Good Morning Investors!!! Yesterday felt like a market tug-of-war, with tech taking a breath while defense stocks caught a lift on fresh budget talk. Today’s main event hits early with the U.S. jobs report at 8:30 AM ET, plus a tariff case on the radar that could swing costs for companies that import a lot. Oil also perked up on supply jitters, which matters because higher energy prices can keep inflation sticky. We also shine a light on consumer staples, the “need-it” aisle of the market, as investors look for steadier footing. And in big company news, General Motors just took a major charge tied to pulling back parts of its electric vehicle plan, a reminder that the EV road can have a few potholes.
Key Market DriversTech cools, defense flexes: On Thursday, the Standard & Poor’s 500 (S&P 500) ended flat, but the Nasdaq Composite (tech-heavy stock index) fell 0.44%. Nvidia (NVDA) and other chip leaders slid. Investors want proof that artificial intelligence (AI) can drive earnings. Defense stocks jumped after President Trump backed a bigger 2027 military budget. The Dow Jones Industrial Average (Dow) rose 0.55% as names like Home Depot (HD) led. It was a reminder that money can hop sectors fast when policy headlines hit. 
10 year treasury 1yr price chart
Friday’s double feature: jobs and tariffs: This morning, traders are eyeing two calendar squares that can move markets fast: the nonfarm payrolls report (monthly U.S. jobs count – update below) and a Supreme Court call on tariffs (taxes on imports). The 10-year Treasury yield was near 4.19%. Jobs data can shift bets on Federal Reserve (Fed) (U.S. central bank) rate cuts, which moves both stocks and bonds. A court call on tariffs could change company costs, and it might even send refund checks to importers. Oil pops on Venezuela and Iran jitters: Oil woke up on the spicy side. Brent crude (global oil benchmark) hovered near $62.17 a barrel and West Texas Intermediate (WTI – the U.S. oil benchmark) near $57.93. Traders pointed to supply fears tied to Venezuela and unrest in Iran. It matters beyond the pump because higher oil can lift inflation (your cost of living) and keep rates high. Energy stocks often like firmer crude, but big moves can still shake the whole market. Europe hits a high on deal buzz and chips: Overnight, European stocks pushed to a fresh high, led by miners. The STOXX Europe 600 (broad Europe stock index) rose after Glencore jumped about 8% on talk that Rio Tinto may buy it in an all-share deal (paid with stock, not cash). Big merger chatter can move an index fast. Chip names perked up after Taiwan Semiconductor Manufacturing Company (TSMC) posted strong fourth-quarter sales on AI demand. TSMC shares full earnings and guidance on Jan. 15, and that can ripple through chip stocks because big themes are global. |
Thoughts from InvestorsGrow:
This morning is a classic double-header at 8:30 AM. You get the Employment Situation plus the housing update, so expect fast moves right out of the gate. Economists are looking for modest hiring, so a big beat or miss could quickly shift the market’s guess on what the Fed does next.
At 10:00 AM, the day gets spicy in two very different ways. A tariff ruling can change costs for firms that import a lot, so some retail and consumer goods stocks may swing. The Michigan survey is also worth a look because it includes inflation expectations. If people expect higher prices, the Fed may feel less free to cut rates. If those worries cool, markets often relax. One more thing to keep on your radar once today’s dust settles: the Consumer Price Index (CPI) (key inflation report) is due Tuesday. That one can reset the “rate cut” chatter in a hurry.
Update (8:30 AM ET): Employers added 50,000 jobs in December and the unemployment rate fell to 4.4%. That was a bit less than the expected 60,000 jobs, but the jobless rate also came in a bit better than forecast. November’s job gain was revised down to 56,000.
Consumer Staples:
Consumer staples are the stuff you buy even when you swear you are “cutting back.” Think soap, cereal, and soda. In a market that keeps changing moods, that kind of steady demand can look pretty good. The Consumer Staples Select Sector SPDR Fund (XLP) is an exchange-traded fund (ETF) and it was up about 1% over the past five sessions through Thursday’s close.
Why it matters now is simple: investors want to see if higher prices and higher rates cool spending. Staples firms can raise prices, but they need to keep units sold from sliding. If shoppers switch to store brands, big brands may lean harder on coupons and deals. Costs like cocoa and coffee can also swing profits for food and drink makers.
Procter & Gamble (PG):
P&G sells household basics like Tide detergent and Pampers diapers. Its edge is scale plus top brands, which helps it hold shelf space and push small price hikes. It reports fiscal second-quarter results on Jan. 22, so watch for signs shoppers are trading down.
The Coca-Cola Company (KO):
Coca-Cola sells drinks from Coke to sports and zero-sugar lines, and it earns a lot by selling concentrate to bottlers. That setup can be lighter on assets than owning every factory and truck. A big near-term headline is a planned chief executive officer (CEO) (company top boss) change on March 31, which can bring fresh plans.
Nestlé (NSRGY):
Nestlé is a global food giant with big businesses in coffee and pet care, plus baby nutrition. Its wide mix can help smooth a slump in one product line. Right now, investors are watching an infant formula recall tied to food safety concerns, since trust is a real part of the brand.
InvestorsGrow Takeaway:
If the market feels like a roller coaster, staples are the seatbelt. Watch unit sales and input costs during earnings season.
General Motors (GM)
General Motors (GM) is one of the biggest U.S. car makers. It sells lots of trucks and SUVs, plus cars, under brands like Chevrolet, GMC, and Cadillac. It also has a finance arm that helps people buy or lease vehicles. GM has been building out electric vehicles (EVs) (battery-powered cars), too.
Late Thursday, GM said it expects about a $6 billion hit in the fourth quarter tied to scaling back some EV plans. Much of the cost links to canceled work and payments to suppliers, plus write-downs on EV items. GM said its current EV lineup, roughly a dozen models, stays in place. It also flagged another charge tied to changes in its China joint venture.
Why it matters is that the EV road is not a smooth highway right now. When demand and rules change, car makers have to redo factory plans, and that can dent profits for them and their partners. One number to remember: GM said its EV sales fell 43% in the fourth quarter after a key U.S. tax credit ended.
InvestorsGrow Takeaway:
GM is leaning on gas trucks for cash while it keeps EVs in the mix. That can work if truck demand stays firm and EV losses shrink over time. Red flags are more surprise charges, price cuts that squeeze profit, and a slow EV market. Next up, watch GM’s fourth-quarter results on Tuesday, Jan. 27, around 6:30 AM ET, and the 8:30 AM ET call for any shift in its EV path.
