5 things to know before the market opens on Friday October 8

Here are the most important news, trends and analysis investors need to start their trading day:

US equity futures fell on Friday after the government employment report was much weaker than expected in September. The 10-year Treasury yield rose on employment data, trading around 1.6%, a level not seen since early June. Market focus on Thursday shifted from rising bond yields to the debt ceiling deal out of Washington. The Dow Jones Industrial Average, S&P 500 and Nasdaq all rose around 1%, posting three consecutive winning days and putting all three benchmarks on track for a full first week of trading in October. The strong gain last Friday was not enough to reverse the trend of the worst week for the S&P 500 and Nasdaq until February and for the Dow until early September.

Friday’s jobs report, which will be critical as the Federal Reserve decides whether or not to slow its massive Covid-era bond buying program, showed that only 194,000 non-farm jobs were created in September. The consensus estimate had called for 500,000 additions. On Thursday, the first jobless claims for last week were better than expected. ADP’s look at private sector employment trends, released on Wednesday, showed a steady pace of hiring last month despite concerns over the high number of Covid cases.

The Senate on Thursday evening approved a compromise bill that allows for a short-term increase of $ 480 billion in the national debt ceiling. This sum, according to Treasury Department estimates, would last until December 3. The legislation is now transferred to the House, where Speaker Nancy Pelosi, D-Calif., Is expected to consider it in the coming days. While avoiding the Oct. 18 deadline for an unprecedented U.S. default, the measure gives Democrats nearly two months to work out how to raise the debt limit through the reconciliation process without a Republican vote.

US oil prices, as measured by West Texas Intermediate crude, moved closer to $ 80 a barrel on Friday morning. The last time WTI reached such a high level was on November 3, 2014. At Thursday’s settlement price, US oil futures were up about 3.2% this week due to doubts that the US government would release crude from its short-term strategic reserves.

Natural gas prices, although falling on Friday, have repeatedly hit record highs as Europe and Asia compete for available liquefied natural gas. Europe buys fearing that it will not have enough LNG in stock for the winter. Asia has bought to meet insatiable demand.

Tesla is officially moving its headquarters from Palo Alto, Calif., To Austin, Texas, CEO Elon Musk announced at the company’s 2021 annual meeting of shareholders. In April 2020, during a profit call of Tesla, Musk lashed out at California government officials for calling their temporary Covid-related health orders “fascist” in a jubilant rant. In 2020, Musk personally moved to the Austin area from Los Angeles where he had lived for two decades. However, Tesla plans to increase production at its California plant regardless of the headquarters move.

– Reuters contributed to this report. Follow all market actions like a pro on CNBC Pro. Get the latest pandemic news with CNBC’s coronavirus coverage.