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Daily Scoop 22-1-10

Daily Scoop 22-1-10

👋 Your Monday Scoops - Burger King goes 50% vegan & Gamestonk's NFTs

January 10, 2022

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Today's Scoop:Jitters

Big Picture

Wages are rising.
Mortgage rates are rising again.
The economy added fewer jobs than expected last month.

The Market

⬇️

-0.1%

S&P 500: 4,670.29

1Mo:

+1%

| 1Yr:

+23%

| 5Yr:

+105%

Markets fell again today as investors work through their feelings about what will happen when the Fed starts reversing from emergency stimulus mode more quickly. The December jobs report indicated a workforce that

may be almost fully recovered

. On Friday, the Labor Dept reported employers added only 199,000 jobs last month, half of what economists expected, but the unemployment rate fell much further than expected to 3.9%. The labor force participation rate held steady. All that might mean that

the people coming back to work have done so already

Wages have increased 4.7% over the last year, much higher than usual, but well behind inflation at 7%.

If inflation is high and unemployment is low, the Fed might step in and cut off the stimulus support much faster than initially expected.

Company Scoops ❤🌎💰

(Click to dig in & vote your reaction, see how others feel)

Burger King

is going 50% plant-based

GameStop

jumps on the NFT train

Walgreens

gets a boost from testing

Lululemon

sued by Nike

Take-Two

buys Farmville maker

(These links only work for 24 hours while the story is live)

🤓 Inside Scoop...

The Federal Reserve, aka the Central Bank, controls money flow. When the economy needs juice, they create more money and lower interest rates to incentivize more lending and spending. When inflation gets high, or the economy fully recovers, the Fed raises interest rates and starts to shut down all the supportive stimulus measures. It's a natural part of the economic cycle, but investors don't like change. When investors get fearful, they rotate out of their riskiest positions.