Stocks End Higher After Jobs Report. Major stock benchmarks finished higher Friday, with the S&P 500 and Nasdaq Composite turning positive for the week as the Dow Jones Industrial Average added to a gain. The Dow rose around 179 points, or 0.5%, to close near 34,756, according to preliminary figures, while the S&P 500 gained around 37 points, or 0.9%, to finish near 4230. The Nasdaq advanced 200 points, or 1.5%, to end near 13,814. The Dow rose 0.7% for the week, while the S&P 500 gained 0.6%, and the Nasdaq posted a 0.5% rise. Gains came after May employment data showed the economy created 559,000 jobs last month, below forecasts but up from a disappointing April reading.
May’s Jobs Report Misses Expectations as Signs of Labor Shortage Peek Through
Hiring disappointed again in May as companies across the country struggle to find enough help to satisfy booming demand, even as they raise wages and offer sign-on bonuses.
That’s the main takeaway of the May employment report released Friday morning by the Labor Department. Nonfarm payrolls grew by 559,000—not an insignificant gain, but short of the 650,000 increase economists surveyed by FactSet predicted.
The reading marks the second straight month of underwhelming hiring, despite signals across the economy that the demand is supercharged as vaccinated consumers head back out, businesses drop pandemic restrictions, and households sit on huge savings after more than a year of shutdowns and stimulus payments.
Former President Donald Trump’s suspension on Facebook will last at least two years, the company said Friday as it revised its rules on moderating political speech.
In a blog post, Facebook outlined a new set of rules for public figures using the company’s platforms, saying the company will now suspend accounts that violate its policies during periods of civil unrest and violence. Facebook said that the former President’s actions violated the company’s rules and warranted a two-year suspension, effective from the initial date of Jan. 7.
Facebook Becomes Latest U.S. Tech Giant to Be Probed in Europe
The wave of European regulatory scrutiny for America’s largest technology companies continued on Friday as a formal probe was introduced into Facebook‘s advertising practices.
The European Commission said it’s looking to see whether Facebook violated EU competition rules by using data gathered from advertisers in order to compete with them in markets where Facebook is active, such as classified ads.
The Federal Reserve Is Going to Sell Its Corporate Bond Portfolio. What That Means.
The Federal Reserve said Wednesday that it plans to start selling its portfolio of corporate bonds and exchange-traded funds that it bought during the pandemic.
It first plans to start reducing the amount of bond ETFs it holds before winding down its bond holdings. The “sales will be gradual and orderly, and will aim to minimize the potential for any adverse impact on market functioning by taking into account daily liquidity and trading conditions for exchange traded funds and corporate bonds,” the central bank said. The New York Fed said Thursday morning that it plans to complete the sales by the end of this year.
Labor Shortages, Supply Chain Woes Color the Fed’s Latest View of Broad Economy
Economic activity across the U.S. sped up from early April to late May as vaccinated consumers returned to normal activities and businesses dropped pandemic restrictions.
That’s the main takeaway from the Federal Reserve’s latest beige book. The collection of anecdotes gathered by the 12 regional Fed banks gives investors a look at the current economy from the ground, as described by businesses across the country.
It’s a Bad Week for Meat Companies. Tyson Just Lost Another CEO.
Tyson Foods‘ chief executive officer is stepping down, making way for the company’s fifth chief in as many years.
Tyson said that Dean Banks was leaving the role and the company’s board of directors for personal reasons. Tyson veteran Donnie King will take over the role immediately; he was named chief operating officer earlier this year.
Tesla Failed to Oversee Elon Musk’s Tweets, SEC Argued in Letters
Securities regulators told Tesla last year that Chief Executive Elon Musk’s use of Twitter had twice violated a court-ordered policy requiring his tweets to be preapproved by company lawyers, according to records obtained by The Wall Street Journal.
Tesla and the Securities and Exchange Commission settled an enforcement action in 2018 alleging that Mr. Musk had committed fraud by tweeting about a potential buyout of his company. Mr. Musk paid $20 million to settle that case—Tesla also paid $20 million—and agreed to have his public statements on social media overseen by Tesla lawyers.
The U.S. Supreme Court said Tuesday that it wouldn’t hear an appeal brought by Johnson & Johnson of a $2.1 billion verdict won in a state court in Missouri by women who said they had been harmed by the company’s baby powder.
Johnson & Johnson has fought lawsuits for years over claims that its baby powder caused cancer. Last May, the company stopped selling talc-based Johnson’s Baby Powder in the U.S. and Canada, attributing the decision to “changes in consumer habits.”
Meatpacker JBS Hit by Cyberattack Affecting North American, Australian Operations
Meatpacking company JBS said it was the target of a cybersecurity attack that affected some of its North American and Australian information-technology systems.
The Brazilian company said Tuesday the resolution of the incident would delay certain transactions with customers and suppliers. JBS said it suspended all affected systems, notified authorities and was working with professionals and third-party experts to resolve the issue.