Jackson

The services sector there grew at its fastest pace in over a year.

Private firms added 41,000 jobs in December.

Slower than before, but no crash.

Bottom line is, the economy is cooling off, just not freezing up.

Before we dive into our next story, it's time for our daily check-in with Carl.

You've got questions, he's got answers.

Carl, what you got for us?

Rare earth stocks picked up after China tightened export controls.

Investors are treating these materials less like commodities and more like collectibles.

China said it will stop sending so-called dual-use goods to Japan.

Those are everyday products that can also have military uses, like computers, drones, and chemicals.

Rare earths weren't explicitly mentioned, but many worry it's only a matter of time.

And that would be big.

China controls close to 90% of the world's rare earth supply, and a clampdown there could squeeze availability, drive prices higher, and make non-Chinese producers look a lot more attractive.

Investors took the hint.

Japan's Toyo Engineering jumped 20%, Daiichi Kigenso rose 25%, and Australia's Linus Rare Earths climbed roughly 16%.

But investors are less hopeful about Japan's broader exporters.

China's controls extend to hundreds of items that manufacturers rely on.

Automakers, machinery firms, and defense companies all fell, with higher input costs and supply delays expected to squeeze margins.

Still, these trade disputes haven't scared investors away from Chinese stocks.