1) General Motors is eliminating 700 factory jobs in Tennessee as a result of low sales, which they are blaming on the Convid-19 crisis. This is the third shift at their Spring Hill assembly plant, leaving 3,000 workers still employed. This plant makes Cadillac XT5 and XT6 SUVs plus the GMC Acadia. This is another sign of the weakness in auto demand, a result of record job loss coupled with people working at home and therefore putting less wear on their old cars. The GM plant for building truck engines remains unchanged, since they were working just two shifts to start with.
2) The nation wide retailer Macy’s is cutting nearly 4,000 corporate jobs, about 3% of its overall workforce. The pandemic has taken a toll on the department store chain, just like so many other traditional chain retailers. This move will save the company about $630 million dollars per year, amid a quarterly net loss of $652 million dollars. Macy’s was struggling long before the pandemic because of competition from lower priced retailers such as Walmart, T.J. Maxx and Target.
3) The U.S. GDP (Gross Domestic Product) shrank by 5% for the first quarter, compared to an increase in the previous quarter of 2.1%, prior to the coronavirus pandemic onset. This drop is attributed to a decrease in personal consumption expenditures (PCE) because people are spending less. The real gross domestic income decreased 4.4% as compared to a 3.1% increase in the fourth quarter of last year.
4) Stock market closings for – 25 JUN 20:
Dow 25,745.60 up 299.66
Nasdaq 10,017.00 up 107.84
S&P 500 3,083.76 up 33.43
10 Year Yield: down at 0.67%
Oil: up at $39.18