Dado Ruvic | Reuters
This is CNBC's Morning Squawk newsletter. Subscribe here to receive future editions in your inbox. Here are five key things investors need to know to start the trading day:
1. Hero to zero
2. Prediction market
A 'Now Hiring' sign is posted outside of a business on Oct. 3, 2025 in Miami, Florida. Joe Raedle | Getty Images
The belated September jobs report was finally released yesterday, and the headline number was much hotter than economists expected with an increase of 119,000 jobs. On the other hand, the unemployment rate ticked up to 4.4%, its highest level since 2021. The chance of a rate cut at the Federal Reserve's next meeting remained low after the report, according to the CME FedWatch Tool. But the odds flipped this morning after New York Fed President John Williams said he sees "room for a further adjustment" in interest rates, reviving hopes of a December cut.
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3. Better than yours
Merchandise on display in a Gap store on November 21, 2024 in Miami Beach, Florida. Joe Raedle | Getty Images
Gap 's "Milkshake" ad brought all the shoppers to the store. The retailer's viral "Better in Denim" campaign with girl group Katseye helped drive comparable sales up 5% in its third quarter, beating analyst expectations. The Old Navy and Banana Republic parent also surpassed Wall Street's estimates on both the top and bottom lines, sending shares rising 4.5% in overnight trading. Athleta was the notable outlier, with the athleisure brand's sales falling 11%. Gap's report comes at the end of a busy week for retail earnings. As CNBC's Melissa Repko reports, one key theme of this quarter's results has been that value-oriented retailers are winning favor with shoppers across income brackets.
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