Weekend Update #212
Thank you for your continued support and engagement. Each week, we're sharing what companies we're researching and the what, the who and the how that we think makes the companies interesting and unique. This roundup is brought to you weekly by a group of interns, creative minds, artists and investors who believe that through best in class investing along with the democratization of financial education we can do great things together. Enjoy, Explore and Share.
Bonds and equities continued to decline this week as traders grappled with heightened U.S. tariff risks and persistent inflation concerns. U.S. Treasuries reversed earlier gains following reports that Trump may declare a national economic emergency to advance his plans. Markets remain volatile, with U.S. equities off to a rocky start for the year, global bond yields climbing, and traders adjusting to resilient economic data that delays expectations for rate cuts.
In labor market news, the U.S. economy added 256,000 jobs in December, the most since March, while the unemployment rate unexpectedly fell to 4.1%, signaling labor market resilience despite high borrowing costs and persistent inflation. Average hourly earnings rose 0.3% from November, capping a year of steady job growth. The economy added 2.2 million jobs in 2024, down from 3 million in 2023 but above the 2 million gained in 2019. The data support the Federal Reserve’s cautious approach as progress toward its 2% inflation goal remains slow. Traders pushed expectations for the next rate cut further into 2025 after the report.
Job openings in November rose to 8.1 million, surpassing forecasts of 7.74 million, with the openings-to-unemployed ratio climbing to 1.13, the highest since June 2024. However, the quits rate dropped to 1.9% from 2.1%, indicating limited bargaining power despite labor market stabilization. The mixed report suggests subdued wage pressures ahead, even as concerns grow over a potentially stronger labor market entering 2025.
December saw a pickup in services activity, supported by strong spending momentum and businesses preparing for anticipated tariffs under the incoming Trump administration. The ISM Services Index rose to 54.1, driven by robust demand in new orders and business activity, though uncertainty surrounding tariffs and supply chain disruptions loomed large. Despite the employment subindex remaining expansionary, hiring freezes persist, while rising input prices reflect suppliers' caution in committing to long-term pricing amid ongoing policy uncertainty.
Investors will closely monitor next Tuesday's CPI report.
Corporate Highlights:
Uber Technologies Inc. said it’s teaming up with Nvidia in order to accelerate the development of autonomous driving technology.
Johnson & Johnson said its combination therapy for lung cancer outperformed AstraZeneca Plc’s blockbuster Tagrisso in a head-to-head study, a finding that could change the standard of care for one of the most deadly tumor types.
Getty Images Holdings Inc. agreed to acquire rival stock-photo provider Shutterstock Inc. in a deal that would create a combined company worth about $3.7 billion including debt.
Paychex Inc. agreed to acquire rival payroll processor Paycor HCM Inc. for about $4.1 billion in cash, including debt.
Phillips 66 agreed to acquire EPIC NGL, an owner of natural gas liquids pipelines, for $2.2 billion in cash as it moves to expand its transport business in the Permian basin in the southwestern US.
Tesla Inc. refreshed its best-selling Model Y, applying a design element of the polarizing Cybertruck to its high-volume sport utility vehicle.
Constellation Energy Corp. agreed to acquire closely held Calpine Corp. for $16.4 billion to add scores of power generation assets across the US as the nation’s electricity demand is forecast to surge.
Friday’s Close (Weekly Performance)
S&P 500 5,827.04 (-0.71%)
Nasdaq 19,161.63 (-0.62%)
Dow Jones 41,938.45 (-1.07%)
Thank you Blue Room Analyst NICK PEART
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BAKERIES, BREWERIES, BRONCOS:
Denver is getting creative with local grains
by Meryl Phair
Special to Colorado Community Media
Rebel Bread at 675 S. Broadway recently started working with Dry Storage and its locally sourced grains last year.
Photo courtesy of EB Pix
Devin Jamroz knows there is something special about the white wheat variety known as India Jammu that is grown in Colorado.
The CEO of the company Dry Storage in Boulder said the grain made its way to the front range after being pulled from a seed vault in 2020 and passed into the hands of local baker Andy Clark at Moxie Bread Co. in Louisville.
Clark milled some but got so excited over the bread it produced that he handed it off to the MASA Seed Foundation in Boulder where it wound up with several local farmers and eventually to Dry Storage as they were putting together their inventory of local grains.
“We launched it (Indian Jammu) a month ago and we’re getting it into more chefs and baker’s hands to play with,” Jamoz said. “It could potentially change the game and change the narrative around the usability of single-varietal, stone-milled flours because it is just so easy to use.”
A product of Rebel Bread on South Broadway, which has been using Colorado-grown grains since at least last year. Photo courtesy of EB Pix
While Colorado is known to grow high-protein winter wheat due to the temperature fluctuation and a relatively short growing season, Jamroz said more than 80% of the wheat grown in the state is shipped elsewhere.
Local grains can be expensive compared to commodity flour and more challenging to work with due to their unique characteristics, but the appeal of local sourcing along with heightened nutrition and taste has been bringing regional flour back to Denver’s food scene.
Launched with a mission of bringing local grains back into the supply chain, James Beard Award-nominated chef Kelly Whitaker and Id Est Hospitality founded Dry Storage in 2019 to create a product they were struggling to find in the local market.
For the rest of the story featured at Colorado Community Media please READ on >>>
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