Stock market news live updates: Stocks wobble as investors pore over October payroll data
U.S. stocks gave up a morning rally Friday as traders assessed monthly employment figures and weighed talks that China may ease COVID restrictions.
The S&P 500 (^GSPC) and Dow Jones Industrial Average (^DJI) were up around 0.1% paring sharp gains from earlier in the session, while the technology-focused Nasdaq Composite (^IXIC) was off by 0.2%.
The U.S. economy added 261,000 jobs in October, while September’s reading was upwardly revised to 315,000 from 263,000 previously reported, the Labor Department said Friday. Economists expected a payroll gain of 195,000 last month, according to consensus estimates compiled by Bloomberg. The unemployment rate ticked up to 3.7%.
“Today’s stronger than expected report illustrates the difficult task that still lies ahead for the Fed wrestling a resilient labor market and sticky inflation,” Mike Loewengart, head of model portfolio construction at Morgan Stanley’s Global Investment Office, said in emailed comments. “While the number may be disappointing for investors hoping for a dovish Fed sooner rather than later, keep in mind it was the lowest reading in nearly two years, so there could be signs that the market is slowing.”
Investors have bet that some signs of a cooling labor market would force the Federal Reserve to scale back on its aggressive rate-hiking campaign, but Chair Jerome Powell asserted Wednesday that slight moderations in the data were not enough for a pause on increases, with labor conditions still historically tight.
“Although job vacancies have moved below their highs and the pace of job gains has slowed from earlier in the year, the labor market continues to be out of balance, with demand substantially exceeding the supply of available workers,” Powell said on Wednesday after the U.S. central bank delivered a fourth straight interest rate hike of 75 basis points.
In the third quarter of this year, payroll gains averaged 372,000 per month. Weekly jobless claims, the most timely snapshot of the U.S. labor market, have also come in consistently low, with this week’s reading at 217,000.
“Initial claims are not increasing one bit,” DataTrek’s Nicholas Colas said in a note. “Simply put, there is still no sign that neither aggressive Fed monetary policy nor the tighter financial conditions that it has brought is yet hitting U.S. labor markets.”
Central banks across the globe have moved in lockstep with the U.S. Federal Reserve to proceed with a combative path of monetary tightening, raising concerns about the impact of synchronized rate increases. The Bank of England raised interest rates by 75 basis points on Thursday, while European Central Bank President Christine Lagarde said in recent remarks that rates may need to be raised to restrictive levels to drag inflation back to the 2% target.
While monetary policy has held investors’ attention this week, corporate earnings have continued to rush in. Shares of Block (SQ) surged 16% after the company meaningfully beat estimates on strong performance in its Cash App and Square payment offerings.
Payments peer PayPal (PYPL), meanwhile, saw shares fall 4% after the company slashed its revenue forecast to 8.5% from its prior outlook of 18%, even as it beat on earnings results.
Twilio (TWLO) shares tanked 34% after the cloud communications company missed on earnings and reported softer-than-expected guidance.
Toymaker Funko’s (FNKO) stock plunged 50% after the company reported a big earnings miss and slashed its annual forecast ahead of the holiday season.
Meanwhile, shares of Alibaba (BABA) gained 6ths % along with a rally in Chinese stocks amid speculation the country will halt its strict zero-COVID policy.
Alexandra Semenova is a reporter for Yahoo Finance. Follow her on Twitter @alexandraandnyc
Air Canada says it gave ‘erroneous’ response on delays compensation – Global News
Air Canada says it will offer compensation to travellers who were affected by flight delays caused by technical problems in recent weeks.
The airline, which had initially faced questions over messages reportedly sent to passengers saying they would not be entitled to compensation, has said its earlier response was “erroneous.”
“Air Canada is offering compensation in line with APPR (Air Passenger Protection Regulations) compensation levels for flights which were affected by the IT outage. Some passengers had received erroneous responses from us, and we are in the process of recontacting them with the correct responses,” an Air Canada spokesperson told Global News.
Some passengers had received messages from the airline, saying the tech issues were out of its hands. The company has since said that message was an error.
