1. Canada Loses 68,000 Jobs
Statistics Canada reported that Canada lost 68,000 jobs in September, and the unemployment rate now stands at 6.5%.
This was obviously much worse than economists were projecting. Expectations were for a little over 6,000 jobs to be created. Instead, we got a loss of 68,000.
The Canadian economy is going to go through a rough period in the near term because of what’s happening with one of its biggest trading partners: the U.S. The trade deal noise is going to impact sentiment and everything around it.
Also, second month in a row of job losses.
2. OpenAI’s Revenue Disappoints: Is Anthropic’s IPO Next?
Yesterday, we learned that OpenAI’s revenue isn’t as great as everyone thought. That caused a bunch of AI stocks to drop. Interestingly, the Anthropic IPO is up next. Let’s see what happens. Could Anthropic delay its IPO?
Keep in mind, we’re getting into earnings season soon. Watch how highly leveraged companies react and pay close attention to guidance.
Know what you own, because your stock-specific risk goes up during earnings season.
3. Yields Take a Breather — But the Trend Is Still Up
Despite two days of slight declines, the trend in yields continues to point upward.
Yields are still very high. And it’s not just U.S. yields going up; we’re seeing yields rise everywhere.
With so much debt in the system, it’s not out of this world to think that someone out there is too leveraged and could get hurt in the process.
Also, don’t forget about the massive derivatives market sitting in the background. It can create problems, too.
4. Tanker Attacks Spread Beyond the Strait of Hormuz
Tanker attacks are ramping up in the Middle East, and this time, it’s not just the narrow passage of the Strait of Hormuz. Yesterday, another tanker was hit a little farther out.
Once again, the oil market is moving on headlines.
Looking at the charts, WTI found a lot of support at its 50-day moving average, while Brent continues to trend higher, trading at $104 at the time of writing.
We’re heading into the weekend, and we know all sorts of things can happen over those two days. If there’s any escalation, we’ll see all of it in the oil price.
5. Gold Bounces, but Silver Is Fighting to Reclaim $60
Gold is bouncing higher as yields have cooled off a little. But let’s see if the move holds. Once again, $4,100 is a big level to watch.
Silver broke below $60 yesterday and is testing that level again. If it can’t close above $60, we could see further downside into next week.
Bitcoin tested its 50-day moving average and bounced. That level was also close to the breakout level. Let’s see if the bounce holds. A break below $80,000 could bring in more sellers.
The Canadian dollar is down against the U.S. dollar today. Obviously, the jobs report is weighing on it.
Lastly, all sorts of headlines are emerging about how consumers may not be doing too well. Who would have thought?