Your Weekly Blip 2/5/21

Your Weekly Blip 2/5/21

Stocks closed out the week with a 92 point gain at 31,148 on higher trading volume. For the week the Dow did well moving up over 1,100 points or 3.8%. IBD has markets listed in rally mode so its smooth sailing for now.
Home fitness company Peloton reported a 128% improvement in sales and a jump in net profits of 190%. Not bad! Shares were lower however as concerns over not being able to keep up with demand hampered the forward outlook. Peloton said it opened two more factories in Taiwan and is working on upgrading its supply chain.
The labor report for January came out today showing US employers adding only 49,000 jobs well short of expectations calling for 105,000 new jobs. The unemployment rate fell to 6.3% in part due to a drop in the labor force participation rate. The leisure, hospitality, restaurant and travel industries shed another 61,000 jobs and have lost over 4 million since the pandemic started. Sectors that added jobs were business services, professional and wholesale trade. All in all it was a weak report and will add impetus for Congress to pass a stimulus bill.
Oil prices continue to move higher as WTI crude went over $57 per barrel today. Tightening global supplies are backing a general surge of interest in oil and commodities in general as steel, copper, silver, lumber etc. all have joined the parade higher in an unprecedented fashion. Economic optimism is on the rise and gurus around the globe are starting to think the current oil and commodity rally has legs.