- Scoops
- Posts
- Today's Scoop:
Hey friend - here’s what you need to know today…
Big Picture
Companies have cut back on hiring plans.
Several states have boosted their minimum wage.
The services sector is doing much better than manufacturing.
The Market: ⬇️ -0.1%
S&P 500: 4,567.18
1Mo: +5% | 1Yr: +16% | 5Yr: +73%
The market drifted sideways today as investors tried digesting a steep decline in job openings. It likely solidifies that policymakers are done raising interest rates, but it means the economy's slowing significantly.
Job openings are not as abundant as they were earlier in the year. The Labor Department's Job Openings and Labor Turnover Summary indicated that available roles fell to 8.73 million in October, the lowest level in 2.5 years but still above the pre-pandemic average of 7 million. Health, education, and financial services cut back the most. There are 1.3 available jobs for every unemployed worker, a considerable slowdown from having 2-to-1 earlier in the year. Policymakers have been fighting inflation by trying to slow the economy to balance the supply and demand for workers. Their work may be nearly finished, but there’s a risk of going too far and fueling layoffs.
Low-wage workers are getting some support. New York City raised its minimum wage to at least $16 per hour, a one-dollar increase, starting in 2024. The state joins over 20 others that have also raised minimum pay for workers. With living costs surging and a shortage of workers, 2023 has been a historic year for employee unionization and strikes. There are still 20 states using the federal minimum wage of $7.25 per hour, which does not cover basic living costs for a single adult anywhere.
The services industry is still doing better than manufacturing as consumers continue to spend on experiences over goods. The Institute for Supply Management's overall gauge of business activity bounced from a five-month low but indicated growth. The industry has been expanding the entire year and experiencing contraction only once since the beginning of the pandemic. Services are vital, comprising two-thirds of the entire economy. ISM reported the manufacturing sector remained in contraction for November for the thirteenth consecutive month.
How are you feeling about the economy? |
Company Scoops 🗣️🌎💰
💡How are these companies doing? Judge their decisions. Investing starts with an opinion.
 Comcast | Gaining Altitude Comcast's streaming platform Peacock has earned over 30 million paid subscribers within its first three years, far from the 150M at Disney+ but nearing Hulu's 50M. Peacock expects to keep losing less and less money moving forward. |
 CVS Health | New Drug Pricing CVS aims to make prescription drug pricing more transparent, shifting from a system of complex formulas to charging based on cost plus markup. The largest US pharmacy chain says it could lower prices and make its business more predictable. |
 Twilio | More Job Cuts Twilio launched its third round of layoffs this past year, which have reduced its headcount by a third, cutting another 300 sales employees. The tech services company faces pressure from investors to reduce costs and improve profitability. |
 Southwest Airlines | Pilot Pay Southwest Airlines is nearing a deal with its 11,000 pilots for better pay and working conditions, the last of the major airlines to finalize an agreement. Southwest's flight attendants earned a 36% pay bump in their recent negotiations. |
 AT&T | New Era AT&T announced a massive shift in cell-tower equipment suppliers, partnering with Ericsson in a $14B deal to replace most of its existing infrastructure from Nokia. The deal will allow AT&T to fast-track its system upgrades and innovation. |
(These links only work for 24 hours while the story is live.)
Inside Scoop 🤓
Who are the hawks and doves?
Wall Street loves its animals. You might hear about hawks and doves when people talk about the Federal Reserve. The Federal Reserve, aka the Central Bank, controls our money system. The Fed will take action to stimulate or restrict the economy to keep it running at a healthy pace.
Policy hawks will be the ones who advocate for tighter or more restrictive action. Policy doves will be the ones who advocate for looser or more supportive and stimulative action. It's all relative, so one person could see a policy action as hawkish while another sees it as dovish.
Reply