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U.S. Job Market 1, Omicron 0

Big news last week came on several fronts. First, the S&P 500 closed out its worst month since March 2020 when it posted a decline of -5.3%. Second, Facebook’s parent company, Meta, saw $230 billion in market value wiped out when it missed analysts earnings estimates. Third, Amazon reported its profit nearly doubled over the critical holiday selling season as the company managed to control supply-chain issues and labor costs. And fourth but certainly not least, 467,000 jobs were added last month against analyst’s estimates of 150,000. When combined with December’s revised figures, 700,000 were added in the last two months.
The importance of the jobs report is no small feat. It comes as a record number of Americans quit their jobs last year. Economists say those quitting are finding other employment with cash incentives, staying at home to raise children, care for elderly family members or taking early retirement in the face of Covid-19 concerns. In any event, the jobs report is welcome news as the chart below from CNN Business shows how far we still have to go. There are still almost 11 million positions yet to be filled by employers.
The week was another one filled with volatility. However, major stock indexes managed to post a second-consecutive weekly gain by Friday’s close. 56% of S&P 500 companies having reported 4th quarter 2021 earnings results so far. Of those reporting, over three-fourths have beaten analyst’s estimates.
I still remain bullish on the stock market. If you have any questions, please contact me.
The Markets and Economy
  • U.S. corporate bankruptcies have fallen to their lowest level in more than 15 years. The positive trend for American business has been fueled not only by massive government stimulus money, but changes in the financial system. These changes have led to more funding for distressed companies and less restrictive debt covenants.
  • Two gauges of Chinese manufacturing activity fell in January. China’s official manufacturing purchasing managers index dropped, highlighting the continued struggle global economies face in the wake of the Omicron variant’s effects.
  • Your cup of morning Joe is getting more expensive. Arabica coffee futures have risen 76% in a year, the largest annual percentage increase since 2021.
  • Truck drivers are in high demand. 73% of freight transported within the U.S. is moved by trucks.
  • Major countries in North America, Europe and the Asia-Pacific region are all becoming more accepting of life with Covid-19. Previous widespread outbreaks have resulted in closures. However, developed nations are seeing the challenges that shutting down their economies creates and how difficult it can be to return to some form of normalcy. With the Omicron variant being easily transmissible, but with much more mild symptoms, governments are now tolerating rising infection rates as a fact of life.
  • The U.S. labor market remained tight at the end of 2021 with job openings and worker turnover hovering near the highest levels on record.
  • Even with the rise in wages and benefits many Americans are experiencing, concerns over inflation’s effect on their purchasing power. 41% of consumers surveyed in December said higher prices were the main reason they put off large purchases.
  • 89% of the 25.5 million American jobs lost during the first two months of the global pandemic, have been hired back by employers by the end of 2021.


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The Standard & Poor’s 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general. The Dow Jones Industrial Average is a price-weighted index of 30 actively traded blue-chip stocks. The NASDAQ Composite Index is an unmanaged, market-weighted index of all over-the-counter common stocks traded on the National Association of Securities Dealers Automated Quotation System.
Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance.
Consult your financial professional before making any investment decision. You cannot invest directly in an index. Past performance does not guarantee future results.
Note: All figures exclude reinvested dividends (if any). Sources: Bloomberg, Dorsey Wright & Associates, Inc. and The Wall Street Journal. Past performance is no guarantee of future results. Indices are unmanaged and cannot be invested into directly.
Securities offered through Triad Advisors, member FINRA/SIPC. Investment advice offered through Resources Investment Advisors, LLC, an SEC-registered investment adviser. Resources Investment Advisors. LLC and Vertical Financial Group are not affiliated with Triad Advisors.

David M. Kover, Thomas H. Parker, Bradford E. Harris, Laura T. Scobee, Joseph B. Thaman & Brett M. Dankowski are registered to recommend securities offered through Triad Advisors, member FINRA/ SIPC. Investment advice offered through Resources Investment Advisors, Inc., an SEC-registered investment adviser. Resources Investment Advisors, Inc. and Vertical Financial Group are not affiliated with Triad Advisors.