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Morning Brief: Investors eye November jobs report

Friday, December 7, 2018

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What to watch today

Attention will turn to the jobs report. After a blowout jobs report in October, economists polled by Bloomberg are expecting non-farm payroll employment of 200,000 for November. The unemployment rate is expected to be unchanged from the prior month at 3.7%.

UBS anticipates that the tariffs will have negatively impacted the jobs report. “We expect employment growth to slow substantially in November as tariffs begin to weigh more meaningfully on growth… We continue to believe that the main driver of manufacturing softness is tariffs,” the bank wrote in a note.

However, Goldman Sachs doesn’t think the tariffs will have as much of a meaningful impact on the November report. “We continue to expect that the growth and employment effects of trade frictions will be modest in the U.S., and accordingly, we are not embedding an explicit drag in our November payroll estimates.”

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Top news

 (AP Photo/Cliff Owen, File)

Fed weighs wait-and-see approach on rate hikes: Federal Reserve officials are considering whether to signal a new wait-and-see approach after a likely interest-rate increase at their meeting in December, which could slow down the pace of rate increases next year. Officials still think the broad direction of short-term interest rates will be higher in 2019. [The Wall Street Journal]

Bitcoin leads cryptos to lowest since 2017Cryptocurrencies continued their slide with a fresh bout of losses Friday after the SEC dashed hopes that a Bitcoin (BTC-USD) exchange-traded fund would appear before the end of this year. [Bloomberg]

India’s HCL to buy some IBM software assets for $1.8B:  Indian software services firm HCL Technologies agreed to buy some software assets from International Business Machines Corp. (IBM) for $1.80 billion to help it compete better with bigger rivals such as TCS and Infosys Ltd. HCL shares fell as much as 7.7% to their lowest in five months. [Reuters]

Broadcom shares soar on earnings beat: Broadcom (AVGO) reported better-than-expected fourth-quarter financial results on Thursday. Shares of the chipmaker soared 6% in after-hours trade after beating on both the top and bottom lines. Broadcom earned $5.85 per share versus the $5.56 per share analysts polled by Bloomberg were anticipating. [Yahoo Finance]

Largest biotech to IPO leaves analysts awed: Moderna Inc.’s potentially historic stock-market debut on Friday is already attracting skeptics on Wall Street. The biotech firm has been hoping to raise as much as $600 million through a stock sale that would value the company at about $7.5 billion, a record even for a sector not always known for restrained valuations. [Bloomberg]

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The Morning Brief provides a quick rundown on what to watch in the markets, top news stories, and the best of Yahoo Finance Originals.