Market outlook tomorrow: Jobs report, Powell, Trump

Here are the most important things to know about Friday before you hit the door.

The government’s monthly update to the employment situation will dominate investor sentiment on Friday as Wall Street pores over the latest insights into the U.S. job market. Nonfarm payrolls are expected to have increased by 145,000 last month after rising by 130,000 in August, according to a Refinitiv survey of economists.

Though the jobs report is one of the market’s most-anticipated releases in any month, this Friday’s iteration will likely be of critical importance for investors given data from earlier this week that suggested slowdowns in both the manufacturing and services sectors. The U.S. unemployment rate held steady at 3.7% in August.

While some economists said that Wall Street’s angst over the week’s data appears overblown, others said it’s important to contextualize any single economic figure.

“Declining business sentiment remains a significant downside risk, and may have some impact on investment spending and hiring,” Principal Global Investors Chief Economist Bob Baur said in a note to clients.

Slowing economy fears have knocked stocks this week with the S&P 500 down 1.7%.

Friday marks the subpoena deadline for Secretary of State Mike Pompeo to produce documents to multiple House committees investigating President Donald Trump’s controversial call with Ukrainian President Volodymyr Zelensky.

The House leaders at first wrote Secretary Pompeo requesting the documents, but later issued a subpoena to compel him after he failed to deliver the materials by the September deadlines. The Democrat-led House warned the Secretary of State the refusal to comply with the subpoena would constitute evidence of obstruction of the House of Representatives’ impeachment inquiry into President Trump.

The impeachment inquiry has also weighed on stocks lately because traders fear that it could derail any hopes of a China trade deal before the election.

We’ll hear from Federal Reserve Chairman Jerome Powell on Friday afternoon, when he is scheduled to deliver opening remarks at one of central bank’s “Fed Listens” events. Though often routine, investors may tune into Powell’s afternoon address for any comments on the recent deluge of economic activity.

The sessions serve as a way for the Fed to check in with community and business leaders, who often discuss current trends in the labor market or how interest rates are affecting activity.

Major events (all times ET):

8:30 a.m. Employment report

8:30 a.m. International trade

10:15 a.m. Boston Federal Reserve President Eric Rosengren

10:25 a.m. Atlanta Fed President Raphael Bostic

1:00 p.m. Minneapolis Fed President Neel Kashkari

2:00 p.m. Fed Chair Jerome Powell

2:10 p.m. Fed Governor Lael Brainard

4:00 p.m. Fed Vice Chair Randal Quarles