A Transport Canada spokesperson told Global News that changes made to the APPR recently made compensation for passengers mandatory, simplified the complaints process and put the onus on airlines instead of passengers.
“We have been in touch with Air Canada, and they have assured us they will be compensating passengers whose flights were impacted by the recent IT issues,” Transport Canada spokesperson Nadine Ramadan said.
The country’s largest carrier has struggled with intermittent computer problems over the past 15 days.
On May 25, it delayed more than half its flights due to a “technical issue” with the system that the airline uses to communicate with aircraft and monitor their performance. On June 1, it delayed or cancelled more than 500 flights — over three-quarters of its trips that day, according to tracking service FlightAware — due to “IT issues.”
That same day, Transport Minister Omar Alghabra stressed the carrier’s compensation responsibilities to its guests.
Air Canada disruptions: continued delays, cancellations stir frustration among nationwide customers
“Air Canada has obligations to passengers who are impacted because it is caused by things that the airline has control over,” he told reporters June 1, hours after the IT issues resurfaced.
In April, Alghabra laid out measures to toughen penalties and tighten loopholes around traveller compensation as part of a proposed overhaul of Canada’s passenger rights charter.
If passed as part of the budget bill, the reforms will put the onus on airlines to show a flight disruption is caused by safety concerns or reasons outside their control, with specific examples to be drawn up by the Canadian Transportation Agency as a list of exceptions around compensation.
“It will no longer be the passenger who will have to prove that he or she is entitled to compensation. It will now be the airline that will need to prove that it does not have to pay for it,” Alghabra said on April 24.
Currently, a passenger is entitled to between $125 and $1,000 in compensation for a three-hour-plus delay or a cancellation made within 14 days of the scheduled departure — unless the disruption stems from events outside the airline’s control, such as weather or a safety issue including mechanical problems. The amount varies depending on the size of the carrier and the length of the delay.
— with files from the Canadian Press
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© 2023 Global News, a division of Corus Entertainment Inc.
WestJet shutting down discount airline Swoop – CBC News
WestJet is shutting down its budget airline, Swoop.
The company made the announcement in a news release Friday, noting that the ratification of its recent deal with its pilots allows it to integrate all of its staff at various airlines into a single banner.
“As negotiated in the collective agreement, the WestJet Group will now begin integration efforts of its ultra-low-cost airline, Swoop,” the airline said.
“Through an expedited process, the airline anticipates a full integration into its mainline operations by the end of October. To avoid traveller impact, Swoop will operate its existing network through to the end of its published schedule on October 28. Swoop employees will move to WestJet.”
The move comes as the Air Line Pilots Association (ALPA) announced its members had ratified their recent pact with the airline, one that brings in 24 per cent raises over four years, and puts Swoop pilots on a similar footing as WestJet’s in terms of seniority and compensation issues.
The union said 87 per cent voted in favour of the deal, “which goes a long way to recognizing the value and expertise the pilots bring to their airline and will help solve many of WestJet’s pilot attraction and retention issues.”
Swoop was launched nearly five years ago, in June 2018. It offered heavily discounted rates with few frills to cost-conscious travellers. A handful of other so-called ultra low-cost carriers have taken to Canada’s skies in recent years, including Flair, Lynx and Canada Jetlines.
While Swoop’s demise will remove a major player in Canada’s discount travel space, WestJet CEO Alexis von Hoensbroech says the airline will continue to offer affordable options.
“This integration will enhance our ability to serve a broader spectrum of guests,” he said. “Instead of only 16 aircraft serving the ultra-low-cost market, each aircraft, in our 180-strong fleet, will offer ultra-affordable travel options through to a premium inflight experience.”
But ultimately the news is a bad development for consumers, according to John Gradek, a lecturer at McGill University who studies the airline industry.
“It has implications in terms of the choices that Canadians will have in terms of an alternative ultra-low-cost carrier,” he told CBC News.
Although it started in 1996 as a regionally focused airline with generally cheaper prices, WestJet is no longer a discount airline, Gradek says. “The loss of Swoop basically eliminates a carrier that was specializing in low cost and it’s going to be a loss to Canadian travellers.”
