Here is what you need to know.
Friday is job’s day. The Bloomberg consensus is expecting the US economy to have added 205,000 in March with the unemployment rate holding at 4.9%. Additionally, average hourly earnings are anticipated to have increased 2.2% compared to a year ago. The report will cross the wires at 8:30 a.m. ET.
Q1 had one of the greatest comebacks in stock market history. Ryan Detrick of LPL Financial noted this was the first time since Q4 1933 that the stock market slumped more than 10% in a quarter yet finished it in positive territory. The S&P 500 sank to a loss of 11.3% by mid-February, but ended Q1 with a gain of 0.7%.
Saudi Arabia has a plan to end its dependence on oil. Saudi Arabia is planning to build to build a $2 trillion sovereign wealth fund, Bloomberg reports. In a five-hour long interview, Saudi Arabia’s Deputy Crown Prince Mohammed Bin Salman, told Bloomberg the fund would help Saudi Arabia end its dependence on oil. As part of the construction of the fund, Saudi Arabia will IPO no more than a 5% stake in its state run oil firm Aramco, Bloomberg says. West Texas Intermediate crude oil is down 2.3% at $37.47 per barrel following the news.
Chinese manufacturing bounced back. Data from China’s National Bureau of Statistics showed China’s manufacturing sector expanded for the first time in eight month. The 50.2 print for March was an improvement from February’s 49.0, and ahead of the 49.3 that economists had forecast. Additionally, the non-manufacturing reading also saw a gain, ticking up to 53.8 from February’s reading of 52.7. The Chinese yuan ended Friday down 0.2% at 6.4639 per dollar.
South Korean exports fell for a 15th straight month. South Korean exports, often referred to as “the world’s economic canary in the coal mine,” because of their exposure to the world’s three largest economies, totaled $42.98 billion, down 8.2% year-over-year in March. This marked a 15th straight monthly decline, the largest string of losses in the country’s history, according to Yonhap News Agency. The news wasn’t all bad as exports increased 18% versus February, and the country’s trade surplus expanded to $9.8 billion from $7.4 billion the month earlier. The South Korean won finished weaker by 0.9% at 1154.03 per dollar.
Japan’s Tankan surveys disappointed. The Tankan survey, which measures sentiment levels for large manufacturers, slumped to +6 for the first quarter from its previous look of +12. The number missed the +8 reading that economists were anticipating, and was the lowest print since Q2 2013. Additionally, the future outlook was even more pessimistic, falling to +3 from +7. The Japanese yen is weaker by 0.3% at 112.22.
Tesla’s Model 3 is here. Thursday night, at its Southern California headquarters, Tesla revealed its long-awaited Model 3. The $35,000 car will be used as a platform for future vehicles with Tesla CEO Elon Musk suggesting it’s “the next logical step of Tesla’s secret master plan.” The Model 3 has 200-plus-miles of range , does 0-to-60 in less than six seconds, and is expected to get a five-star rating in every safety category, according to Musk. It’s been reported that more than 130,000 preorders have been made.
Global smartphone growth is slowing. Research firm Gartner says global smartphone sales will grow at a single digit percentage for the first time on record, Reuters reports. The firm forecasts sales growth of just 7% in 2016 thanks to flat sales in both North America and China. “The double-digit growth era for the global smartphone market has come to an end,” said research director Ranjit Atwal in Gartner’s Device Findings forecast. Additionally, Gartner expects PC shipments to decline 1.5% this year before growing in 2017.
Stock markets around the globe are mostly lower. Japan’s Nikkei (-3.6%) tumbled overnight, and France’s CAC (-1.9%) leads the losses in Europe. S&P 500 futures are down 7.50 points at 2044.00.
US economic data is heavy. Aside from the jobs report, ISM Index, construction spending and University of Michigan consumer sentiment will all cross the wires at 10 a.m. ET. Auto and truck sales will be released throughout the day. The US 10-year yield is higher by 2 basis points at 1.79%.