Stocks opened the day sharply higher with the Dow gaining as many as 283 points at one point before a huge intraday reversal saw the market fall into negative territory and stocks finish in the red for the second day in a row.
Dow: 17,613.8, -27, (-0.1%)
S&P 500: 2,023.00, -5.2, (-0.3%)
Nasdaq: 4,661.5, -3.2, (-0.1%)
And now, the top stories on Tuesday:
1. It was a big day for the labor market. This morning we got data from the National Federation of Independent Business that points to rising wages for American workers. Additionally, the Job Openings and Labor Turnover Survey, or JOLTS report, from the BLS showed that job openings surged to another post-crisis high in November. And following these reports, economists could barely contain their excitement.
2. Following the one-two punch of data suggesting an increase in wages and more job openings, Chris Rupkey at Bank of Tokyo-Mitsubishi said, "The labor market isn't just healing — it is red hot with nearly 5 million jobs available. Slack in the economy isn't just going away; it's all but evaporated." Ian Shepherdson at Pantheon Macro said that since the financial crisis, the economy has really needed the small-business sector to normalize, and now it finally is. The next big economic report on the state of the labor market is the January 30 employment cost index.
3. In stock news, GoPro was a big loser on Tuesday after a report from Patently Apple said that Apple was granted a patent for a GoPro-like camera system. Patently Apple's report said, "In one implementation, Apple's invention could directly move into GoPro's territory as the patent specifically mentions the weaknesses of the GoPro devices." The stock has still more than doubled from its IPO price, but is down big over the last couple months.
4. Mortgage servicer Ocwen Financial was also a big loser on Tuesday, falling more than 35% after a report from the Los Angeles Times said that California is seeking to suspend the company's mortgage license in the state, which the company counts as its largest source of business.
5. A report in Fortune said that Warren Buffett proteges Todd Combs and Ted Weschler, who manage Berkshire Hathway's stock portfolios, failed to beat the market this year.
6. Last night, Alcoa kicked off earnings season by reporting bottom- and top-line results that topped expectations, and the major US banks are set to take center stage later this week. Here's the lineup, from the NYSE's Charlie Brown: "JP Morgan Chase reports ahead of the open on Wednesday, and Wells Fargo after the close. Then comes Bank of America and Citigroup on Thursday, followed by Goldman Sachs and SunTrust Banks on Friday."
7. Oil prices had another wild ride on Tuesday, with West Texas Intermediate crude falling below $45 a barrel overnight, a new low for the commodity which has been in free fall over the last several months, but in late trade on Tuesday, WTI made a huge comeback and was flirting with $47 a barrel near Tuesday's market close.
(Newser) - After a fierce winter storm blanketed much of the Middle East—including northern Saudi Arabia—with snow last week, a prominent Saudi cleric issued a ruling banning people from making snowmen, calling them un-Islamic. Sheikh Mohammed Saleh al-Munajjid said "it is not permitted to make a statue out of... More »
(Newser) - How to get a private plane experience at regular-plane prices: Ask Chris O'Leary. The Brooklyn man managed to fly from Cleveland to New York's LaGuardia Airport yesterday on a 76-seat plane that carried just two passengers. Initially, he was the only one. As O'Leary explains to ABC... More »
(Newser) - One person died and at least 83 others were hospitalized after smoke filled a Washington, DC, subway station and tunnel during the afternoon rush hour yesterday. Hundreds of people were evacuated from L'Enfant Plaza station—one of the Metro network's busiest—and from a Yellow Line train that... More »
(Newser) - It's early January, but people in the UK are apparently already munching on a lot of Cadbury Creme Eggs—and many of them aren't happy about some changes inside the foil. The Easter treats used to be made with the Dairy Milk brand of milk chocolate, but the... More »
(Newser) - Seattle bus riders have recently been finding themselves with a transit companion who's a bit furrier than most: Eclipse, a 2-year-old black Labrador, has been riding the bus—alone—to a Belltown dog park. "All the bus drivers know her. She sits here just like a person does,... More »
(Newser) - Authorities have interviewed more than 100 potential witnesses in the December burning death of Mississippi teen Jessica Chambers , yet they still don't have a prime suspect. They also say "talk on the street" about the case has been quieter than usual, hampering the investigation. So the FBI has... More »
As owners of gas-guzzling SUVs and trucks rejoice over rapidly declining... Read »
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