Good Morning! The U.S. added 256k jobs in December, beating the 165k forecast, raising concerns of prolonged rate hikes and threatening the stock market’s $18T rally. Meanwhile, California fires could surpass Hurricane Katrina's $200 billion cost, becoming the most expensive disaster in U.S. history.

Mark Zuckerberg told Joe Rogan he wants the corporate world to embrace "masculine energy." (Full Podcast) Chick-fil-A, on the other hand, is relying on robots to squeeze 2,000 lemons daily for its lemonade.

Plus, private equity megafund Carlyle Group is working to reclaim its former glory, barriers are coming to NYC subway platforms, and Manhattan's congestion pricing has restaurant owners worried.

Learn and develop optimized wealth-building strategies through permanent life insurance with the experts at Optifino.

_{SQUEEZ OF THE DAY}

JPMorgan’s Back Office Rebellion

JPMorgan officially announced its return-to-office policy on Friday. While rumblings began last week, the firm officially put all of its 300,000 employees on notice, letting them know they’re expected to work full-time from the office starting in March.

And while the new rules really only apply to employees in back-office roles (who were allowed to work 2-days-a-week from home), it turns out the news wasn’t taken well. JPMorgan posted the announcement on its internal company website, and a firestorm of comments ensued.

Employees are typically able to comment on posts on the internal JPMorgan website using their real names, and many of them shared their frustration with the new RTO mandate, noting increased commuting costs, child-care, and work-life balance. One employee even encouraged others to unionize and fight for a hybrid work schedule.

And, in response, the bank disabled comments on the article (some of the comments are still visible, though). JPMorgan says they “often” turn off comments on posts when there’s a high volume of comments, but employees aren’t buying that.

While Jamie Dimon, CEO of JPMorgan, said he was okay with remote work for some roles last April, the firm said in in its memo that, while perhaps not all employees will agree with the decision, they still think 5-days-in-office is “the best way to run a company.”

The move mirrors similar policies from companies like Amazon, which are also calling employees back to the office full-time. Critics speculate such mandates may be designed to push low performers to resign.

Takeaway: For most JPMorgan employees in high-finance roles, this memo changes little, as they’ve already been back in the office. But the decision—and shutting down comments—shows where the bank stands on remote work. With Trump calling federal workers back too, it seems the whole economy is heading back to cubicle life. Time to dust off that office chair, and your small talk skills!

_{PRESENTED BY OPTIFINO}

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_HEADLINES

Top Reads

• US jobs market caps 2024 with a bang (YF)

• S&P's $18 trillion rally threatened by psychology of 5% yields (YF)

• Mark Zuckerberg praises benefits of 'masculine energy' (Fox)

• California fires could be costliest disaster in US history (Axios)

• Private equity has gone from a 'form of finance' to a 'form of business' (CNBC)

• Can storied PE firm Carlyle reclaim its former glory? (YF)

• Elon Musk swoops in to help wildfire victims in devastated areas of SoCal (Fox)

• Long-term inflation expectations jump to highest since 2008 (YF)

• Planned Venu Sports streamer will be shut down (Axios)

• Barriers are coming to NYC subway platforms in 2025 (YF)

• Trump meets with CEO of nation's biggest retailer as he urges county to 'move forward' (Fox)

• Earrings will be a huge test for banks following a market-beating rally (YF)

• Chick-fil-A's lemon-squeezing robots cut over 10,000 labor hours (Fox)

• Stock market gain that followed Trump’s election win is close to being wiped out (CNBC)

• Restaurants owner worry about congestion pricing (NYT)

• Stocks sell off amid jobs report surprise, inflation worries (YF)

_{CAPITAL PULSE}

Markets Rundown

Stocks Drop on Higher Bond Yields

Equity markets closed lower Friday as rising bond yields, driven by a strong jobs report, dampened sentiment. Small-cap stocks, along with real estate and financials, led the decline.

Despite recent volatility, the S&P 500 remains 22% higher year-over-year, supported by solid fundamentals. Globally, Asia fell due to China's weakening yuan, while Europe declined on higher bond yields. In commodities, WTI oil rose on potential sanctions against Russia and Iran.

