The US job market is cracking FinanceAffairs.com

The US job market is cracking  FinanceAffairs.com

There is growing evidence that the US labor market is not as “hot” as previously thought. Last week's non-farm payrolls numbers were shockingly weak, and the number of new jobless claims last week rose much more than expected. Economists estimated 210,000, when the reality showed 231,000 – more than at any time since August last year.
While US stock market indexes rose in the wake of last week's disappointing nonfarm payrolls report, they were virtually unchanged Thursday afternoon.

Among the individual stocks is Warner Bros. Discovery fell about 4 percent in the pre-trade, before working its way back to near zero at 4 p.m. The American entertainment group reported a 7 percent decline in revenue and a loss of nearly $1 billion in the first quarter, despite good growth in its live streaming business. The top line and bottom line fell sharply below consensus estimates, mainly due to weakness in the TV and film segment. On the positive side, Warner is working to reduce its very heavy debt load.

However, Krispy Kreme, which is famous in many countries for its donuts, was very popular in the first three months of the year. One might think that the increased use of diet pills would curb the desire to eat these types of calories, but no… Krispy Kreme sales increased by 5.7 percent during this period, and over the entire year as management had envisioned. Organic revenue growth of 6-8 percent. The stock, with the symbol DNUT, rose 4 percent in trading, but that number fell back to zero after the stock market opened.

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It has gotten worse with the Hyatt hotel chain. The stock price fell 2 percent as a result of a disappointing quarterly report. Growth in revenue per room and number of rooms was strong, and the CEO declared that “the year is off to a good start.” However, analysts have become accustomed to the increasing demand for travel-related services, in the wake of the Corona pandemic, and their expectations are no longer easy to meet.

Dalila Awolowo

Dalila Awolowo

"Explorer. Unapologetic entrepreneur. Alcohol fanatic. Certified writer. Wannabe tv evangelist. Twitter fanatic. Student. Web scholar. Travel buff."

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