Stock futures are mixed ahead of fresh labor market data due this morning; the August jobs report will factor into the Fed’s decision later this month on interest rates; auto safety regulators said they’re looking into Tesla’s cybercab after a launch event yesterday; Lululemon shares are plunging after the retailer lowered its outlook; and Adobe named a new CEO. Here’s what you need to know today.
Major Indexes Are on Track to Post Weekly Gains
Stock futures are mixed and little changed as investors look forward to the government’s monthly jobs update (more on that below). Futures tied to the Dow Jones Industrial Average ticked 0.1% lower, while S&P 500 futures edged 0.1% higher. Nasdaq futures rose 0.5% as many memory and AI-related stocks climbed. All three of the major indexes gained yesterday for the second straight session, leaving them on track to post weekly gains, after Federal Reserve Governor Christopher Waller said he was prepared to support holding interest rates steady. The yield on the 10-year Treasury note was little changed recently at 4.76%. WTI oil futures ticked 0.7% lower to $90.70 per barrel, while gold futures fell slightly to $4,515 an ounce. The price of bitcoin last traded near $81,200, after the cryptocurrency topped $81,700 overnight.
Today’s Jobs Report Could Influence Fed’s Stance
The Bureau of Labor Statistics is scheduled to post its August jobs report at 8:30 a.m. ET, the outcome of which could influence the Federal Reserve’s decision on interest rates later this month. Investopedia’s Diccon Hyatt wrote the report is expected to show U.S. employers added 53,000 jobs last month, after the economy shed 23,000 jobs in July. Economists also estimate that the unemployment rate held steady at 4.1%, relatively low by historic standards. A report today that shows the labor market is stable would allow the Fed, which has a dual mandate to promote maximum employment and keep prices under control, to focus on inflation, which remains well above the central bank’s target. The monthly consumer price index, due next Friday, will also be critical for the Fed as it decides whether to raise its key interest rate.
Auto Safety Agency Looks Into Tesla’s Cybercab Safety Standards
The U.S. National Highway Traffic Safety Administration said it has opened a probe into Tesla’s cybercab “to examine the process and technical data on which Tesla relied when certifying the Cybercab and related issues.” Tesla yesterday hosted a launch event for its cybercab in Austin, Texas, where it has deployed driverless rides in a limited service area. Tesla has said it plans to gradually expand the service to more cities. Shares of Tesla were 3% lower in premarket trading, after adding nearly 6% in yesterday’s session ahead of the event.
Lululemon Stock Slumps on Lowered Outlook
Shares of Lululemon (LULU) are plunging after the athletic apparel retailer trimmed its outlook. The company said it now sees full-year revenue of $10.35 billion to $10.5 billion, down from a previous forecast of $11 billion to $11.15 billion. Its second-quarter sales at $2.42 billion fell slightly short of analysts’ estimates. Its earnings per share of $2.92 beat expectations, thanks in part to a $0.86 benefit from tariff refunds. Interim CEO Meghan Frank said the company has continued to grapple with “negative commentary” on social media and weak responses to new product launches, among other challenges. New CEO and former Nike (NKE) executive Heidi O’Neill is set to take the helm of the retailer next week. Lululemon shares were down 20% ahead of the opening bell, on pace to hit their lowest level since 2018.
Adobe Finally Names New CEO
After a yearslong slump for Adobe’s stock, will a new CEO be able to drive a comeback? The creative software giant late yesterday named Anil Chakravarthy its new CEO, ending months of speculation about who would succeed Shantanu Narayen after his plan to step down was announced back in March. Chakravarthy, who currently leads the company’s customer experience unit, is set to take over the role from Narayen starting in December. Adobe’s (ADBE) stock, which was down 4% in recent premarket trading, has lost roughly a fifth of its value this year amid worries about AI disruption and uncertainty about its leadership transition. Adobe is due to report its latest quarterly results next week.
Read the original article on Investopedia
