Dow dropped 266 on fears of higher interest rates, decliners over advancers 5-2 & NAZ went up 26. The MLP index fell 1 to the 203a & the REIT index sank 6+ to the 461s. Junk bond funds hardly budged & Treasuries saw very heavy selling, taking the yield on the 10 year Treasury up 10 basis points to 1.93%. Oil jumped 2+ to the 92s & gold inched up 1 to 1805.
AMJ (Alerian MLP index tracking fund)
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US job growth blew past expectations in Jan, as the economy brushed off a record-breaking surge in COVID-19 cases nationwide that threatened to sideline millions of workers & kept many consumers at home. The Labor Dept said in its monthly payroll report that payrolls in Jan rose by 467K, easily topping the 150K jobs forecast. The unemployment rate, which is calculated based on a separate survey, ticked up slightly to 4% (the increase is largely because the labor force participation rate climbed to 62.2%, the highest level since the pandemic began in Feb 2020). "We created 467,000 jobs in January. That’s more than 6.6 million jobs since I took office," Pres Biden tweeted. "2021 was the greatest year of job creation under any president in history." Job gains were broad-based, with the biggest increases in leisure & hospitality (151K), professional & business services (86K) & retail (61K). Economists expect job growth to climb even higher in coming months as the omicron variant recedes from public life.
Job growth soars past expectations, shakes off omicron surge
Ford (F) ended 2021 with $36B in cash, a crop of hot-selling new
electric vehicles & a bullish forecast for revenue & profit growth
this year, but that was not enough for investors. The automaker's Q4 income fell short of expectations & the company forecast a slower recovery in 2022 vehicle
production than rivals. The
sour response to its results presents a challenge to CEO
Jim Farley, who is trying to accelerate the company's pivot toward
electric vehicles. Ford has 275K orders for its electric F-150 Lightning,
Transit vans & Mustang Mach-E utility vehicles & expects to double
electric vehicle production capacity to 600K vehicles a year by 2023. CFO John Lawler said that
Ford expects 2022 earnings before interest & taxes to grow by 15-25%, outpacing the predicted 10-15% increase in vehicle production. Ford
should hit an 8% pretax profit margin this year, a year ahead of
schedule, he said. Q4 adjusted EPS of 26¢ fell 19¢ short of the 45¢ that was expected. Lawler said the Q4 result reflected worse-than-expected supply-chain problems. "There are supply-chain disruptions that can impact any one of us in a quarter," he added. "You have to look at long term." The stock dropped 2.31 (12%).
If you would like to learn more about Ford click on this link:
club.ino.com/trend/analysis/stock/Fa_aid=CD3289&a_bid=6ae5b6f
Ford shares skid despite a bullish 2022 outlook
Ukraine Foreign Minister Dmytro Kuleba said that the gov is taking every risk into account after being briefed by the US over Russia's possible use of a fake video as a pretext for invasion. “We haven’t seen the video itself, but I can tell you the United States briefed us shortly before the official announcement by [State Department spokesperson] Ned Price that they possess this piece of intelligence,” Kuleba said. So, now we are looking forward [to] details. But if you ask me if there is anything Russia couldn’t do in order to provoke the war, my answer would be no,” Kuleba continued. “Everything is possible and we should take every risk into account.” This comes shortly after the US accused Russia of plotting to fabricate an attack by Ukrainian forces as a pretext for the invasion of its neighbor. The White House said that it has intelligence Russia is considering using a staged video of a Ukrainian attack involving actors. The Kremlin has denied it is preparing any false flag operations.
Ukraine wary as U.S. says Russia may use fake video
The bulls were in hiding after the favorable jobs report. But yields on Treasuries skyrocketed, nearing 2% on the 10 year Treasury. Higher interest rates are scary for investors. Many have not seen these rates in a long time.
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