- Home
- Investing
- Stocks
Investors, traders and speculators are taking time to weigh the latest labor market data against their hopes for lower interest rates.
By
David Dittman
published
11 February 2026
in News
When you purchase through links on our site, we may earn an affiliate commission. Here’s how it works.
- Copy link
- X
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.
Contact me with news and offers from other Future brands Receive email from us on behalf of our trusted partners or sponsors By submitting your information you agree to the Terms & Conditions and Privacy Policy and are aged 16 or over.You are now subscribed
Your newsletter sign-up was successful
Want to add more newsletters?
Delivered daily
Kiplinger Today
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more delivered daily. Smart money moves start here.
Signup +
Sent five days a week
Kiplinger A Step Ahead
Get practical help to make better financial decisions in your everyday life, from spending to savings on top deals.
Signup +
Delivered daily
Kiplinger Closing Bell
Get today's biggest financial and investing headlines delivered to your inbox every day the U.S. stock market is open.
Signup +
Sent twice a week
Kiplinger Adviser Intel
Financial pros across the country share best practices and fresh tactics to preserve and grow your wealth.
Signup +
Delivered weekly
Kiplinger Tax Tips
Trim your federal and state tax bills with practical tax-planning and tax-cutting strategies.
Signup +
Sent twice a week
Kiplinger Retirement Tips
Your twice-a-week guide to planning and enjoying a financially secure and richly rewarding retirement
Signup +
Sent bimonthly.
Kiplinger Adviser Angle
Insights for advisers, wealth managers and other financial professionals.
Signup +
Sent twice a week
Kiplinger Investing Weekly
Your twice-a-week roundup of promising stocks, funds, companies and industries you should consider, ones you should avoid, and why.
Signup +
Sent weekly for six weeks
Kiplinger Invest for Retirement
Your step-by-step six-part series on how to invest for retirement, from devising a successful strategy to exactly which investments to choose.
Signup + An account already exists for this email address, please log in. Subscribe to our newsletter
The main U.S. equity indexes struggled for direction on Wednesday, with a better-than-forecast employment situation during the first month of the new year dashing hope the Federal Reserve will cut interest rates sooner rather than later. Stocks closed slightly lower, while bonds suggest Fed Chair Jerome Powell's steady-as-she-goes narrative will carry at least through May.
The January jobs report showed U.S. payrolls expanded by 130,000 and exceeded a Wall Street consensus forecast of 55,000. The unemployment rate declined to 4.3% from 4.4% in December.
The Bureau of Labor Statistics cited gains in health care, social assistance and construction and losses in federal government and financial activities. According to Access/Macro senior advisor Guy Berger, the January jobs report "was the second good one in a row – arguably not just a good report, but very good."
From just $107.88 $24.99 for Kiplinger Personal Finance
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
CLICK FOR FREE ISSUE
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Sign upPrice action in the bond market – the yield on the 2-year U.S. Treasury note was up to 3.510% from 3.454% on Tuesday, and the 10-year yield rose to 4.174% from 4.145% – suggests investors, traders and speculators "saw the surprising strength in jobs as a guarantee that the Fed would have no reason to cut the fed funds rate anytime soon," according to Louis Navellier of Navellier & Associates.
"Growth and momentum names are taking the most heat on the prospect of interest rates staying higher for longer," Navellier notes. Dividend-paying stocks, value stocks and energy stocks are holding up well, Navellier observes, with financial stocks lagging today and so far in 2026.
By the closing bell, the Dow Jones Industrial Average was down 0.1% at 50,121, and the Nasdaq Composite was off 0.2% at 23,066. But the S&P 500 basically flat, falling just 0.34 points to 6,941.
SHOP takes a drop
Shopify (SHOP) popped more than 11% in pre-market trading after management of the tech stock reported 31% year-over-year revenue growth for the fourth quarter and announced a $2 billion stock buyback plan.
SHOP opened the regular trading session up 9.2% but closed down 6.5% and shed about $11 billion in market cap, as investors, traders and speculators continue to weigh the impact of artificial intelligence (AI) on software stocks. SHOP generated a total return of more than 50% in 2025 but is down nearly 30% so far in 2026.
Track all markets on TradingViewThe e-commerce platform reported earnings of 48 cents per share and missed Wall Street's estimate of 51 cents. But revenue was $3.67 billion and beat a $3.59 billion forecast. Shopify also posted its 10th consecutive quarter of double-digit free cash flow margin (pdf) at 19%.
