Here are five things you must know for Friday, Oct. 5:
1. -- Stocks Mixed, Bond Yields Rise Ahead of Jobs Report
U.S. stock futures turned mixed on Friday, Oct. 5, while government bond yields around the world continued to edge higher as investors prepared for the U.S. jobs report for September.
Comments this week from Fed Chairman Jerome Powell, as well as U.S. economic data that confirmed both robust economic growth and a tight labor market, have forced investors to re-price both the "risk-free" rate of U.S. Treasury bonds and the trillions in assets that are linked to them in markets all over the world.
The moves have taken benchmark 10-year U.S. Treasury bond yields to 3.23% -- the highest in seven years -- and boosted the value of the dollar on global foreign exchange markets. The moves also sent stocks lower on Thursday, Oct. 4, their worst session since June 25.
Contracts tied to the Dow Jones Industrial Average on Friday rose 6 points, futures for the S&P 500 were down 1.25 points, and Nasdaq futures declined 11 points.
2. -- U.S. Expected to Have Added 183,000 Jobs in September
The nonfarm payrolls report for September is the highlight of the U.S. economic calendar for Friday.
Economists expect the U.S. to have added 183,000 jobs in September, down from 201,000 in August, and the unemployment rate to fall to 3.8% from 3.9%. Average hourly earnings are forecast to rise 0.3%, and the year-on-year rate is expected to fall to 2.8% from 2.9%.
The calendar also includes International Trade for August at 8:30 a.m.
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3. -- Elon Musk Taunts the SEC
A tweet from Elon Musk's official Twitter account appeared to insult the Securities and Exchange Commission just days after the erratic CEO of Tesla Inc. (TSLA) settled a case with the agency over his infamous "go-private" tweets.
The latest tweet reads:
Just want to that the Shortseller Enrichment Commission is doing incredible work. And the name change is so on point!— Elon Musk (@elonmusk) October 4, 2018
Shares of Tesla fell 2.5% in premarket trading on Thursday after tumbling 4.4% in Thursday's broad market selloff.
Tesla didn't respond to a request for confirmation that the tweet really came from Musk. As part of the settlement with the SEC, which was reached last weekend, Tesla is required to set up a system to oversee Musk's communications with investors.
- Tweet From Elon Musk's Account Calls SEC the 'Shortseller Enrichment Commission'
- Tesla Extends Slide as Musk Sounds Off on Twitter, Judge Reviews SEC Settlement
4. -- Lenovo Sinks on Chinese Spy Chips Story
Chinese laptop maker Lenovo Group Ltd. (LNVGY) sunk 15% in Hong Kong on Friday following a report from Bloomberg that said attempts were made by the Chinese military to insert spying chips on server motherboards ultimately used by many U.S. companies, such as Amazon.com Inc. (AMZN) and Apple Inc. (AAPL) .
Amazon and Apple each issued responses in which they refuted parts of Bloomberg's story.
According to Bloomberg, Chinese Army operatives used plants run by manufacturing subcontractors working for San Jose-based Super Micro Computer Inc. (SMCI) to insert miniscule chips onto server motherboards that could instruct the server's operating system to communicate with, and accept code from, a remote, anonymous computer.
Lenovo told CNBC that Super Micro wasn't a supplier to the company "in any capacity."
5. -- Costco Issues a 'Material Weakness' Warning
Costco Wholesale Corp. (COST) fell 2.4% in after-hours trading Thursday after the warehouse retailer reported fiscal fourth-earnings that matched analysts' estimates but warned it expects to report a "material weakness" in its internal controls.
Costco said the "weakness relates to general information technology controls in the areas of user access and program change-management over certain information technology systems that support the company's financial reporting processes."
Chief Financial Officer Richard Galanti told analysts there weren't any signs that such access was abused or that any financial misstatements were made, but "we should've fixed it." The company is doing so now, he added, the Seattle Times reported.
Costco said it had not identified any misstatements in its financial reporting. It added that it still plans to file its annual financial report with the Securities and Exchange Commission in a timely fashion.
The company said net sales, excluding membership fees, reached $43.4 billion in its fourth quarter, up from $41.4 billion a year earlier. E-commerce sales jumped 26.2% year over year.