Five Things You Need to Know to Start Your Day

Written by
Lorcan Roche Kelly
Written by

Lorcan Roche Kelly

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(Bloomberg) --

It's jobs day, China manufacturing data, and big oil reports. Here are some of the things people in markets are talking about today.

Payrolls

Today's jobs number is expected to come in at 85,000, the lowest level in five months, as temporary factors are likely to weigh on the total. Some 46,000 workers at General Motors Co. were on strike during the mid-month reference period used by the Labor Department for the data published at 8:30 a.m. Eastern Time. This will make it harder than usual for economists to sort out the underlying labor trend at a time when other parts of the U.S. economy are showing weakness. Unemployment is forecast to tick higher to 3.6% and wage growth to post a small rise to 3%.

China number

There were some signs of resilience in Chinese manufacturing in the latest Caixin index reading which unexpectedly rose to 51.7. However, an official gauge dropped to the lowest level since February as factories throughout the region remain stuck in the doldrums. The main driver of that continues to be trade uncertainty, with hopes of a lift from a “phase one” deal between the U.S. and China tempered by comments from officials in Beijing casting doubt over the prospects for a long-term agreement.

Big oil

It's another big day for earnings with Exxon Mobil Corp and Chevron Corp reporting before the bell after a quarter expected to be dominated by low commodity prices and weak refining margins. Alibaba Group Holding Inc. earnings will help give an idea of how the Chinese consumer is holding up. Berkshire Hathaway Inc.'s report tomorrow will give Warren Buffett a chance to explain what the company is doing with its cash pile in a period without any major acquisitions.

Markets rise

Overnight the MSCI Asia Pacific Index rose 0.3% while Japan's Topix index closed broadly unchanged, remaining close to its highest level of the year. In Europe the Stoxx 600 Index was 0.3% higher at 5:50 a.m. with basic resources among the best performers on the first trading day of the month, while banks were weaker. S&P 500 futures pointed to a gain at the open ahead of jobs data, the 10-year Treasury yield was at 1.695% and gold was flat.

Coming up…

Markit U.S. manufacturing PMI is at 9:45 a.m., with ISM manufacturing at 10:00 a.m. September construction spending is also at 10:00 a.m. Auto sales data for the October is due today. Fed speakers today are Dallas Fed President Robert Kaplan, Fed Vice Chairman Richard Clarida, Fed Vice Chair for Supervision Randal Quarles, San Francisco Fed President Mary Daly and New York Fed President John Williams.