IXIC: Nasdaq Composite Adds 0.4% to Set New Record High Despite No-Show Jobs Data

Investors pushed through shutdown fears and missing economic data to lift equities to new record highs.

🤑 Stocks Hit Records

• The Nasdaq Composite index IXIC climbed 0.4% Thursday to set a new all-time high despite the ongoing government shutdown, which will delay the nonfarm payrolls data. Originally scheduled for a Friday release, the jobs report will not be arriving.
• But that didn’t stop markets from pumping. The broad-based S&P 500 index added less than 0.1% and also logged a new record closing high. The Dow Jones Industrial Average was up 0.2% for the session.
• One key report already didn’t make it to broad daylight — the weekly jobless claims, set for Thursday release. Why isn’t the data blackout a concern for investors?

🔌 Economic Blackout

• Wednesday’s private-sector jobs data was concerning enough to cement expectations of a cut to interest rates. Private employers actually shed jobs in September, a total of 32,000 staffers, against the expected gain of 50,000.
• The pronounced pullback in last month’s private-sector hiring efforts contributed to a rising trend in unemployment. The number for August was also way under consensus at 22,000 and June was under the flatline.
• Against that backdrop, maybe some investors don’t even want to look at the nonfarm payrolls for September and would prefer to go straight to the cut. This said, futures on Friday were pricing a nearly 100% probability of another trim to borrowing costs at the October 28-29 meeting.

📣 Earnings Kickoff

• Besides the economic swings and jitters, the upcoming earnings season is right around the corner. A flurry of third-quarter updates from corporate America will sweep markets next week.
• Jeans maker Levi Strauss LEVI is slated to report, together with Constellation Brands STZ and Delta Air Lines DAL.
• The big banks on Wall Street will land the week of October 13. JPMorgan JPM and Goldman Sachs GS are set to release financial results.