My top 10 things to watch Friday, Jan. 6, 2023
1. U.S. stock futures jump and bond yields drop after Friday’s release of the December jobs report provided some hope of a soft landing. Goldilocks jobs? I like the number. A win is a win. Nonfarm payrolls growth: 223,000 versus 200,000 expected; unemployment rate drops to 3.5% — still too high and low, respectively. The magic number for the Federal Reserve to slow interest rate hikes is 4%. Wage increases less than expected. Welcomed but must be flat.
- A lot can change between the opening bell and the close. Listen to “The Homestretch,” a brand-new daily audio feature exclusive to Club members. It’s a way for me to help you get ready for the final hour of trading. Look for our text and email alerts, sometime before 3 p.m. ET.
2. Did Amazon (AMZN) and/or Salesforce (CRM) cut enough jobs? No. Amazon needs to muster out the 300,000 workers added during Covid. Only did 18,000. Salesforce should have cut 20% of its workforce, not 10%. Both Club names have multiples higher than the market — the type of stocks being shunned on Wall Street. In a Friday commentary, we looked at low-multiple Club names that are reasonably valued.
