Weekly Market Reap:

This week, U.S. equities moved lower, marking the second consecutive week of declines for the S&P 500 (-0.24%), Nasdaq (-0.53%), and Russell 2000 (-0.35%). The Dow (-0.54%) also finished in the red. Big tech stocks struggled, with Alphabet (-9.2%) and Amazon (-3.6%) dropping post-earnings. Other laggards included autos, homebuilders, asset managers, and apparel. Outperformers were staples retailers, cybersecurity, industrial metals, and pharma/biotech. Treasuries were mixed, the dollar index fell (-0.3%), gold hit another record high (+1.9%), and WTI crude dropped (-2.1%).

Corporate Highlights:

• Amazon (AMZN -3.6%): Strong margins, weak Q1 guidance.

• Alphabet (GOOGL -9.2%): Earnings beat, cloud growth slowed.

• Eli Lilly (LLY +8.3%): Met expectations, Mounjaro pricing a concern.

• Palantir (PLTR +34.4%): Surged on strong government business.

• Philip Morris (PM +10.9%): Beat on pricing and volume mix.

• Uber (UBER +11.6%): Mobility and delivery outperformed.

Sector Performance:

Outperformers: Consumer Staples (+1.55%), Real Estate (+1.26%), Energy (+0.99%). Underperformers: Consumer Discretionary (-3.58%), Communication Services (-2.12%), Industrials (-0.80%). Markets weighed new tariffs as Trump softened stance on North America. Focus shifts to CPI, PPI, Powell’s testimony, and key earnings from Coca-Cola, Cisco, McDonald's, and Deere.

The January jobs report revealed a labor market that remains surprisingly resilient despite economic uncertainty. The unemployment rate dropped to 4%, its lowest level since May 2024, signaling continued strength in hiring. While job gains for January came in at 143,000, below the expected 170,000, the upward revisions for November and December added 100,000 more jobs than initially reported, painting a more optimistic picture. Wage growth also came in stronger than forecast, rising 4.1% year-over-year and 0.5% month-over-month, exceeding economist expectations. This increase suggests that workers continue to see higher paychecks, which could sustain consumer spending but also complicate the Federal Reserve’s inflation fight. With labor force participation ticking slightly higher to 62.6%, more people are re-entering the workforce, adding to the overall stability of the job market. Despite signs of cooling, the labor market is not deteriorating rapidly. Layoffs remain low, supporting the Fed’s narrative of a broadly stable employment environment. However, the report likely pushes back expectations of an imminent rate cut, with market predictions now leaning toward the Fed holding rates steady at least through May. For workers, job security remains strong, but hiring has slowed. As Fed Chair Jerome Powell noted, if you have a job, it is all good. But if you have to find a job, the job-finding rate has come down. Moving forward, the labor market’s trajectory will be closely watched for signs of further cooling or sustained strength.

What to watch:

Notable Earnings:

• Monday (2/10)

  • McDonald's Corp. ($MCD)

  • ON Semiconductor Corp. ($ON)

• Tuesday (2/11)

  • Humana Inc. ($HUM)

  • Shopify Inc. Cl A ($SHOP)

  • Marriott International Inc. ($MAR)

• Wednesday (2/12)

  • CVS Health Corp. ($CVS)

  • Kraft Heinz Co. ($KHC)

• Thursday (2/13)

  • Unilever PLC ADR ($UL)

  • Hyatt Hotels Corp. ($H)

  • Wendy's Co. ($WEN)

• Friday (2/14)

  • Crocs Inc. ($CROX)

  • PG&E Corp. ($PCG)

Notable Ex-Dividend Dates:

• Monday (2/10)

  • Apple ($AAPL) 0.42%

  • International Business Machines ($IBM) 2.92%*

• Tuesday (2/11)

  • ASML ($ASML) 0.93%

  • Visa ($V) 0.69%

• Wednesday (2/12)

  • Exxon Mobil ($XOM) 3.70%

  • Target ($TGT) 3.29%*

• Thursday (2/13)

  • TJX Companies ($TJX) 1.19%

  • ResMed ($RMD) 0.90%

• Friday (2/14)

  • 3M ($MMM) 1.92%*

  • Chevron ($CVX) 4.58%*

  • Eli Lilly and Company ($LLY) 0.75%

*Dividend Aristocrat