Yahoo Finance Hiring soars in November; Dow eyes another record; Starbucks goes even more high-end
Stocks are solidly higher with the Dow Jones Industrials (^DJI) flirting with a new record high after hiring soared in November.
The Labor Department reported employers added a stronger-than-expected 321,000 jobs last month. That’s the biggest monthly increase in almost three years.
The steady job growth we’ve been seeing also helped give a much needed lift to wages,
Average Hourly earnings rose 9 cents, or $0.4% to $24.66 and wages are up 2.1% the past year.
Yahoo Finance Editor-in-Chief Aaron Task says the wage growth we saw last month may capture the Federal Reserve’s attention.
“This is the first evidence that maybe we are starting to see some upward pressure on wages, which is very good thing for the average American worker. The question is what it means for Fed policy going forward.”
The unemployment rate stayed steady at 5.8%.
Retailer results still very much in focus this morning as well.
Gap (GPS) starting off the holiday shopping season on a strong note. Gap reported a surprise increase in monthly sales figures in November. Same-store sales rose a better-than-expected 6% thanks to a big jump in sales at its Old Navy stores. The stock rose on the news.
It's been a tough week for teen retailers, shares of American Eagle Outfitters (AEO) are lower this morning. American Eagle is also not upbeat about its holiday quarter, just like its teen peers Abercrombie & Fitch (ANF) and Aeropostale (ARO); it’s struggling with intense competition from the so-called fast-fashion brands, such as H&M and weak demand for its clothing. However, the teen retailer's third quarter earnings did manage to match estimates and revenue came in slightly ahead of forecasts.
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Moving on to the discount retail space. Investors are marking down shares of Five Below (FIVE). The retailer issued a disappointing sales outlook for the holiday quarter. Third quarter earnings matched Wall Street views and revenue came in slightly above estimates. The company also named current Chief Operating Officer Joel Anderson as its new CEO.
Dollar Tree (DLTR) appears close to closing its deal to acquire rival Family Dollar (FDO). Dollar Tree saying it will only have to sell off a small number of its stores in order to get government anti-trust approval for the $8.5 billion dollar purchase. And it's ready to do that.
Smith & Wesson (SWHC) warning earnings and revenue for its current quarter and the year would fall below analysts' estimates due to weak demand for guns. Meanwhile, sales in the second quarter fell 22% from a year earlier, but revenue and earnings per share still came in slightly above forecasts.
Related: Starbucks takes high-end coffee even higher
Starbucks (SBUX) is upping its game and going after an even-more affluent crowd. The biggest coffee retailer opening its first Reserve Roastery and Tasting Room in Seattle. It's more of a coffee mecca than coffee shop. The store features special "reserve" coffee and provides what Starbucks calls a "Willy Wonka experience" for customers. And this all comes at a price: the cheapest cup is $3 dollars.
