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☆ Sanitation company pays $1.5 million penalty for hiring children for 'hazardous' factory work like cleaning beef bone saws, officials say
▼ + stars: | 2023-02-18 | by ( Jordan Hart | ) www.businessinsider.com time to read: +5 min

The US Labor Department filed a complaint against PSSI following a three-month investigation into unlawful child labor claims in November. PSSI was charged $1.5 million in penalties as a result of the investigation, officials said. The department accused the sanitation contractor of having employees as young as 13 working "hazardous" overnight shifts. The DOL filed a complaint seeking a temporary restraining order and injunction against the food safety sanitation service following its investigation. The company added that no children are currently employed, and many hadn't worked for the business in years.

☆ US stocks drop on stubbornly high inflation and Fed officials' comments on more rate hike to come
▼ + stars: | 2023-02-16 | by ( Carla Mozée | ) www.businessinsider.com time to read: +2 min

US stocks fell Thursday as an increase in wholesale prices heightened inflation worries. Fed officials Loretta Mester and James Bullard said further rate hikes are warranted. "[Coupled] with a hotter-than-expected Consumer Price Index (CPI), markets have priced in a Federal Reserve probability of more rate hikes than initially anticipated," Quincy Krosby, chief global strategist at LPL Financial, said in a note. "With the futures market now pricing in a strong probability of two more 25-basis-point rate hikes this year, probability is edging higher for a third hike." Separately, St. Louis Fed President James Bullard reportedly said more rate increases will "lock in" slowing inflation, even alongside an economic expansion.

☆ US stocks end volatile session mixed after inflation cools by less than expected
▼ + stars: | 2023-02-14 | by ( Carla Mozée | ) www.businessinsider.com time to read: +2 min

US stocks finish Tuesday's choppy session on a mixed note. January headline inflation cooled to 6.2% but the rate was higher than anticipated. Core CPI, which strips out energy and food prices, rose 0.4% for the month. "The journey to get to normal inflation rates will be a bumpy ride as energy and commodity prices should rebound with China dropping its zero COVID policies." A ninth straight rate hike is likely to arrive in March.

☆ Jim Cramer's Investing Club meeting Tuesday: Consumer prices, Nvidia, Linde
▼ + stars: | 2023-02-14 | by ( Paulina Likos | ) www.cnbc.com time to read: +3 min

Every weekday the CNBC Investing Club with Jim Cramer holds a "Morning Meeting" livestream at 10:20 a.m. BofA analysts increased their price target on Nvidia stock to $255 a share from $215. As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB.

☆ U.S. consumer prices increase in January; trend slowing
▼ + stars: | 2023-02-14 | by ( ) www.reuters.com time to read: +2 min

The consumer price index increased 0.5% last month after gaining 0.1% in December, the Labor Department said on Tuesday. Monthly inflation was boosted in part by rising gasoline prices, which increased 3.6% in January, according to data from the U.S. Energy Information Administration. The revisions, updated seasonal factors and new weights prompted some economists to bump up their CPI forecasts. In the 12 months through January, the CPI increased 6.4%. Excluding the volatile food and energy components, the CPI increased 0.4% after rising 0.4% in December.

☆ Inflation report due Tuesday has the potential to deliver some bad news
▼ + stars: | 2023-02-13 | by ( Jeff Cox | ) www.cnbc.com time to read: +1 min

Just as Federal Reserve officials have grown optimistic that inflation is cooling, news could come countering that narrative. But it looks like 2023 will show that inflation was strong — perhaps even stronger than Wall Street expectations. Excluding food and energy, so-called core CPI is projected to rise 0.3% and 5.4%, respectively. The Cleveland Fed's "Nowcast" tracker of CPI components is pointing toward inflation growth of 0.65% on a monthly basis and 6.5% year over year. Over time, the Cleveland Fed says its methodology outperforms other high-profile forecasters.

