Markets struggle ahead of key economic data this week

Dow was up 55, advancers over decliners better than 3-1 & NAZ gained 54.  The MLP index rose 2+ to the 261s & the REIT index was staedy in the 377s.  Junk bond funds inched higher & Treasuries were about even (more below).  Oil hardly budged in the 76s (more below) & gold fell 11 to 2027.

AMJ (Alerian MLP Index tracking fund)

Cisco (CSCO) a Dow stock, is planning to cut thousands of jobs as it restructures its business.  The  network giant is trying to turn its focus on high-growth areas.  However, the exact number of layoffs hasn't been determined yet.  As of Jul 2023, the company had approximately 85K employees globally.  This isn't the first time the company laid off employees.  CSCO cut about 5% of its global workforce in 2022.  It marks the latest in a string of layoffs that have been announced since the beginning of the year.  Globally, about 141 tech companies have already cut over 34K jobs.  However, companies across a variety of industries, from media to financial firms, have also announced layoffs in recent weeks amid ongoing inflation & high interest rates.  The stock fell 35¢.

Cisco to cut thousands of jobs: report

Treasury yields were slightly lower as investors looked ahead to key economic data & fresh comments from Federal Reserve officials that could provide hints about the interest rate outlook.  The yield on the 10-year Treasury was last down less than one basis point at 4.18% & the 2-year Treasury yield was also 1 basis point lower at 4.48%.  Yields & prices move in opposite directions & 1 basis point equals 0.01%.  Investors looked ahead to key economic data & remarks from Federal Reserve officials slated for this week as uncertainty about when rate cuts may begin & how many will take place this year has persisted.  Jan's consumer price index is due tomorrow, before the producer price index, retail sales figures & further data points which are slated for later in the week.  Investors are hoping that the data will suggest that the Fed could begin cutting rates sooner rather than later.  This comes as Fed officials in recent weeks have indicated that economic data will play a major role in their decision making when it comes to interest rate cuts & suggested they are unlikely to cut rates in Mar, which many investors had been hoping for.

Treasury yields dip as investors await key data, Fed comments

Oil prices were largely flat today after rallying more than 6% last week on escalating Middle East tensions.  The West Texas Intermediate contract for Mar was last up 1 penny to trade at $76.85 a barrel & the Brent contract for Apr was last trading at $81.96 a barrel, down 23¢.  US crude & the global benchmark popped last week after Israel rejected Hamas' proposal for a ceasefire & vowed to press on with its Gaza offensive to the southern city of Rafah, which is located on the border with Egypt.  “We’re going to do it. We’re going to get the remaining Hamas terrorist battalions in Rafah, which is the last bastion, but we’re going to do it,” Israel Prime Minister Benjamin Netanyahu said.  “Those who say that under no circumstances should we enter Rafah are basically saying lose the war, keep Hamas there,” Netanyahu added.  The prime minister said Israel would provide safe passage for civilians out of the southern city.  Oil prices have struggled to breakout of a $10 trading range despite tensions in the Middle East.

Oil prices hang on to last week’s gains after rally on Middle East tensions

There is very little excitement in the stock market today.  Tomorrow the consumer price index will get a lot of attention.

Dow Jones Industrials