U.S. stock futures are ticking higher. Many European markets are rallying by about 2% in early trading and Asian markets ended Monday with solid gains.
Here are 4 tips for today's trading. This will help you decide where you should invest and what to look for:
1. Market movers
Volkswagen, Tesla, American Apparel: Shares in Volkswagen (VLKAY) are dropping by another 4% to trade around a four-year low. The stock has fallen by about 40% since mid-September after the company was caught cheating on emissions tests. Analysts at Credit Suisse recently forecast that in a worst case scenario the scandal could cost the company as much as $87 billion. The company has to detail its proposed fix for 11 million vehicles by Wednesday.
Shares in Tesla (TSLA) could be on the move after the electric car company reported solid quarterly sales of its Model S sedan. Third quarter sales were flat compared to the second quarter, but were up by 49% compared to the same period a year earlier.
American Apparel's (APP) stock is set for another drop after the embattled clothing company filed for Chapter 11 bankruptcy protection on Monday. The move is far from a surprise since American Apparel said in August it had "substantial doubt" that it would stay in business. Shares in the business have fallen by nearly 90% since the start of 2015.
2. Google = Alphabet
Google is officially becoming Alphabet today on the stock market after the company announced a shake-up to its corporate structure. Alphabet is now the parent company of Google and other tech business units.
Shareholders in Google will now own Alphabet class A (GOOGL, Tech30) or Alphabet class C (GOOG) shares. The ticker symbols -- GOOGL and GOOG -- remain unchanged.
3. Earnings and economics
There's only one earning report to watch Monday. The Container Store (TCS) will post quarterly results this afternoon.
On the economic front, the U.S. Institute for Supply Management will post monthly data about the performance of the service industry at 10 a.m. ET. Growth in services scaled back slightly in August after an unusual boost in July.
4. Weekly market recap
Last week ended with a bang as all the major indexes shot higher despite a weak jobs report that raised questions about the health of the U.S economy and the timing of the first Fed rate hike in a decade.
The Dow Jones industrial average and S&P 500 closed the week with a 1% gain. The Nasdaq was up by 0.5% by the end of the week after taking a sharp drop on Monday.
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What is it? Short term interest rates are the paramount factor in currency valuation - traders look at most other indicators merely to predict how rates will change in the future.
When? At 11:30pm Eastern Time.
Trading Tip: If the actual number is higher than the forecast, you can expect the AUD to rise.
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What is it? Export demand and currency demand are directly linked because foreigners must buy the domestic currency to pay for the nation's exports. Export demand also impacts production and prices at domestic manufacturers.
When? At 8:30pm Eastern Time.
Trading Tip: If the actual number is higher than the forecast, you can expect the AUD to rise.
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What is it? It's a leading indicator of economic health - businesses react quickly to market conditions, and changes in their sentiment can be an early signal of future economic activity such as spending, hiring, and investment.
When? At 5:00pm Eastern Time.
Trading Tip: If the actual number is higher than the forecast, you can expect the NZD to rise.
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What is it? It's a leading indicator of economic health - businesses react quickly to market conditions, and their purchasing managers hold perhaps the most current and relevant insight into the company's view of the economy.
When? At 10:00am Eastern Time.
Trading Tip: If the actual number is higher than the forecast, you can expect the USD to rise.
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1. The dollar turned lower against the other major currencies on Friday, after data showed that the U.S. created far less jobs than expected last month, dampening optimism over the strength of the economy.
The dollar erased gains against the yen, with USD/JPY down 0.39% at 119.42, off highs of 120.41 hit earlier in the day.
2. U.S. oil futures climbed higher on Friday, amid growing concerns over escalating violence in Syria and as markets eyed the release of U.S. data later in the day.
U.S. crude futures for November delivery were last at $45.22 a barrel, up 1.07% for the day. On the ICE Futures Exchange in London, the November Brent contract were up 0.28% at $47.83 a barrel.
3. Wall Street opened sharply lower on Friday after data showed a less-than-expected rise in nonfarm payrolls in September, raising doubts that the economy is strong enough to allow the Federal Reserve to raise interest rates this year. The three major indexes were down more than 1.5 percent.
4. U.S. factory orders fell more-than-expected last month, official data showed on Friday.
In a report, US Census Bureau said that U.S. Factory Orders fell to a seasonally adjusted -1.7%, from 0.2% in the preceding month whose figure was revised down from 0.4%. Analysts had expected U.S. Factory Orders to fall to -1.2% last month.
5. Experian Plc (L:EXPN), the world's biggest consumer credit monitoring firm, on Thursday disclosed a massive data breach that exposed sensitive personal data of some 15 million people who applied for service with T-Mobile US Inc (N:TMUS).
Experian said it discovered the theft of the T-Mobile customer data from one of its servers on Sept. 15. The computer stored information about some 15 million people who had applied for service with telecoms carrier T-Mobile during the prior two years, Experian said.
