Today's jobs report, the last one before the U.S. presidential election, will give candidates data points that either undermine or solidify their narrative on the American recovery. October nonfarm payrolls are expected to hit 175,000, up from 156,000 in the prior month, while the unemployment rate is seen falling to 4.9% after hovering at or just below 5% for roughly a year. The figures will be released at 8:30 a.m. ET.
Economy
The global stock selloff has extended into Friday trading as crude oil holds near one-month lows and investors shun riskier assets ahead of next week's election. "One thing markets are not particularly good at pricing is political risks," said Ashley Perrott, head of Asian fixed-income at UBS Asset Management. The S&P 500 logged its eighth straight decline yesterday, marking its longest negative stretch since October 2008.
Mexico is readying a contingency plan for an "adverse" result in the U.S. presidential election, according to central bank governor Agustin Carstens, who previously stated that a victory for Donald Trump would hit his country like a hurricane. "It's a contingency plan that we're discussing with the Finance Ministry," he told Milenio television. "We hope we don't have to use it."
Turkey has detained 13 leaders of its largest pro-Kurdish party for crimes linked to "terrorist propaganda" as President Recep Tayyip Erdogan consolidates power following a July 15 coup attempt. A widespread difficulty in reaching social media websites such as Twitter (NYSE:TWTR) and Facebook (NASDAQ:FB) as well as messaging app WhatsApp was reported across the country after the detentions started at midnight, while a car bomb went off in Turkey's southeast.
The Eiffel Tower and Arc de Triomphe are lit up green as the Paris agreement on climate change enters into force today seeking to limit global warming to 2 degrees Celsius. The carbon emission curbs put forward by countries under Paris are not legally binding, unlike the framework of the accord, which includes a mechanism for periodically cranking up those pledges.
Business activity in the eurozone last month was not as robust as first thought. Markit's final composite PMI for the bloc was 53.3 in October, below a 53.7 flash estimate, but beat September's 52.6. This figure "raises doubts about whether the eurozone is breaking out of the sluggish growth phase seen throughout much of this year," said Chris Williamson, chief business economist at Markit.
Stocks
Wells Fargo is raising its reserves and has added the SEC to the list of federal and state agencies that are investigating its sales practice disclosures, the bank said in a filing. The news follows reports suggesting Wells' (NYSE:WFC) account-opening scandal extended to its brokerage business, while the Pennsylvania Treasury suspended the firm from trading in the state.
Fitch has put Deutsche Bank's debt on negative watch, stating the lender faces difficulties implementing a much-needed restructuring plan. The rating agency said a tough market environment, especially in Europe and Asia, will make it hard for Germany's biggest bank to boost revenue and capital in line with its strategy, seen as key to maintaining its "A" long-term debt rating. DB-1.8% premarket.
Startup culture infiltrating i-banking? The bulk of UBS's employees will no longer have a fixed desk at its new building in London as the bank reinvents the workspace where the cost of real estate is at a premium. Employees can now log onto their virtual desktops on computers at any desk in the building, and their phone numbers follow them from desk to desk or to their mobile devices.
Prices of solar stocks tumbled into a black hole on Thursday following severely bearish comments from First Solar's (NASDAQ:FSLR) earnings conference call, as it reduced its 2016 forecast for sales and shipments and cut its capital spending budget. The company said module pricing "declined at a dramatic rate" in Q3 as other module manufacturers continue to bring new capacity online amid demand dropoff in China. Related tickers: SPWR, CSIQ, SKYS, CAFD, TAN
Takata is preparing for a possible bankruptcy protection filing in the U.S.; however, it's not likely to be imminent, since the company still has to select a sponsor, finalize terms and reach an agreement with creditors. TK Holdings contributed just over 30% of Takata's (OTCPK:TKTDY) group sales for the year ended in March, but the unit suffered a fourth consecutive annual loss, hit by the rising cost of air bag recalls.
The software allowing its diesel vehicles to evade emissions rules doesn't violate European law, according to Volkswagen (OTCPK:VLKAY), as the carmaker aims to toughen its legal defenses with a possible rise in compensation claims in its home region. The German group has rejected such calls, but is offering cash payouts to drivers in the U.S., where it admitted to manipulating diesel emissions tests more than a year ago.
Beyond the roar of its new stealth jets and the buzz of plans to build commercial jumbos, China this week offered a first peek at a key test of its drive to become a global aviation powerhouse - a giant state-owned aero engine maker. Aero Engine Corp. of China's presence at Airshow China was far from discreet, with banners on the highway to the event site emblazoned with its blue and white logo.
Mattel CEO Christopher Sinclair won't hand over the reins of the toymaker until its turnaround is solidly established and has the right leadership in place. "When we've got a stable enterprise... then that's the time when I will feel comfortable moving on to my dotage," he told financial analysts. The WSJreported Wednesday that Mattel (NASDAQ:MAT) had retained search firm Spencer Stuart to help identify the company's next CEO.
Defending itself against charges of anti-competitive behavior in online shopping search and advertising, Google (GOOG, GOOGL) sought to pick apart the EU's evidence and market definitions in a bid to avert a potential fine and prohibition decision. The tech giant accused Brussels of misunderstanding economics and law, and that the company's actions were driven by its users rather than any plan to squash rivals.
