Markets were heading slightly higher despite the private job sector missing its target for November. The payroll processing company APD, said there was an addition of 208,000 jobs added last month. This was slightly below the 220,000 jobs that economists were projecting. Despite the miss, this still notes the sixth-straight month of gains over the 200,000 mark. The service sector lead the gains with an addition of 176,0000 new jobs, the goods producing sector added 32,000, transportation and utilities added 49,000 new jobs. There were also 37,000 jobs added in the business and professional services. When broken down by business size, small businesses added 101,000 jobs. Medium-sized businesses came in with 65,000 new jobs. Adrian Miller, director of fixed income strategy at GMP Securities, said, “The APD employment report delivered data that failed to live up to expectations.”
Shares of GlaxoSmithKline (GSK) were sinking after the company announced that they would be cutting U.S. jobs. The company said that they would be shedding several hundred jobs in their Research Triangle Park site, which is located in North Carolina. They will begin focusing on consolidating the research to two locations in Philadelphia and London. A spokesman for the company said, “This is a significant program and will result in the loss of several hundred employees in the U.S. commercial business and similar number in R&D activities based in the U.S.”
Shares of Wal-Mart Stores Inc. (WMT) were sinking after the company’s CEO, Doug McMillon, appeared on “Squawk Box,” and said that growth in the 2% to 3% range feels perpetual. He continued to say that, “We’re kind of like we were last year. And as I look ahead to next year, it feels like more of the same thing.” McMillon said that consumers are facing issues like health-care bills and mounting debt. Many consumers are trying to stretch paychecks through to the end of the month. “We still see the pay cycle play out where the first of the month demand goes up and our sales are better.” The company noted that online sales hit record highs so far in the shopping season. They have had over 1.5 billion hits on Walmart.com from Thanksgiving through Cyber Monday.
That’s all for today,
Warren Gates, Normandy Research