Markets wobble as they try to comeback after Friday's selling

Dow rose 164, advancers & decliners were even & NAZ fell 85.  The MLP index dropped 5 to 318 & the REIT index gained 3+ to the 411s.  Junk bond funds slid lower & Treasuries had limited buying with yields slightly lower (more below).  Oil inched higher but stayed under 71 & gold went up 4 to 2958.

Dow Jones Industrials

Apple (AAPL) is committing $500B to the US economy in a historic initiative, marking "an extraordinary new chapter in the history of American innovation." AAPL's 11-figure commitment will roll out over the next 5 years.  It will involve building an advanced AI server manufacturing factory near Houston, as well as doubling the company's Advanced Manufacturing Fund from $5-10B.  The tech giant also plans to establish an Apple Manufacturing Academy in Detroit, as well as hire 20K new employees with focuses on research & development, silicon engineering, artificial intelligence & machine learning.  "This new pledge builds on AAPL's long history  of investing in American innovation and advanced high-skilled manufacturing, and will support a wide range of initiatives that focus on artificial intelligence, silicon engineering, and skills development for students and workers across the country," the company said.  AAPL also plans to expand teams & facilities in numerous states, including Michigan, Texas, California, Arizona, Nevada, Iowa, Oregon, North Carolina & Washington.  CEO Tim Cook said that his company is "bullish on the future of American innovation."  "We're proud to build on our long-standing U.S. investments with this $500 billion commitment to our country’s future," he added.  "From doubling our Advanced Manufacturing Fund, to building advanced technology in Texas, we’re thrilled to expand our support for American manufacturing."  "And we’ll keep working with people and companies across this country to help write an extraordinary new chapter in the history of American innovation."  The announcement comes 2 days after Pres Trump to the tech giant's plans, saying that the company planned to invest "hundreds of billions of dollars" in the US.  The stock rose 2.53.

Apple announces historic US investment in bet on American innovation

Starbucks (SBUX) CEO Brian Niccol announced that the company is laying off over 1000 corp employees as it works to simplify operations.  Specifically, it is eliminating 1100 current support partner roles & closing several hundred additional open & unfilled positions.  "We are simplifying our structure, removing layers and duplication and creating smaller, more nimble teams," Niccol said.  "Our intent is to operate more efficiently, increase accountability, reduce complexity and drive better integration. All with the goal of being more focused and able to drive greater impact on our priorities."  Niccol informed employees about the layoffs in Jan, stating that they were part of the "Back to Starbucks" strategy – a series of changes aimed at enhancing the in-store customer experience while improving efficiency.  Niccol, who became CEO in Sep with plans to return the company to its coffeehouse roots, is working to boost profitability & improve the work environment after the company faced years of growing pressure from unionization campaigns nationwide & consecutive disappointing fiscal qtrs as traffic declined.  Niccol said that the layoffs were "a necessary change to position Starbucks for future success."  The stock rose 2.01.

Starbucks to lay off over 1,000 corporate workers

Treasury yields ticked down as investors looked to a busy week ahead, with a flurry of economic data due including a key inflation reading & insights on housing.  The 10-year Treasury yield was more than 2 basis points lower at 4.394% & the 2-year Treasury yield fell 1 basis point at 4.183%.  1 basis point is equal to 0.01% & yields & prices move in opposite directions.  Investors are expecting a packed week of economic data starting today with the Chicago Fed National Activity Index for Jan & the Dallas Fed Manufacturing Index.  Earlier this month, Fed Chair Jerome Powell indicated that after a hotter-than-expected CPI report in Jan, the Fed doesn't “need to be in a hurry” to lower interest rates further.  Markets have interpreted the recent messaging as indications that the Fed will be on hold with rates, probably into the summer, after cutting its benchmark borrowing level by a full percentage point in the latter part of 2024.

Treasury yields inch higher as investors await a flurry of economic data

Stocks were mixed as tech stocks faltered, with investors weighing the prospects for AI ahead of this week's economic reports.  Stocks were attempting to rebound after Fri's steep declines capped a losing week, which was marked by data showing American consumers & businesses are getting concerned about Trump's tariff plans.