The daily business briefing: March 8, 2019
U.S. employers added just 20,000 jobs in February but wages rose, Costco shares surge after profits beat expectations, and more


1. U.S. gained 20,000 jobs in February, smallest increase in 17 months
U.S. employers added just 20,000 jobs in February, the smallest increase in 17 months, the Labor Department reported Friday. The increase fell far short of the expected gain of 172,000. The February figure represented a significant drop from the surprisingly large gain in January, which was initially reported at 304,000 but adjusted up to 311,000 on Friday. The unemployment rate fell to 3.8 percent from 4.0 percent in the previous month. The tight labor market prompted companies to raise pay and benefits to recruit and keep workers, with average earnings rising 11 cents to $27.66 an hour. The yearly pay increase climbed to 3.4 percent from 3.2 percent, the largest jump since the end of the recession in 2009.
2. Costco shares jump after profits beat expectations
Costco shares surged by 5 percent in extended trading on Thursday after the warehouse club reported quarterly earnings that beat Wall Street's expectations. Costco posted revenue of $35.40 billion, just under the Refinitiv estimate of $35.67 billion, but earnings per share came in at $2.01, beating the Refinitiv estimate of $1.69. Costco's margins got a boost from a drop in gas prices and lower-cost sourcing. The company also said pricing pressure on its groceries business had eased. Same-store sales increased 5.4 percent, just under the 5.6 percent expected, while e-commerce sales rose by 24 percent.
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3. Stocks fall further after China reports plunging exports
U.S. stock index futures fell early Friday, pointing to a lower open after four straight days of losses. Futures for the Dow Jones Industrial Average were down by 0.8 percent, while those of the S&P 500 and the Nasdaq fell by 0.7 percent and 0.9 percent, respectively. The declines came after the Labor Department reported smaller-than-expected February employment gains, and China reported a 20 percent drop in monthly exports, adding to signs of slowing global economic growth. On Thursday, the Dow and the S&P 500 dropped by 0.8 percent, while the Nasdaq Composite lost 1.1 percent. Investors are still waiting for the U.S. and China to announce a deal to end their trade war.
4. U.S. households' net worth fell in late 2018
Americans' net worth fell by 3.4 percent in the fourth quarter of 2018, the biggest drop since the 2008-2009 financial crisis, according to data the Federal Reserve released Thursday. Due largely to falling stock prices, overall net worth dropped by $3.73 trillion from the third quarter to $104.3 trillion. Stock losses caused a $4.6 trillion drop in equity value, which was offset by a $300 billion increase in real estate value and other factors. The overall quarterly decline was the second biggest since the U.S. central bank started tracking the statistic. Household net worth is still up by 73 percent since 2009, and stocks rebounded strongly in the first two months of 2019.
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5. Disney opening Star Wars land ahead of schedule
Star Wars: Galaxy's Edge, the new 14-acre Star Wars theme park area, will open at Disneyland in California on May 31, while the opening at Florida's Disney World will be August 29, Disney said on Thursday. This is earlier than previously anticipated, as Disney had said the opening date would be in the summer for California and in the fall for Florida. Disney Parks on Thursday said the attraction is "debuting early because of high guest interest." The California park will "open the land in phases," taking reservations for early June guests and opening one ride at a later date. Galaxy's Edge will allow fans to build lightsabers, pilot the Millennium Falcon, and eat and drink Star Wars-themed food and beverages.
Harold Maass is a contributing editor at The Week. He has been writing for The Week since the 2001 debut of the U.S. print edition and served as editor of TheWeek.com when it launched in 2008. Harold started his career as a newspaper reporter in South Florida and Haiti. He has previously worked for a variety of news outlets, including The Miami Herald, ABC News and Fox News, and for several years wrote a daily roundup of financial news for The Week and Yahoo Finance.
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