year, the numbers
have been moving in the wrong direction.
The trajectory has shifted
economist expectations for
the Federal Reserve to cut rates. .
The latest Fed report saw expectations
for year-ahead inflation increase
to 3.5% from the 3.2% forecast in April. .
At the same time, long-run
expectations for inflation also
increased to 3.1% from April's 3.0%. .
According to Chicago Federal Reserve
President Austan Goolsbee, the latest data , "bodes awful for progress on inflation.".
There isn’t, at this time,
much evidence in my view that
inflation is stalling out at 3%, Austan Goolsbee, Chicago Federal Reserve President, via CNN
Credit: Wibbitz Top Stories Duration: 01:31Published
Key Federal Reserve Inflation Gauge , Rose 2.8% in March.
According to Commerce Department
data released on April 26.
the personal consumption expenditures
(PCE) price index, not including food or energy, rose 2.8% year-over-year in March. .
That exceeded Dow Jones
estimates of 2.7%, CNBC reports. .
When also accounting for food and energy, the all-items PCE measure rose 2.7%,
which was above the 2.6% estimate.
Inflation reports released this morning
were not as a hot as feared, , George Mateyo, chief investment officer at Key Wealth, via CNBC.
... but investors should not get
overly anchored to the idea that
inflation has been completely
cured and the Fed will be cutting
interest rates in the near-term, George Mateyo, chief investment officer at Key Wealth, via CNBC.
The prospects of rate cuts remain,
but they are not assured, and the
Fed will likely need weakness in
the labor market before they
have the confidence to cut, George Mateyo, chief investment officer at Key Wealth, via CNBC.
Consumers continue to spend despite
higher prices, CNBC reports.
Personal spending increased 0.8% in March, while personal income rose 0.5%.
The personal saving rate dropped to 3.2% as more people are having to dip into their savings to cover the cost of living.
The Fed continues to target 2% inflation, which the core PCE has exceeded for
the last three years, CNBC reports.
Credit: Wibbitz Top Stories Duration: 01:30Published
Fears of Potential Iranian Attack , Drive US Stocks Down , Nearly 500 Points.
CNN reports that United States stocks dropped on
April 12 amid rising tensions in the Middle East pushing
traders to seek safe havens like gold and bonds.
CNN reports that United States stocks dropped on
April 12 amid rising tensions in the Middle East pushing
traders to seek safe havens like gold and bonds.
By mid-afternoon, the Dow had fallen
1.4%, the S&P 500 went down 1.6%,
and the Nasdaq dropped 1.8%.
The dip came after the White House announced
that both the U.S. and Israel are on alert for
a potential attack by Iran or its allies.
The dip came after the White House announced
that both the U.S. and Israel are on alert for
a potential attack by Iran or its allies.
The warning comes after Iran
accused Israel of a deadly airstrike
on a consulate in Damascus, Syria. .
The news also sent oil prices up amid
fears of regional tensions escalating
as a result of the ongoing war in Gaza. .
The news also sent oil prices up amid
fears of regional tensions escalating
as a result of the ongoing war in Gaza. .
Brent crude futures jumped up to $90.42
a barrel, and West Texas Intermediate crude
futures increased to $86.65 a barrel.
Those geopolitical concerns and subsequent
rising oil prices sent investors to safe havens like
gold futures, which rose to $2,379 a troy ounce.
Those geopolitical concerns and subsequent
rising oil prices sent investors to safe havens like
gold futures, which rose to $2,379 a troy ounce.
CNN reports that Americans' opinions of
the economy have dipped in the past few
months amid persistently high inflation.
The geopolitical fears come as investors are already
contending with concerns that the Federal Reserve could
wait to bring interest rates down from a 23-year high.
Officials at the Fed have signaled that further rate
hikes could still be on the way if the central
bank's efforts to fight inflation stall.
Credit: Wibbitz Top Stories Duration: 01:31Published
Federal Reserve Posts Massive, $114 Billion , Loss in 2023.
On March 26, the Federal Reserve
announced a record-breaking net
negative income of $114.3 billion in 2023.
Reuters reports that the loss follows
$58.8 billion in net income in 2022. .
Since releasing the numbers,
the Fed has stressed that negative net
income does not impede its ability to operate.
