US stocks breathe a sigh of relief after Janet Yellen walks back rate-hike talk

By CNN Business

Updated 6:54 p.m. ET, May 5, 2021
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8:24 a.m. ET, May 5, 2021

ADP employment report falls short of expectations

From CNN Business' Anneken Tappe

Another 742,000 private payroll jobs were added back to the economy in April, according to the ADP Employment Report.

Even though that was an impressive jump from the revised 565,000 jobs added in March, it still fell short of economists' expectations. Consensus forecasts had called for 800,000 jobs in April.

The job gains were split rather evenly across small, mid-sized and large companies but were overwhelmingly skewed to the services sector. The leisure and hospitality industry alone added 237,000 jobs, the most of any single industry.

As usual, the ADP report precedes Friday's official government jobs report for which economists expect 978,000 jobs added. The two reports aren't correlated and based on different surveys. Still, the ADP report is considered to set the tone for the employment stats at the end of the week: The recovery keeps roaring on, even if it does so at a slightly slower pace.

6:39 a.m. ET, May 5, 2021

New homes cost $36,000 more because of an epic shortage of lumber

From CNN Business' Matt Egan

As the pandemic crushed the US economy last spring, sawmills shut down lumber production to brace for a housing slump. The slump never arrived and now there isn't enough lumber to feed the red-hot housing market.

The shortage is delaying construction of badly needed new homes, complicating renovations of existing ones and causing sticker shock for buyers in what was already a scorching market.

Random-length lumber futures hit a record high of $1,615 on Tuesday, a staggering sevenfold gain from the low in early April 2020. That's a big deal because lumber is the most substantial supply that home builders buy.

I've never seen anything quite like this," said Brant Chesson, the president and CEO of Homes By Dickerson, a Raleigh, North Carolina-based home builder.

Read more here.

6:35 a.m. ET, May 5, 2021

Yellen walks back Fed comments and US stock futures inch higher

From CNN Business' Jordan Valinsky

US stock futures were higher Wednesday after Treasury Secretary Janet Yellen walked back earlier comments that the Fed may have to raise rates as the economy heats up. 

Stocks fell Tuesday after Yellen said interest rates will have to head north to prevent the economy from overheating. As a former Fed Chair, investors viewed Yellen's comments as inside info.

But later in the day, Yellen said the Fed is independent, and she was not trying to influence Chair Jerome Powell's decision-making. She said she was neither making a prediction or a recommendation. That seemed to calm investors' nerves.

Here's where things stand as of 6:15 am ET:

6:19 a.m. ET, May 5, 2021

Krispy Kreme files IPO paperwork

From CNN Business' Danielle Wiener-Bronner

Krispy Kreme is preparing to go public — again.

The doughnut company said on Tuesday that it has confidentially filed paperwork related to a public offering of its stock with the Securities and Exchange Commission.

The number of shares that will be offered and their price range has not been determined, the company said, adding that the IPO is expected to happen after the SEC completes its review.

Read more here.

6:21 a.m. ET, May 5, 2021

Ethereum is leaving bitcoin in the crypto dust

From CNN Business' Paul R. La Monica

Hunter S. Thompson once wrote, "There is nothing in the world more helpless and irresponsible and depraved than a man in the depths of an ether binge." He was referring to the intoxicating drug, not the cryptocurrency.

But ethereum investors may have reasons for fear and loathing, too.

The world's second-most valuable cryptocurrency has soared even more than bitcoin (XBT) in 2021 thanks to non-fungible token mania and increased adoption of ethereum — ether, for short.

Read more here.