☆ Gold subdued as investors brace for U.S. inflation data
▼ + stars: | 2023-02-13 | by ( ) www.cnbc.com time to read: +2 min

REUTERS/Alexander ManzyukGold prices edged lower on Monday on a firmer dollar as investors squared positions before U.S. inflation data that could influence the Federal Reserve's rate-hike roadmap. Spot gold was down 0.2% at $1,861.95 per ounce, as of 0302 GMT. Bullion is often seen as an inflation hedge, but the opportunity cost of holding it is higher when interest rates are raised to combat inflation. Data on Tuesday is likely to show the U.S. monthly consumer prices climbing 0.4% month-on-month in January, according to a Reuters survey of economists. The Labor Department's annual revisions of CPI data on Friday showed the consumer price index edged up 0.1% in December rather than dipping 0.1% as reported last month.

☆ U.S. consumer prices revised higher in December, November
▼ + stars: | 2023-02-10 | by ( ) www.reuters.com time to read: +2 min

WASHINGTON, Feb 10 (Reuters) - U.S. monthly consumer prices rose in December instead of falling as previously estimated and data for the prior two months was also revised up, which some economists said raised the risk of higher inflation readings in the months ahead. The consumer price index edged up 0.1% in December rather than dipping 0.1% as reported last month, the Labor Department's annual revisions of CPI data showed on Friday. Data for November was also revised higher to show the CPI increasing 0.2% instead of 0.1% as previously estimated. In October, the CPI rose 0.5%, revised up from the previously reported 0.4% increase. Excluding the volatile food and energy components, the CPI rose 0.4% in December, instead of 0.3% as previously reported.

But the year-over-year price drops for goods have been helping pull overall inflation measures lower, the data compiled by the U.S. software company showed. "Current demand levels are driving retailers to hold prices down and continue to clear out excess inventory," Brown said. New CPI data is scheduled to be released next week, with economists expecting it to show another slowdown. The CEA study tried to isolate the pace of wage growth only in the sectors referred to by Powell, and concluded that it is slowing fast. Wage growth for production workers and supervisors "have both eased substantially."

☆ Markets may be taking the wrong read from January's shocking jobs report
▼ + stars: | 2023-02-06 | by ( Jeff Cox | ) www.cnbc.com time to read: +5 min

"The resounding strength of January employment report does not change our view of the labor market. Significant imbalances remain in the labor market due to too much excess demand and limited labor market slack," added Michael Gapen, chief U.S. economist at Bank of America. That's because they see the jobs report gain of 517,000 as a potential impetus to push the Fed into more aggressive interest rate hikes. He thinks future months will show a slowing labor market that will force the Fed into halting its hikes. "From a data-dependency perspective, the strength of the labor market suggests there might be need to continue to raise interest rates."

☆ Dollar on the front foot after robust U.S. jobs data, yen falters
▼ + stars: | 2023-02-06 | by ( Ankur Banerjee | ) www.reuters.com time to read: +3 min

The yen weakened to a three-week low of 132.60 per dollar after the report, and was last fetching 132.35, down 0.88%. Tapas Strickland, head of market economics at National Australia Bank, said Amamiya dovish policy credentials are raising uncertainty about BOJ's eventual exit from its ultra-easy monetary stance. The BOJ's loose policy settings have attracted increasing criticism from many quarters, including opposition politicians and traders, for distorting market function. But he also said in July the BOJ must "always" think about the means of exiting ultra-loose monetary policy. On Friday, the U.S. Labor Department's closely watched employment report showed that nonfarm payrolls surged by 517,000 jobs last month.

The stronger-than-expected hiring pushed the unemployment rate to 3.4%, the lowest since the spring of 1969. “It will give the Fed absolutely no reassurance that labor market imbalances – which have been adding to wage pressures - are easing," said Brian Coulton, chief economist at Fitch Ratings. "It will reinforce the message that the Fed still has quite a lot of work to do to tame core inflation." U.S. Labor Secretary Martin Walsh said he thought Friday's report showed signs of an economy and labor market steadily returning to normal. Powell pointed out that the years just before the COVID-19 health crisis included simultaneously low unemployment, low inflation, and sustainably modest wage growth, proof that a best-case set of conditions was achievable.

