Oct 132021

Labor shortages remain a huge problem as the (normally) strong retail holiday season approaches.  The JOLTs report shows that over 10 million people have voluntarily left their jobs.  Meanwhile Nordstrom’s (JWN) is looking to fill 30,000 seasonal jobs.

US business is strong, consumer demand is strong, but retail and services cannot find enough people to hire.  More than 2.6% of job openings are posted as “urgent”.  Add in supply chain shortages and this will be a retail holiday season like no other.

President Biden will meet Wednesday with business leaders to discuss supply chain issues.

China exports rose 28.1% over last year, giving global stocks some buoyancy.

Apple (APPL) is down over 0.6% premarket after reports they might cut iPhone 13 production as much as 10 million units because of delays from Broadcom and Texas Instruments as the companies grapple with the global semiconductor shortage.

SAP SE (SAP) is up over 5% premarket after the company boosted forecasts due to “record adoption of our applications and our platform.”  The German company’s cloud revenues are expected to rise to over $27.7 billion this year.

The economic calendar focus is the CPI numbers @ 8:30am ET.  The Fed releases their meeting minutes @ 2:00pm ET.

Earnings season kicks off with BlackRock (BLK), JPMorgan Chase (JPM), First Republic Bank (FRC), and Delta Airlines (DAL).

Volatility continues to shrink but remains elevated.  The Fed minutes could spark some volatility and directional movement this afternoon.

Size bias is a divergent short into the CPI numbers on light Globex volume.


 Posted by at 7:24 am

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