The nonfarm payrolls (NFP) in the United States was the forecast data point for this week. The NFP rose by 315,000 jobs in August, just below the 318,000 estimate. That’s a far cry from July’s 526,000 impressions and is the weakest monthly gain since April 2021.
The unemployment rate reached 3.7%, two tenths higher than expected. Average hourly earnings rose 0.3% for the month and 5.2% from a year ago.
Here’s what drove the payrolls:
“The market will appreciate broad-based employment gains as goods-producing and services jobs rose in August,” said Jeffrey Roach, chief economist at LPL Financial.
Many eyes are still on leisure and hospitality. 31,000 jobs in this category were added this month, but that number fell to 95,000 in July. The sector is still 1.2 million below its pre-pandemic level.
Markets are reacting positively to NFP news with all major US indexes green at the time of writing. The NFP data is coming under greater scrutiny given Powell’s remarks about the strong jobs data not hinting at an economic slowdown or recession, even with two consecutive declines in GDP.
The S&P 500 heatmap is a welcome sight for sore eyes. All green after days of red.
Starbucks (SBUX) appoints a new CEO. Restaurant industry outsider Laxman Narasimhan will join the company in October and assume the role of CEO in April. Interim CEO Howard Schultz will remain on the board and act as an advisor. Starbucks Investor Day is September 13 in Seattle.
Russia pledges to stop all oil exports to countries to impose price caps on Russian oil. It comes after the G7 presented a plan to impose price caps on Russian oil.
Cathie Wood and ARK load on Nvidia. Flagship fund ARK bought $31 million from Nvidia, and autonomous technology and robotics ETF ARK (ARKQ) bought $4 million worth of stock, its first foray into Nvidia. Next-generation internet ETF ARK (ARKW) bought $5 million worth of shares.
Lululemon Athletica The stock rebounded 10% after the retailer reported earnings and sales that beat market estimates. The company said it saw “momentum” in sales.
US factory orders fell sharply in July. This is the first drop after nine consecutive gains. Orders for manufactured goods fell 1% in July.
Canadian Stock Market News
Advanced Human Imaging (NASDAQ: AHI) has entered into a definitive agreement to acquire Wellteq Digital Health (WTEQ.CN). Wellteq shareholders will receive 1 AHI common share for every 6 Wellteq common shares held. Wellteq shares are up 275%.
Petroteq Energy (PQE.V) announced the closing of a private placement. The company will raise gross proceeds of US$900,000. The the stock is up 38%.
Jade Power Trust (JWPR-UN.V) announces a plan to sell its portfolio of renewable assets. The company has entered into a binding share sale agreement with Enery Power Holding GmbH, a renewable energy company based in Austria and operating throughout the Czech Republic, Slovakia and Bulgaria. The purchase price under the purchase agreement is approximately €71 million or C$93.7 million. The the stock is up 11%.
Billionaire investor Eric Sprott has announced a 18,240,750 common stock purchase warrants of AbraSilver Resources Corp (ABRA.V). Mr. Sprott beneficially owned and controlled 62,481,500 shares and 18,240,750 warrants representing approximately 12.6% of the outstanding shares on a non-diluted basis and approximately 15.7% on a partially diluted basis assuming the exercise of these warrants. The shares are up 9%.
Trillion Energy (TCF.CN) received a price increase for the sale of natural gas from its SASB gas field to US$30.68/Mcf effective September 1, 2022. This is a price increase of 47% and the Company attributes the price increase to a supply squeeze caused by the Nord Stream pipeline shut down.
Card of the day
From a technical standpoint, natural gas is looking to go down. Natural gas has been hovering around $9.50 for the past few weeks of trading. After a long uptrend, a range tends to be exhaustion suggesting a lower decline. Watch for a move to $7.50, although from a fundamental perspective, winter is coming for Europe.