Dow slid back 10, decliners ahead of advancers better than 3-2 & NAZ went up 99. The MLP index was off 4 to the 233s as oil prices sank & the REIT index added 1+ to the 327s. Junk bond funds drifted lower & Treasuries had a little buying which reduced yields after their recent rally. Oil dropped nearly 3 to the 86s & gold was off another 3 to 1838.
AMJ (Alerian MLP Index tracking fund)
Hiring by US companies slowed more than expected in Sep,
pointing to a labor market that is starting to cool in the face of
higher interest rates, according to the ADP National Employment Report. Companies added 89K jobs
last month, below the 153K gain that had been predicted & is also much lower than the revised 180K
increase recorded in Aug. It marked the worst month for job creation since Jan 2021. "We
are seeing a steepening decline in jobs this month," said Nela
Richardson, ADP chief economist. "Additionally, we are seeing a steady
decline in wages in the past 12 months." The weaker-than-expected report comes in the wake of an aggressive
tightening campaign by the Federal Reserve, which has hiked rates to the
highest level since 2001. Fed officials, including Chair Jerome Powell,
have opened the door to at least one more hike this year & have
signaled that rates will remain elevated for longer as they assess
whether high inflation has retreated for good. In a potentially welcoming sign for the Fed as it tries to wrangle inflation under control, wages continued to moderate in Sep. Annual
pay rose 5.9% last month, the 12th straight month of slowing growth. For workers who switched jobs, wages climbed
9%, down from 9.7% the previous month. The leisure & hospitality industry drove the bulk of the job gains
last month, adding 92K new employees. That helped to offset some
notable losses in professional & business services, trade,
transportation & utilities & manufacturing.
Americans see biggest hiring slowdown since 2021 as interest rates soar
More than 75K Kaiser Permanente employees walked off the job in what their union representatives say is the largest strike of health care workers in US history. A coalition of labor unions representing the workers notified the
company last month that it plans to carry out a 3-day strike
starting today if a new contract is not reached. The previous contract expired Sat. The strike will impact hundreds of hospitals spanning several states, with picket lines in California, Colorado, Washington, Oregon, Maryland, Virginia & DC. The health care workers' unions are calling for increased staffing
levels at Kaiser Permanente hospitals, saying the facilities are in the
midst of a "short-staffing crisis" that is unsafe & could lead to
patients facing dangerously long wait times, mistaken diagnoses and
neglect. The unions also accuse the hospital conglomerate of committing
unfair labor practices. "Kaiser
executives are refusing to listen to us and are bargaining in bad faith
over the solutions we need to end the Kaiser short-staffing crisis,"
said Jessica Cruz, a licensed vocational nurse at Kaiser Permanente Los
Angeles Medical Center. One of the coalition unions, SEIU-United Healthcare Workers West, held a
demonstration at Kaiser Permanente Los Angeles Medical Center in early
Sep to protest working conditions at the hospital. The event
reportedly drew thousands & some protesters formed a human chain. The coalition is asking for a 24.5% raise for members over the course
of the 4-year contract, protections against subcontracting &
outsourcing, the right to organize a union at any hospital systems Kaiser might acquire, a boost to workers' performance sharing plan & increased medical benefits. Kaiser's
latest proposal from over the weekend offered 16% & 12.5% wage
increases for coalition employees over the life of the contract,
depending on their location.
75,000 health care workers walk off the job in industry's largest-ever US strike
Intel (INTC), a Dow stock, said it will treat its programmable chip unit as as a standalone
business, with an aim to spin it out thru an IPO in the next 2-3 years. Its
Programmable Solutions Group (PSG) will have its own balance sheet as it
heads toward independence. The company will continue to support the
business & retain a majority stake & could also seek private
investment. Sandra Rivera, who leads the broader Data Center & AI group, will become PSG CEO. INTC will manufacture the chips. The move continues a strategy under CEO Patrick
Gelsinger to control costs & focus on the foundry business & core
processors in an effort to catch Taiwan Semiconductor Manufacturing in manufacturing by 2026. “Our
intention to establish PSG as a standalone business and pursue an IPO
is another example of how we are consistently unlocking more value for
our stakeholders,” Gelsinger said. The move also highlights the strong demand in the semiconductor industry for field programmable gate arrays. The stock rose 9¢.
If you would like to learn more about INTC, click on this link:
club.ino.com/trend/analysis/stock/INTC _aid=CD3289&a_bid=6aeoso5b6f7
Intel plans to IPO programmable chip unit within three years; stock rises after hours
There are no shortage of problems for investors to deal with, besides very high interest rates. Oil tumbled on worries of "demand destruction" which sends a bearish signal for the economy. The Dow chart below looks ugly in the last 2 months.Dow Jones Industrials
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