More moves to come?
Gradek says it is not surprising to see WestJet make the move, as one of the main advantages of Swoop in the first place was its lower cost base.
“One of the conditions for creating Swoop was to have a different salary scale,” he said. “With the ALPA agreement that differential that allows you to have some competitive advantage price wise disappears.”
Gradek says he would not be surprised to see WestJet do something similar with another discount airline it recently bought, Sunwing.
“WestJet has choices — they’re now looking at Sunwing and that’s the next shoe that’s going to fall,” he said. “how far do you take this integration that started with Swoop — do you do the same thing with Sunwing?”
GM and Ford to use Tesla’s plug, all but killing CCS in North America
Rival auto manufacturers GM and Ford have signed on to use Tesla’s NACS charging connector for their future electric cars in North America, a decision that has effectively signed the death certificate for the competing CCS1 charging connector standard.
We’re still in the early days of electric vehicles, but the rate of adoption is rapidly increasing as more manufacturers produce EVs in different shapes and sizes and prices, and as customers buy them up with vigor. And so there is a lot of jockeying happening not just for buyers, but for infrastructure to support them. The most interesting bifurcation has happened in charging standards with the division led primarily by Tesla.
Back in 2012 when Tesla unveiled its all-electric Model S sedan it did so with a new charging connector. At the time it was a proprietary connector, but it was already much more impressive and elegant than the highly engineered J1772 standard connector or almost comically bulky CCS1 and CHAdeMO standards that also offered DC charging. Tesla’s connector did all of that in a fraction of the footprint, with far less complexity in design or use. Yet, for the past decade, Tesla’s been trucking along with their own connector in North American markets while all other manufacturers remained committed to CCS1.
(Tesla was mandated by law to use the Type 2 IEC 60309 and CCS2 connectors for cars sold in Europe, and the GB/T connector in China)
Tesla accounts for more than half of DC fast chargers in the USA — surely a selling point for Ford and GM
This led to the bifurcation of the US EV market, with Tesla leading in electric car sales ever since their first cars went on sale, and leading in the deployment of chargers with their expansive but exclusive Supercharger network. Tesla’s head start in charger installation gets us to where we are today, with Tesla’s Superchargers accounting for more than half of the DC fast chargers installed in the USA.
That’s all started to change. It began with the relatively quiet November 2022 announcement from Tesla that they were opening up the Tesla charging connector to other manufacturers as the NACS — the North American Charging Standard. But the big news arrived late last month with Ford switching to the Tesla NCAS connector in 2025. And now today, chief American rival GM revealed they are also adopting NACS. Both plan to make adapters for the existing CCS-equipped chargers, and Tesla already sells their own CSS adapter, and also has equipped a handful of its own Tesla-plugged charging stations with adapters to support CCS vehicles.
Tesla, Ford, and GM today account for roughly 3/4 of all EV sales in the USA and the top three sales spots. This is a tipping point for EVs in the USA and thus North America — in the span of a few months Tesla’s NACS connector went from proprietary to the winning option. There are still other EV manufacturers that remain publicly committed to the CCS connector, including VW, Mercedes, Kia, and Rivian. Ford and GM are huge swings for NACS and will almost certainly lead to other companies adapting the standard.
Certainly, charging companies like Electrify America and ChargePoint are also going to race to install NACS connectors in the next two years so that the fleets of differently receptacled EVs can utilize their currently CCS-only chargers. Tesla will also have to invest in upgrading their existing charger stations with longer cables, though, since they’re basically the only manufacturer placing their charging port at the corner of the car. Charging a Ford F-150 at one of those adapter-equipped stations didn’t go so well because of the short Supercharger cables.
GM’s adoption of NACS signals the end of the line for CCS1. The standards body made some angry noises when Ford jumped ship, but the loss of GM means they no longer have America’s largest auto manufacturer and popular and well-known brands like Chevrolet, GMC, Ram, Buick, and Cadillac. Alas, CCS1, few people even knew your clunkiness. NACS will reign supreme from here on out.
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