AmEx Fears Second Joblessness Wave After No-Layoff Vows Expire
U.S. Factory Orders Show Another Steep Drop In April
After reporting a steep drop in new orders for U.S. manufactured goods in the previous month, the Commerce Department released a report on Wednesday showing another nosedive in factory orders in the month of April.
The Commerce Department said new orders plunged by 13.0 percent in April after plummeting by a revised 11.0 percent in March.
Economists had expected factory orders to tumble by 14.0 percent compared to the 10.3 percent slump originally reported for the previous month.
The continued nosedive in factory orders was partly due to another steep drop in durable goods orders, which cratered by 17.7 percent in April after tumbling by 16.7 percent in March.
The report showed orders for non-durable goods also plunged by 9.0 percent following a 5.4 percent slump in the previous month.
The Commerce Department said shipments of manufactured goods also tumbled by 13.5 percent in April, while inventories of manufactured goods dipped by 0.4 percent.
With shipments falling by much more than inventories, the inventories-to-shipments ratio spiked to 1.69 in April from 1.46 in March.
Bank of Canada holds rate at 0.25 percent
OTTAWA, June 3 (Reuters) – The Bank of Canada held its key overnight interest rate steady as expected on Wednesday and said that data shows the impact of the COVID-19 pandemic on the global economy appears to have peaked, though uncertainty remains.
The central b
ank held its rate at 0.25% in a decision made on the same day new governor Tiff Macklem took helm. (Reporting by Kelsey Johnson, Julie Gordon and Steve Scherer in Ottawa Editing by Chizu Nomiyama)
Boeing To Announce Significant U.S. Job Cuts This Week: Reports
Boeing Co. (BA) is reportedly set to announce significant job cuts this week.
Major news wires like Reuters and Bloomberg, citing union officials, reported that deep cuts will be announced in the coming days, mostly in Washington and California.
In April, Boeing said it is considering a plan to reduce its workforce by about 10%, amid the COVID-19 pandemic. The plan included buyouts, early retirements and involuntary layoffs, mostly in the company’s commercial arm.
Meanwhile, about 1,300 union workers have reportedly already applied to take voluntary buyouts.
Boeing CEO Dave Calhoun said in April that the company will be required to make “even deeper reductions in areas that are most exposed to the condition of our commercial customers — more than 15% across our commercial airplanes and services businesses, as well as our corporate functions.”
Colombia: Bogota keeping coronavirus lockdown measures
The mayor of the country’s capital has reimposed a total lockdown in a working-class area of more than a million people over the novel coronavirus.
Coronavirus lockdown measures are being lifted across Colombia, with the exceptions of the capital, Bogota, and two other hard-hit cities.
The mayor of Bogota has reimposed a total lockdown in a working-class area of more than a million people, which has become the new epicentre of the outbreak.
Al Jazeera’s Alessandro Rampietti reports from Bogota, Colombia.
Stock Alert: Microchip Technology Rises 10% On Better Outlook
Shares of Microchip Technology Inc. (MCHP) are climbing more than 10 percent or $9.86 in Wednesday’s morning trade at $106.70 after the semiconductor company raised its outlook for the first quarter, saying its business was performing better than it expected during its May 7 earnings conference call.
Tuesday, Microchip Technology said it now expects consolidated net sales for the first quarter of $1.247 billion to $1.326 billion, up from its prior view of $1.194 billion to $1.30 billion.
The Chandler, Arizona-based company now forecasts reported earnings for the quarter between $0.25 and $0.39 per share, and adjusted earnings per share between $1.35 and $1.53 per share. This compares with its previous guidance for reported earnings of $0.13 to $0.31 per share and adjusted earnings between $1.25 and $1.45 per share.
On average, analysts polled by Thomson Reuters expect the company to report earnings of $1.35 per share for the quarter on revenues of $1.25 billion. Analysts’ estimates typically exclude special items.
The stock has traded in a range of $53.15 to $112.47 in the past 52 weeks.
Stock Alert: Stericycle Trading 6% Higher
Shares of medical waste management company Stericycle, Inc. (SRCL) are climbing more than 6% Wednesday morning at $59.60. There are no company-specific news to move the stock up.
The stock has gained more than 50% from its 52-week low of $38.45 hit in March.
During the first quarter ended March 31, 2020, revenue had decreased to $785 million from $803.1 million last year due to the postponement of preventative care and elective surgeries and the temporary closure of smaller healthcare practices.
K-Pop Stans Are Spamming Racist Twitter Hashtags With Fancams to Drown Out Right-Wing Supporters
With the George Floyd and Black Lives Matter protests happening in multiple states, America is currently divided between people who are fighting and advocating for the cause, and people who are not. And if you’ve logged into literally any social media account of yours, you totes know that this is absolutely the case. But thankfully, K-Pop stans are using their platforms to combat people who are trying to perpetuate hate…and it’s truly a sight to behold.
AmEx Fears Second Joblessness Wave After No-Layoff Vows Expire
American Express Co. fears the U.S. could see another increase in unemployment next year as large companies’ vows to avoid job cuts in 2020 begin to expire.
“The question is, Where does the economy go over the next six to 12 months?” Chief Financial Officer Jeff Campbell said at a virtual investor conference on Wednesday. “Have we had the main shock of unemployment and stress on the small businesses” or, he added, “are you going to see further shocks?”
The firm has pulled back on adding new credit-card customers because it can’t get a clear picture of consumers’ financial health and employment trends. American Express itself committed to making no job cuts this year as it works through the impacts of the coronavirus pandemic, which has sapped consumer spending and forced the company to increase its loan-loss reserves.
Still, Campbell said Wednesday, the firm’s attrition rates have held steady throughout the crisis. That’s helped bolster American Express’s card-fee revenue, which is likely to rise by a percentage in the “mid-teens” this quarter, he said.