Employment Report Shows Faster Job Growth

Nonfarm payrolls rose by 256,000 in December, exceeding expectations of 153,000, with strength in the private services sector. The unemployment rate dropped to 4.1%, and hourly earnings grew 3.9%, slightly below forecasts but still supportive of consumer spending.

The strong labor market reduces urgency for Fed rate cuts, while consumer sentiment dipped to 73.2, and inflation expectations rose to 3.3%, the highest since 2008.

Bond Yields Tick Higher on Revised Fed Expectations

The 10-year U.S. Treasury yield climbed to 4.76%, the highest since 2023, as the strong jobs report delayed rate cut expectations to September. Although disinflation is slowing, the Fed is expected to gradually reduce rates.

The shelter component of PCE inflation, at 4.8%, is likely to moderate, aligning with housing trends like the 3.6% annual rise in the S&P CoreLogic Case-Shiller Index, helping ease inflation further.

Movers & Shakers

• (+) Walgreens Boots Alliance ($WBA) +28% after the drugstore chain posted an earnings beat; will cut costs.

• (+) Sweetgreen ($SG) +3% after Citi upgraded the salad chain company to ‘buy’ from neutral.

• (–) Constellation Brands ($STZ) -17% after the alcohol company missed earnings.

Private Dealmaking

• Constellation Energy to buy Calpine for $16.4 billion

• Court Square Capital Partners and WindRose Health bought Soleo Health for $1.1 billion

• Innovaccer, a healthcare data platform, raised $275 million

• XOcean, an ocean data provider, raised $118 million

• Ouro Medicines, a T-cell engager biotech, raised $115 million

• Light Horse Therapeutics, a cancer biotech, raised $62 million

For more PE, VC & M&A deals, subscribe to our Buysiders newsletter.

_{BOOK OF THE DAY}

Bitcoin Supercycle

Bitcoin has been the best performing asset class of all time—better than gold, silver, real estate, and the stock market. Its value has risen from one tenth of a cent in 2009 to a new high of over $70,000. But misconceptions about its reliability have prevented most people from creating life-changing wealth.

Michael Terpin, the founder of BitAngels whom CNBC calls “the Godfather of Crypto," is changing that. The Bitcoin Supercycle explains his “Four Seasons of Bitcoin” model, which shows how the price of bitcoin moves in reliable cycles similar to those of real estate and stock markets—and gives you the numbers, evidence, charts, and strategies to take advantage.

As the Bitcoin Spring starts in April 2024 and the fourth halving reduces the supply of bitcoin, and crypto ETFs hit the market, the coming seasons have the potential to create a new class of millionaires and billionaires that rivals the wealth creation of the internet bubble. Learn how to become one with The Bitcoin Supercycle.

"Bitcoin Supercycle is Think and Grow Rich for crypto!"

_{DAILY VISUAL}

The Economy Is Re-Accelerating

Apollo estimates 40% probability that the Fed will hike rates in 2025.

_{PRESENTED BY EARNINGS HUB}

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_{DAILY ACUMEN}

Stress

Modern life often leaves us overwhelmed due to constant demands, from trivial notifications to serious responsibilities. This isn't about individual tasks but the sheer volume, worsened by digital distractions and the pressure to multitask. Nearly two-thirds of people report stress impacting daily life, with many feeling ineffective and stuck.

Experts highlight that societal expectations and the fear of missing out exacerbate overwhelm, leading to rumination, avoidance, and confidence loss. Chronic stress can impair decision-making and cause long-term health issues, but rest, manageable goals, and realistic expectations can help. Focusing on the next best step, rather than self-criticism, is key.

Managing overwhelm means taking breaks, setting boundaries, prioritizing sleep, and embracing imperfection. Recognizing our limits and making small, incremental changes can help us regain control and avoid burnout in an ever-demanding world.

_{ENLIGHTENMENT}

Short Squeez Picks

• How developing character helps you combat imposter syndrome

• 4 ways to design beautiful Excel dashboards for presentations

• People who read for fun have different brains

• The 31 best Trader Joe’s foods

• A simple roadmap you can take to recover from burnout

_{MEME-A-PALOOZA}

Memes of the Day