Procter & Gamble to cut 7,000 jobs, exit brands
Procter & Gamble will cut 7,000 jobs over the next two years, as the Tide detergent maker contends with an uncertain spending environment, fueled in part by U.S. tariffs.
U.S. stocks closed higher, with the broad S&P 500 piercing the 6,000 level for the first time since February, after a better-than-expected monthly jobs report and hopes for a trade deal with China.
The U.S. and China are set to have talks next week in London, President Donald Trump said in a social media post. This announcement comes after Trump and Chinese President Xi Jinping spoke earlier this week for the first time since Trump took office. Investors hope this is a sign recently chilly relations are thawing again and will lead to a permanent trade deal. Trump recently accused China of violating terms of a tariff pause agreed to in Switzerland last month.
Earlier, stocks got a boost after the Labor Department said the economy added 139,000 jobs in May, topping the average economist forecast for 130,000. The unemployment rate was 4.2%, as expected. The May report is the first full month of data since Trump announced his aggressive tariff plans on April 2, and investors were keen to see if the rollercoaster ride had affected the labor market.
“It was evident in this morning’s print that tariff uncertainty has yet to meaningfully grind payroll growth lower, with the impact of the current policy backdrop on employment limited to trade-reliant sectors,” said Michael Reid, senior U.S. economist for Royal Bank of Canada.
The blue-chip Dow added 1.05%, or 442.88 points, to 42,762.62; the S&P 500 jumped 1.03%, or 61.02 points, to 6,000.32; and the tech-heavy Nasdaq gained 1.20%, or 231.50 points, to 19,529.95. All three indexes posted gains for the week.
The benchmark 10-year Treasury yield rose to 4.506%.
“The May jobs report is an encouraging one for the Fed,” said Bank of America U.S. economist Shruti Mishra. “We’ve been arguing that if something in the economy is going to break because of trade policy, it will happen in the near term.”
With the labor market intact and inflation still cooling, most economists predict now the Federal Reserve will keep rates steady for the foreseeable future.
Still, Trump again called for the Federal Reserve to lower interest rates. “Go for a full point, Rocket Fuel!” Trump wrote in a social media post.
Lower interest rates reduce the cost of borrowing, which encourages businesses and consumers to spend money.
Though this morning’s jobs report continued to show a stable job market, many economists still predict erosion later this year.
Coroprate news
- Docusign said billings growth was slower than expected in the first quarter, according to FactSet. Shares were off almost 19%.
- Lululemon’s cut its full-year earnings guidance, citing a “dynamic macroenvironment.” Shares fell almost 20%.
- Broadcom’s quarterly results just beat forecasts. Shares slipped 5%.
Cryptocurrency
Strategy, formerly known as Microstrategy, increased the amount of money it plans to raise in a stock offering to buy more Bitcoin.
Already, the world’s largest holder of the digital asset, Strategy said it plans to issue 11,764,700 shares of 10.00% Series A Perpetual Stride Preferred Stock at a public offering price of $85 per share. That would be nearly $1 billion in net proceeds, after deducting the underwriting discounts and commissions for the firm’s offering expenses, for “general corporate purposes, including the acquisition of Bitcoin and for working capital.”
Bitcoin was last up 2.68% at $104,319.20.
(This story was updated with new information.)
Medora Lee is a money, markets, and personal finance reporter at USA TODAY. You can reach her at mjlee@usatoday.com and subscribe to our free Daily Money newsletter for personal finance tips and business news every Monday through Friday.
