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Daily Scoop 22-2-3

Daily Scoop 22-2-3

👋 Your Thursday Scoops - Spotify & Facebook warning signs

February 03, 2022

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Today's Scoop:Concern

Big Picture

Fewer people got laid off last week.
Meta, aka Facebook, has investors worried about the future.
Oil prices keep climbing.

The Market

⬇️

-2.4%

S&P 500: 4,477.44

1Mo:

-7%

| 1Yr:

+16%

| 5Yr:

+93%

The company formerly known as

Facebook sent markets tumbling today

. Its slowing revenue growth had investors

worried a broader slowdown could happen across the tech sector,

despite solid reports so far from the other tech giants like Apple, Microsoft, and Alphabet (Google). Big Tech stocks fell across the board, and social media stocks tanked. Snapchat and Pinterest just reported strong earnings after market close, and their stocks popped back. Amazon just reported as well, and its stock jumped. So the problem could just be with Facebook.

The Labor Department reported weekly

initial unemployment claims falling more than economists expected

to 238,000. We'll get the official January jobs report tomorrow.

Oil prices rose above $90 a barrel for the first time in eight years

today, raising further concerns about inflation.

Company Scoops ❤🌎💰

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

Home Depot

gets creative with employee benefits

Meta

loses focus on Facebook

Johnson & Johnson

pays up on opioids

Spotify's

scary slowdown

General Motors

turns into a growth company

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

🤓 Inside Scoop...

The performance of Big Tech companies is critical to overall sentiment in the market. The Big Six - Apple, Microsoft, Amazon, Alphabet (Google), Meta (Facebook), and Tesla are so enormous compared to every other company that the fluctuations of their value drive the changes of "The Market" as a whole. The S&P 500 Index is the primary way people track whether "The Market" is rising or falling. It's an index of the biggest ~500 companies, weighted by the size of each company. The Big Six alone count for 25% of the total size of "The Market." The other ~494 companies make up the other 75%. So the prices of those Big Six companies significantly affect the perception of how the whole market is doing.