Dow dropped 145 (near early session lows), decliners over advancers 3-2 & NAZ declined 130.  The MLP index gained 3+ to the 268s & the REIT index fell 3+ to the 377s.  Junk bond funds continued lower & Treasuries had selling which raised yields.  Oil closed up 1+ to the 79s & gold added 9 to 2024 (more on both below).

AMJ (Alerian MLP Index tracking fund)

Winter weather, high Mortgage Rates send housing starts plummeting

Nike (NKE), a Dow stock, is cutting 2% of its current workforce (more than 1500 jobs) as part of a broader restructuring, the company said.  The sneaker giant said it wants to better use its capital to invest in its growth areas, such as running, women's & the Jordan brand.  “This is how we will reignite our growth,” CEO John Donahoe said.  “This is a painful reality and not one that I take lightly,” he added.  “We are not currently performing at our best, and I ultimately hold myself and my leadership team accountable.”  The layoffs will take place in 2 phases.  The company will start the first round this week & finish the 2nd by the end of its fiscal 4th qtr, which typically concludes at the end of May.  It’s not clear which departments will experience layoffs, but they will not affect retail employees at its stores or warehouse workers.  The cuts come as consumers become more cautious in their spending & the retail industry braces for a demand slowdown for discretionary items such as clothes & shoes, which is its bread & butter.  In Dec, NKE unveiled a broad restructuring plan to cut costs by about $2B over the next 3 years.  It lowered its sales outlook as it prepared for lower demand & wholesale orders, soft sales online & a marketplace that relies more on promotions.  As part of its plan to cut costs, it will be looking to simplify its product assortment, increase automation and its use of technology, streamline the organization by reducing management layers & leverage its scale “to drive greater efficiency.”  The stock fell 2.54.

Nike to lay off 2% of employees, cutting more than 1,500 jobs during broad restructuring

UAW threatens to strike Ford truck plant in Kentucky if local issues aren’t resolved

Gold closed higher, rising off early weakness as the $ gave up the gains it posted after another report showed US inflation running hotter than expected, lowering hopes for a quick cut to US interest rates from the Federal Reserve.  Gold for Apr closed up $9 to settle at $2024 per ounce.  The Bureau of Labor Statistics reported the Jan producer price index (PPI) rose by 0.3% from Dec, above expectations for 0.1% rise & up from a 0.1% drop in the previous month.  Core PPI rose 2% annualized, ahead of expectations for a 1.6% rise & up from 1.8% in Dec.  The higher than expected rise follows on prior reports showing the US economy continues to run hot & clouds the outlook for US interest rates.  Gold is likely to remain stuck until there is a better understanding about the delivery of future US rate cuts.  The ICE dollar index was last seen down 0.08 points to 104.21, after earlier touching 104.67.  Treasury yields pushed higher, raising the carrying cost of owning gold.  The 2-year note was last seen paying 4.665%, up 8.7 basis points, while the yield on the 10-year note was up 7.0 basis points to 4.297%.

Gold Closes Higher as the Dollar Surrenders Gains That Came After a Report SHows US Inflation Ran Hotter Last month

West Texas Intermediate (WTI) crude oil rose to the highest in 3 months as geopolitical worries amid Mideast violence & the death in prison of Russian opposition Alexei Navalny offset a well-supplied market & flagging demand.  WTI crude for Mar closed up $1.16 to settle at $79.19 per barrel, the highest since Nov 6. while Apr Brent crude was last seen up 58¢ to $83.44.  Geopolitical risks continue as a trading focus with Israel continuing to push into the crowded city of Rafah in Gaza, while attacks on Red Sea shipping by Yemen's Houthis force traffic around the Cape of Good Hope instead of thru the Suez Canal, boosting shipping costs & Navalny's death is sparking intl condemnation of Russian pres Vladimir Putin.  The rise comes a day after the Intl Energy Agency said the oil market was well supplied amid rising production outside of the OPEC+ cartel & moderate demand.  "Global oil demand growth is losing momentum, with annual gains easing from 2.8 mb/d in 3Q23 to 1.8 mb/d in 4Q23. A sharp drop in China underpinned an 830 kb/d decline in global oil demand to 102.1 mb/d in the last quarter of 2023. The pace of expansion is set to decelerate further to 1.2 mb/d in 2024, compared with 2.3 mb/d last year. China, India and Brazil will continue to dominate gains," the agency said.

WTI Crude Oil Closes Higher as Focus Stays on Geopolitical Turmoil

After a midday rally, the sellers returned to drag the averages back into the red.  Investors are adjusting to the concept of slower rate cuts.  Stocks had a tough with mixed to negative economic data.  The Dow ended a choppy week down 170.

Dow Jones Industrials