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The US economy added 142,000 jobs in September, less than forecast.
Economists had been expecting the economy to add 200,000 jobs. The unemployment rate held steady at 5.1%, a seven-year low.
Average hourly earnings were flat month-over-month in September, below expectations for 0.2% growth.
Ahead of this report, economists had noted that August and September nonfarm payrolls prints have been revised higher most of the time over the last decade. However, the August print was revised to 136,000 from 173,000 in Friday's report.
Economists had noted that the broad-based slowdown in the manufacturing sector, and in employment, would likely show up in this report. Manufacturing employment fell 9,000 in September, versus expectations for no change.
Mining employment also fell, as health care and information added more jobs, according to the Labor Department.
The labor force participation rate, which measures the share of Americans over 16 looking for work, fell to 62.4%, the lowest since 1977.
The year-over-year projection for hourly earnings growth, at +2.4%, was the most bullish forecast for wages in this economic cycle. Wages missed, at 2.2%.
Here's what Wall Street was expecting:
Nonfarm payrolls:+200,000
Unemployment rate: 5.1%
Average hourly earnings, month-over-month: +0.2%
Average hourly earnings, year-over-year: +2.4%
Average weekly hours worked: 34.6
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The U.S. jobs report will be the talk of the market today.
Here are 4 tips for today's trading. This will help you decide where you should invest and what to look for:
1. The big jobs report
The U.S. government will post September jobs data at 8:30 a.m. ET, including the unemployment rate, payroll figures and earnings.
Economists forecast that the economy added 204,000 jobs in the month.
In August, the unemployement rate dropped to 5.1%. Economists predict the rate will remain level in September.
Aside from those numbers, it's important to look at wage growth. Economists expect wages increased by 2.3%, on average, over the last year. A 2.2% boost was reported last month, but this lagged behind the Federal Reserve's target.
The Fed is widely expected to raise interest rates later this year, but Fed members have been delaying a hike as they wait for the job market to show some real strength.
2. Stock market overview
U.S. stock futures are holding steady ahead of the jobs report.
Most European markets are strengthening in early trading, while Asian markets ended with mixed results
This follows a rather uninspiring Thursday when markets did a whole lotta nothing. The Dow Jones industrial average inched down 0.1%, while the S&P 500 and the Nasdaq each notched a 0.2% gain.
3. Potential market movers
Micron, Wynn, T-Mobile, Experian: Shares in Micron Technology (MU) are rallying by about 7% premarket after the semiconductor firm reported earnings late Thursday that topped expectations. This was encouraging for investors who have seen the shares plummet by nearly 60% this year.
Shares in Wynn Resorts (WYNN) have suffered a similar fate in 2015 on concerns about its business in Macau. The stock is rebounding by 12% premarket.
And watch trading in T-Mobile (TMUS) and Experian (EXPGY). Experian suffered a major data breach where hackers have made off with personal information of 15 million people who applied to sign up for T-Mobile's service. T-Mobile used Experian, one of the three major credit bureaus, to conduct credit checks on its customers.
4. European Markets
European stocks opened sharply higher on Friday, supported by upbeat comments by European Central Bank President Mario Draghi and as investors eyed the release of U.S. jobs data later in the day.
During European morning trade, the EURO STOXX 50 rallied 1.19%, France’s CAC 40 advanced 1.32%, while Germany’s DAX 30 jumped 1.07%.
European equities strengthened after ECB President Mario Draghi said in a speech Thursday that growth in the euro zone is picking up thanks to the central bank’s accommodative monetary policy.
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What is it? Although it's generally viewed as a lagging indicator, the number of unemployed people is an important signal of overall economic health because consumer spending is highly correlated with labor-market conditions. Unemployment is also a major consideration for those steering the country's monetary policy.
When? At 8:30am Eastern Time.
Trading Tip: If the actual number is lower than the forecast, you can expect the USD to rise.
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What is it? Job creation is an important leading indicator of consumer spending, which accounts for a majority of overall economic activity.
When? At 8:30am Eastern Time.
Trading Tip: If the actual number is higher than the forecast, you can expect the USD to rise.
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What is it? It's a leading indicator of consumer inflation - when businesses pay more for labor the higher costs are usually passed on to the consumer.
When? At 8:30am Eastern Time.
Trading Tip: If the actual number is higher than the forecast, you can expect the USD to rise.
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Dunkin' Brands Group Inc said it would shut 100 Dunkin' Donuts stores in the United States in 2015 and 2016, sending the company's shares down almost 13 percent on Thursday.
The company also maintained its full-year forecast of adjusted earnings of $1.87-$1.91 per share, according to an investor day presentation.
Analysts on average were expecting earnings of $1.92 per share, according to Thomson Reuters I/B/E/S.
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U.S. stocks fell in early trading on Thursday as a sharp decline in Apple's (O:AAPL) shares weighed on the three major indexes.
