Week of 01/02-01/06 New Year, new hotter-than-expected reports

01/05/2023 - Stock market plunged on Thursday on strong job report and wages increasing faster than estimated. This a very important piece to the puzzle as investors are looking for a response in the labor market data to the FED rate hikes. Friday's job report will also indicate how the economy is responding to inflation and a weak job report will be celebrated. On the other hand, if a strong job report comes out it may just be the cherry on top to this stock market plunge.

Bed, Bath & Beyond rumors of going bankrupt caused the stock to fall 30%. Tesla reports fourth quarter massive vehicle deliveries for 2022 but stock still fell to the 110dlls territory.

01/06/2023 - Stocks fell at the open but rallied shortly after the news of a hotter than expected December jobs report came in. The economy added 223,000 jobs and the unemployment rate fell 3.5%. The news sent stocks to the upside as it indicates that future rate hikes are potentially not necessary at the moment given the data reported. A slow growing labor market may have the FED at ease, but this is only one data point in the vast amount of variables that are considered for a rate hike.