Job gains in April fail to pass the 200,000 benchmark for the second consecutive month. Read about this and more of the day's top business news stories.
Microsoft Considering Bid for Salesforce
Bloomberg reports that Microsoft is interested in acquiring cloud computing company Salesforce.com one week following a report that the company was fielding bids for a potential takeover. Citing "people with knowledge of the matter," the Bloomberg report said Microsoft is weighing the bid after another unidentified buyer stepped forward. Both companies have yet to start talks on a possible deal. Under Microsoft CEO Satya Nadella, cloud computing has become a growth area for the tech giant. Last month, Microsoft, valued at $385 billion, said commercial cloud revenue grew 106 percent to $6.3 billion for the quarter ended in March. The commercial cloud business, driven by products such as Office 365, Azure and Dynamics CRM Online, contributed to half of all of Microsoft's commercial revenue during the quarter, the company said.
Private Sector Employment Increases by 169,000: ADP
Private sector employment increased by 169,000 jobs from March to April, according to the April ADP National Employment Report. Payrolls for small business with less than 50 employees increased by 94,000 jobs in April, down from 105,000 in March. Employment among companies with 50-499 employees increased by 70,000 jobs, up from 64,000 the previous month. Companies with more than 1,000 employees added 5,000 jobs, up slightly from 4,000 the previous month. This is the second consecutive month that job gains came in under 200,000. The ADP report anticipates the government’s closely-watched employment report to be released Friday. Last month’s report showed the number of jobs created was the lowest amount since December 2013.
Faulty Towers: IRS Issues Billions in Questionable Education Tax Credits.
The Internal Revenue Service potentially issued billions of dollars in faulty education tax credits in one year to taxpayers who didn't qualify, according to a report released Tuesday by the Treasury Inspector General for Tax Administration, a government watchdog group. An IRS audit estimates that the $5.6 billion in faulty credits to about 3.6 million taxpayers filing 2012 tax returns, USA TODAY reports. The IRS says it identified 1.8 million questionable education credit returns for the same year, or half of what TIGTA found. The IRS issued credits to more than two million people without receiving a tuition statement from the school, the report says. Others who received credits attended ineligible schools, were claiming the credit more than four years, or weren't enrolled in enough classes to qualify.
Service Industry Index at 5-Month High
The Institute for Supply Management said Tuesday that its services index rose from 56.5 in March to to 57.8 in April, the highest level since last November, Any reading over 50 indicates that service providers are expanding. The ISM is a trade group of purchasing managers. Its survey of services firms covers businesses that employ 90 percent of the American workforce, including retail, transportation, banking, real estate, construction, health care and financial services companies. Americans increased their spending in April, the ISM report noted. A measure of sales jumped 4.1 points to 61.6, also a five-month high.
One-Tenth of American Consumers Have No Credit History
About 26 million American adults have no credit histories, according to a study released Tuesday by the Consumer Financial Protection Bureau. These so-called “credit invisibles” have no histories with national credit reporting agencies such as Equifax, Experian and TransUnion. An additional 19 million have credit reports that are so limited or out of date that they are unscorable. In other words, 45 million American consumers are living without credit scores. Blacks and Hispanics were significantly more likely to be without a credit score, the study found, with a 15 percent rate of credit invisibility, compared to 9 percent for whites. Younger adults were also among those more likely to be credit invisible or not have their credit record scored, largely because they had had no time to establish a credit history.
Pizza Hut Testing Delivery
Don’t mess with Texas; especially their pizza delivery. Pizza Hut is rolling out a delivery test at 75 Dallas-Fort Worth locations next month, USA TODAY reports. Pizza Hut Nav (short for navigation) will allow customers to track their delivery drivers -- and their pizzas -- on a map from the time of order until the driver shows up on their street. Pizza Hut’s announcement comes one day after McDonald's announced that it, too, is about to launch a delivery test at 88 McDonald's restaurants in Manhattan, Queens and Brooklyn.