Management expects revenue to grow "at a low-thirties percentage rate on a year-over-year basis" for the first quarter and free cash flow margin "in the low-to-mid teens, slightly below Q1 of 2025."
KHC is still Warren Buffett's stock
Kraft Heinz (KHC, +0.2%) traded lower and then higher on Wednesday, reversing the SHOP setup after new management reversed course and said it would no longer separate the Warren Buffett stock into two companies.
New CEO Steve Cahillane, who joined Kraft Heinz in January, said it's "prudent to pause work" related to a plan announced in September to split faster-growing brands off as Global Taste Elevation and keep other brands under a North American Grocery umbrella.
Track all markets on TradingViewBuffett said at the time that he was "disappointed" in previous management's decision to undo a merger he orchestrated in 2015. "Since joining the company," Cahillane said in the KHC's earnings announcement (pdf), "I have seen that the opportunity is larger than expected and that many of our challenges are fixable and within our control."
Looking for more timely stock market news to help gauge the health of your portfolio? Sign up for Closing Bell, our free newsletter that's delivered straight to your inbox at the close of each trading day.
The CEO's No. 1 priority is returning Kraft Heinz to profitable growth, "which will require ensuring all resources are fully focused on the execution of our operating plan."
The food conglomerate reported earnings of 67 cents per share, down from 84 cents a year ago but better than Wall Street's forecast for 61 cents. Revenue was down year over year for the ninth consecutive quarter, by 3.4% this time, to $6.35 billion, short of a consensus estimate of $6.37 billion.
Related content
- Why the Next Fed Chair Decision May Be the Most Consequential in Decades
- Analysts' Top S&P 500 Stocks to Buy Now
- I'm a 55-Year-Old Dad. Here's How My 28-Year-Old Daughter Showed Me That AXP Is Still a Solid Investment
David DittmanInvesting EditorDavid Dittman is the former managing editor and chief investment strategist of Utility Forecaster, which was named one of "10 investment newsletters to read besides Buffett's" in 2015. A graduate of the University of California, San Diego, and the Villanova University School of Law, and a former stockbroker, David has been working in financial media for more than 20 years.
Latest-
Is There a Downside to Switching Your Insurance Frequently?
You keep finding lower rates every time you shop for insurance. Is there any reason not to take the better deal?
-
Is Prepaid Wireless Making a Comeback — and Can It Lower Your Phone Bill?
Once seen as a budget alternative, prepaid wireless is attracting new attention as networks improve and shoppers look for flexible, lower-cost options.
-
Job Growth Sizzled to Start the Year. Here's Why It's Unlikely to Impact Interest Rates
The January jobs report came in much stronger than expected and the unemployment rate ticked lower to start 2026, easing worries about a slowing labor market.
-
Job Growth Sizzled to Start the Year. Here's Why It's Unlikely to Impact Interest Rates
The January jobs report came in much stronger than expected and the unemployment rate ticked lower to start 2026, easing worries about a slowing labor market.
-
I'm a 55-Year-Old Dad. Here’s How My 28-Year-Old Daughter Showed Me That AXP Is Still a Solid Investment
American Express stock is still a solid investment because management understands the value of its brand and is building a wide moat around it.
-
I'm a Financial Adviser: This Is Why a Second (Gray) Divorce Could Cost You Big-Time
Divorce isn't any easier the second time, especially if you've remarried later in life. Rushing to settle without proper advice can have serious consequences.
-
A Matter of Trustees: Is Your Spouse the Best Person to Manage the Kids' Trusts?
Naming your spouse as trustee can provide invaluable familial insight and continuity, but you should carefully weigh those benefits against potential risks.
-
Passive Muni Investors: Is Your Strategy Missing the Mark?
Passive investments in municipal bonds are popular, but do they come at a cost? Two recent examples show why an active approach can be more favorable.
-
Dow Hits New High Ahead of January Jobs Report: Stock Market Today
A weak reading on December retail sales was in focus ahead of Wednesday's delayed labor market data.
-
The Best Weekly Income ETFs to Buy in 2026
Weekly income ETFs are among the yield-based products that fund issuers are rolling out, but complexity and fees still matter.
-
Tied Up in Knots Over a Concentrated Stock Position? This Strategy Will Help You Unravel
If you've built significant wealth through stock in one company, deciding your next move may be petrifying. Use this decision-making framework to get unstuck.
