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All Eyes On Jobs Report

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Hi Everyone 👋,

Welcome to our Sunday newsletter! Here’s what we’re discussing this week:

GRIT’s BIG News of the Week:  

  1. Hottest News This Week 👉 Jobs Report

  2. Matt Allen’s Corner 👉 Henry Ford and Charcoal

  3. Comin’ Up 👉 EARNINGS AND ECONOMIC DATA

1. Hottest News This Week

All Eyes On Jobs Report

📣 Jobs Report

Investors are eagerly awaiting Friday's jobs report for clues about potential interest rate cuts before next week’s Federal Open Market Committee (FOMC) meeting. In April, only 175,000 jobs were added, and the unemployment rate rose to 3.9%, suggesting that inflation might be easing. Recent inflation data has made the Fed cautious about rate cuts, despite earlier predictions of up to three cuts this year. However, a weak jobs report could change that. Investors will also watch Monday's ISM and S&P manufacturing PMI and Wednesday's service-sector PMI for insights on inflation and GDP.

📣 Monthly Recap

The Dow Jones Industrial Average jumped on Friday for its best session of the year, ending a strong month after the Federal Reserve’s inflation measure met expectations.

  • Dow: Rose 574.84 points (1.51%) to 38,686.32, boosted by Salesforce (+7.5%) and UnitedHealth (+2.8%).

  • S&P 500: Up 0.80% to 5,277.51.

  • Nasdaq: Slightly down by 0.01% to 16,735.02 due to drops in Nvidia and other big tech stocks.

The S&P 500 and Nasdaq ended five-week winning streaks, falling 0.51% and 1.1%, respectively. The Dow fell 0.98%, marking its second straight week of losses. Despite this, May was a strong month with the Dow up 2.3%, the S&P 500 up 4.8%, and the Nasdaq up 6.88%, its best month since November.

Nvidia led the way with a nearly 27% rise in May, despite a slight drop on Friday. Tesla and Netflix also pulled back on Friday, impacting the tech-heavy Nasdaq.

2. Matt Allen’s Corner

Henry Ford and Charcoal

Hi Everyone! This week, we are discussing an invention of Henry Ford.

When we think of Henry Ford, the first thing that comes to mind is the iconic Model T and the revolution of the automobile industry. However, not many know that Ford's innovative spirit extended far beyond cars. In fact, he played a pivotal role in founding an entirely different industry: charcoal briquettes.

The story begins in the early 20th century, when Henry Ford was producing cars at an unprecedented rate. The Model T's assembly line was a marvel of efficiency, but it also generated a significant amount of wood scraps from the production of the cars' wooden parts. Always the astute businessman, Ford hated to see these materials go to waste.

Ford's vision for sustainability and maximizing resources led him to explore ways to repurpose these wood scraps. Enter E.G. Kingsford, a timberland owner and relative of Ford. Kingsford suggested that the wood scraps could be used to produce charcoal, a concept that intrigued Ford. Together, they began experimenting with the idea.

Source: Youtube

Ford and Kingsford refined the process, turning wood scraps into charcoal briquettes by burning them in an oxygen-controlled environment and then compressing the resulting charcoal powder into small, uniform briquettes. This method not only created a useful product but also addressed the issue of waste from Ford's factories.

In 1921, the Ford Charcoal Company was established, and the product was marketed as "Ford Briquettes." The idea was revolutionary: these briquettes were perfect for backyard grilling, a pastime that was growing in popularity across America. With the might of Ford's marketing machine behind it, the briquettes quickly gained traction.

Eventually, the charcoal business outgrew its origins as a side project for Ford's automobile empire. The company was later renamed Kingsford in honor of E.G. Kingsford, and it remains one of the leading charcoal brands today.

Cheers,

Matt Allen

3. Comin’ Up

EARNINGS AND ECONOMIC DATA

💰 Earnings:

Monday: GitLab, Nordic

Tuesday: CrowdStrike, HP, Bath & Body Works

Wednesday: Lululemon, Dollar Tree, Campbell Soup

Thursday: Autodesk, NIO, DocuSign

Friday: Graham Corporation

📈 Major Economic Events:

Monday: ISM

Tuesday: Factory Orders, Job Openings

Wednesday: ADP Employment

Thursday: Initial Jobless Claims

Friday: U.S. Jobs Report

Will The Jobs Report Beat Expectations?

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