This week ahead || Oct 2nd - Oct 6th 2023
Here's some news for the upcoming week.
A jobs report and auto strikes usher in a new quarter: What to know this week
In the coming week, the focus will be on the September jobs report, providing insights into the labor market's performance. It is expected to show 168,000 nonfarm payroll jobs were added, with unemployment dropping to 3.7%. Additionally, updates on activity in the manufacturing and services sectors, as well as job openings, will be key economic data. In the previous quarter, major indices fell: Nasdaq Composite (^IXIC) by 4.1%, S&P 500 (^GSPC) by 3.6%, and Dow Jones Industrial Average (^DJI) by 2.8%. The auto sector remains in the spotlight due to the United Auto Workers (UAW) strike and expected quarterly deliveries from companies like Tesla. Higher oil prices and rising treasury yields have recently weighed on stocks, prompting varied opinions among strategists on the market's outlook for the rest of the year.
A last-second deal averts a government shutdown with 45 minutes to spare
Congress has averted a government shutdown with an overwhelmingly bipartisan vote of 88-9 in the Senate, preventing an economic disruption. However, this is a short-term solution, with a new shutdown deadline of November 17 looming. Furthermore, a fiscal deadline on January 1, 2024, threatens discretionary government spending with a 1% cut if no overall budget deal is in place. While this move brings temporary relief, business leaders and economists emphasize the importance of passing a long-term spending measure. The ongoing fiscal battles are expected to resurface near Thanksgiving when the threat of a government shutdown returns.
International Longshore and Warehouse US dockworkers union files for bankruptcy
The International Longshore and Warehouse Union (ILWU) representing U.S. dockworkers has filed for Chapter 11 bankruptcy protection to address pending litigation with the Oregon affiliate of the International Container Terminal Services Inc (ICTSI). The ILWU has listed its assets and liabilities in the range of $1 million to $10 million. The litigation involves claims that the union illegally slowed down operations at the Port of Portland over several years. The ILWU intends to use the Chapter 11 process to resolve the matter and continue its work for members and the community. ICTSI has not yet commented on the situation.
Ackman's SPARC is seeking new deals with private companies
Pershing Square SPARC Holdings Ltd, an affiliate of billionaire investor Bill Ackman's Pershing Square Tontine Holdings Ltd, has received regulatory approval from U.S. regulators to distribute special purpose acquisition rights (SPARs) and plans to pursue business combinations with privately-held companies. SPARC is targeting companies that seek to raise a minimum of $1.5 billion in capital. In a recent interview, Ackman mentioned that he would consider a transaction with Elon Musk's X, formerly known as Twitter, but noted that it's unclear whether X is interested and further assessment of the deal's feasibility is needed.