Apple was down 2.1 percent at $107.9 at 10:06 a.m. ET, erasing opening gains for U.S. stocks.
Global markets were upbeat after data from China was not as bad as feared and investors awaited a barrage of U.S. data.
Factory activity in China shrank again in September, leading some investors to believe that the government will be more aggressive in its measures to boost the health of the world's second-largest economy.
Global investors will be looking to put a bruising quarter behind them – U.S. stocks posted their worst quarter in four years, while the Shanghai stock market plunged about 25 percent.
"Historically, the third quarter tends to be a difficult quarter and the fourth quarter tends to be the best quarter of the year," said Randy Frederick, managing director of trading and derivatives for Charles Schwab (NYSE:SCHW) in Austin, Texas.
Investors will be parsing data released this week, with the crucial non-farm payroll numbers due on Friday, for clues on the timing of an interest rate hike by the U.S. Federal Reserve.
Data showed the number of Americans filing new applications for jobless benefits rose modestly last week.
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1. The world economy lost momentum in September, with China's vast factory sector shrinking again and euro zone manufacturing growth weakening slightly, both casualties of waning global demand. The latest business surveys across Asia and Europe paint a darkening picture and are likely to prompt more calls for central banks around the world to loosen monetary policy even further.
2. Wall Street opened slightly higher on Thursday after surveys showed Chinese manufacturing activity was stronger than feared and investors awaited a raft of U.S. economic data.
U.S. weekly jobless claims data pointed to ongoing tightening in the labor market.
3. Manufacturing activity in the U.S. slowed again in September raising fears that the Federal Reserve could delay raising interest for longer, according to data on Thursday.
The Institute for Supply Management said its index of purchasing managers fell to 50.2 last month from a reading of 51.1 in August. Analysts had expected a more modest decline to 50.6.
4. The U.S. dollar dropped to one-week lows against its Canadian counterpart on Thursday, after the release of disappointing U.S. jobless claims data and as investors eyed an upcoming report on U.S. manufacturing activity.
5. Gold prices were trading at the lowest levels in more than two weeks on Thursday after data pointing to strong gains in U.S. private sector jobs growth last month underlined expectations for higher interest rates from the Federal Reserve.
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It's a new month! Let's hope it would be better than the last one.
Here are 4 tips for today's trading. This will help you decide where you should invest and what to look for:
1. Green on the screen
U.S. stock futures are moving up and overseas markets are all rising.
Investors seem cheered by new economic data from China -- the manufacturing figures were certainly not stellar, but they were better than expected.
The official purchasing managers' index hit 49.8 in September, according to the National Bureau of Statistics, up slightly from 49.7 the previous month.
"The equity market is running high on ... optimism that [recent] China stimulus [initiatives] may be working. Traders are buying ... at least today, and we are seeing more bullish equity bets across the market," said Naeem Aslam, chief market analyst at Ava Capital Markets.
In Europe, many key indexes are climbing by about 1%. Asian markets ended with solid gains, though Chinese markets were closed Thursday for a holiday.
2. Potential movers
Twitter, Google, Microsoft: Investors are keeping a close eye on Twitter (TWTR, Tech30) after Re/code reported that the company could shortly announce that Jack Dorsey, its co-founder and interim CEO, will become its permanent CEO. This announcement has been expected for weeks.
Shares in Google (GOOG) and Microsoft (MSFT, Tech30) are edging higher Thursday after the companies were reported to have agreed to drop various long-running lawsuits against one another.
Other tech companies are also showing some strength premarket, indicating it could be an especially good day for the tech-heavy Nasdaq index.
3. Economics
Get ready for a full schedule of economic releases. Weekly jobless claims data will come from the Department of Labor at 8:30 a.m. ET
Then the Institute for Supply Management will release its ISM index for September at 10 a.m. The index gauges business conditions based on surveys with top business managers that make purchasing decisions. The index levels have stayed fairly even throughout 2015.
At the same time the Census Bureau will post construction spending data for August. Spending has increased every month so far this year, indicating strong housing and building development.
And throughout the day carmakers will be reporting September vehicle sales data. Investors will be particularly keen to look at sales of Volkswagen cars since the company became embroiled in a test-cheating scandal last month.
4. Wednesday market recap
The Dow Jones industrial average was up 236 points, closing with a gain of 1.5% on Wednesday. The S&P 500 added 1.9% and the Nasdaq swelled by 2.3%.
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What is it? As head of the ECB, which controls short term interest rates, he has more influence over the euro's value than any other person. Traders scrutinize his public engagements as they are often used to drop subtle clues regarding future monetary policy.
When? At 9:30pm Eastern Time.
Trading Tip: If the announcement will hint towards higher interest rates, you can expect the EUR to rise.
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What is it? It's the primary gauge of consumer spending, which accounts for the majority of overall economic activity.
When? At 9:30pm Eastern Time.
Trading Tip: If the actual number is higher than the forecast, you can expect the AUD to rise.
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