In premarket trading, stock futures are inching higher as investors brace for the release of a pivotal jobs report expected to showcase relatively slow job growth for August.
S&P 500 futures are up by 0.2% following a record high for the benchmark index in the previous session, while Nasdaq-100 futures have risen by 0.5%. The Nasdaq Composite climbed 1% during yesterday’s trading. Conversely, Dow Jones Industrial Average futures remained largely unchanged after posting a gain of 0.8% on Thursday. Bitcoin is also trending upward, surpassing $112,000, while yields on the 10-year Treasury note are decreasing. Gold futures are edging back above the $3,600 per ounce mark, although oil futures have seen a decline.
The upcoming jobs report, scheduled for release at 8:30 a.m. ET, is anticipated to reflect continued sluggish job growth, with projections indicating that employers likely added around 75,000 jobs in August—an improvement from July’s 73,000. Analysts surveyed by Dow Jones Newswires and The Wall Street Journal expect the unemployment rate to rise slightly to 4.3%, up from the previous month’s 4.2%. The unexpectedly weak July jobs report has raised speculation about potential interest rate cuts by the Federal Reserve at its upcoming meeting.
In corporate news, Tesla is seeking shareholder approval for a new compensation package for CEO Elon Musk, designed to enhance his voting power and align with aggressive performance targets. The proposed plan could allow Musk to gain up to 12% ownership in Tesla, contingent upon achieving specific milestones related to production and adjusted EBITDA. Shareholders will cast their votes on this proposal during the company’s meeting on November 6. Tesla’s interim filing emphasized the importance of retaining Musk to help the company reach its ambitious goals, leading to a 2% increase in Tesla shares during early trading.
Meanwhile, Broadcom has seen its shares rise approximately 10% in premarket action following a strong quarterly performance driven by heightened demand for AI chips. The company reported record sales, with adjusted earnings per share of $1.69 and revenue increasing 22% year-over-year to a historic $15.95 billion, surpassing analysts’ expectations. CEO Hock Tan expressed optimism about sustained growth in AI semiconductor revenue, projected to reach $6.2 billion in the current quarter. Additionally, Broadcom announced a new lucrative customer, speculated to be OpenAI, which is reportedly collaborating with the company on new chip designs.
In contrast, shares of Lululemon Athletica plummeted by 19% in premarket trading after the athletic wear retailer’s annual outlook fell short of market expectations. While Lululemon recorded a quarterly revenue increase of 7%, reaching $2.5 billion, this figure was slightly below analyst projections. An adjusted earnings per share of $3.10 exceeded the consensus estimate of $2.86. However, the company’s comparable store sales rose just 1%, falling short of anticipated growth. Additionally, Lululemon’s revised full-year revenue guidance of $10.85 billion to $11 billion did not meet the consensus forecast of $11.18 billion. The CFO cited industry challenges, particularly those related to tariffs, as factors necessitating the adjustment in the company’s financial outlook.
