Today's Scoop:

Hey friends, hope you had a great weekend. Check out our Investor Page and help us get another ten $100 investors today!

Here's what you need to know today...

1. The reports on the jobs market this week will be crucial.

2. The manufacturing side of the economy has been slowing.

3. China's economy isn't what it used to be.

S&P 500: 4,048.421Mo: -3% | 1Yr: -4% | 5Yr: +45%

The market drifted sideways today without much major news. Investors are all waiting for a few critical reports on the jobs market this week, hoping they don't point to an overheating economy in need of higher rates. [🤓] The most important report will be the February jobs report on Friday.

While businesses selling services are doing alright, factories see a slowdown. Higher interest rates have deterred shoppers from bigger-ticket items that might require loans, like cars, equipment, or appliances. [🤓] The Commerce Department reported new orders for manufactured goods fell in January.

Though much of China's economy has snapped back from its recent covid lockdowns, the country isn't expecting to return to the same growth it had before. The Chinese government is targeting around 5% growth for 2023, its lowest target in decades.

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

• Norfolk Southern derails another train in Ohio

• AB Inbev gets Miller to stop saying Bud Light tastes like water

• Shell's new CEO looks to reverse its plans to cut oil production

• Coinbase buys a hedge fund

• Costco deals with slowing shoppers

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

The Federal Reserve / The Fed

The Federal Reserve, aka the Central Bank, aka The Fed, is in charge of our whole money system. When the economy struggles, the Fed lowers baseline interest rates to make it cheaper for consumers and businesses to borrow and spend. The Fed also pumps more money into the system by buying bonds with new dollars that it essentially speaks into existence. The additional cash keeps the pipes flowing as the borrowing and spending heat up, stimulating economic activity.

Once the economy's strong enough to stand on its own, the Fed starts to raise interest rates and pull back some of that money to ensure the economy doesn't overheat. Inflation is the Fed's heat gauge, and the gauge is reading HOT.

So everyone's watching whether the Fed can dial up the economic restrictions quickly enough to slow inflation and cool the economy but not so quickly that it completely freezes growth. 

Want to create your own newsletter? Publish on beehiiv.