- Reuters/Ueslei Marcelino
Here is what you need to know.
Friday is jobs day. US nonfarm payrolls increased by 142,000, missing the consensus estimate of 200,000 by a wide margin. The unemployment rate held at 5.1%, as expected. Additionally, average hourly earnings were flat on a month-over month basis, and up 2.2% versus last year.
The US will hit its debt ceiling in about a month. Secretary of the Treasury 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 subcomponents 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 planned to cut an unspecified number of jobs on its way to $2 billion to $2.5 billion in cost savings, The Wall Street Journal reports. According to The Journal, the memo also stated the company had frozen external hiring and that all expenditures must be approved.
Micron Technology beat on the top and bottom lines. The semiconductor announced earnings of $0.37 per share, topping the Wall Street estimate by a nickel. Revenue slumped 14.8% to $3.6 billion but still beat the $3.56 billion that analysts were anticipating. Micron sees earnings per share of $0.20 to $0.26, below the $0.38 estimate. In addition, the company issued downside revenue guidance of $3.35 billion to $3.60 billion, which is shy of the $3.72 billion that was expected. “While fourth-quarter results were impacted by continued weakness in the PC sector, we believe that memory industry fundamentals remain favorable over the long-term,” CEO D. Mark Durcan said in the earnings release.
SPONSORED BY EY The latest issue of EY’s Capital Insights magazine includes an interview with Cisco CFO Kelly Kramer, and insights on how cyber economics is impacting business and innovative enterprises. Read more here.
Amazon will stop selling Apple and Google video-streaming devices. Bloomberg reports that 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 and addresses as well as Social Security, driver’s license, 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 higher. 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 lower by 23 points near 1,893.00.
The market still doesn’t think a rate hike is happening this year. Data provided by Bloomberg suggests an 18% probability that 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 lift-off 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%.