Coffee With Greta: Yields Spike


DJIA Futures: -96 (-0.3%)

SPX Futures: -13 (-0.3%)

NASDAQ Futures: -55 (-0.3%)

Good morning friends!

Futures are falling as yields spike after the hot December jobs report.

Let’s get right to it!

December Jobs Report Beats

The U.S. economy added far more jobs than expected in December.

The Labor Department reported employers added 216,000 jobs last month while the unemployment rate was unchanged at 3.7%. 

That was stronger than expectations for a gain of 170,000 jobs and a 3.8% unemployment rate.

Government jobs saw the largest gain rising by 52,000, leisure and hospitality added 40,000, healthcare added 38,000, social assistance increased by 21,000, construction added 17,000, and retail trade increased by 17,000. 

Transportation and warehousing lost 23,000 workers.

October was revised down by 45,000 to 105,000 while November was revised lower by 26,000 to 173,000.

There were 2.7 million total job gains in 2023, down from 4.8 million in 2022. 

Yields Spike After Hot Jobs Report

Treasury yields are popping higher this morning after the release of that stronger-than-expected jobs data. 

The 10-year yield is up seven basis points at 4.07% while the 2-year yield is up seven basis points at 4.45%.

If the labor market remains hot, it gives the Fed more room to hold rates higher before starting cuts. 

CME Group’s FedWatch Tool now shows just under 54% of traders expecting a 25 basis point cut at the March 20 meeting. 

Costco Reports Strong December Sales

Costco (COST) shares are up 0.8% ahead of the open after reporting strong sales at the end of 2023. 

The warehouse retailer said revenue jumped 9.9% year over year in December to $26.2 billion. 

That was up from the 5.1% increase in November. 

Same-store sales rose 8.5% vs 3.5% In November.

Foot traffic in Costco stores jumped 6.5% in the U.S. and 7.5% worldwide.

Online same-store sales surged 17.7%.

In Case You Missed It

  • Peloton (PTON) shares surged 13.9% on Thursday after announcing a new partnership with TikTok. The partnership will create a new fitness hub on the social media platform, known as #TikTokFitness Powered by Peloton. It will feature short-form fitness videos, longer live classes, content from Peloton instructors, and collaborations with TikTok creators. 

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