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Strength in numbers: What Friday’s jobs report means in context
For one, it means the much anticipated first interest rate cut of the Federal Reserve just got a little more awkward — again.
US stocks rallied Friday after a better-than-expected jobs report and big tech earnings pushed the Dow and the S&P 500 to fresh record highs
• The U.S. economy added 353,000 jobs in January, far more than expected, led by jobs in professional and business services and healthcare. The unemployment rate held steady at 3.7%, signaling that America’s labor market remains strong.
• The 10-year U.S. Treasury yield rose back above 4% as the market grappled with questions over when the Federal Reserve will be able to cut policy rates.
• In tech earnings news, shares of Facebook-parent Meta surged 20.3% after announcing a $50 billion share buyback and its first-ever dividend. The company also reported a 25% increase in sales and a more than 200% jump in profits year-over-year. Amazon reported earnings well above estimates , sending its shares 7.9% higher. Apple stock fell 0.5% despite beating expectations after the company reported a double-digit decline in China sales .
• In the health sector, shares of insurer Cigna added 5.4% after beating estimates and raising its dividend by 14%. Similarly, pharmaceutical giant Bristol Myers Squibb beat earnings expectations, inching its stock up 0.1%.
• In the energy sector, Chevron shares rose 2.9% on an earnings beat and an 8% increase to its quarterly dividend, while ExxonMobil shares fell 0.4% due to a decline in profits year-over-year.
• NVIDIA shares jumped 5% after announcing it would start taking pre-orders for a new artificial intelligence chip that complies with U.S.-imposed export limitations on China.
What to be on the lookout for today
• An update on the services sector from the Institute for Supply Management, and remarks from Atlanta Fed President Raphael Bostic.
• In company earnings, McDonald’s and Tyson Foods deliver earnings.
Get your budget right, one dollar at a time
Putting a budget together can be daunting. Especially when your goal is to start saving more.
Not everyone is in a position where they can siphon off hundreds of dollars from their paycheck to put towards their savings goals. But luckily, saving money is just as valuable if you have smaller sums at your disposal.
One strategy is round-up savings. Round-ups are an automatic savings tool that rounds up the price of purchases to the nearest dollar, with the difference between the rounded up figure and the actual price getting deposited in your savings account.
Another way to make saving part of your routine is to put a portion of what’s left in your checking account at the end of the month into your savings. Be sure to leave your account funded enough for any potential bills due during the first days of the following month.
No matter how you save, consider opening a high-yield savings account to help your money grow faster.
Today’s top stories
What U.S. energy exports mean for consumers America has become the world’s largest natural gas exporter. So why are utility costs at home so high? Read more >> Going beyond paid leave to support working parents Companies are changing how they can support new parents coming back from leave. Read more >> How to get financially healthy There’s physical health, and mental and emotional health. But what is financial health? Learn what it is and how you can achieve it. Read more >>Other news that caught our eye
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Tesla is recalling more than 2 million vehicles sold in the U.S. to issue an over-the-air software update because the font for some visual warning lights is too small.
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Starbucks is piloting late-night coffee deliveries in Philadelphia.
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A French marketing company that worked on a campaign to advertise OxyContin to doctors agreed to pay $350 million in the first-ever opioid marketing settlement.
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Amazon is rolling out an AI-powered shopping assistant called Rufus for its mobile app that can answer questions and recommend products.
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After bankruptcy concerns, Carvana’s restructuring efforts have proven largely successful, pushing its stock from less than $5 per share last year to more than $55 in 2024.
Financial planner tip of the day
"When building a personal budget, it can be helpful for individuals to get a good grip on the money that’s coming in and going out. It’s a common mistake to set budget categories with aspirational numbers pulled out of thin air, only to have a budget fall apart later on when faced with reality."
Brian Walsh, CFP® at SoFi