Earnings Bonanza

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What's Happening Today

Good morning! It's Kristin with your daily morning digest.

Stocks are higher this morning as investors consider another week packed with earnings after last week's roller coaster in the markets. Facebook's parent company Meta saw a wipeout of hundreds of billions of dollars after disappointing earnings, while strong results from Amazon led markets on a rally late last week and Snap saw a huge pop. This week, investors can expect more earnings from several major companies like Uber, Disney, Coca-Cola, and Twitter.

Thanks to Friday's strong jobs report (which highlighted the strength of the labor market) and impending interest rate hikes, bond yields are rising, with the 10-year approaching 2%. Rising bond yields mean that the interest in Treasury bonds is on the decline, as investors instead turn to riskier investments, like stocks. This move in yields usually indicates a growing and strengthening economy.

We will also get important economic data on Thursday when the government releases the January Consumer Price Index (CPI) report, an important indicator of inflation that shows the rising costs of goods and services consumers buy in the country. The CPI has been on the rise, jumping 7% last year, as consumers saw prices soar.

And good news for travelers looking for low-cost fares: Frontier and Spirit Airlines are merging to create the fifth-largest airline in the country in a deal valued at more than $6.6 billion. Spirit Airlines CEO Ted Christie said in a statement that the merger would result in "more consumer-friendly fares."

This week, The Balance will host its second conversation in its Black History Month series on homebuying. We'll be chatting with Kara Stevens of Frugal Feminista on Instagram Live about all the steps homeowners should take to get financially ready to purchase a home. Tune in tomorrow, Feb. 8, at 6 p.m. Eastern.

- Kristin

Editors' Picks

Elevated Bond Yields Approach Key Milestone (The Wall Street Journal)

Higher Interest Rates Are Coming. Here's How To Prepare (The Balance)

Food Companies Rely More on Temp Workers as Labor Shortages Persist (The Wall Street Journal)

This Week: Democrats Move To Prevent Shutdown (The Hill)

Spotlight: Celebrating Black History Month

In honor of Black History Month, we'll be highlighting content celebrating Black communities. Throughout February, we'll address the homeownership gap between Black households and their counterparts which has contributed to racial wealth inequality.

How To Prep Your Finances (and Emotions) for Homebuying

There's a lot that goes into buying a home, especially for the first time. Here's what to expect from the process to help prepare your money and mindset.

Off the Charts

The average cost of a gallon of regular unleaded gasoline rose nearly 6 cents this week to $3.423, the highest since August 2014, according to AAA. Prices had fallen late last year after the World Health Organization declared omicron a "variant of concern," but have now more than returned.

Number of the Day

4.01% - That's the average 30-year mortgage rate, according to lender data showing interest rates in 4% territory for the first time since 2020.

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