Note: I am travelling (ancient word: “go from one place to another, typically over a distance of some length”) in Europe until August 23rd. Postings will thus be erratic, limited and time-zones impacted.
Strasbourg resembles me: a modern mind within a medieval body 
. The city is marvellously charming. Our hotel has superbly merged modernism and comfort in a 1528 house. Magnificent!
JOLTS: Job Openings & Hiring Decline in June
Job openings fell 5.4% to 10.698 million (+8.6% y/y) during June from 11.303 million in May, revised from 11.254 million according the Bureau of Labor Statistics’ Job Openings and Labor Turnover report. This was the third consecutive monthly decline, down 9.8% during that period. The job openings rate (job openings as a percentage of the sum of establishment employment plus openings) fell to 6.6% in June from 6.9% in May. The series high was 7.3% in March.
New hires retreated 2.0% (-0.6% y/y) to 6.374 million from 6.507 million in May, revised from 6.489 million. It was the fourth straight month of decline for new hires and the hiring rate, which eased to 4.2% from 4.3%. The hiring rate hit a peak of 4.5% in February.
The total number of job separations fell 1.4% (+2.4% y/y) to 5.931 million from 6.017 million in May, revised from 5.983 million. Quits dipped 1.2% (+5.0% y/y) to 4.237 million from 4.274 million in May. It was their lowest level since October of last year. Fewer quits indicate that jobs are becoming less readily available. The quit rate held steady at 2.8%, down from 3.0% six months earlier. Layoffs and discharges, involuntary separations, declined 6.3% in June (-2.5% y/y) to 1.327 (-2.5% y/y) from 1.416 million in May. They have been trending sideways since April 2021.
Private-sector job openings fell 5.0% (+9.0% y/y) to 9.766 million, down for the third straight month. The private-sector job openings rate declined to 7.0%, the lowest level in 12 months. The largest monthly drops in job openings occurred in trade, transportation & utilities (+10.9% y/y) as well as construction (+4.0% y/y) & manufacturing (-11.5% y/y).
Total hires in the private sector fell 2.3% (-0.9% y/y) to 5.957 million in June while total private-sector separations weakened 1.8% (+1.2% y/y) to 5.547 million.
U.S. Light Vehicle Sales Rise Modestly in July
The Autodata Corporation reported that light vehicle sales during July rose 2.2% (-8.8% y/y) to 13.51 million units (SAAR). Sales were roughly one-quarter below the April 2021 peak. Vehicle sales comprise roughly four percent of real consumer expenditures.
Sales of light trucks led last month’s overall improvement by rising 2.9% (-5.1% y/y) to 10.69 million units following a 3.3% June gain. Despite the gains, truck sales remained 11.6% below their January peak. Purchases of domestically-produced light trucks improved 4.0% last month (-2.3% y/y) to 8.32 million units after rising 1.1% in June. Sales of imported light trucks eased 0.8% to 2.37 million units and were off 13.2% y/y.
Trucks’ share of the light vehicle market rose to 79.1% in July but remained down from the 80.4% share nine months earlier.
Auto sales eased 0.4%, off 20.6% y/y, to 2.82 million units after rising 0.7% in June. Purchases of domestically-made autos fell 3.0% in July to 1.95 million units, off 15.2% y/y. Sales of imported autos improved 7.3% (-29.6% y/y) to 0.88 million units.
Imports’ total share of the U.S. vehicle market fell m/m to 24.1% and remained below February’s 25.4% share. Imports’ share of the passenger car market rose to nearly one-third, but remained down from the September 2021 high of 38.1%. Imports’ share of the light truck market fell to 22.2%.
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In Japan:
Credit card spending binge
Data: Federal Reserve Bank of New York. Chart: Skye Witley
Credit card balances are ballooning at the quickest pace in decades, reflecting higher prices and more open accounts than ever before, Axios Macro co-author Courtenay Brown writes.
Two fresh stats — courtesy of the New York Fed — tell the story:
- Credit card debt surged by $46 billion last quarter — a 13% jump from the prior year that marks the biggest increase in over 20 years.
- Americans opened 233 million new accounts in the April-June period, the most since 2008.
- Credit card delinquency rates remain historically low, but they are rising — particularly among those in the poorest zip codes, according to the New York Fed. “The recent uptick in delinquencies in some households suggests that many communities or individuals are experiencing the economy differently,” researchers wrote.
EARNINGS WATCH
We now have 320 companies in (not counting yesterday’s), a 78% beat rate and a +5.5% surprise factor.
Estimates are for Q2 EPS to rise 8.1%, -2,5% ex-Energy. Revenues: +12.5%, ex-E + 7.4%. Q3e: +7.2%, +0.6% ex-Energy. Q3 revenues: +10.1%, ex-E +6.8%. Estimates are beginning to come down.
Robinhood Lays Off 23% of Staff as Users Drop The job cuts mark the second round of layoffs for the online brokerage, which exploded in popularity during the Covid-19 pandemic.
(…) The job cuts mark the second round of layoffs this year at Robinhood, which in April reduced its staff by about 9%. Together, the two rounds have cut more than 1,000 jobs from the company. (…)
Robinhood also moved up the release of its second-quarter results a day earlier than scheduled, reporting its monthly active users tumbled to 14 million, down 34% from a year earlier. Revenue fell 44% to $318 million. (…)
By the second quarter of last year—Robinhood’s best, according to public filings—the company boasted more than 21 million active users, who flocked to the app to trade flashy meme stocks, options and cryptocurrencies. (…)