3 hrs ago
US Stock Futures Mixed Ahead of Jobs Report; Lululemon Tumbles
US stock markets were moving only a little before an important jobs report.
The report could show whether the American labor market is getting stronger or weaker.
Investors use this information to guess what the Federal Reserve might do with interest rates.
Economists expected about 53,000 to 55,000 new jobs in August.
They also expected unemployment to rise to 4.1%.
A weak report could make lower interest rates seem more likely.
A strong report could make the Fed less likely to lower rates soon.
Lululemon shares fell sharply because the company lowered its expectations for future sales and profits.
Dow futures fell 0.1%, while S&P 500 futures rose 0.1% and Nasdaq-100 futures gained 0.5%.
Investors awaited the August nonfarm payrolls report for clues about the labor market and Federal Reserve rate policy.
Economists expected about 53,000 to 55,000 new jobs and a 4.1% unemployment rate in August.
Federal Reserve Governor Christopher Waller indicated support for keeping rates at 3.5%-3.75% at the September 15-16 meeting.
Lululemon shares dropped about 20% after the company cut its full-year guidance and issued a weaker-than-expected outlook.
- Who
- US investors, economists, the Federal Reserve, and Lululemon Athletica.
- What
- Stock futures were mixed as investors awaited the August jobs report, while Lululemon shares fell after a weak outlook and reduced guidance.
- Where
- US financial markets; the Federal Reserve meeting referenced was scheduled for September 15-16.
- When
- Friday, September 4; the jobs report was due at 8:30 a.m. ET.
- Why
- The jobs data could influence expectations for the Federal Reserve’s next interest-rate decision, while Lululemon’s outlook disappointed investors.
Case for Lower Rates
Case for Holding Rates
Interpretation of the jobs report
Case for Lower Rates
A significantly weaker-than-expected jobs report could strengthen the case for lower interest rates.
Case for Holding Rates
A stronger-than-expected report could reduce the urgency for the Federal Reserve to ease policy.
Federal Reserve policy outlook
Case for Lower Rates
Slowing labor-market growth could increase expectations that the Federal Reserve will lower rates.
Case for Holding Rates
Federal Reserve Governor Christopher Waller indicated support for keeping the benchmark rate at 3.5%-3.75% at the September 15-16 meeting.
Key facts
- Dow futures
- Down 46 points, or 0.1%.
- S&P 500 futures
- Up 0.1%.
- Nasdaq-100 futures
- Up 0.5%.
- Expected August jobs
- Economists surveyed by Dow Jones expected roughly 53,000 to 55,000 jobs to be added.
- Expected unemployment rate
- 4.1%.
- Federal funds rate range
- 3.5%-3.75%, which Christopher Waller indicated he favored maintaining at the September meeting.
- Lululemon third-quarter outlook
- Earnings of 93-98 cents per share and revenue of $2.29 billion-$2.32 billion.
Sources
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