Jobs data, AMD shares fall and more: Friday's 5 things to know
Traders will also be reacting to the latest headlines from tech companies Samsung and AMD which are raising red flags
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Liz Ann Sonders, Sarah Kunst and Jim Awad provide dissect the Federal Reserve's policies on 'Making Money.'
Here are the key events taking place on Friday that could impact trading.
JOBS REPORT: 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.
"Employment and jobless claims data suggest the job market remains firm. Even with some companies announcing layoffs or plans to cut jobs," said Bankrate.com senior economic analyst Mark Hamrick. "It appears that many individuals have been able to transition to new employment opportunities in quick order."
SEPTEMBER JOBS REPORT LIKELY TO SHOW HIRING COOLED BUT REMAINED HEALTHY
A sign advertises for help The Goldenrod, a popular restaurant and candy shop, in York Beach, Maine. The number of available jobs in the U.S. plummeted in August 2022 compared with July as businesses grow less desperate for workers, a trend that coul ((AP Photo/Robert F. Bukaty, File) / AP Newsroom)
At the same time, companies are reluctant to hire as evidenced in Tuesday’s JOLTS report, which showed job openings falling by 1.1 million in August, the steepest drop since April 2020 when the economy was reeling from the pandemic lockdowns.
"Remember that the Federal Reserve officials, who have raised interest rates five times so far this year in response to high inflation, believe the job market is too tight, with more than 11 million job openings at last count and six million unemployed," added Hamrick.
The unemployment rate is anticipated to hold steady at 3.7%.
OIL STEADY: Prices steadied on Friday ahead of the release of the monthly jobs report. Oil gained over 1% in the last session on cuts to OPEC+ production targets.
WTI crude futures traded around $88.00 a barrel.
Brent Crude futures traded around $94.00 a barrel.
A stronger dollar added pressure on oil prices.
Both benchmarks were headed for weekly gains, fueled by the production cut announcement by OPEC+.
The decision would squeeze supplies in an already tight market, adding to inflation.
SAMSUNG'S EARNINGS PLUNGE ON BIG DROP-OFF IN CHIP DEMAND
SAMSUNG ELECTRONICS: The company reported a worse-than-expected 32% drop in quarterly operating earnings on Friday.
The company says an economic downturn slashed demand for electronic devices and the memory chips that go in them.
Samsung Electronics' memory chips on display. (Samsung newsroom)
Samsung's memory chip shipments likely came in below already downgraded expectations and prices could fall further this quarter.
Analysts say customers are reacting to rising inflation, higher interest rates and the impact of Russia's invasion of Ukraine.
Samsung is seen as bellwether for global consumer demand and its disappointing preliminary results add to a flurry of earnings downgrades and gloomy forecasts.
Estimated profit fell to $7.67 billion in July-September - the first year-on-year decline in nearly three years.
AMD OUTLOOK: Shares lost more than 4% in extended trading after the chipmaker on Thursday provided third-quarter revenue estimates that fell well short of its previous forecast, citing lower-than-expected demand and significant inventory corrections across the personal computer market supply chain.
The results also impacted shares of peers Nvidia Corp and Intel Corp.
"The PC market weakened significantly in the quarter," Chief Executive Officer Lisa Su said in a statement.
The company said it expects third-quarter revenue of about $5.6 billion. That compares with its forecast in August of $6.7 billion, plus or minus $200 million.
The Levi's tag is seen on pants hanging in a Levi Strauss store in New York City. (REUTERS/Brendan McDermid/File Photo / Reuters Photos)
LEVI STRAUSS: Shares fell more than 6% in extended trading after the company cut its full-year profit forecast on Thursday, as decades-year high inflation hits consumer spending and a strengthening U.S. dollar adds to worries alongside higher costs.
The company said it now expects full-year 2022 adjusted profit of $1.44 to $1.49 per share, compared with its prior forecast of between $1.50 and $1.56.
Levi's also expects full-year reported net revenue to grow between 6.7% and 7.0%, representing 11.5% to 12% net revenue growth on a constant-currency basis. Earlier, the jeans maker expected a net revenue growth of 11% to 13%.
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The San Francisco-based company's net revenue rose 1% to $1.52 billion in the third quarter ended August 28, missing analysts expectations of $1.60 billion, according to Refinitiv data.