5 things to know before the stock market opens Friday, October 7

Traders work on the floor of the New York Stock Exchange (NYSE) in New York on September 26, 2022.

Brendan McDermid | Reuters

Here is the key news investors need to start their trading day:

1. Waiting for the order number

After two gangbuster days at the start of the week, the shares fell for two days. However, despite the 2-2 record, stocks are on track to end their best week since late June. Friday’s job report could have a lot to say about that, though. Economists expect nonfarm payrolls, to be released at 8:30 a.m. ET by the Bureau of Labor Statistics, rose 275,000 in September. If the number goes higher, some market observers fear it will embolden the Federal Reserve to become even more aggressive in its bid to cool the economy while inflation soars. “Bad news is good news, good news is bad news,” said Vincent Reinhart, chief economist at Dreyfus-Mellon. “If they get bad economic news, it means the Fed will tighten less.” Read live market updates here.

2. Pressure is on Musk

Elon Musk has until October 28 to finalize a purchase agreement Twitter, a judge in Delaware ruled on Thursday. If there is no agreement by then, the case will go to court in November. The competition between the social network and the billionaire boss of Tesla and SpaceX was supposed to start on October 17th. Twitter is suing him for trying to back out of his deal to buy the company, but Musk said earlier this week he would back down and close the deal at the original price of $54.20 per share. The judge granted Musk’s request for a stay, which would give him more time to finalize the deal. But Twitter is skeptical about the billionaire’s motives. The company declined to postpone the trial date, saying its request was “an invitation to further mischief and delay.”

3. The latest from Credit Suisse

The logo of Swiss bank Credit Suisse is seen at a branch in Zurich, Switzerland, 3 November 2021.

Arnd Wlegmann | Reuters

Credit Suisse tries to defend itself. The struggling Swiss bank said it intends to buy back more than $3 billion worth of debt if its share price falls and is betting against its debt rising. It also plans to sell the famous Savoy Hotel in Zurich’s financial district, sparking further alarms that the bank is trying to secure liquidity. Credit Suisse is grappling with the aftermath of several scandals, most notably the one stemming from its $5 billion stake in hedge fund Archegos Capital Management, which collapsed in March 2021. Earlier this year, federal prosecutors in the US charged Archegos owner Bill Hwang and one of his top lieutenants with securities fraud, alleging they manipulated markets. Several banks took a hit when Archegos went under, but Credit Suisse suffered the most pain.

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4. Biden’s pot pardoned

An employee holds a jar of marijuana for sale after the state became legal to sell recreational marijuana to customers over the age of 21 in Ann Arbor, Michigan. Illinois will begin legal marijuana sales on January 1, 2020.

Matthew Hatcher | Reuters

President Joe Biden stunned the country Thursday when he announced he would pardon thousands of people for marijuana crimes. He also ordered members of his cabinet to review how pot is classified under federal law. Right now it’s considered more serious than fentanyl at the federal level and classified on the same level as heroin, Biden noted, “It doesn’t make sense.” He also encouraged governors to follow his example as states increasingly legalize marijuana. “Just as no one should be in a federal prison just for possession of marijuana, no one should be in a local jail or state prison for that reason,” the president said.

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Continue reading: Cannabis stocks soar after Biden’s announcement

5. Honors in the Shadow of War

Belarusian human rights activist Ales Bialiatski speaks after he and the Belarusian human rights organization Vyasna were awarded the 2020 Right Livelihood Award in Stockholm December 3, 2020.

Anders Wiklund | AFP | Getty Images

This year’s Nobel Peace Prize will be shared among activists in Russia, Ukraine and Belarus as Russia’s unwarranted, month-long invasion of Ukraine stalls. One of the recipients, Ales Bialiatski, is a human rights and democracy activist widely considered a political prisoner. He is imprisoned in Belarus, whose government gave Russian leader Vladimir Putin space for his attack on Ukraine earlier this year. The other winners are the Ukrainian rights group Center for Civil Liberties and Memorial, a Russian organization founded in 1987 to honor victims of political oppression. Read live updates on the Ukraine war here.

– CNBC’s Samantha Subin, Jeff Cox, Jonathan Vanian, Elliot Smith, Christina Wilkie and Jenni Reid contributed to this report.

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