Jobs, Jobless Claims, ADP, Job Openings, Hourly Wages, Rubio's, Waymo, Madison, Chobani, Flag Day and Father's Day
What have you done for me lately?
The market seems to focus on the most recent news event rather than what is ongoing. Case in point:
The jobs report came out, and it was… wonderful. 272,000 new jobs vs. an expectation of 190,000, up from 165,000 the month before. That’s wonderful, but that’s bad Good News; it tells the Fed that the economy is still going strong and doesn’t need rates to drop.
The conclusion from many folks is that rates will be staying up for a while.
But there were other numbers this week that showed the opposite effect:
Initial jobless claims are up again. 229,000 vs. last month's 221,000.
The ADP payroll report was much lower than expected at 152,000 vs. 188,000 the month before.
Job openings are down to 8.1 million. Still high, but it’s a three-year low.
You may remember that there were 12 million job openings in 2022.
Hourly wages were up 4.1% year over year. Great for workers, but not so great in bringing inflations down to the 2% target; people make more money, people spend more money, and prices go up.
Remember, the goal is to get the Fed to lower interest rates to reduce borrowing expenses for businesses.
Bits and Pieces: Conversation Starters
Rubio’s, a fast-casual restaurant based in Carlsbad, California, is closing 48 underperforming restaurants, most of which are in California.
They cited the rising cost of doing business in California. That’s what a minimum wage of $20/hour will do to your expenses.
Two years ago, Ford shuttered its autonomous driving division. This past week, they said they will have hands-free cars through its BlueCruise feature in two years.
Interestingly, it will be offered as a subscription service.
Speaking of hands-free, Phoenix is quite popular with fans of driverless cars; it has more autonomous automobiles than any other city offered by Waymo One.
One person liked getting to a destination without having a driver pitching them some weird business concept. Many enjoy having a private conversation without the driver listening in.
Breaking News: the car is listening in. Or your phone is, one of the two.
The app logs tens of thousands of rides each week, and the Mayor of Phoenix is a big fan.
The biggest complaint is that the cars drive no faster than the speed limit.
No more jumping in and telling the driver to “follow that car!!”.
What is the Madison Club?
It is an Exclusive – note the capital ‘E’ – housing development in La Quinta, about 30 miles southeast of Palm Springs. It’s NOT a spin-off of Ashley Madison.
The HOA annual dues are $75,000 per year. And, of course, the buy-in is… $500,000. And that’s after you buy the house. Or if you are on a tighter budget, a villa can be had for a mere $5 million.
The good news (or bad news, depending on how you look at it) is that your neighbors will be four Kardashians, Phil Knight, Tim Cook, John Elway, Justin Bieber, Fred Couples and others. Even ex-con Lori Laughlin has a place there.
If you start now, you can close the deal by Labor Day!
Hold My Beer
You own a best-selling Greek yogurt brand called Chobani, which has the largest yogurt plant in the world (in Twin Falls, Idaho; go figure), and you have an estimated net worth of $2.3 billion. So how do you celebrate?
You buy a beer. And I don’t mean one beer. I mean the entire brewery.
Fans of San Francisco’s Anchor Steam are quite pleased to hear that Hamdi Ulukaya has stepped up to purchase Anchor Brewing Co. Some background, though.
The brewery was started in 1896.
Sapporo, the Japanese brewer, purchased the brand in 2017 as it seemed a good idea at the time.
In 2019, the workers voted to unionize with the guidance of the DSA – google ‘DSA and Anchor Steam.’
Four years later, in July 2023, Sapporo elected to shut it down and turn it over to an auction company to dispose of the assets.
Coincidence? I think not.
I’m guessing the closure was a shock to the employees because part of the union pitch was higher wages and job security.
And now the union wants to meet with Mr. Ulukaya to discuss its role in the new company.
I’m guessing Mr. Ulukaya, one of six children of Kurdish descent born on a farm in Turkey, is going to go in a different direction.
Like many immigrants who come to the United States, he has unlimited optimism. About the acquisition, he said:
“This amazing place, this amazing brand, has been around since 1896… the essence of this country is that we can always bring it back, stronger and better than ever.”
What a country, indeed!!
Flag Day
Flag day is Friday, June 14. It’s also my mother-in-law's 98th birthday.
By the way, she is an avid reader of my Report. Happy birthday, Arlette.
When the Revolutionary War started in 1775, the flag George Washington flew had 13 alternating red and white stripes. But it had a Union Jack in the corner. Washington did not think it was inspiring to have a replica of the British flag on the colonist’s flag.
On June 14, 1777, the Second Continental Congress passed a resolution stating that “the flag of the United States be 13 stripes, alternate red and white” and that “the union be 13 stars, white in a blue field, representing a new constellation.”
June 14 is one of the days that the American Legion states that you should fly your flag in honor of Flag Day.
The American Legion also says you should fly the flag on Father’s Day.
If you don’t have one, buy one. It’s that time of year when you can find an American Flag just about anywhere since July 4th is right around the corner.
Father’s Day is Sunday, so go get the guy a card, make a phone call, or stop by because there will come a time when you won’t be able to. He’ll appreciate it. Oh, and no matter how gruff he might be, dads always like hugs from their kids, so make it so.
