Stocks are rising after a mixed day yesterday, while gold and silver continue to tick higher. Crude oil is up a bit, while bonds and the dollar are flat. Bitcoin is still chopping around the $90,000 level.
With everything else going on, it’s easy to lose sight of the economic data – but today was a big one on that score. The December jobs report dropped this morning, and it showed the economy created 50,000 jobs last month. The unemployment rate came in at 4.4%, while average hourly earnings rose 0.3%. The first reading was slightly weaker than expected, the second was slightly stronger than expected, while the third was right in line with expectations.
Source: Trading Economics
Wall Street generally likes “meh” numbers. They keep additional Federal Reserve interest rate cuts on the table, while holding recession worries at bay. That’s why stocks gained ground after the news hit. Still, it’s unlikely the Fed will cut at its next meeting, which concludes Jan. 28. Policymakers will instead sit on their hands for a bit to see how things play out – and potentially cut in March or April.
The White House is hosting a crucial meeting today with representatives of “Big Oil.” President Trump reportedly plans to enlist the help of companies like Chevron Corp. (CVX), Exxon Mobil Corp. (XOM), and Conoco Phillips (COP) to revitalize Venezuela’s oil industry.
It has suffered from years of neglect and underinvestment, leading to a sharp drop in the country’s petroleum output. But companies are wary of throwing billions of dollars at the problem given weak oil prices, a global supply glut, and lingering worries about politics and worker safety. Shares of XOM, CVX, and COP are up 2.1%, 4.4%, and 5.4%, respectively, year-to-date.
Finally, Meta Platforms Inc. (META) signed a series of deals to secure power for the massive data centers it’s planning to bring online. Meta reportedly needs as much as six gigawatts of power in the next few years, and the deal with Vistra Corp. (VST), Oklo Inc. (OKLO), and TerraPower LLC will secure some of it from existing plants and reactor sites to be built in the future.
Experts say US power usage could jump as much as 30% by 2030, driven by Artificial Intelligence (AI) demand and facilities built by hyperscalers to meet it. Vistra stock and Oklo stock surged on the news, while Meta stock was largely unchanged.