Worries of higher rates for longer amplified the downbeat mood set by disappointing results from megacap growth companies. The three main Wall Street indexes were still set for gains this week. Ten of the top 11 S&P 500 sectors fell with only energy stocks (.SPNY) in positive territory as oil prices rose. Nearly 70% of half the S&P 500 firms that reported fourth-quarter earnings have topped Wall Street expectations. Analysts now see earnings of S&P 500 firms declining 2.7% for the quarter, according to Refinitiv.

☆ Futures fall as megacaps slide on downbeat earnings
▼ + stars: | 2023-02-03 | by ( ) www.reuters.com time to read: +2 min

Shares of Wall Street heavyweights Apple (AAPL.O), Amazon Inc (AMZN.O) and Alphabet Inc (GOOGL.O) declined between 3.5% and 6% in premarket trading. The economy is expected to have added 185,000 jobs, fewer than the 223,000 additions in December. The unemployment rate is expected to tick higher to 3.6% in January, from 3.5% in December. The unemployment rate is expected to tick higher to 3.6% in Janaury, from 3.5% in December. ET, Dow e-minis were down 81 points, or 0.24%, S&P 500 e-minis were down 29.25 points, or 0.7%, and Nasdaq 100 e-minis were down 181.5 points, or 1.41%.

☆ U.S. job growth accelerates in January, wage gains moderate
▼ + stars: | 2023-02-03 | by ( Lucia Mutikani | ) www.reuters.com time to read: +2 min

WASHINGTON, Feb 3 (Reuters) - U.S. job growth accelerated sharply in January amid a persistently resilient labor market, but a further moderation in wage gains should give the Federal Reserve some comfort in its fight against inflation. The Labor Department's closely watched employment report's survey of establishments on Friday showed that nonfarm payrolls surged 517,000 jobs last month. Economists polled by Reuters had forecast payrolls increasing by 185,000 jobs and wages advancing 4.3% year-on-year. It also incorporated new population estimates in the household survey, from which the unemployment rate is derived. As such January's unemployment rate of 3.4% is not comparable to December's 3.5% rate.

☆ Strong U.S. job growth expected in January; wages seen cooling
▼ + stars: | 2023-02-03 | by ( Lucia Mutikani | ) www.reuters.com time to read: +5 min

"Wage growth is decelerating less than inflation," said Kate Bahn, chief economist at the Washington Center for Equitable Growth in Washington. It will also incorporate new population estimates in the household survey, from which the unemployment rate is derived. As such January's unemployment rate will not be directly comparable to December. REVISIONS IN FOCUSThe revisions will attract attention after researchers at the Philadelphia Fed published a paper in December that suggested employment growth in the second quarter was overstated by a million jobs. Economists will be closely watching the labor force for signs whether the current pace of job growth will persist.

☆ VIEW U.S. job growth accelerates in January, wage gains moderate
▼ + stars: | 2023-02-03 | by ( ) www.reuters.com time to read: +3 min

NEW YORK, Feb 3 (Reuters) - U.S. job growth accelerated sharply in January amid a persistently resilient labor market, but a further moderation in wage gains should give the Federal Reserve some comfort in its fight against inflation. MARKET REACTION:STOCKS: U.S. stock index futures fell sharply after the strong jobs report BONDS: U.S. bond yields rose after the jobs data. If you can do that and keep the labor market strong that's the perfect soft landing the Fed's been looking for." "I'd say that market got ahead of itself betting that the March rate hike would be the last one. Was it seasonal factors or just the strength of the labor market."

☆ Jobs report jolts Wall Street bulls as inflation fears return
▼ + stars: | 2023-02-03 | by ( Davide Barbuscia | ) www.reuters.com time to read: +3 min

The S&P 500 (.SPX) index was down about 1% on Friday though still up 8% on the year. The Labor Department's nonfarm payrolls report on Friday showed a gain of 517,000 jobs in January, almost three times what was expected. The Fed's policy rate is currently in the 4.50%-4.75% range. Those betting that the Fed might cut rates later this year also lost some conviction, with fed funds futures traders now expecting the policy rate to go down to 4.7% in December. Reporting by Davide Barbuscia; Editing by Ira Iosebashvili and Paul SimaoOur Standards: The Thomson Reuters Trust Principles.