The 2016 election has led to record-breaking viewership and traffic numbers for most networks, but will the gravy train last? In October, Fox News (FOX, FOXA) led the three major cable news networks with an audience of 3.1M during prime time, according to Nielsen, marking a 72% increase from last year. Meanwhile, CNN (NYSE:TWX) finished first among the advertiser-coveted adults 25-54 demographic, up 131% since last October.
More media news... The Chicago Cubs' World Series victory not only ended the team's historic 108-year championship drought, but attracted the biggest U.S. television audience for baseball in 25 years. Despite the game going well past midnight on the East Coast and a 17-minute rain delay, more than 40M viewers watched on Fox (FOX, FOXA). It also made for a nice 24 hours for the company after it post an earnings beat for Q3.
Expanding its reach in Hollywood, Chinese conglomerate Dalian Wanda is buying Dick Clark Productions for about $1B, giving it broadcasting rights to the Golden Globe Awards, the Academy of Country Music Awards and the New Year countdown celebrations in NY. Wanda already owns AMC Theaters (NYSE:AMC), which it bought for $650M in July, and the production company Legendary Entertainment, which it purchased for $3.5B in January.
U.S. prosecutors are bearing down on generic pharmaceutical companies in a sweeping criminal investigation into suspected price collusion, sources told Bloomberg. That spells a fresh challenge for an industry that's already reeling from public outrage over the spiraling costs of some medicines. Among those being investigated: MYL, TEVA, ENDP, AGN, VRX
Carl Icahn has upped his stake in Herbalife (NYSE:HLF) again, sending the stock up 1% in extended trading. The activist investor purchased 1,832,402 shares at $54.70 per share, valuing the buy at more than $100.2M and increasing his stake to 23.1%. On Tuesday, Herbalife announced CEO Michael Johnson would step down next year and be replaced by COO Richard Goudis, a choice Icahn said he fully supported.
With pot on the ballot in nine states, the big winner in next Tuesday's election could be America's legal cannabis industry. By 2020, legal market sales are expected to surpass $22B, and investors are looking to get their hands "green" by putting their money into marijuana investments or ancillary products. Among the states that will vote on legalization (recreational or medical): Arizona, Arkansas, California, Florida, Maine, Massachusetts, Montana, Nevada and North Dakota.
Thursday's Key Earnings
Activision Blizzard (NASDAQ:ATVI) -5.5% with weak holiday guidance.
CBS (NYSE:CBS) on early explorations of a Viacom merger.
Chesapeake Energy (NYSE:CHK) +1.7% after a surprise Q3 profit.
EOG Resources (NYSE:EOG) +1.8% AH posting a smaller quarterly loss.
FireEye (NASDAQ:FEYE) +13.1% AH after Q3 soared over predictions.
GoPro (NASDAQ:GPRO) -18.8% AH as production issues hurt results.
Las Vegas Sands (NYSE:LVS) +3.1% AH improving Macau figures.
Kraft Heinz (NASDAQ:KHC) -1.2% AH following a dip in sales.
Starbucks (NASDAQ:SBUX) +1.4% AH on Q3 beat and dividend boost.
Twilio (NYSE:TWLO) +3.4% AH after topping expectations.
CBS (NYSE:CBS) on early explorations of a Viacom merger.
Chesapeake Energy (NYSE:CHK) +1.7% after a surprise Q3 profit.
EOG Resources (NYSE:EOG) +1.8% AH posting a smaller quarterly loss.
FireEye (NASDAQ:FEYE) +13.1% AH after Q3 soared over predictions.
GoPro (NASDAQ:GPRO) -18.8% AH as production issues hurt results.
Las Vegas Sands (NYSE:LVS) +3.1% AH improving Macau figures.
Kraft Heinz (NASDAQ:KHC) -1.2% AH following a dip in sales.
Starbucks (NASDAQ:SBUX) +1.4% AH on Q3 beat and dividend boost.
Twilio (NYSE:TWLO) +3.4% AH after topping expectations.
Today's Markets
In Asia, Japan -1.3% to 16905. Hong Kong -0.2% to 22642. China -0.1% to 3125. India -0.6% to 27274.
In Europe, at midday, London -1.2%. Paris -0.9%. Frankfurt -0.8%.
Futures at 6:20, Dow -0.1%. S&P -0.1%. Nasdaq -0.1%. Crude -0.2% to $44.58. Gold -0.1% to $1302.60.
Ten-year Treasury Yield -1 bps to 1.8%
Today's Economic CalendarIn Europe, at midday, London -1.2%. Paris -0.9%. Frankfurt -0.8%.
Futures at 6:20, Dow -0.1%. S&P -0.1%. Nasdaq -0.1%. Crude -0.2% to $44.58. Gold -0.1% to $1302.60.
Ten-year Treasury Yield -1 bps to 1.8%
8:30 Non-farm payrolls
8:30 International Trade
8:30 Fed's Lockhart speech
1:00 PM Baker-Hughes Rig Count
4:00 PM Stanley Fischer speech
Companies reporting earnings today »8:30 International Trade
8:30 Fed's Lockhart speech
1:00 PM Baker-Hughes Rig Count
4:00 PM Stanley Fischer speech
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