- Statistic: Job openings soared to a record 9.3M in April as the economy reopened, according to the latest JOLTS report, but 3.5M Americans are still on weekly jobless benefits and more than 9M remain unemployed.
Go figure... While the numbers sound somewhat contradictory due to the ways they are collected and measured, they mean the U.S. is experiencing high unemployment at the same time as a labor shortage. While there are many reasons for the hiring scarcity like shifting employment choices, Republicans have mainly pointed to programs such as enhanced unemployment benefits, while Democrats have flagged items like childcare responsibilities, lingering COVID-19 worries and the need to raise wages.
"Look, this is the biggest economic challenge of our time," U.S. Chamber of Commerce CEO Suzanne Clark declared. "I went to Rehoboth [Delaware] over the weekend, took my teenager to the beach. And the number of restaurants, the number of small businesses that have restricted their hours, that aren't serving lunch, or aren't open at all because of the workforce shortage is tragic."
Making moves: As a result, Clark is launching an initiative to address the worker shortage called "Operation Warp Speed for Jobs." It will advocate for "federal and state policy changes that will help train more Americans for in-demand jobs, remove barriers to work, and double the number of visas available for legal immigrants." The U.S. Chamber Foundation is also expanding its "most impactful employer-led workforce and job training programs and launching new efforts to connect employers to undiscovered talent." | TOGETHER WITH  |
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| | Top News  Shutterstock Statistic: Job openings soared to a record 9.3M in April as the economy reopened, according to the latest JOLTS report, but 3.5M Americans are still on weekly jobless benefits and more than 9M remain unemployed.
Go figure... While the numbers sound somewhat contradictory due to the ways they are collected and measured, they mean the U.S. is experiencing high unemployment at the same time as a labor shortage. While there are many reasons for the hiring scarcity like shifting employment choices, Republicans have mainly pointed to programs such as enhanced unemployment benefits, while Democrats have flagged items like childcare responsibilities, lingering COVID-19 worries and the need to raise wages.
"Look, this is the biggest economic challenge of our time," U.S. Chamber of Commerce CEO Suzanne Clark declared. "I went to Rehoboth [Delaware] over the weekend, took my teenager to the beach. And the number of restaurants, the number of small businesses that have restricted their hours, that aren't serving lunch, or aren't open at all because of the workforce shortage is tragic."
Making moves: As a result, Clark is launching an initiative to address the worker shortage called "Operation Warp Speed for Jobs." It will advocate for "federal and state policy changes that will help train more Americans for in-demand jobs, remove barriers to work, and double the number of visas available for legal immigrants." The U.S. Chamber Foundation is also expanding its "most impactful employer-led workforce and job training programs and launching new efforts to connect employers to undiscovered talent."    | |
| Stocks The growth trade could be returning as bond yields keep falling, with the rate on the 10-year Treasury falling another 2 bps to 1.48%. The moves helped propel the Nasdaq Composite upward on Monday, closing at a record high as cyclicals took the back seat. Overnight, contracts linked to the index inched higher, while Dow and S&P 500 futures were hovering around the flatline.
This all comes ahead of the Fed's two-day policy meeting. The gathering kicks off today and will be the focal point of the week for the markets. While the central bank is not expected to take any action, investors will be hanging on to every word that mentions interest rates, tapering plans, and of course - inflation. Transitory?
Speaking of inflation: The Producer Price Index - which measures the average price changes received by domestic producers - is set to be published this morning. The index is forecast to have climbed 0.5% in May, while the core PPI, which excludes volatile items like food and energy, is also estimated to increase 0.5%. Stay on the lookout for retail sales data as well, which will also be released at 8:30 a.m. ET.
On the global front: President Biden is continuing his tour through Europe after meeting with the G7 and NATO leaders. Today, he'll sit down with Vladimir Putin in Geneva, marking the first time an American president has met with a Russian president in almost three years. As the Biden administration attempts to focus on its domestic agenda, it may look to contain Russia on the global stage, though that may not come easy. Biden has previously called Putin "a killer," Moscow just categorized the U.S. as an "unfriendly nation" and neither has an ambassador in each other's country.
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| Financials While Fed Chair Jerome Powell sees current inflation as transient, as supply shocks and reopening demand level out, Jamie Dimon is preparing JPMorgan (JPM) for a different environment.
Quote: "We have a lot of cash and capability and we're going to be very patient, because I think you have a very good chance inflation will be more than transitory. If you look at our balance sheet, we have $500B in cash, we've actually been effectively stockpiling more and more cash waiting for opportunities to invest at higher rates. I do expect to see higher rates and more inflation, and we're prepared for that."
Go deeper: Dimon also signaled that the pandemic-era trading boom could be coming to a close, While predicting a 38% decline from a year ago, revenues from fixed-income and equities trading would still be "something a little bit north of $6B." Net interest income was also pared down to $52.5B (from $55B) following muted loan demand, though investment banking revenue "could be one of the best quarters you've ever seen" due to surging M&A activity. (32 comments) |
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