U.S. Markets closed
  • S&P 500

    3,585.62
    -54.85 (-1.51%)
     
  • Dow 30

    28,725.51
    -500.10 (-1.71%)
     
  • Nasdaq

    10,575.62
    -161.89 (-1.51%)
     
  • Russell 2000

    1,664.72
    -10.21 (-0.61%)
     
  • Crude Oil

    79.74
    -1.49 (-1.83%)
     
  • Gold

    1,668.30
    -0.30 (-0.02%)
     
  • Silver

    19.01
    +0.30 (+1.62%)
     
  • EUR/USD

    0.9801
    -0.0018 (-0.1862%)
     
  • 10-Yr Bond

    3.8040
    +0.0570 (+1.52%)
     
  • Vix

    31.62
    -0.22 (-0.69%)
     
  • GBP/USD

    1.1166
    +0.0043 (+0.3841%)
     
  • USD/JPY

    144.7200
    +0.2770 (+0.1918%)
     
  • BTC-USD

    19,332.62
    -354.16 (-1.80%)
     
  • CMC Crypto 200

    443.49
    +0.06 (+0.01%)
     
  • FTSE 100

    6,893.81
    +12.22 (+0.18%)
     
  • Nikkei 225

    25,937.21
    -484.84 (-1.83%)
     

Markets Buoy into the Green Ahead of Jobs Report

·3 min read

Two of the main market indices ended their four-day losing streak today, on what appears to be a technical rally off a pretty sizable drop-off since last Friday’s hawkish speech from Fed Chair Jay Powell. The Dow gained +146 points, or +0.46%, while the S&P 500 closed up +0.30%. On the other side of the coin, the Nasdaq slipped another -0.26% while the small-cap Russell 2000 dropped -1.22% further. All indices finished well off session lows.

We saw another set of good economic numbers after today’s open this morning, from both PMI and ISM Manufacturing in the month of August. ISM matched the previous month’s 52.8%, a full point better than expected (and still notably above the 50-point line between expansion and contraction), while PMI ticked up to 51.5 from 51.3 expected and in the July print. Modest manufacturing growth, to be sure, but no hint of recessionary pressures here. Earlier, Q2 Productivity and Unit Labor Costs were still well outside the optimum range, but revised toward the positive.

A couple key earnings reports are out this afternoon, late into the fiscal Q2 cycle. Microchip major Broadcom AVGO outperformed expectations on both top and bottom lines, with earnings of $9.73 per share surpassing the Zacks consensus of $9.62 (and another orbit from the $6.96 per share reported in the year-ago quarter), on $8.46 billion in sales, which beat the $8.41 billion expected.  Robust demand across its cloud-service platforms, and solid demand continuing into Q4 were cited in the report.

Shares of Broadcom are up +2% on the news in today’s late session, as its Data Center, Broadband and Wireless segments all performed well. The company has not missed on earnings in at least five years, making it one of the most reliable chip makers in what has been a prolonged turbulent period for the industry, to say the least. Broadcom still has a ways to go to make up for its -10% drop over the past week.

Athleisure giant lululemon LULU also outpaced expectations on both earnings and sales in Q2, reporting $2.20 per share which made easy work of the Zacks consensus $1.86 per share, on strong same-store sales. Revenues of $1.87 billion sped past the $1.77 billion analysts were looking for, up +29% year over year, and forward guidance has been raised. For these reasons, LULU is up big — currently +9% — in late trading.

Tomorrow morning, we’ll get the non-farm payroll report from the U.S. Bureau of Labor Statistics (BLS), which is expected to come down sizably from the +528K reported a month ago, to around +318K expected for August. Unemployment is expected to stay pat at 3.5% — matching the lowest levels in 50 years, which is remarkable considering the economy is technically in a “recession.”

Questions or comments about this article and/or its author? Click here>>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Invesco QQQ (QQQ): ETF Research Reports
 
SPDR S&P 500 ETF (SPY): ETF Research Reports
 
SPDR Dow Jones Industrial Average ETF (DIA): ETF Research Reports
 
To read this article on Zacks.com click here.
 
Zacks Investment Research
 
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report