Worrying Signs For Labor Market, Tech Rout Still Sinking Stocks, More

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What are the worrying signs for the labor market?

Amy Morris 0:00
The UK stands apart as a place to do business, not because of one advantage, but many working together. Over £10 trillion in capital, four of the world's top universities, a 10-year industrial strategy in action, its stability with dynamism, global reach with local depth. It all adds up to greater growth. Find out more at business.gov.uk slash growth. News when you want it with Bloomberg News Now. I'm Amy Morris. Another worrying sign for the labor market. More people filed for unemployment last week than economists expected. Bloomberg's Michael McKee.
Michael McKee 0:40
A big jump in jobless claims last week to 231,000. The initial claims four week moving average is at 212,000. And the continuing claims number rises as well to 1,844,000. So jobless claims up last week.
Amy Morris 1:01
Bloomberg's Mike McKee reports the massive snowstorm in the south and east coast last week could have affected those numbers. And the outplacement firm Challenger Gray & Christmas released its report on job cut notices this morning. 108,435 job cuts for January. That's the highest January total since 2009. And Jolt's data came in lower than expected. The layoffs level was higher than forecast. U.S. job openings fell to its lowest level in more than five years to 6.5 million in December. That's the lowest since September of 2020. A knockoff version of Novo Nordisk's weight loss pill is already on the market. Launched by telehealth firm Hims and Hers Health, Hims will offer its copycat pill starting at $49 at the first month, then $99 every month for those who sign up for a five-month subscription.
Amy Morris 1:52
Compare that to Novo's price of $149 a month. Novo Nordisk's share is now down nearly 8% and Eli Lilly's share is down more than 6%. Bitcoin tumbled below $70,000 as negative momentum deepened across cryptocurrencies, hitting its lowest level since November of 2024, now down about 45% from its October high. Bitcoin shares now down about 7%. And the week-long sell-off in technology stocks and cryptocurrencies shows no signs of slowing down. Wedbush Securities Managing Director Dan Ives.
Dan Ives 2:27
I'm hearing from clients I haven't heard from in a decade. They're that...

How have jobless claims changed recently?

Dan Ives 2:32
Panicked and nervous not to explain some of these sell-offs. This is one, it is a massive, it's a structural sell-off in software that's unlike anything in terms of just core structural that I've ever seen.
Amy Morris 2:44
And we check markets for you all day long here at Bloomberg. The S&P 500 down 0.8%, NASDAQ down 0.9%, the Dow is down 0.75%. The Russell 2000 index down six-tenths of a percent. The 10-year Treasury yield at 4.21 percent. The two-year yield at 3.49 percent. A sharp drop for Google's parent company, Alphabet, is pulling stocks lower. Alphabet shares now more than 3 percent lower after it reported a stronger profit, but also said it would spend more than expected on AI technology. Democratic Senator Elizabeth Warren says President Trump's choice of Kevin Warsh to lead the Fed is, quote, dangerous and she'll oppose it.
Elizabeth Warren 3:24
Now he wants to appoint his man who's going to do exactly what he says at the Fed. And that's a takeover. And there are a lot of folks who know just how dangerous that would be, not just for our economy, but for American families who will end up doing the bailouts, paying the higher interest rates.
Amy Morris 3:43
Later, Warren asked Treasury Secretary Scott Besant if he could guarantee that the president would not sue Warsh if he decides not to lower rates.
Elizabeth Warren 3:51
Can you commit right here and now that Trump's Fed nominee, Kevin Warsh, will not be sued, will not be investigated by the Department of Justice if he doesn't cut interest rates exactly the way that Donald Trump wants?
Scott Besant 4:07
I... That is up to the president. Can you commit that you will not hold up?
Elizabeth Warren 4:13
I'm sorry, you can't say that he won't be sued if he doesn't drop interest rates?
Amy Morris 4:18
Besant was in his second day of testimony on Capitol Hill, delivering the annual report of the Financial Stability Oversight Council before the Senate Banking Committee. The Trump administration has announced changes to the way federal workers are classified.

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