Markets Hold Steady Amid Mixed Signals and Cautious Optimism

The past week signaled steady economic momentum as U.S. manufacturing and services sectors continued their expansion, while labor market data reflected ongoing resilience with modest job gains and a slight dip in unemployment. Central banks remained cautious, with the Bank of England easing rates amid tempered inflation, and Canada’s labor market posted solid growth.

Markets wavered between gains and losses. Commodities like oil dipped, while gold edged higher, and equity indices posted modest gains. Earnings season revealed a mixed corporate landscape—some companies exceeded expectations but faced market skepticism, while others saw shares decline on cautious outlooks and missed forecasts.

Monday, February 3

17:00 – USA: ISM Manufacturing PMI (USD)

U.S. manufacturing expanded in January after 26 months of contraction, with the PMI® rising to 50.9% from 49.2% in December. New orders (55.1%), production (52.5%), and employment (50.3%) grew, while supplier deliveries slowed, and inventories contracted. Prices rose (54.9%), and both exports (52.4%) and imports (51.1%) increased.

The EURUSD exchange rate declined by 0.6% compared to the prior trading session.

17:00 – USA: ISM Services PMI (USD)

U.S. services expanded in January, with the PMI at 52.8%, down from 54% in December. Business activity (54.5%), new orders (51.3%), and employment (52.3%) grew, while supplier deliveries slowed (53%). Prices remained high at 60.4%, and inventories continued to contract. Fourteen industries reported growth despite slower overall momentum.

The USDJPY exchange rate was down by 0.3%.

15:15 – USA: ADP Non-Farm Employment Change (USD)

Private sector jobs rose by 183,000 in January, with annual pay up 4.7%. Growth was strong in leisure and hospitality (+54,000), while manufacturing lost 13,000 jobs. The West and Midwest led regional gains. Job-stayers saw a pay rise of 4.7%, and job-changers 6.8%.

The EURUSD increased by 0.2%.

14:00 – UK: Official Bank Rate (GBP)

The Bank of England cut the Bank Rate by 0.25% to 4.5%, citing easing inflation and weaker GDP growth. Inflation is expected to rise to 3.7% by Q3 2025 before returning to the 2% target. The MPC remains cautious about persistent inflation risks.

The GBPUSD decreased by 0.5%.

15:30 – USA: Unemployment Claims (USD)

Initial jobless claims rose by 11,000 to 219,000, with the previous week’s figure revised up to 208,000. The 4-week moving average increased by 4,000 to 216,750. Insured unemployment remained at 1.2%, with claims rising by 36,000 to 1,886,000.

The USDJPY exchange rate decreased by 0.75%.

15:30 – Canada: Employment Change (CAD)

Employment in Canada rose by 76,000 (+0.4%) in January, pushing the employment rate to 61.1%. The unemployment rate dropped slightly to 6.6% (-0.1 pts). Job gains were led by manufacturing (+33,000) and professional, scientific, and technical services (+22,000). Average hourly wages increased 3.5% year-over-year to $35.99.

The USDCAD dropped 0.17%.

15:30 – USA: Non-Farm Employment Change (USD)

Nonfarm payrolls rose by 143,000 in January, while the unemployment rate edged down to 4.0%. Job gains were led by health care (+44,000), retail trade (+34,000), and social assistance (+22,000), while mining and oil extraction lost 8,000 jobs. Average hourly earnings increased by 0.5% to $35.87, up 4.1% over the past year. The labor force participation rate held steady at 62.6%.

The EURUSD exchange rate decreased by 0.6%.

