(This is a wrap-up of the key money moving discussions on CNBC’s “Worldwide Exchange” exclusive for PRO subscribers. Worldwide Exchange airs at 5 a.m. ET each day.) Traders are keeping an eye on financials as the sector’s backdrop improves. Investors are also awaiting key revisions to U.S. labor data due out later in the day. ‘Worldwide Exchange’ Pick: Financials Paul Christopher of Wells Fargo sees opportunities in financials because of the recent moves in bond yields. “Since the end of July, you have seen the 2-year [Treasury note yield], a proxy for short-term rates, fall by almost half a point, while the 10-year has fallen by only about a quarter of a point,” Christopher said. “The banks pay their depositors based on those short-term rates which have fallen by more than the rates on the longer end. … That means an improvement to net interest margin for banks and a most favorable view in our estimation for financials going forward.” Financials have underperformed the broader market year to date and since the April low. On Monday, Wolfe Research named financials its top sector pick, partly on expectations the yield curve will steepen. Market implications of BLS jobs revision The annual jobs number revision from the Bureau of Labor Statistics will be released at 10 a.m. ET. Most estimates are for a downward revision of the data for the period April 2024 to March, with Wells Fargo expecting a decline of 475,000 and Bank of America seeing 1 million fewer jobs at the top end. The question now, will this be a market mover after the softer than expected 22,000 reported in the August Jobs report on Friday? Seema Shah of Principal Asset Management sees minimal market impact unless there is a big downside surprise. ‘It doesn’t change the picture of where we are now, it may well add to the Fed’s picture of more underlying weakness in the labor market weakness which would reinforce they need to start cutting rates next week, but that’s pretty much baked in” said Shah. “I don’t think it’s going to change the narrative too much unless it’s a number over 1.2 million revision of jobs, so it’s unlikely to move markets.” Wells Fargo’s Christopher added: “Could it be a market moving, yes if it is closer to the very top end or close to the very bottom end. But it’s still going to be a negative number and I think that is still going to be supportive of the yield curve steepening and a general decline in rates.” Apple iPhone 17 event Apple is expected to unveil the iPhone 17 along with updates to the Apple Watch and Airpods. It’s a key event for Apple, which generates more than 51% of revenue from iPhone sales. Apple shares have had mixed performance on the days of product releases. In 2024, after the launch of the iPhone 16, the stock closed unchanged.
