Unemployment Numbers Adjusted - Are we Scared Yet?
We got a surprising adjustment to unemployment numbers less than 24 hours ago… might this be the straw that breaks the camel's back?
More on that in a moment…
Fall is HERE - According to Starbucks
Please - someone send the new CEO at starbucks a calendar.
The first day of fall is 30 days away. According to my research fall’ “Officially” starts on September 22!
I don’t know about you, but we’re still in the midst of summer here in Scottsdale. Today it’s going to be 110 degrees… Definitely NOT Fall!
YET, yet, the iconic coffee chain just released today their famous Pumpkin Spiced Latte - a FALL drink if I ever saw one.
Come on man… it’s still summer - are we really that desperate for sales?
Apparently other investors are disturbed by the news that Starbucks does not own a calendar… so the stock is down as I write this.
In more interesting news…
CANADA is screwed…
I don’t mean to downplay the news of a major labor dispute, but this is BIG.
What’s more crazy, the media is ignoring the news.
Here’s what’s going on…
Canada has 2 really large railroads. Both are in labor disputes.
AND, as of this morning, both railroads have locked out their employees.
Think about it - 80% of all the railways in Canada are SHUT!
Yea, this is a good old hand to hand combat type of labor dispute. Apparently this has been going on for some time… According to an AP news article,
“CN had been negotiating with the Teamsters for nine months while CPKC had been trying to reach an agreement for a year, the unions said.”
And the Canadian Government is standing by… watching… waiting… doing nothing.
Billions of dollars of goods are shipped by rail all over Canada and back and forth through the US. This is worse than Santa Clause not being able to deliver toys!
If this lockout lasts more than a few days - it could hurt both the Canadian and US economies - and be devastating to a number of individual businesses.
What’s interesting is… Investors were either prepared for this news - or they don’t care.
Canadian National Railway Company (CNI) is down almost 9% on the year - but is UP over 1% in the last five days.
Canadian Pacific Kansas City Limited (CP) stock is basically flat… on the year and over the last 5 days.
Not the reaction you’d expect from a lockout.
Now here’s another riddle…
When is Bad News Good News?
When the Labor board revises employment numbers DOWN… which may lead to rate cuts from the FED!
Yep, it’s that simple.
News yesterday was, the Bureau of Labor Statistics announced the job gains back in March were 174,000 rather than the 242,000 they reported…
OOPS!
Somebody at the Labor department needs to get fired - or learn to use a calculator!
This news means the strength in the labor market the Fed has been seeing IS a mirage in the desert!
Clearly the job market is cooler than expected. This is solidifying in economists minds the expected September rate cut is a lock.
All the fancy big wiggs are at the Fed’s annual economic symposium in Jackson Hole.
Powell speaks Friday… and you can bet the markets will pull apart every word he says.
Let me know…
Would you SELL the Canadian Railroad stocks on this lockout news?