This Week’s Economic Report
On Wall Street
Stocks gained some ground last week as investors turned their focus to corporate earnings.
The Dow Jones Industrial Average rose 1.05%, while the Standard & Poor’s 500 gained 1.55%. The Nasdaq Composite index picked up 2.38% for the week. The MSCI EAFE index, which tracks developed overseas stock markets, tacked on 2.73%. 1,2,3
Focus on Earnings
Late last week, stocks extended the previous week’s rally with some high-growth companies leading the move higher. Strong company profits fueled the market the middle of the week, until an earnings report came out from a mega-cap company that was disappointing to investors and took them by surprise. The earnings miss deflated sentiment as it heightened worries of what it may portend for other technology companies yet to report. These anxieties led to a sell-off that reverberated across the market.
Subsequent earnings beats from several technology and social media names, and an above-consensus rise in new payrolls on Friday, helped the market close with week with a solid gain.
New Variant Omicron and Effect on Unemployment
Several unmployment reports pointed to a generally healthy labor market, despite the Omicron surge late last year. The Job Openings and Turnover Survey (JOLTS) showed a hiring slowdown, with near-record high job openings and worker resignations. The ADP (Automated Data Processing) employment report saw private payrolls shrink by 301,000. That was the first monthly decline since December 2020. 4,5
Some good news is that initial jobless claims declined, while continuing jobless claims reached their lowest level since 1973. A strong January employment report showed 467,000 jobs added during the month, with upward revisions to previously released November and December. 6,7
Point to Ponder:
Call 833-ELLIOTG or E-Mail elliot@elliotglassinsurance.com TODAY so we can help you attain your SMART GOALS. We will establish a timeline for your financial goals. Let us know what you want to achieve and when, and we will review your progress and the deadlines you have set semi-annually or annually.
Citations:
- The Wall Street Journal, February 4, 2022
- The Wall Street Journal, February 4, 2022
- The Wall Street Journal, February 4, 2022
- The Wall Street Journal, February 1, 2022
- CNBC, February 2, 2022
- CNBC, February 3, 2022
- CNBC, February 4, 2022
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Elliot Glass has been a leader in the insurance industry since 2012. His experience and reputation enable him to best serve his valued clients by understanding their individual needs and offering common-sense solutions. This process saves time, money and provides peace of mind for you and your family.
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