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Jobs Report Preview

What’s in Today’s Report:

  • Jobs Report Preview
  • EIA Takeaways and Oil Data

Futures are moderately higher on more stimulus hopes combined with solid economic data.

Positive chatter regarding a potential stimulus deal continued overnight with whispers implying the deal may be worth more than $1.5T.  But, I want to again caution that many hurdles remain to get a deal done by the election (most important of all being if it can pass the Senate, and that remains unclear).

Economic data was solid overnight as Final Sept. EU manufacturing PMIs met expectations at 53.7.

Stimulus headlines will drive trading today and there’s an outside chance we get an announcement of a deal between Treasury Secretary Mnuchin and Speaker Pelosi.  But, while the market will embrace that, as mentioned, it remains to be seen if the Senate will pass something prior to the election.

Outside of stimulus, we get two important reports on growth (Jobless Claims (E: 850K and ISM Manufacturing PMI (E: 56.3)) and one on inflation (Core PCE Price Index (1.4%)) and the market will want to see solid numbers across the board to imply the economic recovery is not plateauing.  Finally, there are two Fed speakers today, Williams (11:00 a.m. ET) and Bowman (3:00 p.m. ET), but neither should move markets.