“A diamond is a piece of coal that stuck to the job.”
-Michael Larsen
Here’s what you need to know this week:
- Stocks fall then rebound, and the Dow Jones sets a new record
- A trio of economic reports provide insight into the state of the economy
- The Department of Labor has created a tool to locate lost retirement accounts
Dow 50,000
Stocks continued their wild ride last week, posting a sharp drawdown before recovering. Interestingly, we are starting to see a broader divergence among the stock indexes. The S&P 500, typically viewed as the best barometer of the US stock market, fell roughly 2.5% last week before recovering all losses. The tech-heavy NASDAQ posted sharper losses of ~4% and still hovers a few points below its all-time high. However, the Dow Jones Industrial Average, more commonly known as just “The Dow Jones” reached a new high of 50,000.
For anyone who doesn’t know, the Dow Jones is an index comprised of thirty large American stocks. Unlike the NASDAQ’s tech bias, the Dow Jones tracks companies across a broad range of industries and includes American staples such as Coca-Cola, Walmart, McDonald’s, Visa and others. The Dow’s outperformance of the S&P 500 and NASDAQ suggests that this bull market is broadening out from tech companies into sectors like construction, utilities, finance and consumer products. Broadening markets are typically a good sign and are more robust than bull markets that rely on an individual sector like tech.
Snapshot
Last Thursday we received the Job Opening and Labor Turnover Survey (JOLTS)report for the month of December. The report showed the jobs market is still struggling to regain footing with job openings at 6.5 million, well below Wall Street estimates of 7.25 million[1]. Later this morning we will receive the first nonfarm payrolls (NFP) report for the year and this will give us a more complete picture of the labor market; analysts expect the report to show the economy adding 80,000 jobs in January and for unemployment to hold steady at 4.4%[2].
The other major report is the Consumer Price Index (CPI) report for the month of January. The report will be released on Friday and analysts expect the report to show annualized inflation at 2.7%[3]. If unemployment and inflation come in light then we may see markets break newer highs, but unexpected hikes in either report may bring more volatility.
Retirement Lost and Found
Changing jobs is always hectic; you’re tying up loose ends, preparing for a new job, and maybe even moving to a new city. Things can get lost in the shuffle, and oftentimes retirement benefits get put on the backburner. Sometimes your old employer is acquired by another firm and you don’t know how to get in contact with them regarding your retirement benefits.
If any of these scenarios apply to you, the US Department of Labor has created a new tool to help you locate these retirement benefits. The Retirement Savings Lost and Found Database is a secure government portal that helps citizens track down old pensions, 401(k)s, 403(b)s, and other employer-sponsored retirement plans. Click the link below to find any lost retirement accounts, or contact us at Eternal Wealth Management if you would like help tracking down an old account:
What Else
- Russia accused Ukraine of assassinating a senior military general, adding to a spate of attacks on senior Russian officials in recent weeks
- Israel and Hamas exchanged gunfire over the weekend as rising tensions threaten the broader ceasefire agreement
- Police officials continue to investigate the disappearance of Nancy Guthrie, mother of Today Show host Savannah Guthrie
- The Seattle Seahawks defeated the New England Patriots 29-13 in Super Bowl LX
- The 2026 Winter Olympics have officially begun in the cities of Milan and Cortina d’Ampezzo in Northern Italy
What We’re Reading
While the Olympics have a storied history dating back to ancient Greece, the Winter Olympics are still relatively young, beginning in Chamonix France back in 1924. Still, the Winter Olympics have delivered their fair share of historic moments through the year, from athletes setting hundreds of world records to the Miracle on Ice US hockey victory in 1980. Click below to see photos of the Winter Olympics’ most iconic moments and read the stories behind them:
What’s Happening Downtown
The OKC Civic Center is hosting a live performance of Romeo and Juliet for Valentine’s Day this Saturday, February 14th. Tickets start at $24 per person and the show begins at 7:30, click below to learn more and purchase your tickets:
To read more from our blog, click here
Written by: Kane Ogle, CFP®
Steve Beck, Kane Ogle, CFP®, Amber Eduvigen, CFP®, Cale Olbert, CFP®, Brett Valentine, CFP®, Brandon Ingerson, Bill Daniel, Sam Postich, Jenni Hess
Sources: [1] Yahoo! Finance [2] CNN [3] Morningstar