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Investing.com – Markets are focused on the upcoming release of November's U.S. nonfarm payrolls report, a highly anticipated data point that could shed more light on the state of the U.S. labor market and serve as a guide to future Federal Reserve policy Decisions. Apple (NASDAQ:) and its suppliers are reportedly aiming to shift a quarter of global iPhone production to India as the tech giant seeks to reduce its dependence on China at a time of strained relations between the US and Beijing.
November 1: Non-farm payrolls are imminent
The latest U.S. jobs report takes center stage on Friday, with investors hoping the data will provide clues about the Federal Reserve's upcoming monetary policy decisions.
Economists estimate there were 180,000 U.S. jobs in November, up slightly from 150,000 the previous month. , a key indicator of wage growth, rose 0.3% monthly compared to October, a slight acceleration from the previous figure of 0.2%. The world's largest economy is expected to grow 3.9%, in line with October levels.
The numbers cap a week of data releases that suggest an unprecedented series of interest rate hikes by the Fed may be leading to a slowdown in labor demand. Job vacancies reached their lowest level in more than two and a half years in October and fewer workers quit their jobs, while private employers filled fewer positions than expected last month.
The labor market slowdown has been at the heart of the Fed's efforts to raise borrowing costs to their highest level in more than two decades. In theory, a slowdown in labor demand could ease some of the upward pressure on wages and thereby help achieve the Fed's ultimate goal: defusing elevated inflation.
2. US futures fall lower
U.S. stock futures fell on Friday as investors remained cautious while awaiting the November nonfarm payrolls report.
As of 7:28 a.m. ET (12:28 GMT), the contract was down 0.1%, down 0.2% and down 0.3%.
Stocks on Wall Street rose in the previous session as traders digested a series of jobs data this week. The benchmark and 30 stocks rose 0.8% and 0.2%, respectively, breaking their three-day losing streak. Technology-heavy stocks rose 1.4%.
Despite Thursday's gains, both the S&P and Dow are on track for weekly declines. However, the Nasdaq's rise brought it back into positive territory for the week.
3. Apple pushes to make a quarter of its iPhones in India – WSJ
According to a Wall Street Journal report, Apple and its suppliers plan to build over 50 million iPhones in India in the next two to three years and have planned to build tens of millions more units thereafter.
Citing people close to the matter, the paper noted that if the plans go ahead, India would ultimately account for a quarter of global iPhone production and be able to gain further market share later in the decade.
China will remain the world's largest producer of Apple's ubiquitous device, the WSJ said. However, with US-Beijing relations strained, the tech giant has considered moving some of its supply chain outside of China.
California-based Apple and its suppliers generally believe an initial foray into India has gone well despite challenges posed by the country's local infrastructure and restrictive labor regulations, the people told the WSJ.
4. RBI leaves interest rates at 6.5%
The Reserve Bank of India left interest rates unchanged on Friday as expected, saying restrictive policies helped bring down inflation last year.
At its last meeting of 2023, the RBI left its key interest rate at 6.5% after signaling a pause in its monetary tightening cycle earlier this year.
However, Governor Shaktikanta Das warned that rising food prices could still surprise on the upside in the coming months, adding that the central bank continues to monitor for possible hikes.
While inflation eased in India for most of 2023, a delayed monsoon season triggered food shortages that led to a rise in prices for some grains and vegetables.
5. Oil rises with focus on US jobs data
Oil prices rose from a near six-month low on Friday as markets awaited further clues on the U.S. economy from nonfarm payrolls data.
While signs of a slowdown in the labor market could dampen the prospect of higher interest rates, they could also point to a weaker American economy that could dampen oil demand in the world's biggest crude consumer.
As of 4:50 a.m. ET, February oil expirations had gained 2.3% to $75.73 a barrel, while they had climbed 2.2% to $71.15 a barrel.
Prices received some support after Saudi Arabia and Russia urged fellow members of the Organization of the Petroleum Exporting Countries and their allies – a group called OPEC+ – to abide by an agreement on output cuts reached last week. Markets were initially disappointed by the voluntary nature of the reductions.
But both contracts remain on track to end lower for a seventh straight week as markets worry about high U.S. inventories and weak oil import numbers from China.
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