The Buzz on Business for Friday, February 2nd, 2024

Three of the Magnificent Seven companies reported earnings after the bell on Thursday. Facebook parent Meta, Amazon, and Apple all exceeded expectations. Meta blew their number out of the water. Apple, after exceeding expectations, is trading down in the overnight market.

Stock Market Report

Stocks rallied to gain back most, if not all, of what they lost on Wednesday. Lots of big green numbers all up and down the Giant Quote Machine on Thursday.

• The Dow Jones Industrials were up one full percentage point. That's 370 points, and they closed at 38,520.
• The Standard and Poor's 500 was up 1 1/4%, that sixty-one points, and they closed at 4,906.
• The NASDAQ Composite was up 1.3%, that’s 198 points, and it starts the day today at 15,362.
• The Russell 2000 was up 1.1%. Not too bad, it closed at 1,972, up 22 points.
• The RSP was up 1.2%
• The SOXL was up. 1.1% on the session.

Bond Market Report

Interest rates were mixed. But mostly lower at the longer end of the curve.

• The 2-year treasury closed at 4.211%. That's off two basis points.
• The yield on the 20-year was off one tick and closed at 4.221%.

The 2-year/20-year spread looks to be in danger of inverting again.

Oil, Gold, and Bitcoin

• About a month ago, we said that oil looked to be in rally mode. We were wrong. Oil was off again, and the chart has really broken down. It closed at $73.84, off $1.94
• Gold was up $3.70, and a troy ounce will now set you back $2,071.10
• Bitcoin was also up on the day, almost a full percent. It closed at 42,971, up $391.

Labor Market Weakens? More Data Out Today.

We wish we had some witty or insightful explanation for the reversal of Wednesday’s sell-off yesterday. But we don't, except to say, “Overreaction, anyone?!”

We did get some economic news before the opening bell, and it seemed to imply a just bit of weakness, which may have convinced traders that the Fed will have room to cut rates sooner as opposed to later.

Initial jobless claims came in at 224,000 versus expectations of 213,000 and 215,000 last month. So they disappointed directionally and versus expectations. Continuing claims likewise exceeded expectations. They came in at 1.898 million versus an expectation of 1.840 million.

The labor market has been strong and is surely one of the reasons the Fed has hesitated to cut rates. On the other hand, the S&P Global US Manufacturing Purchasing Managers Index came in above 50. That means manufacturing is expanding. The news from the manufacturing sector has been, well, better lately after two years of moribund numbers.

This morning, we get the rest of the labor market complex, including nonfarm payrolls, the labor force participation rate—our favorite statistic—and the unemployment rate for January. All of it could move today’s markets, especially given all of the volatility this week.

Everyone here at the Ministry of Truth will be going through all of the numbers with a fine-toothed comb throughout the day today so we can report it all to you. Tomorrow on the Buzz.