U.S. labor costs in the second quarter recorded their smallest increase in 33 years as workers earned less in commissions and bonuses, in what appeared to be a temporary wage growth setback against the backdrop of diminishing labor market slack. The surprisingly smaller rise reported by the Labor Department on Friday did little to temper expectations that the Federal Reserve is set to raise interest rates later this year. The job market is fast approaching full employment.
All three major indexes were poised to end the month higher as earnings reports pushed global concerns to the background. Exxon Mobil shares fell 3.5 percent to $80.12 while Chevron was down 3.9 percent at $89.43 after quarterly profits slumped on falling oil prices.
Weak oil prices shriveled quarterly profit at Exxon Mobil Corp and Chevron Corp , compelling both companies to rethink operations and plan for what many expect to be a sustained period of cheap crude. Earnings at Exxon and Chevron, two of the world's largest oil producers, also missed analysts' expectations, adding to concerns that perhaps executives had not acted quickly enough to mitigate the impact of an over-50-percent drop in oil prices since last summer.
Brokers such as Coyote Logistics and XPO Logistics Inc have reported rapid revenue growth in the past few quarters as the demand for trucks jumped due to widespread bottlenecks on rail networks. "This deal shouldn't move the needle at UPS, but could support shares of smaller brokers near-term by driving further consolidation speculation," Susquehanna Financial Group analyst Bascome Majors wrote in a note on July 22, when Bloomberg reported of a possible UPS-Coyote Logistics deal. Third-party logistics providers have recently been snapped up in a series of deals, including XPO Logistics' purchase of France-based Norbert Dentressangle SA and Goldman Sachs' acquisition of Neovia Logistics LLC.
The cybersecurity issues that led Fiat Chrysler Automobiles NV to recall 1.4 million vehicles this month could pose a problem for cars and trucks from other automakers, the top U.S. auto safety regulator said on Friday. Mark Rosekind, who heads the National Transportation Safety Administration, said his watchdog agency is trying to determine how many car makers received wireless components from the same company that supplied Fiat Chrysler. “The supplier didn’t just supply radios to Chrysler but to a lot of other manufacturers," Rosekind told reporters.