North American Morning Briefing: Stock Futures Rise Ahead of Latest Jobs Data

Stock futures were higher on Friday ahead of the latest set of jobs data.

Treasury yields have remained heightened, but the yield on the 10-year was falling from Thursday's highs.

Markets now price just a 26% chance of a rate increase in October, according to LSEG.

Attention turns to the payrolls data for further clues on future rate decisions. The Bureau of Labor Statistics is scheduled to release last month's employment report at 8:30 a.m. Eastern.

"Clearly, the monthly jobs reports are always a macro highlight, but this is an important one, as the continued data resilience has been a huge factor supporting U.S. risk assets, and it's also given the Fed space to start hiking rates," Deutsche Bank said.

Meanwhile, oil prices fell, giving back part of yesterday's gains as traders weighed recovering Middle East crude exports against renewed shipping risks and a larger U.S. military buildup in the region.

Stocks to Watch

Algoma Steel Group said it expects to report a 65% decline in steel shipments in the third quarter, citing the impacts of a turbine outage. Shares shed 2.4%.

Nike guided for a sales decline in the new fiscal year as the company continued to struggle with sales in China. The stock fell 8.4%.

ON Semiconductor agreed to buy Synaptics in a $5.7 billion all-cash deal, amending its initial agreement for a roughly $7 billion. Shares of Synaptics jumped 15%, while ON shares gained 6.5%.

Venture Global agreed to sell 1 million metric tons of liquified natural gas to ConocoPhillips every year for 20 years, beginning in 2030. Its stock was up 2.6%.

Watch For:

Employment Report for September

Today's Top Headlines/Must Reads:

- Amazon's New Push to Get Buy-In for Data Center Build-Out

- High Government Debt Is Adding Fuel to the Global Bond-Market Selloff

- Special Payouts for Executives Are Becoming a More Routine Perk

MARKET WRAPS Forex:

The dollar eased after reaching a near 18-month high Thursday as markets trimmed lofty expectations for U.S. interest-rate rises and await the key U.S. nonfarm payrolls report at 1230 GMT.

The euro stayed slightly higher against the dollar after data showed eurozone inflation accelerated by more than expected in September.

The Swiss franc rose to a two-month high against the euro and a one-week high versus the dollar.

Bitcoin stayed elevated after reaching a one-week high earlier.

Bonds:

Treasury yields were steady, staying below Thursday's multiyear highs ahead of key U.S. jobs data.

Energy:

Oil prices eased on signs that Gulf crude exports are recovering, although tensions in the region remain elevated amid concerns over further military action and attacks on shipping.

Metals:

Gold prices ticked higher as markets scale back expectations for imminent interest-rate hikes by the Fed.

TODAY'S TOP HEADLINES

Volvo Car Pulls Guidance as Chinese Auto Market Worsen

STOCKHOLM-Volvo Car scrapped its full-year guidance after warning that a further deterioration in the Chinese auto market and slow recovery in the U.S. led to lower-than-expected third-quarter sales and a weaker outlook.

In a statement on Friday, the Swedish carmaker-which is majority-owned by China's Zhejiang Geely Holding Group-said the market developments will also have a "significant negative impact" on third-quarter core earnings and cash flow, beyond previously highlighted raw material, currency and amortization and depreciation headwinds.

Raytheon Gets $24.4 Billion Navy Contract for Standard Missile-6 Interceptors

Raytheon said it was awarded a contract valued at up to $24.4 billion to supply Standard Missile-6 interceptors to the U.S. Navy.

The contract is for an initial term of five years and contains two additional option years, the company added.

Eurozone Inflation Jumps to Three-Year High on Sharper Energy Costs

Inflation in the eurozone rose to its highest level in three years last month, driven by accelerating energy prices, although a recent jump in government bond yields may make the European Central Bank wary of lifting its key interest rate again.

Consumer prices were 3.8% higher in September than the same month of last year, up from an annual rate of inflation of 3.2% in August, the European Union's statistics office Eurostat said Friday. That was the fastest rise in prices since September 2023.

The Bond Rout Is Deepening Even as Oil Tankers Return to the Strait of Hormuz

The return of oil tankers through the Strait of Hormuz was supposed to bring down the price of crude, gasoline and diesel, taming inflation and lowering the world's borrowing costs. It isn't happening.

