Stock Futures Up As Fed-Related Selloff And Rebound Plays Out, Jobs Report On Deck; Ferrari And Mercedes Confirm Driver Swap
Tech stocks have had a turbulent week with the Nasdaq Composite down 0.6% after a stream of major earnings reports. The Dow Jones Industrial Average is up 1% for the week so far, and the S&P 500 is up 0.3%. January saw a jump in layoffs to over 82,000, however, small business optimism is rising with 75% of owners optimistic about their financial trajectory in 2024, up from 68% a year earlier. Goldman Sachs 10,000 Small Business Voices survey revealed this statistic, and 28% of respondents viewed the economy as excellent or good. Challenger, Gray, and Christmas released their job-cut report for January, highlighting a rise of 136% from December and the second-highest layoff total since 2009. The report also noted a low level of planned hiring, likely pressuring the already tight labor market further. This comes after the Labor Department's release of the nonfarm payroll showing a higher-than-expected 353,000 jobs added in January.
Lewis Hamilton, a Formula 1 legend, is leaving his long-time home at Mercedes to join rivals Ferrari at the end of the 2024 season. The team announced that Hamilton "activated a release option" in his contract, and the move represents a major shakeup in the racing world as Hamilton and Mercedes have been nearly synonymous for the past decade. This means that Carlos Sainz, a high-performing and popular driver for Ferrari, will lose his spot on the team. This news generates intrigue and drama for F1's growing fan base, attracting new audiences and driving revenue for owner Liberty Media.
Lastly, Amer Sports, the Finnish maker of Wilson tennis rackets and Arc'teryx outerwear, debuted on the New York Stock Exchange but closed at a 3% gain from its opening price. The lack of interest in the IPO could be due to apathy toward the company, or it could reflect the still timid IPO market.
Overall, this week has been filled with exciting economic reports and surprising headlines in the business world. With the stock market experiencing a volatile week after a Fed-related selloff and rebound, the jobs report on deck, and surprising news from the world of Formula 1, investors have much to digest heading into the market close.