A week after JPMorgan released upbeat guidance regarding its own business, CEO Jamie Dimon is back in the news with a much less optimistic take on the U.S. economy.
He was quoted at a banking conference saying, “Right now, it’s kind of sunny, things are doing fine. Everyone thinks the Fed can handle this. That hurricane is right out there down the road and coming our way. We just don’t know if it’s a minor one or Superstorm Sandy.”
At the same conference, Wells Fargo’s CEO seemed to agree, stating, “The scenario of a soft landing is … extremely difficult to achieve in the environment that we’re in today.”
Maybe Jamie Dimon’s view is that his bank will perform fine, but the rest of the economy will not weather the storm? 🤔 Who knows at this point?
What’s clear is that even the best in the business are having trouble predicting how the current tightening cycle will impact the economy. 🔮
We received updated National ISM Manufacturing data and the Job Opening and Labor Turnover Survey (JOLTs) in economic news.
On the U.S. manufacturing front, activity unexpectedly grew in May, led by an acceleration in new orders and output growth. Economists had expected a decline to 54.5, but today’s reading at 56.1 suggests that demand remains strong and supply-chain constraints remain in place. Any reading above 50 indicates expansion, so we’ll take this as a positive. 🏭
Meanwhile, the labor market remained exceptionally tight, according to April’s JOLTs data. Total U.S. job openings and quit rates remained at record levels, though both fell slightly from the prior month.
Speaking of job openings…some Tesla employees may be part of next month’s JOLTs data if they don’t return to the office. 🏢
An internal email from CEO Elon Musk, which demands that employees return to the office or leave the company, was leaked to reporters. 📧
Elon isn’t one to mince words, saying in the email“Everyone at Tesla is required to spend a minimum of 40 hours in the office per week.” … “If you don’t show up, we will assume you have resigned.”, among other things.
We’ll have to see how the drama at Tesla, and in the economy in general, play out in the weeks/months ahead. 👀