The U.S. economic picture may be worsening, but for now companies don’t show signs of firing employees, Wells Fargo Investment Institute strategist Scott Wren wrote.
“With the negative revisions to the prior month’s job gains taken into account, the domestic labor market is, at the very least, slowing noticeably,” he wrote. “But monthly job-creation numbers are not the only statistic to track. In most past cycles, initial jobless claims, reported every Thursday morning, have provided a good leading indicator for the likely path of domestic employment.”
“History shows that in decades past, even in very good economic times, initial jobless claims would frequently come in at levels above 300,000. In this cycle, the current relatively steady level of claims means businesses are holding on to their employees. The bottom line, right now, appears to be that companies are not hiring but they are also not firing,” he said.
— Fred Imbert
Here are some of the stocks moving after hours:
Oxford Industries — Shares rallied 14.7% after the Tommy Bahama and Lilly Pulitzer parent beat expectations of analysts polled by FactSet for earnings per share, excluding items. Oxford also said it now expected less of a financial impact from tariffs in the current fiscal year than previously expected. However, the company posted weaker-than-expected revenue for the quarter and provided underwhelming guidance for current-quarter earnings.Alibaba — U.S.-listed shares of the Chinese technology stock fell 2%. Alibaba announced a proposed offering of around $3.2 billion in zero coupon convertible senior notes maturing in 2032.
— Alex Harring
Futures tied to the Dow, S&P 500 and Nasdaq 100 were all little changed shortly after 6 p.m. ET Wednesday night.
— Alex Harring