💭 Disappointing job report

Together with BOXABL

Good morning investors! The market took a break yesterday but continues to show strength.

Today we cover:

• A not so impressive job report

• A look at the rental market

• And trouble in some partnerships

📊 Economy and News 

Private Sector Job Growth Nearly Halts in May, Signaling Weaker Labor Market

Private sector job creation slowed sharply in May, adding just 37,000 jobs, the lowest since March 2023, per ADP’s payroll report.

This fell below April’s revised 60,000 and the Dow Jones estimate of 110,000. The data comes ahead of the Bureau of Labor Statistics’ nonfarm payrolls report, expected to show 125,000 jobs added and a steady 4.2% unemployment rate.

Goods-producing sectors lost 2,000 jobs, with declines in natural resources/mining (5,000) and manufacturing (3,000), offset by construction gains (6,000).

Services saw growth in leisure/hospitality (38,000) and financial activities (20,000), but losses in professional/business services (17,000), education/health (13,000), and trade/transportation/utilities (4,000) dragged the total down.

Small firms (under 50 employees) lost 13,000 jobs, large firms (500+) shed 3,000, while mid-sized firms gained 49,000.

Wage growth held at 4.5% annually for job stayers and 7% for job changers. Recent data shows mixed signals, with job openings rising in April but hiring intentions weakening.

Federal Reserve officials remain cautiously optimistic but note risks from potential tariffs. Rates are expected to stay unchanged at the next meeting yet Trump continues to push for an early cut.

Global hits:

• Indian Rupee to gain modestly, lag most Asian peers despite strong GDP growth.

• Bank of Canada holds key rate steady at 2.75%, but says a future cut is possible.

• UK Prime Minister anticipates zero tariffs on US steel imports soon but things between China and the US aren’t looking good as Trump calls China’s Xi tough, ’hard to make a deal with’.

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📈 Stocks

S&P 500 5,970.81 (+0.0074%)
DJIA 42,427.74 (+%)(-0.022%)
NASDAQ 19,460.49 (+0.32%)
BRENT CRUDE 64.86 (-1.17%)
* Prices as of Jun 5th, 12:20 AM UTC

Apple and Alibaba gotta wait

Apple and Alibaba’s AI rollout in China is delayed due to regulatory hurdles from the Cyberspace Administration of China, fueled by U.S.-China trade tensions.

Apple’s partnership with Alibaba to meet Chinese AI regulations faces scrutiny over data security and technology transfer. This setback leaves Apple trailing local rivals like Huawei, which have advanced AI features.

Yahoo Finance reports Apple is under pressure to showcase its AI capabilities at WWDC 2025, starting June 9. Analysts note Apple lags behind Google and Microsoft in generative AI, with critics arguing its Apple Intelligence, debuted at WWDC 2024, lacks a competitive edge. A planned Siri upgrade is also delayed.

Good to know: Chip maker STMicro shares jump 12% over plans to cut 5,000 jobs. Also, experts believe that Apple and Samsung smartphone growth will take a hit from tariff uncertainty. Lastly, Amazon plans a $10B investment in North Carolina for cloud computing and AI infrastructure, including data centers.

But some companies are facing challenges, including Dollar Tree (-10%) that warned that tariffs could reduce earnings, expecting recovery as it manages higher import costs.

Another company that had a bad day is CrowdStrike that got downgraded by Bank of America, Canaccord, and Evercore ISI. On the plus side, Meta got upgraded by JPMorgan.

💵 Personal Finance

Practical Tips for Building Your Savings

About 59% of young Americans (18-25) prioritize savings, per an Intuit survey, but only 15% of Gen Z (18-27) regularly save, per Bank of America.

Less than half of U.S. adults can cover a $1,000 emergency, per Bankrate.

Experts suggest keeping one month’s bills in checking and 3-6 months’ expenses in savings. But, we know people struggle. So, what can you do to save money? Here are some tips:

• Avoid lifestyle inflation, i.e.: do not let your expenses rise with an increase in income. You don’t have to move to a bigger house just cause you have a bigger pay check (unless it’s a necessity). The key lies in having your focus in the right place.

• Track spending with apps or statements so you know where your money goes. In fact, creating and sticking to a budget can also help.

• Save consistently, even small amounts, with automatic transfers. Start small— even $20/month can help.

Here’s a fun video on the topic:

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👩🏽‍⚖️ Legal Stuff
Nothing in this newsletter is financial advice. Always do your own research and think for yourself.

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