Despite some better than expected economic data, the January BLS Employment report was more than double expectations with 130,000 new jobs and continued solid wage gains +.4% and hours worked +.1 putting a lot more money in your average Americans pocket. Friday’s Consumer Price report showed year ago inflation down to just 2.4% in January. With about 75% of the S&P 500 companies having reported 4th quarter numbers so far. Earnings growth is running an impressive 13.2% while revenue growth is up 9%. Earnings expectations for the 1st and 2nd quarters of 2026 are running 11.1% and 14.9% respectively and 14.4% for all of 2026 per FactSet Research. Hard to argue with numbers like that. Despite the existing home sales miss and disappointing retail sales data that came out this week as well.
Will AI Eat Your Lunch
Concerns about AI shifted from sustainability and profitability. To, it’s going to take everyone’s job, even white collar professionals. Quite the flip if you ask me. Other notable stories this week include another 5 odd billion Dollars lost by Ford’s electric vehicle division and 8.2 billion by Ford as a whole in 2025, adding to the 16 billion Ford has lost on electric vehicles since 2022. Stellantis, aka Fiat, Chrysler, Dodge, Ram, Jeep and Peugeot. Lost 26.5 billion in the 2nd half of 2025 as write downs and losses related to poor EV demand, quality control issues with EV’s and related matters ballooned. Following the effects of shifting consumer demand, overly optimistic EV market assumptions, reduced subsidy’s and tariffs. As the bloom continues to fade from the Green New Deal.
The Markets Struggled
Yet the averages struggled all week, with the major bourses closing down since last Friday. Worst off was the NASDAQ it lost 484 points or 2.1%, followed by the S&P 500 down 96 points or 1.38% and DOW off 615 points or 1.23%. Causing the NASDAQ and the S&P 500 to close in the red for the year. Despite solid earnings and revenue growth and expectations for more of the same this year.
The Epstein Effect
This week’s economic data is hardly sufficient to explain the markets struggles following January’s blistering start. That ended with the 3 million document Jefferey Epstein file dump January 30th. While not exactly finance related as the disgraced financier died in late 2019. It has highlighted official and elite corruption in a very big way. Something the vote fraud centered Save America Act, the immigration debate and revelations of extensive waste, fraud and abuse, was already doing. Ideally this would be a unify America moment as your average American still has a very clear idea of right and wrong. Even if our so called political representatives don’t seem too anymore. Unable to let go of their disgusting partisan bickering and do what is right for America, the Republic and its citizenry. It has nonetheless upset the status quo and apparently the markets as well.
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