Financial and Economic Brief - April 3, 2018by © Liberty Publishing, Inc.
Small Business Hiring Falls
According to a report from Paychex, small-business hiring in March fell to the lowest point in over seven years, while hourly earnings grew steadily. The Small Business Jobs Index decreased 0.12% from last month and 1.07% from a year earlier. Small-business wages continued to rise, reaching a 2.66% (69 cents per hour) annual growth rate in March. “Small business job growth slowed slightly yet again, to its lowest point in more than seven years,” James Diffley, chief regional economist at IHS Markit, said in a statement accompanying the report. “This could be the beginning of accelerating wage growth to attract more employees.”
Apple to Make Own Chips
Shares of Intel fell 6% Monday on a report that Apple plans to start making its own processors for its computers as early as 2020. The move is part of a larger strategy to “ensure all Apple devices function similarly and can work in tandem”, according to Bloomberg. Apple began using Intel processors in 2006. Since then, Intel has come to count on sales to Apple. According to Joseph Unsworth, a semiconductor analyst at research firm Gartner, Intel still makes most of its money from selling processors for PCs. And Mac computers are a major part of that market.
Spotify’s Strong Introduction
Spotify Technology SA shares “appeared on course” for a strong introduction, with opening price ranges well above where the stock had been trading in private markets. While it has yet to open, price indications were ticking higher, with the latest 21% to 25% above the reference price of $132 a share. It remains to be seen where exactly the stock will debut and whether it holds those levels in open market trading. Its first day of trading comes on the heels of steep selloff in technology stocks. Based on the buy and sell orders, the opening price will be set based on a designated market maker’s determination of where buy orders can be matched with sell orders at a single price.