The U.S. Economy Created 272,000 Jobs in May, Well Above the Non-Farm Payroll Estimate of 180,000… The unemployment rate remained at 4.0%, while the participation rate was steady at 62.5%.
What it means— The economy is stronger than expected, and average hourly earnings rose 4.1%, more than inflation. Clearly, this won’t do. The numbers say a lot of things, but they don’t say, “Hey Fed, you should cut rates,” and that’s the problem. Instead, the numbers say, “Inflation is still in the building,” so the Fed’s not done. We see higher, not lower, long rates on the horizon. Buckle up.
The Institute of Supply (ISM) Manufacturing Index Fell From 49.2 to 48.7, While the ISM Services Index Jumped From 49.4 to 53.8… A reading below 50 shows contraction, while a reading over 50 shows growth.
What it means— We’ve been here before. In fact, we’ve been hovering around this point for a couple of years. We’re buying more experiences instead of stuff, and it’s showing in supply lines. I wonder if a chunk of the imbalance is due to the still-hibernating housing market. Until housing breaks out, the market for things like gardening hoses and barbeques (items you typically buy when you move) should sag. Until then, it looks like consumers are drowning their real estate woes in their beers and distracting themselves with Taylor Swift concerts.
There Are 1.2 Job Openings per Unemployed Person… That’s the lowest ratio since February 2021.
What it means— At one point after the pandemic (May 2022), we had two job openings per unemployed person; now it’s down to only 1.2. Do you remember when when we had more unemployed people than jobs. Oh yeah, that’s because we only passed that milestone of more jobs than unemployed workers in December 2017. Granted, we’ve kept records on job openings only since 2009, in the thick of the Great Financial Crisis, but our recent 50-year low unemployment numbers point to the same thing: we need workers.
The Texas Stock Exchange Filed Registration Documents With the Securities Exchange Commission… The TXSE expects to start trading shares of public companies in 2025.
What it means— Watch out, New York Stock Exchange and Nasdaq: Texas is gunning for you. With backers like Blackrock, the TXSE wants to build a stock exchange with all the perks of high-speed, low-cost trading without the mounting regulations and drama. Recently, the Nasdaq imposed rules that companies trading on the exchange include certain numbers of minorities or people who are LGBTQ on the board or else explain in writing why they do not. While the board diversity likely is not the straw that broke the camel’s back, it certainly increased the weight. The TXSE is gaining momentum and initially will focus on exchange-traded funds. Look for the NYSE and Nasdaq to respond by demanding the SEC to make all exchanges adopt such social initiatives to “level the playing field.” Given the business and household exodus from NY and NYC, perhaps it’s time to rethink social activism by the government.
Woman Pronounced Dead at Nursing Home Found Alive at Funeral Home… The nursing home where Constance Glantz, 74, lived reported her death to the coroner. Because she was in hospice care, the coroner did not send a worker; Ms. Glantz was sent directly to the funeral home. A couple of hours later, a funeral home worker noticed Mrs. Glantz was breathing and started CPR. Mrs. Glantz was taken to the hospital. Shortly after arriving at the hospital, Ms. Glantz was pronounced dead… again. It’s either a horror film or a Monty Python flick. The nursing home isn’t named, and for good reason. It likely would lose many of its residents.
Data supplied by HS Dent Research
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