February 12, 2026
By Peter Bower
The employment report for January was finally released this past Wednesday morning. It was delayed because of the recent, short government shutdown. The report was surprisingly positive. Twice as many jobs were created as had been expected. Strength was evident in healthcare and construction, with manufacturing stabilizing. This indicates a strong general economy and supports the market’s turn toward broader participation in the market advance.
There is additional stimulus coming for our economy this year in the form of tax cuts, accelerated expensing of capital investments for companies, which will improve their cash flow, and higher-than-usual tax refunds. The consumer continues to be alive and well. Holiday sales this past season were at an all-time high.
Yes, there are many distractions for investors. Potential conflict with Iran, what happens with Greenland and NATO, U.S. tariff policy, the upcoming mid-term elections, and more. However, economic fundamentals look good. So far, earnings reported for the S&P 500 stocks are up over 12% from the previous year. This is terrific growth. Stay steady my friends.
-The Lonely Bull
