US Stocks

 Applications for US unemployment insurance fell for a third week to a 2-month low, suggesting healthy demand for labour even as economic growth moderates. Initial unemployment claims decreased by 5,000 to 232,000 in the week ended Aug 27, Labour Department data on Thursday (Sep 1) showed. The median estimate in a Bloomberg survey of economists called for 248,000 new applications. Continuing claims for state benefits rose to 1.44 million in the week ended Aug 20 from 1.41 million. The level of first-time claims, in addition to a still-low number of Americans already on unemployment benefit rolls, underscores tightness in the broader labour market. A separate report on Tuesday showed that job openings surged in July, near the highest level on record. “These timely data show that labour market conditions are not weakening dramatically, with lay-offs not yet picking up in a sustained way in response to Fed tightening,” Rubeela Farooqi, chief US economist at High Frequency Economics, said in a note. 

Amazon.com introduced a new service on Wednesday (Aug 31) to help its sellers store bulk inventory and ease distribution to tackle supply chain issues, the company said in a blog post. In 2023, sellers will be able to use the new service called Amazon Warehousing & Distribution (AWD) to send their inventory to any location, including to wholesale customers or brick-and-mortar stores, the online retailer said. The pay-as-you-go service will also help sellers significantly cut logistics costs, the e-commerce platform said, without disclosing specifics. “Amazon Warehousing & Distribution addresses critical supply chain challenges and helps sellers grow and manage their business while significantly cutting costs,” Gopal Pillai, vice-president of Amazon Distribution and Fulfilment Solutions, said in the blog post. The development comes after Amazon said that it has started slowing warehouse openings to rein in costs.

3M plans to eliminate jobs as part of a broader cost-cutting drive in response to the slowing economy, according to internal communications. Michale Vale, head of 3M’s safety and industrial division, disclosed the plans in a message to employees of the unit. “The business can’t avoid this tough necessity,” he said in the communication, which was reviewed by Bloomberg News. The scope of the cuts couldn’t be immediately determined. 3M, which makes everything from dental adhesives to Post-it notes, employed about 95,000 people at the end of 2021, according to securities filings. “3M is taking decisive actions to position the company for continued growth, while also adjusting to the challenging macroeconomic environment,” the company said in a statement, without being more specific. “As we prioritise our investments and resources, we will be adjusting on an ongoing basis the roles and responsibilities needed for future growth.” 3M has underperformed in recent years amid supply-chain snags, currency fluctuations and rising costs. The company said in July it will spin off its healthcare operation, which accounted for almost a quarter of sales. Management also cut its full-year sales and profit outlook.