The US job market is cracking | Finansavisen

There is increasing evidence that the US job market is not as “hot” as previously thought. Last week’s non-farm payrolls numbers were shockingly weak, and last week the number of new jobless claims increased far more than expected. The economists had estimated 210,000, while the facit showed 231,000 – more than at any time since August last year.
While the US stock market indices rose in the wake of last week’s disappointing NFP report, they were virtually unchanged on Thursday afternoon.

Among the individual shares, Warner Bros. Discovery fell by around 4 per cent in pre-trade, before it clawed its way back to close to zero at four o’clock. The American entertainment group reported a 7 percent drop in revenue and a loss of almost one billion dollars in the first quarter, despite good growth in the streaming business. Both the top and bottom lines fell sharply short of consensus estimates, mainly due to weakness in the TV and film segment. On the plus side, Warner is reducing its overly heavy debt burden.

Krispy Kreme, which is well known in many countries for its doughnuts, however, impressed in the first three months of the year. One would think that the increasing use of diet pills would put a damper on the desire to cram in these types of calorie bombs, but no… Krispy Kreme’s turnover increased by 5.7 percent in the period, and for the whole year the management envisages a organic revenue growth of 6-8 per cent. The share, which has the symbol DNUT, was up 4 percent in trading, but again this was reduced to zero after the stock exchange opened.

It went worse with the Hyatt hotel chain. The share price weakened by 2 percent, as a result of a disappointing quarterly report. Both the growth in revenue per room and the number of rooms was solid, and the CEO declared that “the year has got off to a good start”. However, the analysts have become accustomed to soaring demand for travel-related services, in the wake of the corona pandemic, and it is no longer so easy to meet their expectations.