October 7, 2022

Markets:

Stock futures were mostly flat on Friday morning as investors looked ahead to September’s jobs report for further clues into the Federal Reserve’s tightening campaign.

Advanced Micro Devices’ stock fell in overnight trading after the chipmaker warned its third-quarter revenue would be lower than anticipated. Levi Strauss shares slipped following a cut to its guidance.

Thursday’s downdraft comes as investors remain on edge ahead of September’s jobs report slated for release Friday. The findings could offer further certainty into the Fed’s tightening cycle, with a strong jobs market or upside surprise signaling that the Fed may need a tougher stance to slow the economy and tame surging prices. Economists surveyed by Dow Jones expect the data to show a 275,000 increase in nonfarm payrolls and unemployment to hover at 3.7%.

The benchmark 10-year U.S. Treasury yield hit its highest level of the week on Friday morning, climbing to 3.859%. Earlier this week it broke below 3.6%, after last week topping 4%, which was its highest level since 2008.

The policy sensitive 2-year yield also hit a high for the week, touching 4.308%.

European markets pulled back slightly on Friday to round out a volatile week, as global investors await a key monthly jobs report out of the United States.

Portfolio:

We enter the last trading session of the week holding positions in APPS, BULZ, NBIX, and PARA. It's all about the job's report today and how traders will position themselves for the weeks to come. Short term event for a bit longer term narrative to print for the markets but the overall picture to end 2022 remains intact. Stay patient today and allow the fluctuations to digest early on after the jobs report. Please be ready, although we feel we are well positioned with set-ups for the next week, we want to continue to position ourselves further for the month to come and the queue continues to be super active – which we love to see. Monster moves ahead! Let's have a great session.