Here are the most important news, trends and analysis that investors need to start their trading day:
1. Stock futures jump after disappointing employment report
Traders work at the New York Stock Exchange (NYSE) in New York on October 6, 2021.
Brendan McDermid | Reuters
US stock index futures bounced around a flat line on Friday after the government released a much weaker-than-expected September employment report. The yield on 10-year Treasury bonds remained largely unchanged after the release of employment data, at about 1.57%. On Thursday, the market’s focus shifted from rising bond yields to a deal on Washington’s debt ceiling. The Dow Jones, S&P 500 and Nasdaq Industrial Average rallied about 1%, recording three winning days in a row and setting three benchmarks for a successful first full trading week in October. Last Friday’s strong gains were not enough to turn the tide in the worst week for the S&P 500 and Nasdaq until February, and for the Dow until early September.
2. Job growth in the last month lagged far behind the August figures.
People are informed when they attend a job fair at SoFi Stadium on September 9, 2021 in Inglewood, California.
PATRICK T. FALLON | AFP | Getty Images
Friday’s job report, which will be key as The Federal Reserve is deciding whether to slow down its massive Covid-era bond buying program, showing that only 194,000 non-farm jobs were created in September. The consensus estimate required the addition of 500,000 people. The headline suffered due to a 123,000 reduction in the civil service staff. However, the number of private sector jobs increased by 317,000. The ADP’s view on private sector employment trends, released Wednesday, showed a brisk hiring rate last month, despite concerns about an increase in Covid cases. The country’s unemployment rate fell to 4.8% last month from 5.1%, according to the Labor Department. Job growth in August was revised sharply above for 131,000 positions up to 366,000.
3. Senate approves short-term debt ceiling increase, House of Representatives will vote next
The US Capitol in Washington DC, USA, Wednesday, October 6, 2021.
Stephanie Reynolds | Bloomberg | Getty Images
On Thursday night, the Senate approved a compromise bill that allows for a $ 480 billion short-term increase in the public debt ceiling. This amount, according to the Ministry of Finance, will last until December 3. The bill is now going into the House, where Speaker Nancy Pelosi, California, is expected to consider it in the coming days. 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 limit through a reconciliation process without a Republican vote.
4. The price of oil in the US is approaching $ 80 a barrel as natural gas prices have taken a breather.
Workers extract oil from oil wells in the Permian Basin in Midland, Texas.
Benjamin Lowy | Getty Images
U.S. oil prices, measured West Texas Intermediate crude oil approached $ 80 a barrel on Friday morning. WTI was last at this level on November 3, 2014. As of Thursday’s target price, US oil futures are up about 3.2% this week. on doubts The US government will release oil from its strategic reserves shortly.
Natural gas prices, while declining on Friday, have repeatedly hit record highs as Europe and Asia vie for affordable liquefied natural gas. Europe buys, fearing that it may not have enough LNG for the winter. Asia bought to satisfy voracious demand.
5. Elon Musk says Tesla is moving its headquarters from California to Texas.
Elon Musk, CEO of Tesla, stands at the Tesla Gigafactory during a press conference. year.
Patrick Pöhl | painting alliance | painting alliance | Getty Images
Tesla is officially moving its headquarters from Palo Alto, California to Austin, Texas, CEO Elon Musk said at the company’s 2021 AGM. In April 2020, answering Tesla’s earnings call, Musk lashed out at California government officials, calling their Covid-related interim health orders “fascist” in an obscene rant. In 2020, Musk personally moved to the Austin area from Los Angeles, where he lived for two decades. However, Tesla plans to increase production at its California plant regardless of the headquarters move.
– Reuters contributed to this report. Follow all market activities like a pro. CNBC Pro… Get the latest news on the pandemic with CNBC Coronavirus Coverage…