Your Weekly Blip 2/7/22

Your Weekly Blip 2/7/22

The Markets,
Stocks continue Feb a roller coaster ride. Today the Dow finished up 1 point at 35,091 after being down almost triple digits and then being up almost 200 points. It’s like watching a pogo contest. Tech stocks continue to struggle while value plays like banks, energy and materials hold the line. Last week the Dow had a net positive gain of 1% or 350 points and IBD currently shows markets in rally mode but as I said…..the volatility is crazy as earnings, Fed tightening, covid and fears of conflicts hit the news wires.
The Economy and Earnings
The January labor report showed an increase of 467,000 jobs far outpacing estimates calling for a gain of 120k jobs. Fears of a covid related drop in job numbers failed to materialize but the surprise reading was somewhat due to new seasonal adjustment factors that the Bureau of labor statistics made in their reporting system over the past year. The unemployment rate moved up to 4%, average hourly wages rose 0.7% and are up 5.7% year over year. While the jobs report was positive the rising unemployment rate takes some pressure off the Fed in terms of having to raise interest rates.
Amazon reported a 9% revenue increase and a 97% jump in net profits. Results beat guru estimates largely because the company took an $11 billion pre-tax gain on its Rivian stake. Amazon CEO Andy “Sassy” Jassy said supply chain and inflation issues persist but that these short term challenges are not going derail the long term growth of “the monster from Seattle”. Shares bolted higher on the news.
Facebook changed its name to “Meta” which, after a terrible earnings report last week became Faceplant! Shares of Facebook aka Meta, crashed 25% when the company reported 5% drop in net income largely due to competition from TikTok, Apple, and other social media sites. One guru said that Facebook moving to the metaverse is like a basketball player suddenly announcing he was a skier! This means that instead of addressing competition directly the company is trying to take a whole new path to success and like a rookie skier the stock literally “hit the slopes” with a historic $230 billion market cap wipeout! Let’s “not” see Mikaela Shiffrin top that!
Items of Interest
No news from the scout troop. Our February event will be a dog sled competition but instead of dogs the sleds will be pulled by scouts. This is a new thing so we will see how it works.
As a reminder our old toll free 800 number has been canceled due to our office move. From now on please use the regular business line 206-352-9205.