Morning Commentary
The quandary of Main Street is also a quandary of business, and that’s the decline of productivity made even more frustrating by the rise in unit labor cost that’s still not keeping up with inflation in the most recent quarter. In fact; last quarter, output edged higher, driven mostly by hours worked as compensation was actually lower when it was adjusted for inflation.
Unit Labor Cost |
Q/Q |
Overall Productivity |
-0.5% |
Output |
1.2% |
Hours Worked |
1.8% |
Hourly Compensation |
1.5% |
Real Hourly Compensation |
-1.1% |
With the cost of labor increasing and pressure mounting on wages, businesses are really going to be challenged and they must grow revenue.
Meanwhile, in order for productivity to improve, businesses are going to have to make certain investments and commit to worker training programs. There is also pressure for more governmental involvement, but the fact is that this administration has only been interested in crony capitalism and pet projects promoted under the guise of investments.
Another problem is that businesses are reluctant to invest money in anything, including high-profile things such as cyber security. Last week, FireEye (FEYE) posted ugly earnings misses and announced big layoffs. After the bell, CyberArk (CYBR) beat consensus, but offered lowered guidance versus 2015 results.
However, on the earnings front, Disney (DIS) beat the Street with revenue of $14.15 billion, but its media business continues to struggle with the exodus from ESPN; it improved, but it still remains a problem.
The market eked out gains in an otherwise dull session. While it’s clear that stocks need a spark to get it going this week; one of the oldest axioms is never short a dull market.
Today’s Session
Gold is higher as the dollar has begun to drift lower. From a technical point of view, the dollar has been in trouble since forming a double top at the start of the year and the inability to hold $93.00 could see a major swoon.
DXY
I like that equity futures are pointed higher, but I’m not forcing the issue. I am eager to put on new positions, but I want to see more confirmation that old resistance can hold now as support, and see additional economic data to corroborate back-to-back blowout jobs reports.
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3/28/2024 1:39 PM | Fruitful Quarter |
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3/27/2024 9:32 AM | U-TURN? |
3/26/2024 1:08 PM | Everything Is Up |
3/26/2024 9:42 AM | TAPPED OUT (I HOPE YOU AT LEAST GOT A T-SHIRT) |
3/25/2024 1:33 PM | Not A Mutiny |
3/25/2024 9:35 AM | STAYING THE COURSE…BEYOND TECH |
3/22/2024 12:56 PM | Toll on Americans |
3/22/2024 9:38 AM | A TAD TIRED |
3/21/2024 1:55 PM | Building on Gains |
3/21/2024 9:30 AM | A COMFORTING FED |
3/20/2024 1:33 PM | Pivotal Moment |
3/20/2024 10:00 AM | HERE COMES THE FED |
3/19/2024 1:33 PM | Picking Up Steam |
3/19/2024 9:35 AM | RUMBLINGS IN THE BOND MARKET |
3/18/2024 1:48 PM | Mag 7 is Back |
3/18/2024 9:39 AM | THE PARTY IN SAN JOSE WILL BE LIT |
3/15/2024 1:38 PM | Realtors Settle |
3/15/2024 9:33 AM | AN UNEASY PAUSE |
3/14/2024 1:43 PM | Sticky Inflation |
3/14/2024 9:48 AM | GOING TO A GO-GO |
3/13/2024 2:16 PM | Taking a Breather |
3/13/2024 9:51 AM | ALL SO EPIC |
3/12/2024 1:42 PM | Marching Higher |
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