Wall Street's major indexes had lost ground immediately after the Fed announced its rate hike decision. After the press conference, money markets were betting on a terminal rate of 4.892% in June compared with bets for 4.92% just before the Fed's statement. U.S. futures were still pricing in rate cuts this year with the fed funds rate seen at 4.403% by the end of December, the same as before the meeting. The S&P 500 posted 24 new 52-week highs and no new lows; the Nasdaq Composite recorded 136 new highs and 23 new lows. About 13.7 billion shares changed hands in U.S. exchanges, compared with the 11.5 billion daily average over the last 20 sessions.

The Fed is widely seen as raising its target interest rate by a quarter of a percentage point in its first policy meeting of the year, after rapid increases in 2022 to tame decades-high inflation. That's the Fed's issue as they finish up their two-day policy meeting today," Turnquist added. All of the 11 major sectors on the S&P 500 were down, with technology shares (.SPLRCT) falling the least. Seventy percent of the 200 companies in the S&P 500 that have reported fourth-quarter earnings have topped Wall Street expectations. Analysts now see earnings of S&P 500 firms declining 2.4% for the quarter, per Refinitiv estimates.

☆ U.S. job openings increase to five-month high as labor market stays tight
▼ + stars: | 2023-02-01 | by ( Lucia Mutikani | ) www.reuters.com time to read: +6 min

There were 1.9 job openings for every unemployed person in December, the Labor Department's monthly Job Openings and Labor Turnover Survey, or JOLTS report, showed on Wednesday. Job openings, a measure of labor demand, increased by 572,000 to a five-month high of 11.0 million on the last day of December. Others speculated that job openings had been overstated because of difficulties adjusting the data for seasonal fluctuations. "A jump in job openings in the retail sector is also at odds with a lower pace of seasonal hiring around the holidays." The job openings rate up shot to 6.7% from 6.4% in November.

Investors will also parse Chair Jerome Powell's news conference for clues on the trajectory of future rate hikes. All of the 11 major sectors on the S&P 500 were down, with the technology shares (.SPLRCT) falling the least. Dow component Amgen Inc (AMGN.O) slipped 3.7% as the drugmaker said its fourth-quarter revenue fell slightly. With nearly 200 companies in the S&P 500 having reported fourth-quarter earnings, about 70% have topped Wall Street expectations. Analysts now see earnings of S&P 500 firms declining 2.4% for the quarter, per Refinitiv estimates.

Investors will also parse Chair Jerome Powell news conference for clues on the trajectory of future rate hikes. Meanwhile, the ADP National Employment report showed that private payrolls increased by 106,000 in January, lower than expectations of 178,000 additions. Snap Inc (SNAP.N) tumbled 12.5% after the social media company said it expects current-quarter revenue to decline by as much as 10%. ET, Dow e-minis were down 138 points, or 0.4%, S&P 500 e-minis were down 9.75 points, or 0.24%, and Nasdaq 100 e-minis were down 8.25 points, or 0.07%. Dow Jones Industrial Average component (.DJI) Amgen Inc (AMGN.O) dipped 0.6% as the drugmaker said its fourth-quarter revenue fell slightly.

☆ U.S. private payrolls miss expectations in January -ADP
▼ + stars: | 2023-02-01 | by ( ) www.reuters.com time to read: +1 min

WASHINGTON, Feb 1 (Reuters) - U.S. private payrolls increased far less than expected in January, hinting at some cooling in the labor market. Private employment increased by 106,000 jobs last month, the ADP National Employment report showed on Wednesday. Economists polled by Reuters had forecast private jobs increasing 178,000. It has been a poor predictor of private payrolls in the BLS employment report. According to a Reuters survey of economists, nonfarm payrolls likely increased by 185,000 jobs in January after rising by 223,000 in December.

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