Since releasing the numbers,
the Fed has stressed that negative net
income does not impede its ability to operate.
As a result of low rates and large
levels of bond holdings, the Fed has
earned significant profits in recent years.
Last year, the Fed's audited interest expenses for
banks' reserve balances reached $176.8 billion,
an increase of over $116 billion from 2022.
In 2023, the Fed's interest payouts from
its reverse repo facility were $104.33 billion,
increased from $41.9 billion the year before.
Reuters reports that the Fed creates funds when
dealing with operating losses, capturing its loss
in an accounting device known as a deferred asset.
Reuters reports that the Fed creates funds when
dealing with operating losses, capturing its loss
in an accounting device known as a deferred asset.
At the close of 2023, the deferred
asset stood at $133.3 billion.
As of March 20 of this year, that number
had risen to $157.8 billion with no
indication of how much larger it could get.
Last year, a St. Louis Fed report forecast that it
could take years before the Fed can return to
profitability and reduce the country's deferred asset.
Last year, a St. Louis Fed report forecast that it
could take years before the Fed can return to
profitability and reduce the country's deferred asset
Credit: Wibbitz Top Stories Duration: 01:30Published
New Analysis Suggests , Long-Term Effectiveness , for Wegovy Users .
NBC reports that patients taking
Novo Nordisk's obesity treatment maintain
an average of 10% weight loss over four years.
The news potentially boosts the
drugmaker's push for Wegovy to be
covered by insurers and governments. .
The company submitted long-term
findings at the European Congress
on Obesity in Venice, Italy. .
This is the longest study
we’ve conducted so far of
semaglutide for weight loss, Martin Holst Lange, Novo’s head of development, via NBC.
We see that once the majority
of the weight loss is accrued,
you don’t go back and start
to increase in weight
if you stay on the drug, Martin Holst Lange, Novo’s head of development, via NBC.
According to another analysis published by
the drugmaker, approximately 17% of trial participants stopped using the treatment
due to side effects like nausea. .
The costly treatment ranges from $200
to nearly $2,000 per month in the ten
countries where the drug is available.
NBC reports that Novo Nordisk was the
first drugmaker to market GLP-1 agonists,
originally developed as a diabetes treatment,
to address record high obesity rates.
NBC reports that Novo Nordisk was the
first drugmaker to market GLP-1 agonists,
originally developed as a diabetes treatment,
to address record high obesity rates.
Rival Eli Lilly launched its drug
Zepbound in the United States
in December of 2023. .
Neither drugmaker has managed
to produce enough of the
treatment to meet surging demand
Credit: Wibbitz Top Stories Duration: 01:31Published
Red Lobster Announces, Nearly 100 Locations , Will Be Shut Down.
NBC reports that approximately 99 Red Lobster locations
will be auctioned off as the seafood chain faces
questions regarding the company's long-term future.
Founder and CEO of the liquidation firm TAGeX Brands,
Neal Sherman, said he would lead the closure of over
50 locations in a May 13 LinkedIn post.
Sherman said equipment from the
locations will be auctioned off.
Locations will reportedly be closed across
the United States, including Denver,
Indianapolis, California and New York.
On May 14, Restaurant Business Magazine reported
a total of 99 locations would close, representing
about 15% of the company's 700 locations. .
NBC reports that the largest seafood
restaurant in the U.S. has struggled with debt,
unfavorable leases and executive turnover.
The chain's troubles also stem from ill-advised
strategies like an all-you-can-eat-shrimp promotion
in 2023 that resulted in a significant loss.
Earlier in 2024, the chain's largest investor,
Thai Union, announced that it would
seek to exit its position. .
The combination of Covid-19 pandemic,
sustained industry headwinds, higher
interest rates and rising material and
labor costs have impacted Red Lobster,
resulting in prolonged negative
financial contributions to
Thai Union and its shareholders, Thiraphong Chansiri, Thai Union Group’s CEO, via NBC.
After detailed analysis, we have
determined that Red Lobster’s
ongoing financial requirements
no longer align with our capital
allocation priorities and
therefore are pursuing an exit
of our minority investment, Thiraphong Chansiri, Thai Union Group’s CEO, via NBC
Credit: Wibbitz Top Stories Duration: 01:31Published
Some US Weapon , Shipments to Israel Continue , Amid Invasion of Rafah.
