Here are the most important news items that investors need to start their trading day:
1. Weak start
2. All eyes on jobs
Is it another day where good news for American workers will be bad news for the stock market? Treasury yields ripped higher this week as the economy showed continued strength, particularly after a surprising increase in job openings. Now comes the September jobs report. Economists polled by Dow Jones estimate that the economy added 170,000 jobs last month, which would be a slight decrease from August’s 187,000. If the number comes in hot, chances of the Federal Reserve raising its benchmark rate could increase, according to AsumeTech’s Jeff Cox. The jobs report is due at 8:30 a.m. ET.
3. Streaming slam dunk?
The future of media could well depend on the NBA, according to AsumeTech’s Alex Sherman. The league’s rights deals with Disney (which owns ESPN and ABC) and Warner Bros. Discovery (the home of TNT) end after the 2024-25 season. However, potential media partners, including Google’s YouTube TV and surprisingly, Netflix, are already positioning themselves to compete with these giants. The media industry is at a crossroads as streaming services struggle to turn profits while expensive sports rights are crucial to maintaining the cable bundle. Negotiations for new partnerships beyond Disney and Warners can begin in April.
4. The SEC-Musk war continues
The Securities and Exchange Commission (SEC) is taking legal action against Elon Musk for ignoring a subpoena to testify in relation to potential securities fraud regarding his deal to buy Twitter, now known as X. The SEC and Musk have a history of conflict. Musk settled a fraud probe five years ago related to his tweet about taking Tesla private, but has since tried unsuccessfully to overturn the settlement. In response to the news, Musk called for a “comprehensive overhaul” of the SEC and other agencies.
5. Grinding gears
General Motors shares fell due to the ongoing United Auto Workers union strike and a report revealing that 20 million of the company’s vehicles have a potentially dangerous air bag part. However, GM believes that the evidence and data presented at this time do not warrant any additional recalls beyond the ones they have already initiated. Other auto stocks also experienced a difficult day. EV truck maker Rivian fell more than 20% after announcing plans to raise $1.5 billion, while fellow EV company Lucid declined 7% after launching a cheaper version of its luxury Air sedan.