Even as U.S. forces have worn down Iran's grip on the waterway, helping oil shipments rebound toward prewar levels, the global crude-futures benchmark jumped 4.4% Thursday to $102.31 a barrel. Average U.S. gas prices tracked by AAA were hanging above $4.41 a gallon. And the 10-year Treasury yield, a rough proxy for interest rates on many types of loans, this week notched its highest level in 24 years.

Near-Catastrophe on Flight 1073 Exposes Gaping Hole in Dubai's Aviation Security

The FlyDubai pilot who stabbed his captain and sent the plane diving toward the ground slipped through one of the world's tightest aviation-security nets. The question is: How?

The route connecting the United Arab Emirates and Israel is one of the world's most sensitive. The Middle East has a long history of hijackings and other attacks on civilian airliners.

Police Score Big Bucks With Little Work in Trump's Immigration Crackdown

Doddridge County Sheriff Clinton Boring committed his department to work on behalf of President Trump's deportation campaign in February, though he didn't expect to see many immigrants, legal or not. He had his sights on new squad cars.

"I honestly don't think there are any Hispanics that live in Doddridge," said Boring, whose West Virginia jurisdiction has about 7,600 residents. Even so, he added, "When you get an opportunity to get possibly $100,000 for equipment or vehicles, that's a no-brainer."

U.S. Sending Third Aircraft Carrier, Up to 10,000 More Troops, to Middle East

The Pentagon is sending a third aircraft-carrier strike group and an additional Marine expeditionary unit to the Middle East, according to U.S. officials, adding 9,000 to 10,000 more troops to the region as President Trump considers renewing strikes on Iran after the midterm elections.

The ships, jet fighters, Marines and sailors will arrive in the region by the end of November, the officials said. Trump recently told aides that he expects to resume bombing Iran that same month, The Wall Street Journal reported.

Carney Puts Oil Pipeline at Center of Bid to Keep Alberta in Canada

TORONTO-Weeks before a referendum on Alberta's future in Canada, Prime Minister Mark Carney on Thursday sought to strengthen ties with the province by designating a proposed oil pipeline to the Pacific coast a "project of national interest," a move that speeds its regulatory approval process.

Separatists in the oil-rich prairie province have pointed to longstanding disaffection with the federal government's energy and climate policies, which they say have constrained the oil-and-gas industry, as a key reason they champion independence. The province will vote on Oct. 19 on whether to stay in Canada or to start the process of holding a second, binding referendum on leaving.

Write to nina.kienle@wsj.com

TODAY IN CANADA Earnings:

Nothing major scheduled.

Economic Indicators (ET):

Nothing major scheduled.

Stocks to Watch:

Algoma Steel 3Q Preliminary Adj EBITDA CAD -20 to -10M; FactSet Est. CAD -38.9M; Total Steel Shipments for 3Q Are Expected to Be Approximately 145,000 Tons

Vortex Energy Completes Acquisition of the Meadows Project in Saskatchewan

Expected Major Events for Friday 08:00/ITA: Aug Retail Sales

12:30/US: Sep U.S. Employment Report

14:00/US: Aug Manufacturers' Shipments, Inventories & Orders (M3)

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Expected Earnings for Friday Escalon Medical Corp (ESMC) is expected to report for 4Q.

Lunai Bioworks Inc (LNAI) is expected to report for 4Q.

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ANALYST RATINGS ACTIONS Baldwin Insurance Group Cut to Neutral From Overweight by JP Morgan

BJ's Restaurants Raised to Outperform From Neutral by Mizuho

Consolidated Edison Raised to Overweight From Equal-Weight by Wells Fargo

Dollar Tree Raised to Buy From Hold by Loop Capital

Ethos Technologies Cut to Neutral From Overweight by JP Morgan

ExxonMobil Holdings Cut to Equal-Weight From Overweight by Wells Fargo

First Hawaiian Raised to Neutral From Underweight by JP Morgan

Forbright Raised to Overweight From Neutral by JP Morgan

Hub Group Raised to Hold From Sell by Stifel

Liquidia Cut to Neutral From Buy by BTIG

Liquidia Cut to Outperform From Strong Buy by Raymond James

Occidental Petroleum Raised to Buy From Neutral by Goldman Sachs

Ormat Technologies Cut to Neutral From Buy by UBS

Regeneron Pharma Raised to Buy From Hold by Argus Research

United Therapeutics Raised to Buy From Neutral by BTIG

This article is a text version of a Wall Street Journal newsletter published earlier today.

(END) Dow Jones Newswires

October 02, 2026 06:12 ET (10:12 GMT)

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