The markets closed lower last week as traders reacted to the possibility of additional tariffs from the U.S. government, the speculation about rising inflation, a weak earnings report from a major magacap company, and a lower-than-expected jobs report. Of all the major stock indexes, only the Global Dow managed to eke out a weekly gain. The remaining indexes closed lower, led by the Dow and the NASDAQ. Ten-year Treasury yields rebounded last Friday, but not enough to keep from ending last week lower. Crude oil prices declined nearly 3.5%, primarily due to increasing trade tensions, particularly with China.
Last Week’s Economic News
-
- There were 143,000 new jobs added in January.
- Manufacturing expanded in January amid a surge in confidence. According to the S&P Global US Manufacturing Purchasing Managers’ Index™, the PMI® rose to 51.2 in January, up from 49.4 in December.
- Growth continued in the services sector in January. The S&P Global US Services PMI® registered 52.9 in January, down from 56.8 in December.
- According to the latest Job Openings and Labor Turnover Summary, the number of job openings declined in December. The number of job openings decreased by 1.3 million in 2024 from a year earlier.
- The goods and services trade deficit was $98.4 billion in December. For 2024, the goods and services deficit increased $133.5 billion, or 17.0%, from 2023. Exports increased $119.8 billion, or 3.9%. Imports increased $253.3 billion, or 6.6%.
- The national average retail price for regular gasoline was $3.082 per gallon on February 3.
- For the week ended February 1, there were 219,000 new claims for unemployment insurance.
Eye on the Week Ahead
Inflation data for January is available this week with the release of the latest Consumer Price Index report. December saw prices rise 0.4% for the month and 2.9% for the 12 months ended in December.
Have a nice week!
Sincerely,
Robert G. Carpenter