Today's jobs data could further embolden the Fed
Markets were struggling for direction this morning before plummeting lower, following September's jobs report. The numbers showed the U.S. economy added 263,000 jobs last month, which missed expectations. However, the unemployment rate came in at 3.5%, a slight drop from August's reading of 3.7%.
Today's jobs report may embolden the U.S. Federal Reserve to maintain its hawkish policy. The 10-year Treasury yield is already surging, rising back towards 4%. At last glance, futures on the Dow Jones Industrial Average (DJI) were pointed 265 points lower, while S&P 500 (SPX) and Nasdaq-100 (NDX) futures are lower as well.
Continue reading for more on today's market, including:
- Options traders eyed Levi Strauss stock ahead of earnings.
- Technical trouble haunting medtech stock.
- Plus, why CVS is sinking; ridesharing stock downgraded; and Credit Suisse in headlines again.
5 Things You Need to Know Today
- The Cboe Options Exchange (CBOE) saw more than 1.07 call contracts and 760,293 put contracts traded on Thursday. The single-session equity put/call ratio fell to 0.71, while the 21-day moving average fell to 0.67.
- CVS Health Corp (NYSE:CVS) is down 4.8% ahead of the bell, after the Centers for Medicare and Medicaid Services downgraded one of the pharmacy company's Aetna Medicare Advantage plans. CVS is up 18.6% year-over-year, though it has shed more than 4% this year.
- Lyft Inc (NASDAQ:LYFT) received a downgraded to "sector perform" from "outperform" at RBC. The analyst is taking a bearish outlook on the ridesharing concern, citing its own driver supply analysis, and added Uber (UBER) holds the advantage. LYFT is down 3.9% ahead of the bell, adding to its 60.4% six-month deficit.
- Credit Suisse Group AG (NYSE:CS) is still in the headlines after the company promised to buy back up to $3 million in debt to reassure investors of the health of its business. CS is up 4% in the premarket, though it remains down 55.5% year-to-date.
- Consumer credit data is slated for release today.
Asian Markets End Week on Low Note
Stocks in Asia fell to close out the week, as investors in the region await today’s U.S. jobs report, that is likely to guide the Federal Reserve’s upcoming monetary policy decision. In addition, fears are swirling that Asian currencies could face more depreciation at the end of the year and weaken even further against the U.S. dollar. In response, Japan’s Nikkei lost 0.7%, while Hong Kong’s Hang Seng dipped 1.5%. Meanwhile, the Kospi in South Korea’s Kospi shed 0.2%, after Samsung revealed its operating profit fell for the first time since late 2019, and China’s Shanghai Composite remained closed for a holiday.
European markets are awaiting the stateside jobs report as well, and are relatively muted leading up to the event. London’s FTSE 100 and France’s CAC 40 are up 0.1% and 0.2%, respectively, while the German DAX is a paltry 0.01% lower after data revealed industrial production in the country fell 0.8% last month.