Why a Strong Jobs Report Could Rattle the Markets
The Fed’s own economists predict a mild recession by the fourth quarter. But that call could change too, depending on Friday’s jobs numbers. “Given the continued strength in labor-market conditions and the resilience of consumer spending, the staff saw the possibility of the economy continuing to grow slowly and avoiding a downturn as almost as likely as the mild-recession baseline,” the minutes from the Fed’s most recent rate-setting meeting said.
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HERE’S WHAT’S HAPPENING
Samsung delivers a profit warning as demand for chips sags. The Korean tech giant estimated that its second-quarter earnings plunged 96 percent year on year, as a global slump in computer and smartphone sales continued to sap demand for memory chips. It’s a sign that the recent boom in A.I.-related spending has failed to overcome other weaknesses in the semiconductor market.
Beijing reportedly plans to end a crackdown on Ant Group. Chinese regulators will fine Ant, the Alibaba-affiliated fintech giant, at least $1.1 billion, one of the largest fines of an internet company in that country, according to Reuters. That is expected to wrap up a yearslong investigation into Ant, after government officials blocked the company’s plans to go public.
Ford reports strong sales. New vehicle purchases rose 10 percent in the April quarter, as truck demand roared back. But Ford’s shares fell on Thursday because its electric cars sales declined in the same period, underperforming its biggest rival, Tesla. Analysts see car sales overall growing year-on-year, but the pace is still well below pre-pandemic levels.
Food delivery giants sue over New York City’s new minimum wage rule. DoorDash, Grubhub and Uber argue that the law, which requires drivers to be paid at least $18 an hour, would unfairly hurt their industry and lead to higher prices for consumers. The regulation, which goes into effect July 12, has drawn support and opposition from drivers themselves.
Source: The New York Times
