U.S. economy gains 428,000 jobs in April and unemployment rate stays at 3.6%
The numbers: The U.S. added a solid 428,000 new jobs in April, but an acute labor shortage...
The numbers: The U.S. added a solid 428,000 new jobs in April, but an acute labor shortage showed little improvement last month and threatens to add to the highest inflation in 40 years. Economists polled by The Wall Street Journal had forecast 400,000 new jobs.
The unemployment rate was unchanged at 3.6%, the government said Friday, leaving it just a few ticks above a 54-year low.
The size of the labor force, meanwhile, shrank in April for the first time in seven months in a sign of how difficult it is for companies to find workers. As a result, the so-called rate of participation in the labor market dropped to 62.2% from 62.4%. It’s still more than a full percentage point below pre-pandemic levels.
Market Reaction: The Dow Jones Industrial Average DJIA, -3.12% and S&P 500 SPX, -3.56% were set to open lower in Friday trades.
Dow ends down over 1,000 points, Nasdaq falls 5% as stocks erase post-Fed gains
U.S. stocks plunged Thursday, with ...
U.S. stocks plunged Thursday, with signs of panic selling emerging as the major indexes flirt with their worst daily drop in about two years, a day after the Federal Reserve delivered a widely expected interest rate increase.
The Dow Jones Industrial AverageDJIA was down 1,297 points, or 3.8%, at 32,770, near the session’s low.
The S&P 500SPX dropped 183 points, or 4.3%, to 4,116.
The Nasdaq CompositeCOMP skid 754 points, or 5.8%, to 12,208.
On Wednesday, the Dow surged 932 points,or 2.8%, while the S&P 500 soared 3% and the Nasdaq Composite advanced 3.2%. The S&P 500’s gain was the largest one-day advance since May 18, 2020.
Conoco (NYSE:COP) reported earnings ahead of the market open Thursday, beating street expectations while increasing shareholder returns; however, higher capex and lower Q2 production guide could be a near-term headwind:
Earnings - the Company posted $3.27 in adjusted earnings per share for Q1, versus Street expectations for $3.17.
Cash flow - Conoco (COP) generated $5.1b in cash flow from operations, adding back net working capital and subtracting capex suggests the Company generated ~$4.0b in free cash flow or ~3.1% of the current market cap.
Capital allocation - the board announced a base-plus-variable dividend of $1.16 for the quarter (4.5% yield) and reduced weighted average shares outstanding by ~1% through the buyback; the board authorized an incremental $2b for variable dividends and buybacks, bringing the total shareholder return target for 2022 to $10b (7.8% of market cap).
Guide - Q2 production was guided to 1.7mboe/d, versus Q1 results of 1.8mb/d; capex guidance was increased 8.3% to $7.8b, reflecting inflation and increased non-op activity in the lower 48.
Signs of panic selling are emerging in the stock market with the Nasdaq off 4.7%
Panic-like behavior was starting to set in on Wall Street on Thursday, at least from...
Panic-like behavior was starting to set in on Wall Street on Thursday, at least from a technical perspective, as the Dow industrials shed all of the previous day’s gain, and then some.
Trading in New York Stock Exchange-listed stocks at midday Thursday exhibited panic-like-selling action as bullish investors suffered a powerful reversal of fortune that appeared to be gathering steam in the wake of the Fed’s early-May policy meeting, adding to a bruising stretch for buyers, sparked by concerns about rates.
The reading comes as the Dow Jones Industrial Average DJIA, -2.73% was off 3.1%, or over 1,050 points, at 33,027, looking at its sharpest one-day fall since 2020; the S&P 500 index SPX, -3.13% was off 3.4% at around 4,150; and the Nasdaq Composite Index COMP, -4.36% was trading 4.7% lower at 12,365.
On the Move With Thursday Morning Oil & Gas Prices
Oil prices are surging, with WTI...
Oil prices are surging, with WTI trading around $110.59 and Brent crude oil at $113.28, amid tight global oil supply-demand dynamics. Meanwhile, OPEC+ agreed on Thursday to another modest monthly oil output increase, arguing that the producer group could not be blamed for disruptions to Russian supply and saying China's coronavirus lockdowns threatened the outlook for demand.
Natural gas futures are slightly lower, down 10 cents and trading around $8.31, near fresh 13-year highs. Stable production, tight supply, and Russian embargos are all contributing. Analysts expect a build of 69 bcf in today’s weekly inventory report.
