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Snacks / Monday, July 10, 2023

“Good news” = “bad news”?… After ADP’s piping-hot jobs report came in at double expectations (nearly 500K private-sector jobs added), the Dow and the S&P 500 had their worst day since May. A sizzlin’ labor market means the Fed may keep rates higher for longer to cool inflation, and traders upped their bets of a July hike. But then Friday’s official jobs report showed strong but cooling hiring (209K jobs added vs. 240K expected), and the market briefly ticked up. Now investors are waiting on Wednesday’s June consumer inflation data, crossing their fingers for some #goodnews.

Priming the court suit… The FTC could crash Amazon's birthday (Prime Day’s tomorrow) as it gears up to file a sweeping antitrust suit within weeks. It’d be the fourth and largest suit FTC Chair Lina Khan has led against the e-tailer. The core allegation: Amazon boosts sellers who use its “optional” services, like shipping and advertising, over those who don’t. So its algo may put preferred sellers in the one-click “Buy Box” section. Khan could seek a total restructure of the platform. Amazon would almost certainly appeal.

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