Non-Farm Payrolls in United States for Apr is 175K, Below Forecast

Nonfarm Payrolls grew by 175,000 in April, sharply down from the 315,000 increase seen a month earlier and the lowest level since October. The figure came below market expectations of a 243,000 increase. The reading in March got revised higher from 303k to 315k, while reading in Feb was revised down to 236k from 270k, a decrease of 34k. The unemployment rate rose to 3.9% in April, remaining below 4% for 27 consecutive months. Wages increased less than expected in April. Average Hourly Earnings rose 0.2% on the month, easing from the 0.3% rise seen in March. The average workweek was reduced to 34.3 hours, indicating a potential slowdown in economic activities.

The healthcare industry led the way in job creation, adding 56,000 jobs, followed by social assistance with 31,000 jobs, transportation and warehousing with 22,000 jobs, and retail trade with 20,000 jobs. Job growth slowed within leisure and hospitality, construction and government. Construction added 9,000 positions while government, which had shown solid gains in recent months, was up just 8,000 after averaging 55,000 over the previous 12 months. In terms of US stock market, we expect the S&P500 to maintain its momentum and fluctuate between 5,000-5,300 points.

Consumer confidence is still robust, and the labor market is stable, which is expected to support retail and consumption.

Procter & Gamble (PG.US)’s net sales in 3Q24 amounted to US$20.2 billion, up 1% YoY. Organic sales, which exclude the impacts of foreign exchange and acquisitions and divestitures, increased by 3%, driven by a 3% increase from higher pricing. In terms of business, Beauty segment organic sales increased 3% YoY, of which Skin and Personal Care organic sales declined by low single digits due to lower sales of the super-premium SK-II brand, partially offset by volume growth from innovation in Personal Care.

Grooming segment organic sales increased 10% YoY driven primarily by higher pricing in Latin America and Europe. Fabric and Home Care segment organic sales increased 3% YoY led by North American and European markets. Baby, Feminine and Family Care segment organic sales were unchanged. Health Care segment organic sales increased by 2%. P&G remained positive about its performance and raised its FY24 diluted net earnings per share growth from a range of -1% to flat to a range of 1%-2%. It is recommended to buy at US$162, target at US$189, and stop loss at US$155.

Colgate Palmolive(CL.US)’s net sales amounted to US$5.1 billion in Q1, representing a 6.2% YoY growth. Organic sales growth stood at 9.8%, with growth in all six divisions and all four categories, led by mid-teens, achieving 15-17% target growth in oral care. CL have delivered double-digit growth in operating profit, net income and earnings per share for the third consecutive quarter. Operation profit increased by 15% YoY, with operating profit margin up 170 basis points YoY.

Volume grew 1.3% in Q1, an improvement from 0.1% volume growth in 4Q23, driven by sequential improvement in North America and Europe. On a category basis, volume growth was led by home care, while oral care and personal care also delivered volume growth in Q1. Pricing was up 8.5% YoY. Excluding Argentina, pricing increased by mid-single digits. The Company is raising its net sales growth guidance to 2% to 5% (versus 1% to 4% previously)
It is recommended to buy at US$92, target at US$108, and stop loss at US$88.