The stock market will put aside all fears about tariffs and valuations this morning. The job data in December, released by the Bureau of Labor Statistics will give investors a clue on the U.S. economy. Strong employment in healthcare, government jobs, retail, and travel will justify the Federal Reserve’s decision to pause interest rate cuts.
Ahead of the report, the Treasury Bond ETFs with long-term maturity fell. TLT stock lost 8.86% in the last month. However, bank stocks are still performing well. JPMorgan Chase (JPM) and Bank of America (BAC) will benefit either way. High interest rates increase the net interest margins while falling rates boost the economy. Higher economic activity increases the bank’s business transaction volumes.
On Thursday, Intellia Therapeutics (NTLA) said it would cut 27% of its workforce. It is discontinuing NTLA-3001. Instead, it will spend its efforts on NTLA-2002, a candidate for treating hereditary angioedema. NTLA stock lost 60% in the last year. Its downtrend shows no sign of ending.
In the drugstore market, Walgreens (WBA) will post quarterly results. The firm may comment on rumors about its sale to Sycamore Partners. WBA stock may rally if the firm cuts its rich dividend. Investors want the firm to cut costs and increase cash flow as it struggles to turn the business around.
