Here are the top news, trends, and analysis investors need to start their trading day:
1. Stock futures bounce back after disappointing employment reports
Traders work on the floor of the New York Stock Exchange (NYSE) in New York City on October 6, 2021.
Brendan McDermid | Reuters
US stock futures rebounded near the flat line on Friday following the much weaker-than-expected government employment report in September. The yield on 10-year government bonds changed little according to the job data, trading around 1.57%. On Thursday, the market’s focus shifted from rising bond yields to Washington’s debt ceiling. The Dow Jones Industrial Average, S&P 500, and Nasdaq all rose roughly 1%, posting three consecutive days of earnings, and getting the three stock benchmarks on track for a successful first full week of trading in October. Last Friday’s sharp rise was not enough to turn the tide back to February for the S&P 500 and Nasdaq and back to early September for the Dow during the worst week.
2. Employment growth last month was well below August
People can get information when they attend a job fair at SoFi Stadium in Inglewood, California on September 9, 2021.
PATRICK T. FALLON | AFP | Getty Images
Friday’s job report, which will be vital in the Federal Reserve’s decision to slow down its massive Covid-era bond-buying program, showed that only 194,000 non-farm payrolls were created as of September. The consensus estimate had called for 500,000 additions. Headline counts were hurt by a 123,000 decline in government employees. However, private payrolls rose by 317,000. ADP’s look at private sector employment trends, published on Wednesday, showed a brisk hiring pace last month despite concerns about increased Covid cases. The country’s unemployment rate fell to 4.8% last month, compared to expectations of 5.1%, according to the Labor Department. The job growth in August was revised upwards significantly by 131,000 to 366,000 positions.
3. Senate passes short-term increase in debt ceiling, House of Representatives votes next
The U.S. Capitol in Washington, DC, the United States, on Wednesday, October 6, 2021.
Stefani Reynolds | Bloomberg | Getty Images
The Senate approved a draft compromise on Thursday evening that would allow the country to raise the country’s debt ceiling by $ 480 billion in the short term. The Treasury Department estimates that this amount would last until December 3rd. Legislation is now being moved to the House of Representatives, where Spokeswoman Nancy Pelosi, D-California, is expected to discuss it in the coming days. While avoiding the upcoming October 18 deadline for an unprecedented U.S. default, the move gives Democrats nearly two months to figure out how to raise the debt ceiling through the reconciliation process without Republican votes.
4. US oil nears $ 80 a barrel as natural gas prices take a breather
Workers extract oil from oil wells in the Permian Basin in Midland, Texas.
Benjamin Löwy | Getty Images
US oil prices, as measured by West Texas Intermediate crude, were closer to $ 80 a barrel on Friday morning. The last time WTI was this high was November 3, 2014. At Thursday’s price fixing, US oil futures rose about 3.2% this week amid doubts the US government was in the near future Future would release crude oil from its strategic reserves.
Natural gas prices, which were lower on Friday, have hit record highs repeatedly as Europe and Asia compete for available liquefied natural gas. Europe is buying out of concern that it may not have enough LNG in stock for the winter. Asia has shopped to meet insatiable demand.
5. Elon Musk Says Tesla is moving its headquarters from California to Texas
Elon Musk, CEO of Tesla, stands in the foundry of the Tesla Gigafactory during a press event. Year.
Patrick Pleul | Image Alliance | Image Alliance | Getty Images
Tesla is officially moving its headquarters from Palo Alto, California to Austin, Texas, CEO Elon Musk announced at the company’s 2021 annual general meeting. In April 2020, on a Tesla call for profits, Musk hit California government officials who described their temporary health orders related to Covid as “fascist”. In 2020, Musk personally moved to the Austin area from Los Angeles, where he had lived for two decades. However, Tesla plans to ramp up production at its California facility regardless of the headquarters move.
– Reuters contributed to this report. Follow all market activity like a pro on CNBC Pro. Get the latest on the pandemic with coronavirus coverage from CNBC.