📊 Gangbusters: U.S. Jobs & Meta

▪️ Earnings Today: McDonalds, Caterpillar, Vertex, Estee Lauder, Palantir, Tysons (calendar below)

▪️ Economic Data: ISM & PMI today. Generally a relatively light week on the economic release front. (calendar below)

▪️ Fed Speak This Week: Bostic (Mon), Mester (Tues), Kugler (Wed), Barkin (Wed), Bowman (Wed), Barkin (Thurs),

▪️ Bond traders are recalibrating their expectations for Federal Reserve interest rate cuts following robust January job growth and Fed Chair Powell's recent comments. Despite anticipation of eventual rate cuts as inflation eases, the strong job market and Powell's cautious stance challenge the narrative of aggressive Fed easing, driving Treasury yields up and strengthening the dollar.

▪️ The U.S. economy surpassed expectations by adding 353,000 jobs in January, keeping the unemployment rate steady at 3.7% and showing strong wage growth. This robust job market performance, marked by widespread job gains across various sectors, could influence the Federal Reserve's interest rate decisions, tempering expectations for imminent cuts.

▪️ Oil prices edged higher as tensions escalated following US strikes against Houthi forces, with Brent crude trading under $78 a barrel and West Texas Intermediate below $73. The increase counters last week's significant drop, influenced by potential Israel-Hamas conflict resolution talks, robust OPEC output, and high US production levels.

▪️ Amid a mixed economic outlook and political implications, Big Tech, led by upbeat earnings from Meta and Amazon, is making a comeback, challenging the notion of a 'vibecession.' Apple, despite its woes including a drop in valuation and lukewarm product reception, remains influential in shaping technology and consumer habits.

▪️ Tony Spring, Macy's incoming CEO and former leader of Bloomingdale's, faces the daunting task of rejuvenating the 166-year-old Macy's , an iconic retailer grappling with changing consumer trends, increased competition, and internal challenges. Amid declining sales and a market cap of $5.11 billion, Spring's focus will be on curating strong brands, enhancing store experiences, and appealing to younger demographics.

▪️ Boeing faces delays in the delivery of about 50 737 jets due to incorrectly drilled rivet holes, adding to its recent string of manufacturing challenges. This quality-control issue, not deemed an immediate flight safety concern, is prompting increased scrutiny from the Federal Aviation Administration and a reevaluation of supplier and production practices.

Today’s earnings releases listed below. Full list for the week is here

Friday’s Results

Upcoming Releases

Relatively light week on the economic data front. That said, Fed speak should provide some additional volatility to make up for it. Full calendar of events here

“Act as if what you do makes a difference. It does.”
William James