From Yahoo Finance: 2025-05-04 12:46:00

Warren Buffett advises investors to adapt to market changes. He warns of potential “hair curler” events in the future. Buffett plans to step down as CEO, with Greg Abel succeeding him. The stock market rallied last week, with the S&P 500 up 2.9%. The labor market added 177,000 jobs in April, with record payroll employment at 159.5 million jobs. Unemployment stands at 4.2%, near 50-year lows but up since November 2021. Wage growth ticked lower, with hourly earnings up 3.8% year-over-year. Job openings fell to 7.19 million in March, with 1.01 job openings per unemployed person. Layoffs are down, and hiring remains stable. 1. Layoff metrics remain below prepandemic levels, indicating ongoing recovery. Hiring activity outpaces layoffs, with 5.4 million people hired in a month. However, the hiring rate is declining, raising concerns about the labor market’s future stability.

2. Worker quits are down, with 3.3 million quitting in March, showing less job movement. A low quits rate could signal job satisfaction, fewer job opportunities, or cooling wage growth, potentially boosting productivity.

3. Job switchers see higher pay growth at 6.9% annually, while job stayers see 4.5% growth. The employment cost index rises by 0.9% in Q1, a key metric for policymakers monitoring wage growth amidst inflation concerns.

4. Unemployment claims increase to 241,000, reflecting economic growth levels. Consumer confidence declines in April, with worries about future employment prospects and personal incomes, despite strong consumer spending data.

5. Consumers express pessimism about the labor market, with fewer perceiving job availability and more finding jobs hard to get. The labor market differential indicates a cooling labor market trend, impacting consumer sentiment. Inflation cools slightly, with the core PCE price index at 2.6% in March. The core PCE price index is up 0.03% month over month, with annualized figures at 3.5% and 3.0%. Consumer spending increases to a record $20.65 trillion, with real personal consumption expenditures up 0.7%. Card spending data shows stability, while gas prices rise slightly. Imports surge due to purchases ahead of tariffs. Mortgage rates decline to 6.76%. Mortgage rates are at their highest in years, but most homeowners have fixed-rate mortgages with locked-in rates. Home prices rose 0.3% month-over-month in February, despite mid-6% mortgage rates. Construction spending increased to $2.196 trillion in March. Manufacturing surveys show flat-lining in April, with tariffs impacting export orders and spending.

Texas area managers express worry about the future due to uncertainty related to tariffs. GDP declined at a 0.3% rate in Q1, driven by a spike in imports. Real final sales to private domestic purchasers grew at a respectable 3.0% rate in Q1. Business investment activity increased for nondefense capital goods excluding aircraft. Core capex or business investment rose by 0.1% to $75.05 billion in March, indicating economic activity down the road. Growth rates have leveled off but perked up recently, cautioning against a pull forward in sales ahead of new tariffs. Key recession indicators suggest growth, with a potential 2025 recession. Near-term GDP growth estimates are positive at 1.1% in Q2.

Office occupancy remains low, with peak day occupancy at 63% dropping, especially in Washington, D.C. and New York. Earnings look bullish, demand remains positive, and job creation is cooling but still positive. Growth has normalized from hotter levels, with hard economic data decoupling from soft sentiment-oriented data.

Tariffs announced by President Trump may disrupt global trade, impacting the U.S. economy, corporate earnings, and the stock market. Earnings outlook remains favorable, supported by expectations for years of growth. Demand is positive, job creation remains positive, and the Federal Reserve has shifted focus to supporting the labor market. However, growth has normalized, and hard economic data continues to hold up. The global economy is set to outperform the U.S. economy with positive operating leverage and strategic cost adjustments, leading to robust earnings growth. However, risks like political uncertainty, geopolitical turmoil, and energy price volatility remain. Long-term investors should expect economic recessions and bear markets, always keeping their seat belts fastened for market volatility. Despite challenges, the economy and markets are expected to overcome obstacles in the long run, remaining undefeated in the long game. 1. The stock market saw a significant increase today, with the Dow Jones Industrial Average rising by 300 points. This surge was driven by positive economic data and strong corporate earnings reports.

2. The unemployment rate dropped to 4.2% in the latest report, the lowest it has been since the start of the pandemic. This is a promising sign for the economy as more people are getting back to work.

3. In international news, tensions are rising between Russia and Ukraine as Russian troops continue to build up along the border. The United States and European Union have expressed concern over the situation and called for a peaceful resolution.

4. A new study has found that eating a diet high in fruits and vegetables can reduce the risk of heart disease by 20%. Researchers recommend incorporating more plant-based foods into daily meals for improved heart health.

5. The latest COVID-19 variant, Omicron, has been spreading rapidly in several countries, leading to increased cases and hospitalizations. Health officials are urging the public to get vaccinated and follow safety protocols to prevent further spread of the virus. 1. The stock market saw a sharp decline today with the Dow Jones dropping 500 points due to concerns over rising inflation and interest rates.
2. The unemployment rate has fallen to 4.2%, the lowest in two years, as the economy continues to recover from the pandemic.
3. Oil prices hit a three-year high of $80 per barrel following supply disruptions in the Middle East.
4. Tesla announced a record number of vehicle deliveries in the third quarter, surpassing expectations with 240,000 cars sold.
5. The FDA approved a new oral treatment for Alzheimer’s disease, offering hope for patients and their families. 1. The stock market hit new highs today, with the S&P 500 closing at a record 3,850 points. This is due to positive earnings reports from major tech companies like Apple and Amazon, boosting investor confidence.

2. COVID-19 cases continue to rise globally, with over 100,000 new cases reported daily. The UK has imposed stricter lockdown measures to combat the spread, while vaccine distribution efforts are underway in many countries.

3. In sports news, Serena Williams has advanced to the semi-finals of the Australian Open after defeating Simona Halep. This marks Williams’ 40th Grand Slam semi-final appearance, solidifying her status as one of the greatest tennis players of all time.



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