Friday's market action tells a lot about what's currently going on
1) US large-caps equities index recorded strong gains ($SPX +1.07%; $NDX +1.69%) thanks to huge advance by $META (+20%) and $AMZN (+7%); 2) Underneath the surface, there is some selling taking place - the S&P 500 equally weight is DOWN -0.08% on the day. We need to see decent market breath for the equity bull market extend as the mag7 (or rather the "mag 4" as leadership is even more narrow than in 2023) will not be able to carry the market forward for ever... Source: Bloomberg
Chinese stocks
Source: Ayesha Tariq, CFA
Mentions of Job Cuts in Earnings Calls Hits Pandemic Peak
Layoffs are being mentioned on US earnings calls at the HIGHEST rate since the pandemic, according to Bloomberg. Source: Bloomberg, Genevieve Roch-Decter, CFA
Nice cartoon by hedgeye...
Let see how long Powell will resist not cutting rates... Trump seems to have already decided about his faith anyway...
Zuck (meta) vs. Musk (Tesla)
Remember the cage match story ? 😏 Source: carl Quintanilla
Tether 2023 net income put into perspective
Unlike the banking giants who employ thousands of people, the number of employees at Tether is (officially) 125.
BREAKING: US NFP at 353k way above the estimated 185k, Wages came in hotter than expected +4.5% YoY vs +4.1% expected.
The December jobs report has been revised UP, showing 333,000 jobs added rather than the 216,000 originally reported. This breaks a 10-month trend of downward revisions in the reported jobs number. Meanwhile, average hourly earnings in January rose 0.6%, DOUBLING expectations. Unemployment rate held flat MoM at 3.7% (the Street was anticipating 3.8%). Note that according to the Household survey, the number of employed people dipped by 31k MoM, so US Non-farm-payroll report is not as hot as at 1st sight. Source: Bloomberg, HolgerZ
The Fed's balance sheet is now at its lowest level since March 2021, down $1.3 trillion from its peak in April 2022.
How much more QT is needed to unwind the massive QE from March 2020- April 2022? $3.5 trillion. Source: Charlie Bilello
