SURPRISING GROWTH
The latest ADP report has revealed that private payrolls showed better-than-expected growth of 143,000 in September. This figure surprised many as it was actually an increase of 15,000 more jobs than economists predicted. This reassures that there is a level of resilience in the labor market despite recent signs of weakness. In addition, while the rate of pay growth slowed down, particularly for job switchers, several industries experienced gains in employment, and there were notable growth in sectors such as leisure and hospitality, construction and education. Moreover, let’s remember that this data provides a glimpse into the upcoming Labor Department report, which is due on Friday morning and it is anticipated to show an increase of 150,000 jobs for September. And if numbers reveal a similar trend as the ADP numbers, it is likely that the Federal Reserve will continue implementing rate cuts.
MIXED MORTGAGE RATES
As the Friday’s job report looms, mortgage rates remain elevated with fluctuations observed across different loan types. The recent patterns revealed a mixed movement, where rates for 30-year fixed and adjustable-rate mortgages saw an increase, while 15-year fixed and jumbo loan rates experienced a decline compared to the previous week, according to Bankrate data. These shifts are influenced by various factors such as economic changes, new data insights, and the risk tolerance of lenders, with the Federal Reserve’s recent interest rate cut and potential future changes playing a significant role. Market response to the Fed’s actions, including the possibility of further cuts, is dictating the current trajectory of mortgage rates. The ongoing downward trend in rates, dropping below 6.5 percent as of mid-September, has been notably influenced by sluggish inflation and weakening job indicators.
POSSIBLE RECORD QUARTER
Although many expected Tesla to meet delivery estimates in its third-quarter production and delivery report, the company fell slightly short, with its stock value decreasing by over 3% drop. The report revealed that Tesla delivered a total of 462,890 vehicles and produced 469,796 units, just below analysts’ forecasts. Nevertheless, despite this, it is worth noting that analysts are still optimistic about Tesla’s growth, with some predicting a record-breaking quarter in China. In addition, despite facing increased competition from established automakers like BYD and Geely, along with new players such as Li Auto and Nio, many still consider that Tesla continues to dominate the electric vehicle market. In the U.S., and maintains its lead over traditional automakers like Ford and General Motors, who are ramping up their EV offerings. Moreover, while the company has faced scrutiny over controversial statements made by CEO Elon Musk, Tesla remains a frontrunner in sales volume and brand loyalty, and unvestors are eagerly awaiting Tesla’s third-quarter earnings report to assess profit margins and the impact of its marketing strategies, including the upcoming debut of the Cybertruck and robotaxi technology.
PRICE VOLATILITY
Oil prices are fluctuating due to recent events in the Middle East, particularly Iran’s ballistic missile attack on Israel in response to targeted killings in Lebanon. The escalating conflict has raised concerns among oil watchers about potential disruptions to crude supplies and the possibility of Israel targeting Iranian oil infrastructure in retaliation. Analysts warn that up to 4% of the world’s oil supply is now at risk, leading to increased uncertainty in the global oil market. The situation has prompted fears of oil prices surging beyond $100 per barrel as tensions persist and military actions escalate. Overall, the recent developments indicate a volatile and unpredictable phase in the oil market.
DEPARTURE FROM THE NORM
Bitcoin, has also been affected by the escalating tensions in the Middle East, which have created uncertainty in global markets. After the announcement that there were Iran’s missile strikes on Israel, Bitcoin experienced a 4.7% yesterday, which is largest decline in nearly a month. And although the cryptocurrency has experienced a slight recovery this morning, with its value trading just above the $61,000 mark, it is important to remark that the overall trend is a departure from its usual October surge. Let’s remember that historical data suggests that Bitcoin typically sees a 20% increase in October, however, the current geopolitical unrest is overshadowing these expectations.
