S&P 500 futures ticked higher despite a weak August jobs report as traders bet the data would give the Federal Reserve the greenlight to cut rates later this month.
The August jobs report saw the U.S. economy add 22,000 jobs on the month, the Bureau of Labor Statistics reported Friday. That’s below the 75,000 that economists polled by Dow Jones had expected. The unemployment also rose to 4.3%, in line with expectations.
The report follows the release of weaker-than-expected ADP private payrolls data. Investors are hoping the reading will lend support to the Fed’s case to go ahead with an expected rate cut at its September policy meeting.
Market Snapshot
At 8:52 a.m. ET, Futures linked to the broad market index rose 0.3%. Nasdaq-100 futures gained 0.8%, while futures tied to the Dow Jones Industrial Average inched down 13 points, or 0.1%.
Pre-Market Movers
Lululemon Athletica — The athleisure company sank 20% after its full-year guidance missed estimates. Lululemon expects fiscal-year earnings of $12.77 to $12.97 per share, well below the $14.45 per share expected from analysts polled by LSEG. Full-year revenue guidance also fell short.
Tesla Motors — The electric vehicle maker rose about 2.5% after a proxy filing detailed a new, lofty payment plan for CEO Elon Musk. If Musk achieves the goals outlined, he’d be awarded more than 423 million additional Tesla shares — increasing his stake in the company even more.
Guidewire — The stock surged 17% after the software company for the property and casualty insurance industry reported fiscal fourth quarter earnings and revenue that topped estimates. Guidewire Software reported adjusted per-share earnings 84 cents, above the FactSet estimate of 63 cents per-share earnings. Revenue of $356.6 million exceeded the anticipated $337.8 million.
UiPath — Shares rallied nearly 6% after the automation platform company posted second quarter adjusted earnings of 15 cents per share on revenues of $362 million. Analysts polled by LSEG had expected per-share earnings of 8 cents per share on revenues of $347 million.
ServiceTitan — Shares soared more than 11% after the software platform for residential and commercial field service businesses reported second quarter revenue of $242.1 million, exceeding the $229.5 million expected by analysts polled by FactSet.
Samsara, Inc. — The stock rallied 13% after Samsara reported second quarter earnings and revenue that beat expectations. The dash cam and GPS company posted adjusted earnings of 12 cents per share, more than the FactSet consensus for 7 cents earnings per share. Revenue $391.5 million also topped the estimated $372.2 million.
BILL HOLDINGS INC — The billing and invoicing company jumped 9% after it posted fourth-quarter adjusted earnings of 53 cents per share on revenue of $383.3 million. That topped the expectation for 41 cents earnings per share on revenue of $376.3 million, according to FactSet.
Docusign — The software stock gained roughly 8% after DocuSign reported better-than-expected second-quarter results and issued a rosy third-quarter and full-year outlook. The company reported adjusted earnings per share of 92 cents on revenue of $801 million. Analysts polled by LSEG were looking for a profit of 84 cents per share and revenue of $780 million.
Copart — Shares fell 2% after the online car auctions company posted weaker than expected revenue of $1.13 billion, compared to the FactSet consensus estimate of $1.14 billion. On the other hand, earnings of 41 cents per share topped the 36 cents per-share earnings estimate.
Market News
Payrolls Rise 22,000 in August, Less Than Expected in Further Sign of Hiring Slowdown
Job creation sputtered in August, adding to recent signs of labor market weakening and likely keeping the Federal Reserve on track for a widely anticipated interest rate cut later this month.
Nonfarm payrolls increased by just 22,000 for the month, while the unemployment rate rose to 4.3%, according to a Bureau of Labor Statistics report Friday. Economists surveyed by Dow Jones had been looking for payrolls to rise by 75,000.
The report showed a marked slowdown from the July increase of 79,000, which was revised up by 6,000. Revisions also showed a net loss of 13,000 in June after the prior estimate was lowered by 27,000.
Tesla Rises After Board Proposes New $1T Pay Package for Musk
Tesla Motors has asked shareholders to approve a new performance-based pay package for CEO Elon Musk, potentially worth around $1 trillion, according to a Friday filing.
The 10-year plan ties Musk’s payout to ambitious targets, including scaling Tesla’s robotaxi business and boosting the company’s market value from about $1 trillion to $8.5 trillion. If fully awarded, the additional shares would raise Musk’s ownership stake in Tesla to at least 25%.
The proposal includes 12 tranches of stock awards to be granted if the EV maker hits certain milestones over the next decade. It would also grant Musk greater voting control over the company and aspiring robotics titan, a demand he has voiced since early 2024.
Broadcom Rallies 14% on New $10 Billion AI Deal and CEO's Pledge to Stay Longer
Broadcom stock price traded 14% higher on Friday during pre-market as the company focuses on AI tech and its CEO Hock Tan's assurance of leadership continuity and an optimistic revenue outlook for the coming year.
The Palo Alto, California-based company reported strong fiscal Q3 earnings, driven by a 63% increase in AI-related revenue, reaching $5.2 billion, and is projecting a significant acceleration in AI semiconductor revenue.
The company also said on Thursday that it has secured over $10 billion in AI infrastructure orders from a new customer.
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