Morning Download 

Personal finance + economics + markets

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Good morning investors! A lot has been happening these days from strikes to controversial statements from government officials to changing job numbers.

Fun fact: Argentina has the highest deposit interest rate in the world standing at 113%. 💴 

Today we cover:

• The market recovers.

• Time for XRP to shine?

• What Fed does.

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📊 Economy and News 

The job market isn’t impressive

The private sector added just 89,000 jobs last month, lower than the expected figure of 153,000. It’s the slowest pace of job growth reported by ADP since January 2021.

Large businesses contributed largely to the decline, losing 83,000 jobs.

Is it time to worry? Not really. The labor market is cooling as fewer people are getting hired but the number of openings has increased. So, how can we have fewer jobs and more openings? Some blame strikes and some the unpredictable scenario due to possible government shutdowns.

What else? Annual pay increases for people who remained at their jobs were 5.9%, the slowest gains since October 2021; and were 9.5% for “job changers.”

This report, however, doesn't always correlate with the official federal jobs report — due out today. Economists are expecting a net gain of 170,000 jobs.

Global hits:

• India expects ‘organized chaos’ if oil crosses $100 per barrel, which some believe it may.

• Jobs mentioning ‘AI’ have doubled in the last two years.

• Asian markets are high after Treasury yields pull back.

• Scandinavian airline SAS falls 95%.

📈 Stocks

S&P 500 4,263.75 (0.81%)
DJIA 33,129.55 (0.39%)
NASDAQ 14,776.25 (1.45%)
VIX 18.58 (-6.07%)
* Prices as of Oct 5th, 12:20 AM UTC

Dow snaps 3-day losing streak as Treasury yields ease

Dow broke a three-day losing streak Wednesday as Treasury yields pulled back following weaker-than-expected jobs data.

Consumer discretionary was the most impressive sector yesterday rising about 2%. Here are the biggest movers from yesterday:

Futures, however, slipped on Wednesday night as investors are waiting to look at job numbers.

➡️ Also, strikes forced Ford and GM to lay off almost 900 more workers. Moreover, GM has secured a $6 billion credit line due to the United Auto Workers (UAW) strike costing the company $200 million so far.

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🔐 Crypto

Bitcoin $27,681.40 (0.38%)
Ethereum $1,643.49 (0.22%)
Total market cap $1.09 (0.55%)
* Prices as of Oct 5th, 12:20 AM UTC

Sam Bankman-Fried: Trial of 'Crypto King' begins

Formerly called the "King of Crypto", the 31-year-old crypto ’scammer’, who once ran one of the world's biggest cryptocurrency exchanges, is accused of stealing billions from customers and investors. He, however, has denied these claims.

The Department of Justice claims that Mr Bankman-Fried used customer funds to live an extravagant life, buying houses and partying while also donating to political parties.

The courtroom battle is expected to last about six weeks and may involve some high profile names.

This analyst expects Ripple to hit $27

He does, but we don’t… not anytime soon.

Crypto analyst Egrag Crypto is very bullish on XRP. Here’s what he posted on his X account:

"I’m firmly on board with the exciting $27 journey, but we must also be prepared for the unexpected, which might just put #XRP’s legendary nickname, “The Rise of The Phoenix,” to the test!” the analyst said.

XRP has been in the news due to legal battles. The trial date in the Ripple v. SEC case is scheduled for April 24, 2024.

💵 Personal Finance

What does the Fed do?

The Federal Reserve's mandate is to "promote effectively the goals of maximum employment, stable prices, and moderate long-term interest rates."

This is known as the "dual mandate."

• Maximum employment means that the economy is running at its full potential, with everyone who wants to work able to find a job.

• Stable prices means that inflation is low and stable, so that people's purchasing power is not eroded over time.

• Moderate long-term interest rates means that interest rates are not too high or too low, so that businesses can borrow money to invest and grow, and consumers can afford to buy homes and cars.

The Federal Reserve uses a variety of tools to achieve its mandate, including:

• Setting the federal funds rate, which is the interest rate that banks charge each other for overnight loans.

• Purchasing or selling government bonds, which can affect the amount of money in circulation.

• Changing reserve requirements, which are the amount of money that banks must keep on deposit at the Federal Reserve.

How does it impact the stock market?

Fed manages interest rates, which impacts the market.

Higher rates result in less borrowing, which slows consumer spending and negatively impacts the growth of companies.

Similarly, lower rates encourage borrowing and allow consumers to spend more, thus helping companies. In addition, higher rates make other investments, such as savings accounts, more attractive, which often forces investors to leave the stock market and look at alternatives.

On the plus side, the Fed typically signals its intentions ahead of time, and comments from Fed executives can impact the market, as we have seen in 2023.

Watch this video for more:

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👩🏽‍⚖️ Legal Stuff
Nothing in this newsletter is financial advice. Always do your own research and think for yourself.