Here is what you need to know.
Today is jobs day. Bloomberg data shows Wall Street is expecting the addition of 201,000 nonfarm jobs and the unemployment rate to hold at 5.1%. Additionally, average hourly earnings are expected to post an increase of 2.4% year-over-year. Nonfarm private payrolls are expected to increase by 197,000.
The US will hit its debt ceiling in about a month. Treasury Secretary Jack Lew says the nation’s debt ceiling will be hit around November 5. “I respectfully urge Congress to take action as soon as possible and raise the debt limit,” Lew said.
Global manufacturing is weak. The latest JPMorgan Markit global manufacturing PMI slumped to 50.6 in September, its weakest since July 2013. The sub-components of the index were mixed with output and new orders expanding at a slower rate and new exports, employment and input/output prices all falling. “The Asia region remained one of the weaker points in the global manufacturing sector during September,” Markit said.
Sprint announced a new cost-cutting plan. An internal memo said the company plans to cut an unspecified amount of jobs on its way to $US2-$US2.5 billion in cost savings, the Wall Street Journal reports. According to the WSJ, the memo also stated the company has frozen external hiring and that all expenditures must be approved.
Micron Technology beat on the top and bottom lines. The semiconductor announced earnings of $US0.37 per share, topping the Wall Street estimate by a nickel. Revenue slumped 14.8% to $US3.6 billion, but still beat the $US3.56 billion that analysts were anticipating. Micron sees earnings per share of $US0.20-$US0.26, below the $US0.38 estimate. In addition, the company issued downside revenue guidance of $US3.35-$US3.60 billion, which is shy of the $US3.72 billion that was expected. “While fourth quarter results were impacted by continued weakness in the PC sector, we believe that memory industry fundamentals remain favourable over the long term,” CEO D. Mark Durcan said in the earnings release.
Amazon is going to stop selling Apple and Google video-streaming devices. Bloomberg reports, Amazon marketplace sellers will no longer be allowed to list Apple or Google video-streaming devices after October 29, because their compatibility with Amazon’s Prime Video service isn’t the best. Sellers will also have to take down old listings once the deadline passes. “It’s important that the streaming media players we sell interact well with Prime Video in order to avoid customer confusion,” Amazon told Bloomberg in a statement. Roku, XBOX, PlayStation and Fire TV have better compatibility, Amazon told Business Insider.
15 million T-Mobile customers may have had personal information compromised. Experian, one of the world’s largest credit agency data brokers, says 15 million T-Mobile customers’ personal information may have been compromised, The Guardian reports. The hacked information includes names, addresses, social security, driver’s licence and passport numbers. According to Experian, “Those who applied for T-Mobile USA postpaid services or device financing from September 1, 2013 through September 16, 2015” are affected.
Stock markets around the world are bid. Hong Kong’s Hang Seng (+3.2%) paced the gains in Asia and France’s CAC (+2.1%) leads the advance in Europe. S&P 500 futures are higher by 6.75 points at 1923.50.
The market still doesn’t think a rate hike is happening this year. Data provided by Bloomberg suggests an 18% probability the Fed will raise rates in October and a 44.2% probability December will be the month of the first rate hike. The market is pricing in a 52% probability Fed liftoff will begin at the January meeting.
There is other data coming besides the jobs report. Factory orders will be released at 10 a.m. ET and the Baker Hughes rig count is due out at 1 p.m. ET. The US 10-year yield is up 2 basis points at 2.06%.