New jobless claims hit lowest level since February, suggesting a heating labor market
Consumer companies experienced a positive upswing in the market following the release of unexpectedly strong jobs data. Last week, new jobless claims fell to 216,000, reaching the lowest level recorded since February. This decline indicates a potential uptick in the labor market. Furthermore, there are indications of wage disputes intensifying across various sectors.
According to JJ Kinahan, Chief Executive of IG North America and president of its brokerage tastytrade, “The numbers are getting kind of scary from an inflationary point of view.” He also stated that crude oil prices have risen by 10% in just a few weeks, often serving as an early indicator of inflation. Although the employment numbers exceeded expectations, Kinahan notes that unexpectedly positive news can now be seen as negative, potentially unsettling the market.
Las Vegas Strip workers’ unions set date for citywide strike vote
In an unrelated labor market development, unions representing Las Vegas Strip workers have scheduled a citywide strike vote later this month. If approved, this vote could lead to over 50,000 housekeepers, bartenders, and other staff members walking off the job.
Walmart reduces pay for new store workers, signaling potential cooling of hourly wage market
In an interesting shift within the hourly wage market, Walmart, one of the largest hourly employers in the nation, is now offering lower pay to some new store workers compared to what it would have provided three months ago. This adjustment suggests a potential cooldown in the hourly wage market.
Additionally, Alimentation Couche-Tard’s shares have declined following the Canadian gas station and convenience store operator reporting a drop in quarterly earnings. The company attributes the decline in revenue to lower fuel sales.