Squawk on the Street Hot Jobs Report Hits Stocks, Delta and Walgreens Surge, Constellation's $16.4B Power Play 1/10/25
Jan 10, 2025
The stronger-than-expected jobs report sparked a market downturn, with rising bond yields raising concerns about interest rate cuts. Delta and Walgreens enjoyed stock surges after impressive earnings. Constellation Energy's massive $16.4 billion acquisition of Calpine highlights the urgent power demands from AI data centers. Additionally, California's wildfires affected communities and raised recovery challenges. Elon Musk's anticipations for DOGE and shifts in sports broadcasting also added another layer of intrigue to the market discussions.
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Earnings Over Rate Cuts
- Jim Cramer prefers strong earnings over rate cuts.
- He argues that rate cuts don't always translate to higher EPS, while good earnings directly impact stock prices.
Strong Jobs Report Impacts Markets
- The December jobs report, with 256,000 jobs added, is stronger than expected.
- This raises concerns about the Fed's potential rate cuts and sends bond yields higher.
Post-Election Optimism and Hiring
- John Gibson, CEO of Paychex, suggests small and medium-sized businesses felt optimistic after the election.
- This optimism translated into increased hiring, a factor potentially overlooked by the Fed.