Yahoo Finance Fed rate hike not likely in June
The weaker-than-expected jobs report this morning didn't help Wall Street shake off its recent slump. Stocks are on track for their worst week since mid February.
All three major indexes (^DJI, ^GSPC, ^IXIC) are lower in early trading after the latest government employment report showed hiring slowed last month.
The Labor Department reported that the economy added 160,000 jobs last month. That was weaker than the 200,000 analysts were expecting. Meanwhile, the unemployment rate stayed steady at 5%.
John Lonski, managing director and chief economist at Moody's Capital Markets explains to Yahoo Finance's Alexis Christoforous why this jobs report rules out a rate hike for June.
Stocks on the move
GoPro (GPRO) shares sank in early trading. The wearable camera maker delivered a wider-than-expected loss for the first quarter and even though revenue topped expectations, sales fell 49% from a year ago to $183.5 million. The sales decline prompted the company to delay the release of its much-anticipated Karma drone until the holiday season.
Square (SQ) shares were sharply lower after the payment processing firm reported a steeper-than-expected loss for the first three months of the year due to higher operating costs, but revenue beat analysts' estimates with sales up 51% from a year ago to $379 million. And the company's CEO Jack Dorsey says "the core business is really strong," and the company raised its outlook for the year.
Herbalife (HLF) rolled out a double dose of good news late yesterday. It reported better-than-expected results, and the company also said it's close to a settlement with the Federal Trade Commission regarding an investigation into the company's business practices and whether it's a pyramid scheme. This is another blow to activist investor Bill Ackman, who has been shorting the company since 2012.
Meanwhile, an Ackman favorite—Valeant (VRX)—fell in early trading after the embattled Canadian drug company admitted that it has made mistakes in the past with how it priced its drugs and is now forming a committee aimed at preventing a repeat of the same errors under new CEO John Papa.
Apple CEO visits China
Apple (AAPL) CEO is planning a trip to China at the end of the month, according to Reuters. The company has hit major roadblocks in the company’s second-biggest market. Meanwhile, the tech giant is teaming up with SAP to bring new apps into the workplace.
NYC plastic bag charge
Starting in October, shoppers will have to pay a fee of $0.05 for every plastic bag they take at checkout. Some fear it’ll hurt the local economy, and others think the fee will spread across the country.
