Investors were left disappointed as new private payroll jobs in March fell below expectations. Meanwhile, Johnson & Johnson’s shares are on the rise in pre-market trading following news of a settlement on legal claims related to its talc products. Here’s a closer look at what investors should know today.
The latest report from ADP and Moody’s Analytics showed that private payrolls increased by 129,000 in March, which was below the expected 170,000. The report also revised February’s numbers down from 183,000 to 197,000. The weaker-than-expected job growth could be a sign that the labor market is starting to slow down.
However, it’s worth noting that the ADP report doesn’t always accurately predict the government’s official jobs report, which is due out on Friday. In February, the ADP report showed a gain of 183,000 private payrolls, while the government’s report showed a gain of 273,000 jobs.
Meanwhile, Johnson & Johnson announced on Wednesday that it had reached a settlement in a lawsuit over its talc products. The company agreed to pay $100 million to settle claims that its talc products caused cancer. The settlement covers more than 1,000 lawsuits filed by plaintiffs who claimed that they developed cancer after using Johnson & Johnson’s talc products.
Johnson & Johnson has faced numerous lawsuits over its talc products in recent years. In 2018, a jury awarded $4.7 billion to 22 women who claimed that the company’s talc products caused their ovarian cancer. Johnson & Johnson is appealing that verdict.
The settlement announced on Wednesday doesn’t cover all of the lawsuits against Johnson & Johnson related to its talc products. The company still faces thousands of lawsuits from plaintiffs who claim that its talc products caused cancer.
Despite the legal challenges, Johnson & Johnson’s stock has performed well in recent years. The company’s shares are up more than 20% over the past year, and they’re currently trading near all-time highs.
Investors will be closely watching the government’s official jobs report on Friday. The report is expected to show that the economy added 180,000 jobs in March, which would be a slight improvement from February’s gain of 175,000 jobs. The unemployment rate is expected to remain unchanged at 3.5%.
The labor market has been a bright spot for the U.S. economy in recent years. The unemployment rate has remained near historic lows, and job growth has been steady. However, there are signs that the labor market may be starting to cool off.
Last week, the Labor Department reported that initial jobless claims rose by 10,000 to 211,000 in the week ending March 28. That was the highest level since the end of February. The increase in jobless claims could be a sign that employers are starting to cut back on hiring.
In addition to the labor market, investors will also be watching for any developments on the coronavirus front. The virus has caused widespread disruptions to the global economy, and investors are hoping for signs that the outbreak is starting to slow down.
On Wednesday, President Trump said that he would consider reopening the country’s economy in phases. He said that some states could reopen before others, depending on how well they’re doing in terms of containing the virus.
Investors will be watching for any updates on the government’s efforts to contain the virus and support the economy. The Federal Reserve has already taken a number of steps to support the economy, including cutting interest rates to near zero and launching a massive bond-buying program.
Overall, investors will be closely monitoring a number of factors in the coming days and weeks. The labor market, the coronavirus outbreak, and government policy will all play a role in shaping investor sentiment and market performance.
