Here are five key things investors need to know to start the trading day:
1. Shaky October
2. Strike that
Dockworkers gather at the Bayport Container Terminal in Seabrook, Texas, on October 1, 2024.
Mark Felix | AFP | Getty Images
2. Jobs on the horizon
“We’re Hiring” flyers displayed at the Albany Job Fair in Latham, New York, US, on Wednesday, Oct. 2, 2024.
Angus Mordant | Bloomberg | Getty Images
Wall Street is watching for new jobs data from the Labor Department. The consensus estimate is that nonfarm payrolls grew by 150,000 in September from 142,000 the month before with a steady 4.2% unemployment rate, according to Dow Jones. The forecast for wages is a 0.3% monthly gain and a 3.8% increase from last year. If the predicted numbers hold true, they would boost confidence from the Federal Reserve that further interest rate cuts wouldn’t be behind the curve and risk a recession. The September report is expected to be the last “clean” report before the November election, as the port strike and Hurricane Helene will likely distort October’s report.
3. Oil in havoc
An oil pump jack is shown in a field on June 27, 2024 in Stanton, Texas.
Brandon Bell | Getty Images News | Getty Images
Since Iran launched a ballistic missile attack against Israel on Tuesday, speculation has grown that Israel could target the nation’s oil industry in retaliation. Analysts told Tech Zone Daily on Thursday that oil markets may be too complacent in the wake of Iran’s attack, partly because geopolitical risks haven’t resulted in oil supply losses since 2019. But Iran, one of OPEC’s largest producers, makes up as much as 4% of the global oil supply. U.S. crude oil prices rose about 5% on Thursday, the third consecutive session of gains following Iran’s attack. The rise on Thursday could have been in response to President Joe Biden’s mixed comments on whether the U.S. would support an Israeli strike on Iranian oil facilities.
5. Wellness check
A CVS pharmacy shopping cart outside a store in Pinole, California, US, on Tuesday, July 18, 2023.
David Paul Morris | Bloomberg | Getty Images
CVS is considering breaking the company up, but that could be risky. It’s been dealing with high medical costs in its insurance unit and pharmacy reimbursement pressure. Now, the company has engaged advisors in a strategic review of its business and is weighing splitting up its retail pharmacy and insurance units, Tech Zone Daily reported. But CVS risks losing the customers it peels off its vertically integrated business segments — not to mention revenue. The pharmacy chain has spent tens of billions of dollars on acquisitions to become a one-stop shop for consumers, but it’s struggled recently, slashing its full-year 2024 earnings guidance for three consecutive quarters and seeing its stock fall more than 20% this year.
— Tech Zone Daily’s Lisa Kailai Han, Alex Harring, Kif Leswing, Lori Ann LaRocco, Jeff Cox, Sam Meredith, Spencer Kimball, Natasha Turak and Annika Kim Constantino contributed to this report.
