Jobs report, unemployment rate, consumer credit: 3 things to watch

Investing.com — Stocks were flat to down heading into the closing bell on Thursday as most investors were preoccupied with what Friday’s jobs report for September might say.

It’s been a mixed week for labor market data, starting out with higher than expected job openings as of the end of August, then lower than expected private payroll numbers from ADP. Thursday’s unemployment claims ticked up from the prior week but were slightly below expectations.

The Federal Reserve has been closely watching the job data to see whether tight conditions are loosening, which could mean less pressure on wages and less pressure on inflation.

Friday’s report is likely to be a key factor in the Fed’s next interest rate decision. Officials held the rate steady when they met in September, hoping to see how their policy actions to date have worked to cool inflation from last year’s multiyear highs. Prices have come down but some pockets of the market are still behind. Housing market dynamics are tricky, with high prices, low inventory, and soaring mortgage rates keeping would-be buyers at bay.

Futures traders largely expect the Fed will hold tight again in November and not raise rates, though the probability of a rate hike in December is slightly higher based on futures market expectations.

Here are three things that could affect markets tomorrow:

1. Jobs report

The September report is due out at 8:30 ET (12:30 GMT). Analysts expect a reading of 170,000, down slightly from the prior month.

2. Unemployment rate

The comes out at the same time. Analysts expect it to tick lower in September from the prior month, to 3.7% from 3.8%.

3. Consumer credit

The reading for August comes out at 15:00 ET. Analysts expect a reading of $11.7 billion, up from $10.4 billion the prior month.