Investors apparently mixed up the saying and decided yesterday that it was time to “Sell in February and Go Away”. After rolling over into the close, equities are trying to bounce back on this first day of March.
Gold and silver are mixed, while the dollar is slipping along with oil. Treasuries are flat.
On the news front:
The Chinese economy is waking up from its COVID-19 lockdown slumber, with both manufacturing and service sector activity jumping in February. A key purchasing managers index climbed to 52.6 from 50.1 in January, its highest in more than a decade.
The Biden Administration is requiring semiconductor companies who want CHIPS Act aid to meet several conditions. Companies looking for their share of the $40 billion available have to provide child care to workers, seek out low-emission energy sources, pay union-scale wages when undertaking construction, and more.
EV maker Rivian Automotive (RIVN) continued to lose gobs of money in the fourth quarter -- $1.72 billion, or $1.73 per share, to be exact. Cash on hand dropped to $11.6 billion and the firm announced another big recall, causing its shares to tank almost 9% in the pre-market.
Finally, the Federal Reserve has an economic dilemma to figure out: Why wage growth is slowing notably even as the job market remains tight. The unemployment rate has slumped to 3.4%, its lowest level in more than a half century. Yet the Employment Cost Index (ECI) has grown at a slower pace for three quarters in a row. Average Hourly Earnings are also rising less than they were a few months ago.
