Here are the key updates for investors as they prepare for the trading day:
The focus is primarily on the nonfarm payrolls data set to be released at 8:30 a.m. ET. This highly anticipated jobs report will serve as a barometer for the current state of the labor market. Economists surveyed by Dow Jones expect the report to indicate the addition of 75,000 jobs in August, a slight improvement over July’s figures. However, the unemployment rate is projected to rise from 4.2% to 4.3%. Recent labor market indicators have painted a mixed picture; for instance, the ADP reported a significant slowdown in private payroll growth last month, and the JOLTS report reflected one of the lowest job openings readings since 2020.
In corporate news, Tesla is looking to revise its executive compensation structure for CEO Elon Musk. The company’s board is proposing a compensation plan contingent on achieving specific milestones over the next decade. If successful, Musk could potentially earn nearly $1 trillion, based on the current share count. Tesla Chairwoman Robyn Denholm emphasized that this plan is meant to ensure Musk remains focused on the company’s success, particularly as he juggles responsibilities across multiple businesses.
Meanwhile, the Senate witnessed a busy day with crucial nomination hearings. Stephen Miran, President Donald Trump’s nominee for a Federal Reserve Board position, testified before the Senate Banking Committee. Miran indicated that he would take an unpaid leave of absence from his current role as chair of the Council of Economic Advisors if confirmed. In another notable hearing, Health and Human Services Secretary Robert F. Kennedy Jr. faced scrutiny from senators regarding his controversial views on immunization policies.
On the tech front, Broadcom’s strong earnings report highlights its success in the burgeoning artificial intelligence sector. The company reported a remarkable 63% increase in AI-related revenue for the third quarter and anticipates further growth. Moreover, Broadcom surpassed Wall Street’s expectations and revealed that a mystery customer had made a colossal $10 billion purchase of AI chips. The stock has seen a significant uptrend, nearly doubling in value over the past year, and shares rose by more than 10% in premarket trading.
Lastly, Starbucks is set to embark on a major renovation project affecting around 1,000 of its stores by the end of next year. The coffee chain aims to revamp its cafes, making them feel more like a “third place” for customers, with plans to enhance seating and create a cozier atmosphere. Each renovation is expected to cost approximately $150,000, but there will be no temporary closures during the process.
In other news, notable executives from Silicon Valley, including Apple’s Tim Cook and Meta’s Mark Zuckerberg, gathered at the White House for a special event. Elon Musk, who has been a vocal supporter of Trump, did not attend but sent a representative in his place.
