—— US Job Openings Hit 3-Year Low; NYPD Arrests 100+ Student Protesters; Starbucks Reports First Sales Drop; Bitcoin Falls to Multi-Month Low; AMD Misses Forecast; CVS Plunges 20%; Crude Inventories Hit 10-Month High
1. US Job Openings Hit 3-Year Low
According to data released today by the U.S. Bureau of Labor Statistics, job openings in March fell to 8.49 million—the lowest in three years—missing nearly all economists’ expectations.
The numbers show cooling demand in the labor market, which is considered a positive signal for the Federal Reserve as it looks for more evidence to support interest rate cuts.
The voluntary quit rate fell to 2.1%, the lowest since August 2020, suggesting people are less confident about finding new jobs.
There are now 1.3 job openings per unemployed person, matching the low seen in August 2021.
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2. NYPD Arrests 100+ Student Protesters
Today, NYPD Chief of Patrol John Chell told reporters that police arrested 282 protesters involved in pro-Palestinian demonstrations, including 119 at Columbia University and the rest at the City University of New York. Authorities are still verifying how many were students versus outsiders.
The demonstrations, which began on April 18, oppose Israel’s actions in Gaza and demand Columbia divest from companies supplying weapons to Israel.
Columbia University President Minouche Shafik has authorized police to maintain order on campus through May 17.
Around 11:40 p.m., university staff cleared tents and supplies from campus protest sites.
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3. Starbucks Reports First Sales Drop
On Tuesday evening, Starbucks released quarterly earnings and announced it would lower full-year revenue growth expectations. EPS is expected to remain flat.
Same-store sales fell 4% last quarter—the company’s first decline since 2020. In China, same-store sales fell an even steeper 11%.
CFO Rachel Ruggeri noted that an unusually cold January hurt foot traffic and that consumers are being more cautious with spending.
All major metrics missed expectations last quarter, prompting some analysts to downgrade the stock.
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4. Bitcoin Falls to Multi-Month Low
Bitcoin dropped as much as 5.6% today, hitting its lowest level in two months.
On Tuesday, BlackRock’s iShares Bitcoin Trust fell to a 1.7% discount relative to net asset value—its widest since launch in January.
Bloomberg ETF analyst James Seyffart said that such discounts are concerning, as ETF prices typically stay within 1% of NAV. Several Bitcoin ETFs have now fallen beyond that range.
Bitcoin ETFs are much more volatile than traditional ETFs and may not suit most investors.
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5. AMD Misses Forecast
On Tuesday, chipmaker AMD released earnings and forecasted that its MI300 AI chip line would generate $4 billion in revenue this year. That’s slightly above prior guidance of $3.5 billion but far below investor expectations of $8 billion.
AMD is seen as a potential challenger to Nvidia, but CEO Lisa Su said supply constraints remain the biggest hurdle, as the industry faces ongoing shortages.
Intel, though it has higher total revenue, expects just $500 million in AI chip sales.
AMD shares dropped as much as 8.1% today after delivering forecasts that disappointed investors.
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6. CVS Plunges 20% on Lowered Guidance
CVS said today that its adjusted EPS for this year will likely be $7—down from a previous estimate of $8.30. The company also cut operating cash flow guidance by $1.5 billion to $10.5 billion.
The biggest challenge facing CVS is rising medical costs, which are squeezing margins in its health insurance business.
CVS has now lowered earnings guidance for two straight quarters. Shares plunged as much as 20%—its biggest drop in nine years.
Year to date, the S&P 500 is up 5.2%, while CVS is down 29%.
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7. Crude Inventories Hit 10-Month High
The U.S. Energy Information Administration reported that crude oil inventories rose by 7.3 million barrels for the week ending April 26, reaching 460.9 million barrels—the highest level since last June. Economists had expected a decline of 1.1 million barrels.
Amid oversupply concerns, Brent crude fell to $83.63 per barrel, and West Texas Intermediate (WTI) dropped 3.5% to $79.09.
Falling oil prices are expected to help ease inflation.
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This content is sourced from Financial Times, Bloomberg, and The Real Deal, among other financial news outlets.