1. Crude Oil
   Crude oil prices decreased by 3.78% over the past week
2. Brent Oil
   Brent was down 2.29% compared to the previous week
3. Gold
   Gold The precious metal Gold (XAUUSD) concluded the week on Friday with a 2.24% weekly rise
4. Silver
   XAGUSD increased by 1.51% from the last week

1. S&P 500 increased by 0.16%
2. DJIA was up by 0.55%
3. NASDAQ 100 was up by 0.12%

1. Invivyd, Inc. (IVVD) 470.31%
2. Lottery.com Inc. (LTRY) 401.57%
3. MGO Global Inc. (MGOL) 246.12%

1. Cyngn Inc. (CYN) -77.78%
2. Omega Therapeutics, Inc. (OMGA) -76.33%
3. Fitell Corporation (FTEL) -72.91%

Tuesday, February 4: EA (Electronic Arts Inc.)

Tuesday, February 4: GOOGL (Alphabet Inc.)

Tuesday, February 4: MRK (Merck & Co., Inc.)

Tuesday, February 4: PFE (Pfizer Inc.)

Tuesday, February 4: SNAP (Snap Inc.)

Wednesday, February 5: F (Ford Motor Company)

Thursday, February 6: AMZN (Amazon.com Inc.)

Electronic Arts reported $2.215 billion in net bookings and $1.883 billion in revenue for Q3, with net income at $293 million ($1.11 EPS). Strong performance from EA SPORTS FC 25 and mobile titles fueled growth. EA announced a $1 billion accelerated share repurchase and a $0.19 quarterly dividend, payable on March 19, 2025.

EA shares increased by 4.63% from the previous week.

Alphabet reported Q4 2024 earnings per share of $2.15, beating estimates by $0.03. With a trailing EPS of $8.05 and a P/E ratio of 23.25, earnings are projected to grow 14.49% next year, rising from $8.90 to $10.19 per share.

GOOGL shares decreased by 9.16% from the previous week.

Merck reported Q4 2024 EPS of $1.72, missing estimates by $0.13, while revenue rose 6.8% year-over-year to $15.62 billion, surpassing expectations. With a trailing EPS of $6.73 and a P/E ratio of 12.97, earnings are projected to grow 10.10% next year, from $9.01 to $9.92 per share.

MRK shares experienced a decrease of 11.28%.

Pfizer reported Q4 2024 EPS of $0.63, beating estimates by $0.15, with revenue up 24.7% year-over-year to $17.76 billion, surpassing expectations. With a trailing EPS of $1.41 and a P/E ratio of 18.27, earnings are projected to grow 3.05% next year, from $2.95 to $3.04 per share.

PFE shares declined by 2.94%.

Snap reported Q4 2024 revenue of $1.56 billion, up 14.4% year-over-year, beating estimates by 0.55%. EPS rose to $0.16 from $0.08 last year, surpassing the $0.14 consensus estimate by 14.29%.

SNAP shares decreased by 3.28% from the previous week.

Ford reported Q4 2024 revenue of $48.2 billion with net income of $1.8 billion and adjusted EBIT of $2.1 billion. Full-year revenue rose to $185 billion, net income reached $5.9 billion, and adjusted EBIT totaled $10.2 billion. The company announced regular and supplemental dividends of 15 cents per share, payable March 3.

F shares were down by 8.33%.

Amazon reported Q4 2024 revenue of $187.8 billion, up 10% year-over-year, with profits of $20 billion and EPS of $1.86, beating expectations. However, shares dipped in after-hours trading due to lower-than-expected Q1 2025 guidance, projecting revenue between $151 billion and $155.5 billion, below analyst estimates of $158.56 billion, citing unfavorable foreign exchange impacts.

AMZN shares declined by 3.59% compared to the previous week.

The week reflected a steady but cautious economic environment, marked by modest expansions in U.S. manufacturing and services, resilient labor markets, and central banks adjusting policies in response to shifting inflationary pressures. Market performance oscillated, with commodities like oil declining and gold gaining, while equities saw minor movements amid mixed corporate earnings. Despite some companies surpassing expectations, broader market sentiment remained tempered, influenced by cautious outlooks and macroeconomic uncertainties. As the first quarter progresses, investors and policymakers alike remain focused on navigating persistent economic headwinds and emerging growth opportunities.