Amid a little-changed market, investors seem indecisive as to how to digest employment news released earlier today.
What was expected regarding the number of new jobs? 733,000. What did we actually have? 235,000. This is the kind of result that has you staring at a computer screen wondering if, somehow, someone mistyped a number.
There are a few items that strategists and economists (you know … the highly-paid types who misdiagnosed the forecast in the first place) … gave as reasons, though both seem well-founded. To begin, there are a few stories concerning the auto industry … as major car manufacturers are having difficulties due to the low availability of chips. This is easily understandable as … when you think about it … we don’t buy cars anymore. What we now have are, basically, computers on wheels.
But the virus is a growing (and confusing) concern … as every story we read seems to contradict one read just minutes before. Let’s face it … if you are an owner of a restaurant (for example) … how do you plan your hiring if you are unsure if people will even be coming into your establishment in September or October of this year? And those who counted on catering have to be quite concerned when they read stories that some organizations, that previously held large lunch meetings, are delaying or cutting back on re-opening … or may make work-from-home permanent.
It already has been difficult staffing … and one story below tells that some McDonald’s restaurants find the need to advertise for 14-year olds to apply … as there are not enough older people interested or available to keep even the take-out business going.
That about wraps it up for today … especially since quite a few readers are (hopefully) already making plans for a long-anticipated (but possibly masked?) holiday weekend.
Me? I have no plans other than to get some things done that I have been putting off.
I actually think I have come down with tinnitus and am trying to make an appointment with my doctor – who, himself, may have left early for the weekend.
I called. No answer.
Just keeps ringing.
Have a great day,
Joseph G. Witthohn, CFA
Emerald Asset Management PA, LLC
610 Freedom Business Center Drive
King of Prussia, PA 19406
Direct: (610) 285-9905
cell: (856) 625-7915
As of 10:44 AM today …
Quick Look at the News
Many thought the re-opening would be in full swing by now, but continuing virus cases have resulted in businesses needing to rethink their hiring plans (CNBC)https://www.cnbc.com/2021/09/03/jobs-report-august-2021.html
… but, on a related note, some supplies are not readily available … which kind of messes up the manufacturing process. This is quite obvious in the automobile industry (CNBC)https://www.cnbc.com/2021/09/02/fords-us-sales-fall-33percent-as-chip-shortage-devastates-auto-industry.html
… and actually results in a major U.S. car manufacturer to close some plants until such time as much needed chips can arrive (CNN)https://www.cnn.com/2021/09/03/business/gm-plant-closings-chip-shortage/index.html
While taking an IRA of less than $70,000 and turning it into a few hundred million is not easy, it can be done … though it really shocks some to learn it is now tax-free (BusinessInsider)https://markets.businessinsider.com/news/stocks/warren-buffett-ted-weschler-berkshire-hathaway-ira-retirement-losses-saving-2021-9
… but one interesting thing to note is how long ago the investment started … a lesson for young adults who go for convenience over investing … thinking tomorrow is too far away (WealthGang)https://wealthgang.com/things-millennials-spend-too-much-money-on/
How dire has the employment situation become? Some McDonalds are now looking to hire young teens (14-years old) … though child labor laws do limit hours (thankfully) (WashingtonExaminer)https://www.washingtonexaminer.com/news/oregon-mcdonalds-hire-fourteen-year-olds-staffing-issues