Good morning and welcome to this edition of the Morning Squawk newsletter. As we eagerly await February’s nonfarm payrolls report, the Winter Olympics have caught our attention, with Norway currently leading the medal count. Meanwhile, U.S. stock futures are trending upwards following a mixed performance from the three major averages in the previous session.
Here are five key developments investors should monitor as trading begins today:
The Bureau of Labor Statistics (BLS) is set to release January’s nonfarm payrolls report at 8:30 am ET, five days later than originally planned due to a recent government shutdown. Analysts expect the report to indicate limited job growth, with the Dow Jones consensus forecasting an increase of 55,000 payrolls for January, which is marginally higher than the gain of 50,000 recorded in December. However, some Wall Street projections predict even lower numbers. This report will also include the BLS’s final benchmark revisions for the year leading up to March 2025, which could potentially erase many of the gains seen in that period. This announcement follows other recent economic data indicating a struggling labor market, including December’s retail sales report that showed a significant decline in consumer activity. National Economic Council Director Kevin Hassett has also cautioned to expect modest job numbers, attributing this to a decline in the labor force due to immigration policies under the previous administration.
In the automotive sector, Ford Motor Company reported a significant quarterly earnings miss, with adjusted earnings per share falling to 13 cents, which was a notable 32% below Wall Street expectations. The automaker cited about $900 million in unexpected tariff costs and a fire at an aluminum plant affecting its F-Series pickup trucks as key factors. However, Ford is looking forward to 2026, predicting a rebound with anticipated increases in adjusted EBIT, free cash flow, and capital expenditures, suggesting that older vehicle units may make up for losses in their electric vehicle segment.
In the healthcare domain, shares of Moderna have dropped more than 10% in pre-market trading after the Food and Drug Administration declined to review the company’s application for an experimental flu shot. This regulatory refusal is seen as part of tightening vaccine regulations. Moderna expressed concern over the inconsistency of the FDA’s stance, noting that the agency did not cite any specific safety or efficacy issues but criticized the study design, despite prior approvals.
In political news, U.S. Commerce Secretary Howard Lutnick testified before lawmakers, revealing that he visited Jeffrey Epstein’s island in 2012 during a family trip. This revelation has prompted calls for his resignation from members of both political parties, following the release of documents that suggest a more complex relationship with Epstein than previously understood. Lutnick, however, maintained that he had minimal interaction with Epstein.
Finally, in a notable legal development, Estée Lauder has filed a lawsuit against Walmart, claiming that the retailer sold counterfeit beauty products through its online platform. The cosmetics giant contends that they purchased items using their trademarks from Walmart.com, later determining that these products were fraudulent. The lawsuit highlights the ongoing issues of counterfeit goods, implicating Walmart in facilitating the sale of these deceptive products to consumers.
As trading opens, investors will be closely monitoring these core issues that are shaping the market landscape today.