NBC reports that United States officials say that
shipments of military assistance have continued despite
concerns of Israel's invasion of Rafah in southern Gaza.
NBC reports that United States officials say that
shipments of military assistance have continued despite
concerns of Israel's invasion of Rafah in southern Gaza.
Officials familiar with the matter claim that
shipments of both offensive and defensive
weapons have been sent to Israel in recent days.
The news comes after the Biden administration threatened
to suspend arms shipment over Israel's plan to invade
Rafah, where over 1 million Palestinians have taken refuge.
The news comes after the Biden administration threatened
to suspend arms shipment over Israel's plan to invade
Rafah, where over 1 million Palestinians have taken refuge.
In response to the U.S. threat, Israeli Prime Minister
Benjamin Netanyahu vowed that his country would
"stand alone" in order to pursue its goal of eliminating Hamas.
In response to the U.S. threat, Israeli Prime Minister
Benjamin Netanyahu vowed that his country would
"stand alone" in order to pursue its goal of eliminating Hamas.
Last week, the Biden administration halted an arms
shipment of bombs that were intended for Israel. .
Last week, the Biden administration halted an arms
shipment of bombs that were intended for Israel. .
NBC reports that with no ceasefire between Hamas and Israel in sight, Israeli forces have continued its bombardment of Rafah amid ground operations. .
According to the United Nations, over 100,000 people have fled from eastern Rafah since Israel issued evacuation orders earlier this week. .
According to the United Nations, over 100,000 people have fled from eastern Rafah since Israel issued evacuation orders earlier this week. .
Aid groups, along with doctors and local officials, have expressed
growing concern that hospitals in Rafah have already been
overwhelmed ahead of a feared full-scale Israeli assault. .
For five days, no fuel and
virtually no humanitarian aid
entered the Gaza Strip,
and we are scraping
the bottom of the barrel, Hamish Young, UNICEF Senior Emergency
Coordinator in the Gaza Strip, via NBC.
According to local health officials, over 34,900 people
in Gaza have been killed since Israel launched its
assault following the October 7 Hamas attacks. .
According to local health officials, over 34,900 people
in Gaza have been killed since Israel launched its
assault following the October 7 Hamas attacks.
Credit: Wibbitz Top Stories Duration: 01:31Published
Massive Recall Follows , Discovery of Rat Parts, in Japanese Sliced Bread.
NBC reports that a brand of sliced bread in
Japan has been recalled after rat parts were
discovered in the popular product. .
NBC reports that a brand of sliced bread in
Japan has been recalled after rat parts were
discovered in the popular product. .
According to Pasco Shikishima Corp., 104,000 packs of
its super-fermented “chojuku” bread, produced at a
factory west of Tokyo, have been impacted by the recall. .
According to Pasco Shikishima Corp., 104,000 packs of
its super-fermented “chojuku” bread, produced at a
factory west of Tokyo, have been impacted by the recall. .
The company said that the line , “will be suspended for the time being to investigate
the cause and to strengthen countermeasures.”.
The company said that the line , “will be suspended for the time being to investigate
the cause and to strengthen countermeasures.”.
We deeply apologize for the serious inconvenience and trouble this has caused to our customers, suppliers, and other concerned parties, Pasco Shikishima Corp., via NBC.
The company added that there have been no
reports of customers falling ill as a result
of eating contaminated products.
NBC reports that the news comes amid
a string of food safety scares in Japan. .
In March, Kobayashi Pharmaceutical ordered
a recall of three dietary supplements containing
red yeast rice that had been linked to over
100 hospitalizations and five deaths. .
In 2023, police made multiple arrests linked
to a wave of pranks dubbed "sushi terrorism.".
The so-called acts of "sushi terrorism" involved diners at conveyor
belt restaurants engaging in unhygienic behavior like licking cups
before returning them or contaminating food with hand sanitizer. .
The so-called acts of "sushi terrorism" involved diners at conveyor
belt restaurants engaging in unhygienic behavior like licking cups
before returning them or contaminating food with hand sanitizer.
Credit: Wibbitz Top Stories Duration: 01:30Published
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