💰The job market is spelling trouble🧸

The latest data shows that job openings are decreasing as companies take a more conservative approach to hire or even laying off staff. The robust labour market that helped the US avoid a recession is finally showing some cracks and cooling. 

This is consistent with recent data, which showed actual consumer spending moderating and a second consecutive quarter of below-par growth. A progressive slowdown in the general economy is likely. 

As jobs openings had declined by an excess of 600,000 in June and are below 10% of their March peak, Pika World foresees a more volatile economy on the downside unless the Fed is ready to take the pedal off the rate hike cycle, which is unlikely as there is little progress made in inflation fight. 

💣Walmart: You are fired💈

The company is executing a tiny layoff of around 200 jobs as it looks to restructure the company. The shares had fallen. This isn’t a surprise considering that Walmart had issued a warning on its profit in late July.

Consumers’ trend shows some changes in priorities, which is a move to essential items purchases rather than discretionary purchases. This prompts many retailers to slash their prices to free up their inventories, which hurt profit margins despite increasing sales. 

The shift in consumer spending from goods to services and more budget allocation to fuels and food will likely leave many retailers struggling in the medium term. 

🚘Lucid: Car production cut✂️

In an unexpected announcement, the luxury electric car maker’s after-hour share price collapsed after forecasting only making half the projected cars in 2022. Lucid is expected to ship up to 7000 vehicles in 2022, a fall lower than the 14,000 cars in the upper range of their forecast. 

Who to take the blame? It is directed to the supply chain as logistic challenges persist. Pika World will be monitoring the progress of its effort to bring back production.