As for Bezos’ HQII in Ashburn, Virginia:
“If Bezos knew where he was going, then why did he string along the entire country wasting cities billions of dollars and time? As for settling in Virginia, there’s not much advantage as opposed to anywhere else on the East Coast.
“And what’s meant by ‘tier-one data market’? Anybody, anywhere can set up a data center. The problem will be that you can’t find enough people to work, and they will not all be high-paying jobs as advertised.
“How much more can Amazon really grow? Maybe another 10%? No way they grow another 50% in a hurry, if at all, unless they go overseas. I can tell you now that nobody’s shipping anything to Australia for free.
“The money Bezos is spending on the new HQ is not going to equal the meager future growth prospects that Amazon could achieve, unless every retailer in the country shuts down, and that’s not happening.”
Another reader believes companies like Google and Amazon have unlimited potential and Sen. Warren protests too much…
“Seems Google and Amazon have been creating new things with ever-increasing speed and creating thousands of high-paying jobs along with new ways of doing business.
“Sen. Warren, clearly no economist, should recognize these companies as creators of Schumpeter’s gales of creative destruction’ that remove the deadwood and create new growth in economies, revitalizing the economies from within.
“Sen. Warren railing against the wealthy and suggesting she’s a champion of the poor is priceless; her most recent financial disclosure indicates her net worth is greater than $6 million dollars, so I’m a bit skeptical that she can identify closely with the ‘little guy’.
“Sounds like a good playbook for getting elected.”
Your Rundown for Wednesday, June 5, 2019:
Overstating the Case for Recession?
According to a report issued by payroll processing firm ADP and Moody’s Analytics, private companies added 27,000 new jobs in the month of May — 146,000 fewer than estimated.
That’s the worst number since Mar. 2010 when jobs growth turned negative by 113,000.
“Job growth is moderating,” says economist Mark Zandi at Moody’s Analytics. “Labor shortages are impeding job growth, particularly at small companies, and layoffs at brick-and-mortar retailers are hurting.”
CNBC reports: “Indeed, the most damage came at companies with fewer than 50 employees, which reported a loss of 52,000 jobs, and in the goods-producing sector, which saw a decline of 43,000.” Among this sector, construction accounted for 36,000 jobs lost.
Weak May growth comes after a strong April of 271,000 new jobs added.
Mr. Zandi says the May ADP number probably “overstates the case” for a softening economy; in terms of job growth, what are you seeing where you live?
Market Rundown for Wed. June 5, 2019
S&P 500 futures are up 10 points to 2,813.53.
Oil is down 58 cents to $52.90 for a barrel of WTI.
Gold’s added $13.80 to its price of $1,342.50 per ounce.
Bitcoin is up $106.67 to $7,784.14.
Have a good day. We’ll talk tomorrow.
For the Rundown,