https://news.google.com/__i/rss/rd/articles/CBMiTGh0dHBzOi8vd3d3LmNuYmMuY29tLzIwMjIvMTAvMDYvc3RvY2stbWFya2V0LWZ1dHVyZXMtb3Blbi10by1jbG9zZS1uZXdzLmh0bWzSAQA?oc=5
Stock futures were flat on Friday morning as investors looked ahead to September’s jobs report for further clues into the Federal Reserve’s tightening campaign.
Futures tied to the Dow Jones Industrial Average shed 12 points, or 0.04%, while S&P 500 futures dipped 0.09%. Futures tied to the Nasdaq 100 slipped 0.07%.
Advanced Micro Devices’ stock fell in overnight trading after the chipmaker warned its third-quarter revenue would be lower than anticipated. Levi Strauss shares slipped following a cut to its guidance.
Major averages closed lower during regular trading but are on pace to cap their best week since June 24 and finish about 4% higher. The Dow fell 346.93 points, or 1.15%, to 29,926.94, while the S&P 500 and Nasdaq Composite shed 1.02% and 0.68%, respectively.
All major S&P sectors finished the session in negative territory, with the exception of energy. The sector rose 1.8% as oil prices gained and is on pace to close out the week 14.7% higher.
Thursday’s downdraft comes as investors remain on edge ahead of September’s jobs report slated for release Friday. The findings could offer further certainty into the Fed’s tightening cycle, with a strong jobs market or upside surprise signaling that the Fed may need a tougher stance to slow the economy and tame surging prices. Economists surveyed by Dow Jones expect the data to show a 275,000 increase in nonfarm payrolls and unemployment to hover at 3.7%.
“The environment is ripe for a crisis and if the Fed keeps its hawkish communication up I think we’re quite likely to have something break in the financial markets,” Scott Minerd, Guggenheim’s global chief investment officer said on CNBC’s “Closing Bell: Overtime” on Thursday.
Minerd said the pace of tightening is beginning to create cracks in the financial markets and could force a Fed pivot in the coming weeks.
“All the signs are there,” he said. “I can’t tell you exactly what will cause it, but the environment is ripe and when the Fed pivots, they’re not going to preannounce it, they’re not going to ring a bell.”
A surprise to the downside occurring 75% of the time over the last 25 years in the September jobs report could lead investors to stage a rally, he added.
Along with the big jobs report, wholesale inventories and consumer credit data are also due out Friday. Cannabis stock Tilray Brands, which rose Thursday as the White House announced marijuana pardons, will report earnings results.
Inflation could resurge if the Fed pivots too early, former Fed president says
Former Kansas City Federal Reserve President Thomas Hoenig said the Fed could “reignite” inflation if it stops raising interest rates “too soon.”
The Fed should not enter a rate-cutting cycle immediately after reaching the terminal rate, Hoenig told CNBC’s “Street Signs Asia.” Officials have signaled their intention to raise rates to 4.6% by 2023.
Speaking of the Fed’s cycle of rate hikes, Hoenig said, “They need to stay there and not back off of that too soon to where they reignite inflation, say in the second quarter [of] 2023 or the third quarter.”
“They have a very delicate and very difficult period ahead of them in terms of decision-making,” he said.
— Jihye Lee
CNBC Pro: Fund manager says oil is in a multi-year bull market – and names 3 stocks to cash in
Oil is in a bull market that’s going to last for at least six years, according to fund manager Eric Nuttall.
The partner and senior portfolio manager at Ninepoint Partners, which manages more than $8 billion in assets, named three stocks for investors to cash in.
Pro subscribers can read more here.
— Zavier Ong
CNBC Pro: Tesla or Nvidia? One will dominate in A.I., analyst says, giving it 50% upside
Tech’s next frontier — artificial intelligence — is still in its adolescence, but offers significant growth opportunities for suppliers and users alike, according to Truist Securities.
Both Nvidia and Tesla offer ways to get exposure to AI, the analysts say, revealing their price targets on both stocks.
CNBC Pro subscribers can read more here.
— Weizhen Tan
Levi Strauss slumps on revenue miss, outlook cut
Shares of Levi Strauss shed 6.5% in extended trading Thursday despite an earnings beat. The company missed revenue estimates for the recent quarter and cut its guidance, dragged down by the U.S. dollar’s strength.
Levi Strauss posted earnings of 40 cents a share on revenues of $1.52 billion. Analysts expected earnings of 37 cents a share on $1.60 billion in revenue.
— Samantha Subin
Exxon on pace for best week since October 1974
Exxon Mobil shares are on track to finish their best week since October 1974.
The energy stock rose about 3% in regular trading Thursday as oil prices gained, putting Exxon on track to close out the week 17% higher.
Energy was the only S&P 500 sector finishing in positive territory on Thursday, rising nearly 2%. It’s on track to finish the week about 15% higher and close out its best week since November 2020. As of Thursday’s close, energy was also the only sector positive for the year.
Shares of Marathon, Halliburton and Devon Energy are on track to finish the week higher by roughly 20% or more.
— Samantha Subin, Gina Francolla
Advanced Micro Devices falls on disappointing preliminary third-quarter results
Advanced Micro Devices‘ stock fell 3.9% in extended trading as the company preannounced results for the third quarter that came in below its previous guidance.
The semiconductor company shared preliminary revenue of $5.6 billion for the period, down from the expected $6.7 billion. It blamed the cut on a weakening PC market and supply chain issues.
AMD also said it expects a non-GAAP gross margin of roughly 50%, previously expecting gross margins would range closer to 54%.
— Samantha Subin
Stock futures open lower
Stock futures opened lower in overnight trading Thursday.
Futures tied to the Dow Jones Industrial Average shed 57 points, or 0.19%. S&P 500 futures dipped 0.36%, while futures tied to the Nasdaq 100 slipped 0.49%.
— Samantha Subin
