Here are the 5 most important things to know this Friday.
1. The most important data of the day
The Labor Department will publish the last jobs report before the election at 12:30GMT, showing how many new jobs were created in the American economy in October.
Economists expect that 177,000 jobs were created in October and that the unemployment rate hit 4.9%, according to a CNNMoney survey.
That would be slightly better than September's gain of 156,000 jobs and a 5% unemployment rate.
The Clinton campaign could cite a solid report as further evidence of steady job gains during the Obama administration, while Donald Trump could point to disappointing jobs data as proof of a sluggish labor market.
2. Uncertainty over U.S. election outcome lead to volatility
As the U.S. presidential election nears on November 8, investor jitters continue to suppress risk appetite in equities.
Recently tightening polls have led to doubts over the eventual outcome with analysts widely claiming that a victory by Republican candidate Donald Trump over Democratic nominee Hillary Clinton implies more uncertainty with respect to forthcoming economic policies.
Outside the debate on whether who is elected as the new American leader will really have a meaningful impact on policies and stocks, The Earnings Scout warned that regardless of who the winner is, “growth expectations for earnings-per-share growth in the fourth quarter and the first quarter of 2017 are too high.”
3. S&P could face worst losing streak since 1980
The S&P 500 ended Thursday with its worst losing streak in eight years as uncertainty over U.S. elections, a more lackluster week of earnings, a confirmation that the Federal Reserve was likely to hike in December and caution ahead of Friday’s October nonfarm payrolls weighed on sentiment.
Apart from selling equities, investors were hedging against risk with the VIX, known as the fear-factor gauge, also rising eight days in a row in its longest stretch since November 2013, according to senior index analyst Howard Silverblatt at Dow Jones S&P Indices. He also pointed out that Thursday’s closing price of 22.45, compared to the historical average of 19.71.
If the S&P closed lower on Friday, the nine-day stretch would be its worst since December 1980.
4. Oil heads for 8% weekly drop
Oil managed a minor recovery on Friday after falling for five consecutive sessions, but was still on track to record weekly losses of more than 8%, as U.S. crude stockpiles racked up a record build this week.
Concerns over the supply glut were supported by members of the Organization of Petroleum Exporting Countries (OPEC) insisting on their right to be granted an exemption from any eventual agreement to curb production even as the cartel’s output hit an all-time high last month.
Furthermore, investors were look ahead to production stateside with the rig count data from Baker Hughes later on Friday. The prior week the oilfield services provider said that the number of U.S. rigs drilling for oil did slip by 2 to 441, but that came after 8 straight weeks of increases from 406 to 443.
U.S. crude oil futures gained 0.13% to $44.72 at 8:02GMT, while Brent oil traded up 0.13% to $46.41.
5. Global stocks mostly lower
U.S. futures were pointing to a flat open ahead of the October employment report with the S&P 500 trying to break its longest losing streak in eight years ahead of the presidential elections. At 8:03GMT, the blue-chip Dow futures edged down 0.08%, S&P 500 futures slipped 0.04% and the Nasdaq 100 futures dropped 0.2%.
European stocks dropped on Friday, as investors remained cautious amid growing uncertainty over the outcome of the upcoming U.S. presidential election and readings on business activity in Germany, Italy, France, Spain and the euro zone as a whole coming out mainly worse-than-expected in October.
Asian shares slipped on Friday and the dollar nursed losses in a week marked by growing uncertainty about the outcome of the U.S. presidential election.