In the markets this week, the January jobs report came in quite hot at over three hundred thousand, while analysts expected a calmer 165k number. Fed Chairman Powell reiterated the Federal Reserve Board decision to be patient about raising interest rates and settled on taking no action for now.On the earnings front, Apple (NASDAQ:AAPL) and Facebook (NASDAQ:FB) gave a boost to equities as results were not as bad as expected. Amazon (NASDAQ:AMZN) impressed with the growth in Amazon Web Services and it’s emerging advertising business, but warned on increased investments throughout 2019. Microsoft (NASDAQ:MSFT) posted great numbers in the cloud but the revenue number was seen as a touch light. Apple also lifted spirits with good services and the admission it will reconsider I-phone pricing. Exxon (NYSE:XOM), Chevron (NYSE:CVX), and Shell showed there is some life in the oil patch as all beat expectations. Permian production was the highlight for Exxon and Chevron while strong refining and gas helped both Shell (LON:RDSa) and Exxon.
Globally, the world's attention continues to focus on Venezuela as the crucial question about how long the army will continue to support Mr. Mudero is what will determine if there will be a change in the situation. For investors, the national oil company, PVSAX, has seen reduced production for quite some time. More importantly is control of the CITGO asset in the United States, one of the largest independent refiners and marketing arms in North America. Some observers have also mentioned that under a change of regime scenario, the incoming leaders would probably decide to tell the country's largest creditors, Russia and China, they aren't going to pay what Mr. Chavez and Mudero borrowed. For the United States, efforts to tighten the screws on the Mudero administration and Cuba is a calculated effort that has a little risk but plenty of potentials if things were to change. Mudero has presided over one of the largest human rights disasters in decades, not to mention the economic bomb it laid on its citizens.
Next week, Google (NASDAQ:GOOGL) leads off the earnings parade, and on Tuesday, President Trump will deliver the State of the Union address. With time running out on the effort to come to some kind of agreement on the immigration-border wall question as a way of keeping the government open, tension remains elevated. It might be a good time to take a big breath.