Job watch, oil rises and more: Thursday's 5 things to know
In addition to jobs, traders are also closely watching the price of oil as it rises following the OPEC+ production cut
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Here are the key events taking place on Thursday that could impact trading.
JOBLESS CLAIMS: The Labor Department will release its tally of new claims for unemployment benefits for last week.
The report is likely to show a tight labor market that’s starting to cool. Expectations are for 203,000, up from 193,000 the previous week when layoffs fell unexpectedly to the lowest since late April.
Continuing claims, which track the total number of workers collecting unemployment benefits, are expected to edge down to 1.345 million. That would be the fifth straight weekly decline to the lowest since July 2.
US COMPANIES ADDED 208,000 JOBS IN SEPTEMBER, BEATING EXPECTATIONS: ADP
Someone completing an unemployment benefits form. (iStock / iStock)
MONTHLY JOBS: This week’s key economic report, September’s employment data out Friday morning, should provide investors with some idea of the impact that higher borrowing costs are having on growth.
Economists surveyed by Refinitiv say the U.S. economy likely added 250,000 new nonfarm jobs in September. That’s down from 315,000 the previous month and would mark the weakest job growth since December 2020.
While the pace of job growth is slowing, the labor market remains tight with employers reluctant to lay off workers. The unemployment rate is anticipated to hold steady at 3.7%.
Billionaire CEO Elon Musk. (Getty images | istock / Getty Images)
MUSK MAY NEED MORE FINANCING FIRMS FOR TWITTER DEAL
ELON MUSK: Elon Musk may need to find other firms to finance his takeover of Twitter.
Apollo Global Management Inc and Sixth Street Partners, which were looking to provide financing earlier this year, are no longer in talks with the billionaire entrepreneur, according to two sources familiar with the matter.
Apollo, Sixth Street and other investors were looking to commit over $1 billion in financing for the deal at the time.
When Musk started having second thoughts about the purchase, the talks ended.
The logo of Chevron (CVX) is seen in Los Angeles, California. (REUTERS/Lucy Nicholson/FILE / Reuters Photos)
CHEVRON: Shares rose 0.5% in extended trading as Chevron and other U.S. oil companies may be able to pump oil in Venezuela again if the South American country agrees to a deal, The Wall Street Journal reported.
Multiple people familiar with the negotiations told The Journal the U.S. would agree to lower sanctions if the Venezuelan government restarts talks with opposition leaders over free and fair presidential elections.
The Journal said, if successful, the agreement would only release a limited amount of petroleum into the global markets in the short term.
OIL PRICES: Traded near three-week highs on Thursday after OPEC+ agreed to further tighten global crude supply with a deal to slash production by about 2 million barrels per day, the largest reduction since 2020.
U.S. West Texas Intermediate (WTI) crude futures traded around $88.00 per barrel, building on a 1.4% rise on Tuesday.
Brent crude futures traded around $94.00 per barrel, after settling 1.7% higher in the previous session.
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The administration of President Biden has criticized the deal as being "shortsighted." The White House said Biden would continue to assess whether to release further strategic oil stocks to lower prices.