The U.S. labor market delivered a robust performance in January, significantly surpassing expectations with the addition of 355,000 nonfarm payrolls, dwarfing the anticipated 170,000. The Department of Labor also revised December's job gains upward to 333,000 from the previously reported 216,000. Average hourly earnings saw a notable increase of 0.6%, outpacing the 0.3% consensus and the 0.4% increase in December. Year-over-year earnings climbed by 4.5%, exceeding both the expected 4.1% and the revised 4.3% from December. The unemployment rate remained steady at 3.7%, against a forecasted 3.8%. The robust job data triggered a mixed reaction in stock index futures, with S&P and Nasdaq futures trimming gains, while Dow futures turned negative. The 10-year Treasury yield jumped to 4.02%.
MP Materials (MP) and Lynas Rare Earths (LYSCF) (LYSDY) are reportedly considering a merger that would unite the two largest non-China producers of rare earth materials. Both companies have been impacted by falling rare earth prices and China's recent export ban on rare earth extraction and separation technologies. Lynas, in particular, is seeking a source of heavy rare earths to fulfill its obligations to the U.S. Department of Defense.
Amazon (AMZN, Financial) Web Services is experiencing a resurgence in growth, with its cloud computing unit reporting a 13% year-over-year increase in revenue, excluding foreign exchange, to $24.2 billion. This marks a return to growth acceleration after seven consecutive quarters of flat sales. The growth is attributed to the rising benefits from artificial intelligence and larger new deals. Amazon's CEO highlighted the significant role of generative AI in the company's focus and investment strategies.
Meta Platforms (META, Financial) and Amazon (AMZN, Financial) have provided a boost to Nasdaq futures following their impressive earnings reports. Meta's announcement of its first-ever dividend and an additional $50 billion in share buybacks, coupled with revenue projections exceeding expectations, has propelled its shares upward. Amazon's strong Q4 results and positive guidance for the first quarter have similarly uplifted its stock. However, Apple's (AAPL, Financial) disappointing performance in China has tempered the market's enthusiasm, with Dow futures reflecting this concern.
General Motors (GM, Financial), Chevron (CVX), IBM (IBM), and Exxon Mobil (XOM) have all made headlines with their dividend activities. GM and Chevron announced significant dividend increases, while IBM and Exxon Mobil declared their dividends. Intel (INTC) and Starbucks (SBUX) are preparing for their ex-dividend dates in the upcoming week.
AbbVie (ABBV, Financial) reported a mixed fourth quarter, with revenue exceeding expectations despite a decline in earnings due to competition against its leading arthritis therapy, Humira. The company's newer drugs, Skyrizi and Rinvoq, showed strong growth and are expected to significantly contribute to future revenues. Additionally, Botox Cosmetic and Botox Therapeutic also reported growth, surpassing estimates.
Exxon Mobil (XOM) maintained its quarterly dividend, aligning with previous payouts. The company's stock is being closely watched following its earnings report and production figures for the fourth quarter.
Bristol-Myers Squibb (BMY, Financial) saw its shares rise pre-market after reporting better-than-expected fourth-quarter results, driven by strong sales of its leading drugs Eliquis and Opdivo. However, its multiple myeloma therapy Revlimid underperformed due to generic competition.
CleanSpark (CLSK, Financial) announced its Bitcoin mining figures for January, noting a decrease from December's numbers. The company is preparing for the energization of its Sandersville expansion, which is expected to significantly increase its mining capacity.
Philip Morris (PM) and British American Tobacco (BTI) have agreed to settle their patent infringement lawsuits concerning heated tobacco and vapor products. The settlement includes a non-monetary agreement and a mutual decision to drop all related lawsuits.
Tesla (TSLA, Financial) is recalling 2.2 million vehicles in the U.S. due to a brake warning light issue. This recall is the largest in the company's history and affects a wide range of models, including the upcoming Cybertruck.
Apple (AAPL, Financial) managed to return to sales growth in its fiscal first quarter, but concerns about its future performance, particularly in China, are causing analysts to remain cautious about the stock's prospects.
Bristol-Myers Squibb Company (BMY, Financial) released its fourth-quarter results, beating earnings and revenue expectations, and provided guidance for 2024 with expected revenue growth and a non-GAAP EPS range.
TeraWulf (WULF) reported its Bitcoin mining results for January, with a decrease in production compared to December. The company's power costs and the average value per Bitcoin mined were also disclosed.
