CMG Daily - December 7th, 2023
Another jobs report, another sign that the labor market is cooling
Good morning investors!
The S&P fell 0.4% after another weak jobs report.
Today we get the initial jobless claims report, which will give further clues to the state of the jobs market. But tomorrow’s nonfarm payrolls report is the big one to watch that will give investors the best picture of the labor market.
For earnings, Dollar General reports later this morning, while Broadcom and Lululemon report after the bell.
Don’t miss a thing - head to the Discord to get full breakdowns of all earnings and economic reports.
Market Recap
Bitcoin was the sole bright spot yesterday while the major indexes, treasury yields and oil prices all fell.
Private payrolls increased by 103,000 in November, below expectations, ADP says
Private sector job creation slowed further in November and wages showed their smallest growth in more than two years, payrolls processing firm ADP reported Wednesday. Companies added just 103,000 workers for the month, slightly below the downwardly revised 106,000 in October and missing the 128,000 estimate. Along with the modest job growth came a 5.6% increase in annual pay, which ADP said was the smallest gain since September 2021. Job-changers saw wage increases of 8.3%, making the premium for switching positions the lowest since ADP began tracking the data three years ago. Read more
Wall Street CEOs say proposed banking rules will hurt small businesses, low-income Americans
Wall Street CEOs on Wednesday pushed back against proposed regulations aimed at raising the levels of capital they’ll need to hold against future risks. In prepared remarks and responses to lawmakers’ questions during an annual Senate oversight hearing, the CEOs of eight banks sought to raise alarms over the impact of the changes. In July, U.S. regulators unveiled a sweeping set of higher standards governing banks known as the Basel 3 endgame. Those who could be unintentionally harmed by the regulations includes small business owners, mortgage customers, pensions and other investors, as well as rural and low-income customers, the executives said. Read more
* CMG Take - the banks and these CEOs only care about their profit margins and lining their pockets. This charade of caring about the little people is such a joke. And don’t even get me started on Jamie Dimon’s comments on crypto.
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Walmart CEO says consumers may not be as resilient next year, even as deflation starts to show
Holiday shoppers are turning to Walmart $WMT for groceries and gifts, but CEO Doug McMillon said it’s hard to predict how sales will look in the months after the peak shopping season. The leader of the world’s largest retailer said higher credit card balances and dwindling household bank accounts raise questions about how much consumers will spend — even after they showed more resilience than expected this year. “If we had been talking last spring or at the beginning of last year, I expected more softness by this time of the year than we’re actually experiencing,” he said. But, McMillon added, “next year’s a different story. It’s going to be interesting to watch what happens in the general merchandise categories in the year ahead because prices are so much lower.” Read more
McDonald’s aims to open nearly 9,000 restaurants, add 100 million loyalty members by 2027
McDonald’s $MCD wants to open more than 8,800 locations and add 100 million members to its loyalty program by 2027. The targets are part of the fast-food giant’s long-term plans to grow sales across its already sprawling restaurant footprint. McDonald’s announced its new goals ahead of its investor day, as it looks to persuade shareholders that diners’ appetites for its Big Macs and McNuggets are still growing, even as Wall Street worries about the economy and the threat posed by weight-loss drugs. The burger chain is expected to offer more details about how it plans to keep attracting customers, including by phasing in an improved version of its burger and doubling down on chicken. Read more
U.S. crude oil falls below $70 a barrel, closing at the lowest level since June
U.S. crude declined 4% on Wednesday, closing at the lowest level since late June with retail gasoline prices hitting the lowest point since January just ahead of the holiday shopping and travel season. U.S. crude and the global benchmark have fallen for five straight days, despite efforts by OPEC+ to boost prices by promising to slash supply in the first quarter of 2024. Prices at the pump in the U.S., meanwhile, have followed oil prices lower to hit $3.22 a gallon on average as of Wednesday, the lowest price since Jan. 3, according to AAA. Read more
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Thank you for taking the time to read today’s newsletter. Until next time investors!
Chris
CMG Venture Group
Disclaimer
I am not a licensed financial advisor or financial professional. This is not investing advice. It is very important that you do your own research and make investments based on your own personal circumstances, preferences, goals and risk tolerance.
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