Markets are poised for a dynamic trading session as traders await the September jobs report, with expectations of significantly lower job growth. Meanwhile, U.S. Treasury yields continue their ascent, reaching multi-year highs, while geopolitical tensions send oil prices soaring and impact European bond markets.
An oil rig in the Permian Basin, Texas, U.S., on Thursday, Sept. 14, 2023. Photographer: Brandon Bell/Getty Images
On the corporate front, ‘Mad Money’ host Jim Cramer offers a bullish outlook on McDonald’s despite recent performance, while notable stock calls from Mizuho and Jefferies continue to pay off. Keep an eye on Tesla’s production numbers and a potential major verdict for Meta Platforms.
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As October's trading session ignites, CNBC TV's producers and market analysts are closely watching key economic indicators and corporate movements. Here's what's on the radar for the upcoming trading session:
The Crucial Jobs Report Looms
All eyes are on the September nonfarm payrolls report, due at 8:30 a.m. ET. Scheduled for live coverage on "Squawk Box" with Becky Quick, Joe Kernen, and Andrew Ross Sorkin, the report is expected to show 84,000 new jobs, a significant dip from August's 162,000. This data point will be critical for assessing the health of the labor market and potential Federal Reserve policy shifts.
The 'Great American Bond' Continues to Roar
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 municipal bonds offering yields north of 7%, while Tim Seymour favors the 2-year Treasury. The iShares 0-5 Year High Yield Corporate Bond ETF (SHYG) is also drawing attention with a Thursday night yield of 7.18%.
10-year US Treasury notes are seen in a close-up photograph in New York, U.S., September 6, 2023. REUTERS/Mike Segar
Global Market Ripples: France and Oil
Concerns are mounting over France's bond market, with the 10-year note now yielding 4.93%. The cost of credit default swaps on French five-year bonds jumped 52 basis points on Thursday, the largest increase since 2017 and double the cost from six months ago. Data compiled by CNBC's Chris Hayes tracks these developments.
Meanwhile, West Texas Intermediate crude futures are trading around $93 a barrel, fueled 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 roughly 2% increase on Thursday, reflecting the bullish sentiment in the energy sector.
An oil rig in the Permian Basin, Texas, U.S., on Thursday, Sept. 14, 2023. Photographer: Brandon Bell/Getty Images
'Mad Money' Highlights: Big Calls and Cramer's Take
As the fourth quarter begins, 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 had strong calls, being bullish on Okta (up 146%) and CrowdStrike (up 127%) early in the year. Notably, Jim Cramer's charitable trust also invested in CrowdStrike in March, seeing gains of 160% since his recommendation, outpacing Jefferies' initial call.
Jim Cramer also offered a bullish outlook on McDonald's, suggesting "a bottom may be at hand." He described it as "a terrific business" and indicated he's a buyer, not a seller, especially after the stock hit a 52-week low on Thursday, down 32% from its March high and 24% year-to-date. This makes it the second-worst performer in the Dow 30 this year, trailing only Nike.
The McDonald's logo is displayed on a restaurant in London, U.K., on Wednesday, Sept. 1, 2021. Photographer: Jason Alden/Bloomberg
Upcoming Events and Corporate Watchlist
Tesla: Production and delivery numbers for the third quarter are expected on Friday. The stock is down 29% from its December high and 6% over the past five days.
Meta Platforms: A jury in New Mexico is expected to issue a decision Friday regarding a potential $200 billion penalty related to a lawsuit where Meta was found liable for misleading the public about privacy protections. The stock is up 25% in the past month, despite being down 7% from its September 24 high.
Stay tuned to CNBC for all-day coverage on these developing stories.
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