Friday, June 1, 2018
What to watch today
The Bureau of Labor Statistics’ employment situation report for the month of May is expected to show 190,000 jobs were added to the economy in May with the unemployment rate expected to stay put at 3.9%. Economists will also be closely watching wage data, with average hourly earnings expected to rise 0.2% over last month in May and 2.6% over the prior year. Recall that in April headline job gains disappointed, with nonfarm payrolls expanding by 164,000, about 30,000 below expectations.
US opens criminal probe into trading in Fannie, Freddie bonds: The U.S. has opened a criminal investigation into whether traders manipulated prices in the $550 billion market for corporate bonds issued by Fannie Mae and Freddie Mac, according to people familiar with the matter. The probe, parts of which were described by four people familiar with it, shows that investigations by the Obama Justice Department into market manipulation by bank traders are continuing under President Donald Trump. [Bloomberg]
Costco shares fall as accelerating sales fail to boost margin: While sales at Costco Wholesale Corp. (COST) remain strong, investors may be concerned that profitability is taking a hit. The shares fell as much as 3.5 percent in late trading Thursday after a quarterly report showed gross margin shrinking from a year earlier — a sign that higher sales aren’t translating into more cash for shareholders. Shares later pared some of the decline. [Bloomberg]
Facebook investors grill Zuckerberg: Facebook’s (FB) shareholder meeting on Thursday was a heated affair, as investors vented their frustrations over the social network’s handling of recent scandals. Investors’ harsh remarks stemmed from recent controversies, including the Cambridge Analytica scandal that engulfed the company earlier this year. [Yahoo Finance]
Deutsche Bank downgraded: Deutsche Bank’s (DB) CEO is trying to reassure employees that the bank’s turnaround will succeed despite more negative news including a credit downgrade from Standard & Poor’s. Christian Sewing acknowledged in a message Friday to staff that “many of you are sick and tired of bad news” but assured them that the bank has solid capital buffers. [AP]
For more of the latest news, go to Yahoo Finance
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