Eagle Eye Opener: U.S. Jobs Reports Shows Gains and Drop in Unemployment; Retail All-Stars Come up Short

Eagle Eye Opener

U.S. Jobs Report Shows 165,000 Jump in Payroll and Unemployment Drop (Bloomberg)

The U.S. non -farm payroll report this morning beat expectations by showing a 165,000 rise in April payrolls, compared to economists’ expectations of new 145,000 jobs for the month.  That jump was a nice increase over March’s horrific 88,000 new jobs. The job gains also unexpectedly led to a reduction in U.S. unemployment to a four-year low of 7.5 percent. Does this jobs increase mean any less quantitative-easing (QE) spending for the United State? A 5 basis point rate cut yesterday by the European Central Bank and Japan’s promise to inject $1.4 trillion in its economy now have three of the world’s largest markets committing to more easy cash and liquidity.  Is the U.S. report the third shoe to drop, indicating a market correction? Or will this three-headed easy-money effort finally trigger a global rally?  Don’t hold your breath on a quick answer.

Retail All-Stars Come up Far Short When It Counts (YahooFinance)

JCPenny’s attempt to cobble together an all-star team to resurrect yester-year’s retail leader ended up costing them a lot more than a return to the top of the heap. Not including salaries or incentives, JCPenny’s spent more than $170 million in cash and stock to place Ron Johnson and three teammates atop its corporate structure. That payment includes severance for former CEO Myron Ullman. And the company’s return on investment?  A 25 percent sales plunge and 50 percent loss in share price — not a winning combination. In this respect, the Los Angeles Lakers actually got a better return, as their hobbled all-star team did make it to the playoffs. In JCPenny’s case, the playoffs could have been a return to profitability, but even that was beyond the retail all-stars’ ability. Now investors and remaining company leaders have to decide on next year’s roster…

Exclusive  Looming Trade War Poses Real Challenges if Tariffs Kick in

Berkshire Hathaway Makes Insurance Grab (Bloomberg)

Value-investor extraordinaire Warren Buffett’s latest bet is on the insurance space, but not in the way we’ve come to expect from the “Oracle of Omaha.” That’s because Buffett just hired four executives from American International Group, Inc. (AIG) to lead Berkshire Hathaway’s (BRK/A) new venture into the commercial insurance industry. Buffett shared this tidbit from Omaha, Neb., before his much-anticipated annual shareholders’ meeting, stating “We would like to get into the commercial-insurance business very big time.” What “very big time” means for the world’s second-richest man is up for debate, but you can believe that investors took notice of this move. Generally, where Buffett leads, profits follow.

Like This Article?
Now Get Mark's FREE Special Report:
3 Dividend Plays with Sky-High Returns

This newly-released report by a top-20 living economist details three investments that are your best bets for income and appreciation for the rest of the year and beyond.

Get Access to the Report, 100% FREE


img
previous article

Stocks rose today, as the European Central Bank cut its key interest rate and American jobless claims unexpectedly fell.

PREMIUM SERVICES FOR INVESTORS

Dr. Mark Skousen

Named one of the "Top 20 Living Economists," Dr. Skousen is a professional economist, investment expert, university professor, and author of more than 25 books.

Product Details

LEARN MORE HERE

Bryan Perry

A former Wall Street financial advisor with three decades' experience, Bryan Perry focuses his efforts on high-yield income investing and quick-hitting options plays.

Product Details

LEARN MORE HERE

Jim Woods

Jim Woods has over 20 years of experience in the markets from working as a stockbroker,
financial journalist, and money manager. As well as a book author and regular contributor to
numerous investment websites, Jim is the editor of:

Product Details

LEARN MORE HERE

Bob Carlson

Bob Carlson provides independent, objective research covering all the financial issues of retirement and retirement planning. In addition, Bob serves as Chairman of the Board of Trustees of the Fairfax County (VA) Employees’ Retirement System, which has over $2.8 billion in assets.

Product Details

LEARN MORE HERE

Mike Turner

Mike Turner’s financial, mathematical, computer science and engineering background serves as the foundation for his disciplined, rules-based approach to trading. Mike’s three services include:

Product Details

LEARN MORE HERE

Hilary Kramer

Hilary Kramer is an investment analyst and portfolio manager with 30 years of experience on Wall Street. Since 2010, Hilary's financial publications have provided stock analysis and investment advice to her subscribers:

Product Details

LEARN MORE HERE

DividendInvestor.com

Used by financial advisors and individual investors all over the world, DividendInvestor.com is the premier provider and one-stop shop for dividend information and research.

Product Details

Popular tools include our proprietary Dividend Calendar, Dividend Calculator, Dividend Score Card, and many more.

LEARN MORE HERE