U.S. Labor Productivity Unexpectedly Plunges More Than Initially Estimated In Q3
Labor productivity in the U.S. plunged by even more than initially estimated in the third quarter, according to revised data released by the Labor Department on Tuesday.
The Labor Department said labor productivity tumbled by 5.2 percent in the third quarter compared to the previously reported 5.0 percent nosedive. Economists had expected the slump in productivity to be revised to 4.9 percent.
The steep drop in productivity, a measure of output per hour, came as hours worked spiked by 7.4 percent compared to a 1.8 percent jump in output.
Meanwhile, the report showed the spike in unit labor costs during the third quarter was upwardly revised to 9.6 percent from 8.3 percent. The surge in unit labor costs was expected to be revised to 8.4 percent.
A 3.9 percent leap in hourly compensation contributed to the sharp increase in unit labor costs along with the steep drop in productivity.
The Labor Department said productivity jumped by 2.4 percent in the second quarter, while the increase in unit labor costs during the quarter was upwardly revised to 5.9 percent from 1.1 percent.
Turquoise Hill Resources Continues Rally
Turquoise Hill Resources Ltd. (TRQ) shares are trading more than 16 percent on Monday morning. There were no corporate announcements from the company on the day to impact the stock. The shares have been on an uptrend for the last several days.
Currently, shares are at $16.97, up 16.16 percent from the previous close of $14.60 on a volume of 1,191,965. For the 52-week period, the shares have traded in a range of $9.75-$21.89 on average volume of 851,841.
Asus eyes 20% of India consumer PC market
Unveils ‘ProArt’ for content creators
Tech firm Asus on Tuesday unveiled a laptop series aimed at content creators as it eyes 20% share in the Indian consumer PC segment in 2022. The firm expects to grow 33% in its consumer and gaming PC business this year in the country.
“After the pandemic, the content creators segment… whether YouTube or Podcast or even traditional artists, music producers; their requirements to have a better laptop is increasing dramatically,” Arnold Su, business head, Consumer and Gaming PC, System Business Group, ASUS India, told The Hindu. As there was no ‘creator series’ in the market, customers chose gaming machines. The India market for gaming PCs is 7 lakh units, of which 30% is bought by the creators.
As per IDC’s Q3 report, Asus had achieved 16.5% market share, he said. Asus on Tuesday unveiled the ‘ProArt series’ laptop at a price of ₹1,69,990.
“This year we expect to close at 800,000 units; next year, [our] target is 1.3 million units,” he said. Leon Yu, regional director, System Business Group, Asus India & South Asia, added, “We are … evaluating Electronics Manufacturing Services in India to [make] products and start collaborating.”
Neogen Shares Up 6%
Shares of NEOGEN Corp. (NEOG) are rising over 6% Tuesday morning, after the company announced a definitive agreement pursuant to which 3M will separate its Food Safety business and combine it with NEOGEN.
The deal implies an enterprise value for 3M’s Food Safety business of about $5.3 billion, including $1 billion in new debt to be incurred by 3M’s Food Safety business. In connection with the deal, 3M will also receive consideration valued at about $1 billion.
NEOG is currently trading at $42.55, up $2.43 or 6.06% with trading volume of over 345K versus an average volume of 307K shares. The stock has been trading between $36.51 and $48.85 for the past one year.
United Airlines expects year-end travel to top Thanksgiving despite omicron variant
- United says it expects to carry 8 million people between Dec. 16 and Jan. 3.
- The airline is flying its busiest schedule in December since the pandemic began.
United Airlines said Tuesday it expects to fly more passengers each day during the year-end holidays than Thanksgiving, a sign demand is holding up despite increased cases of the omicron variant.
The Chicago-based carrier forecast it will fly an average of 420,000 passengers a day from Dec. 16 through Jan. 3, up from an average of 400,000 a day over Thanksgiving, bringing it to about 87% of the number of travelers it flew in 2019, before the pandemic.
CEO Scott Kirby told reporters earlier this month that the airline had registered an increase in cancellations after the emergence of the omicron variant. Concerns over the variant sparked stricter rules forinternational travelers including the new U.S. requirement that all inbound passengers need to show proof of a negative Covid test taken within one day of departure, regardless of vaccination status.
Kirby said that cancellations were not as severe as during the delta variant of Covid in the summer.
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Zscaler Stock Down 10% After JPMorgan Chase Downgrades Stock
Shares of cloud security company Zscaler Inc. (ZS) are slipping nearly 10% on Tuesday morning after analysts at JPMorgan Chase & Co. downgraded the stock from a “neutral” rating to an “underweight” rating.
ZS is currently trading at $277.81, down $30.73 or 9.96%, on the Nasdaq. The stock has traded between $157.03 and $376.11 in the 52-week period.
According to PriceTargets.com, analysts currently have a $320.00 price objective on the stock, down from their previous price objective of $362.00.
Zscaler operates as a cloud security company worldwide. The company provides Zscaler Internet Access solution that provides users, servers, operational technology, Internet of Things device secure access to externally managed applications, including software-as-a-service applications and Internet destinations. Zscaler Private Access solution, which is designed to provide access to managed applications hosted internally in data centers, and private or public clouds.