Traders on the floor of the NYSE, Nov. 1, 2022.
Here are the key news items investors need to start their trading day:
1. Friday is work
The federal government’s monthly jobs report came in this morning and gave investors a big data point as they looked at what the Federal Reserve might do next in its quest for rate hikes to overcome inflation. The report came in hotter than expected, with 261,000 jobs added last month. Economists polled by Dow Jones had estimated that the economy added 205,000 jobs last month. The unemployment rate tapped slightly higher to 3.7%, still reflecting labor market tightness – and likely fueling the Fed’s reason for continued rate hikes. Shares, meanwhile, are emerging from a negative session Thursday. Read live market updates here.
2. Amazon pauses corporate recruiting
Amazon CEO Andy Jassy speaks with CNBC’s Jon Fortt.
Yet another ominous sign for Big Tech: Amazon said yesterday it would halt hiring for its corporate workforce. The company had already frozen new hires in its corporate retail workforce, but this new move includes a wider range of companies there. After booming during the early days of the Covid pandemic, when people ordered all kinds of goods from Amazon while stuck at home, the company is stuck in a slump. Consumers don’t buy as much stuff and have moved more towards experiences, that is, food, hospitality and travel. (See below.) Amazon warned of a rough holiday quarter and its market cap has fallen below the elite level of $1 trillion. Meanwhile, Amazon founder and former CEO Jeff Bezos ponders a bid for the NFL’s Washington Commanders.
Christina Tkacik/Baltimore Sun/Tribune News Service via Getty Images
Speaking of consumer preference for food over goods, Starbucks customers are still paying for the coffee chain’s drinks despite price increases. In its Thursday quarterly report, the company also said retail traffic in the US had almost fully recovered to 2019 levels, before the Covid pandemic. Cold drinks remain a major sales driver — they accounted for three-quarters of beverage sales at corporate locations in the United States, the company said. And while it’s often the target of snark every fall, the company’s Pumpkin Spice Latte enjoyed a 70% increase in sales compared to the same period last year.
Read more: Inflation to dampen holiday spending, retail group projects
4. ‘Total Chaos’
The Twitter logo will be displayed on the exterior of the Twitter headquarters on October 26, 2022 in San Francisco, California.
Justin Sullivan | Getty Images
Elon Musk’s Twitter told staffers in an email Thursday night that it would email people if they would be fired or detained, according to NBC News. If they are retained, they will receive an email on their work account. People who are fired will be notified in their private email accounts. “It’s total chaos, the house is melting and everyone is looking at this email,” an employee told NBC. Still, there are Twitter employees eager to quit the company and get fired now that it’s in the hands of Musk, who has spread conspiracy theories and indicated he would relax content moderation standards. “At the end of this nightmare, I’d better get a cash prize,” an employee told NBC.
5. ‘Dirty Bomb’ Claim Debunked
Ukrainian President Volodymyr Zelenskyy and German President Frank-Walter Steinmeier meet, as the Russian attack on Ukraine continues, in Kiev, Ukraine on October 25, 2022.
Jesco Denzel | BPA | via Reuters
Ukrainian President Volodomyr Zelenskyy praised the United Nations International Atomic Energy Agency for finding no evidence that his government was working on a so-called dirty bomb, as Russia had claimed. Russia was reprimanded for his suggestion, and Ukraine immediately denied it. “We have invited the IAEA to audit, we have given them complete freedom of action at the relevant facilities, and we have clear and irrefutable evidence that no one in Ukraine has made or is making dirty bombs,” Zelenskyy said. Dirty bombs, which use conventional explosives to disperse radioactive material, are less powerful than nuclear weapons, but can still make a piece of land uninhabitable. Read live war updates here.
– Patti Domm, Sarah Min, Amelia Lucas and Natasha Turak of CNBC contributed to this report.
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