Markets were heading lower on Wednesday after news was released that the private job sector added more than expected in September. The private payroll processing company announced that there was an addition of 213,000 new jobs in September. This beat out the 207,000 that economists were expecting. This raises hopes that the governments more extensive job report, due out on Friday, will come in strong. The report showed that small businesses added 88,000 jobs, mid-sized businesses added 48,000 new jobs and large companies added 77,000. The strongest sector leading job growth was in transportation and utilities, with 38,000 new jobs. Mark Zandi, chief economist at Moody’s Analytics, said, “Especially encouraging most recently is the increasingly broad base nature of those gains. Nearly all industries and companies of all sizes are adding consistently to payrolls.”
Shares of Comcast Corporation (CMCSA) were sinking after the company announced their plans to exit the Detroit area and other Mid-West states. The company reported that this move would help in their plans to buy Time Warner Cable (TWC). If Comcast lets go of that market it will keep the company’s market share below 30% of U.S. pay-tv, which is a limit set by regulators. The move would enable the cable giant to take over the two top markets in the U.S., New York and Los Angles, with the Time Warner acquisition. The deal would be valued at $45.2 billion and would grow Comcast’s customer base by 7 million.
Shares of General Mills, Inc. (GIS) were falling slightly after the company announced their plans to cut between 700 and 800 jobs. This marks the second time in under a month that they will be trimming their workforce. The company owns popular brands such as Betty Crocker and Green Giant. They said that the cuts would take place primarily in the U.S. They also are expecting to receive between $135 million to $160 million in restructuring charges. This news comes on the coat tails of last month’s report that they would be closing a facility in Massachusetts.
Warren Gates, Normandy Research