Markets are bracing for a busy trading session as investors digest key economic data and geopolitical developments. The September jobs report and surging Treasury yields are top of mind, while oil prices climb amid Middle East tensions. Jim Cramer offers insights on McDonald’s, suggesting a potential buying opportunity, and high-profile stock calls from analysts are highlighted.
Notable company news includes Nike’s post-earnings dip, awaited Tesla delivery numbers, and a potential $200 billion verdict for Meta Platforms in a New Mexico jury trial.
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As October's trading session kicks off, CNBC TV's producers and analysts are closely watching several key events and trends that are poised to move the market in the upcoming trading sessions. Here’s what’s on the radar:
Key Market Drivers to Watch
The Crucial Jobs Report
All eyes will be on the September nonfarm payrolls report, due out at 8:30 a.m. ET. The release will be broadcast live on "Squawk Box" with Becky Quick, Joe Kernen, and Andrew Ross Sorkin. The Dow Jones consensus estimate projects 84,000 new jobs, a significant decrease from August's 162,000.
The 'Great American Bond' Rally Continues
The 10-year Treasury yield has surged to its highest level since April 2002, currently standing at 5.243%. The 2-year yield is at 4.791%, and the 3-month Treasury bill yield is at 4.094%. "Fast Money" trader Courtney Garcia highlighted opportunities in municipal bonds, with some yielding over 7%. Tim Seymour favors the 2-year Treasury note. The iShares 0-5 Year High Yield Corporate Bond ETF (SHYG) is showing a compelling yield of 7.18%.
Global Economic Ripples: France in Focus
Meanwhile, global markets are also experiencing shifts. France's 10-year note is now paying 4.93%. The cost of credit default swaps on the five-year French bond has spiked by 52 basis points, marking the largest increase since 2017 and doubling in cost over the past six months, according to a Reuters report. Our CNBC data team's Chris Hayes has been diligently tracking these developments.
Oil Prices Surge on Geopolitical Tensions
West Texas Intermediate crude futures are trading around $93 a barrel, driven by reports from The Wall Street Journal indicating the U.S. is deploying a third aircraft carrier to the Middle East. The Fidelity MSCI Energy Index ETF (FENY) saw a significant boost, closing up approximately 2% on Thursday.
'Mad Money's' Big Calls and Cramer's Latest Insights
As we enter the fourth quarter, Mizuho's call on Revolution Medicines stands out as one of the year's best, with the stock up nearly 160% year-to-date. Jefferies also made prescient calls on Okta (up 146%) and CrowdStrike (up 127%). Notably, "Mad Money's" Jim Cramer also capitalized on CrowdStrike, buying shares for the charitable trust in March, resulting in a 160% gain since his recommendation, even outperforming Jefferies' initial call.
Jim Cramer's Take on McDonald's
In a compelling segment on "Mad Money," Jim Cramer analyzed McDonald's, suggesting a potential bottom is near for the fast-food giant. "I tend to be a buyer and not a seller," Cramer stated, emphasizing, "This is a terrific business." Despite shares being down 32% from their March high and hitting a 52-week low on Thursday, Cramer sees a unique buying opportunity, especially given the stock's 24% year-to-date decline, making it the second-worst performer in the Dow 30 behind Nike.
Company-Specific Developments:
- Nike: Shares experienced an 8% drop in extended trading following earnings reports. More details will be covered throughout Friday on CNBC.
- Tesla: Investors await third-quarter production and delivery numbers, expected on Friday. The stock has seen a 29% decline from its December 22nd high and is down 6% over the past five days.
- Meta Platforms: A jury in New Mexico is expected to deliver a verdict Friday on a potential $200 billion penalty against Meta, following a finding of liability for misleading the public on privacy protections. Despite this, the stock has risen 25% in the past month, though it remains 7% down from its September 24th high.
