Markets were relatively flat on Friday after jobs data was reported and missed expectations. The Labor Department said that there was an addition of 214,000 jobs last month and the unemployment rate ticked slightly lower. October’s jobs missed the 230,000 that economists were projecting. The unemployment rate fell to 5.8% from the previous month’s 5.9%, this marks the lowest unemployment rate since the recession. September’s data was upwardly revised from the original 248,000 new jobs to 256,000 jobs. There was also an additional of 23,000 to the 180,000 jobs reported in August. Rich Thompson, chief human resources officer at Adecco Group North America, said, “It’s good. It’s consistent solid growth. Anytime you are over 200,000 that is good progress.”
Shares of JPMorgan Chase & Co. (JPM) were trading slightly higher after the banking giant reported that they would be cutting an additional 3,000 jobs from their banking sector. This is more than they originally planned on. By the end of the year, the company said they will have cut a total of 27,000 jobs from their consumer banking unit. When broken down, they will be slashing 4,000 jobs from their car, merchant and auto unit, which is more than the 2,000 originally reported. They will also be cutting 7,000 jobs in their mortgage department, up from the 6,000 originally reported.
Shares of The Home Depot Inc. (HD) were relatively flat after the home improvement store announced that they had a total of 53 million email addresses stolen in the most recent data breach of their payment system. This is in addition to the 56 million-payment card information that was stolen and already reported. They said that the email addresses stolen do not have passwords or payment information attached to them. Home Depot has reported that the data breach could cost them around $62 million. Since the September breach, the company has stepped up efforts and implemented encryption of payment data in all of their U.S. stores. David Campbell, chief security officer at SendGrid, said, that the recent security upgrade, was “really putting lipstick on a pig” and the right course of action would be to add chips and PINs, or EMV technology, to U.S. credit cards.
That’s all for today,
Warren Gates, Normandy Research