Jobs report, Broadcom’s AI boon, Musk’s pay package and more in Morning Squawk

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Here are five key things investors need to know to start the trading day:

All eyes are on the nonfarm payrolls data due in this morning at 8:30 a.m. ET. The jobs report has historically been market-moving and will offer the latest pulse check on the state of the labor market.

Here’s what you should know before it’s out:

• Economists polled by Dow Jones are predicting the main report will show an addition of 75,000 jobs in August. That would mark a slight increase from July.
• The unemployment rate is expected to tick up to 4.3% from 4.2%.
• Labor market data released earlier this week has left economists underwhelmed. The ADP found that private payrolls saw a major growth slowdown last month, while the JOLTS report showed one of the lowest readings since 2020.
• Follow live market updates here.

Tesla‘s board is proposing another compensation plan for CEO Elon Musk.

The electric vehicle giant is asking shareholders to approve a plan that would give Musk more shares if Tesla hits certain milestones over the next 10 years, according to a financial filling published this morning. If Musk earns the maximum payout, the billionaire would rake in a sum of nearly $1 trillion based on the current share count, according to a CNBC analysis.

Speaking to CNBC’s Andrew Ross Sorkin, Tesla Chairwoman Robyn Denholm said that the plan was designed to keep Musk “motivated and focused on delivering for the company.” Musk notoriously wears many hats, also running X and xAI, SpaceX, The Boring Company and Neuralink, as well as dabbling in politics (more on that below).

Yesterday was a busy day on Capitol Hill, with hearings featuring Stephen Miran, the chair of the Council of Economic Advisors, and Robert F. Kennedy Jr., the Health and Human Services Secretary.

Miran appeared in front of the Senate Banking Committee as President Donald Trump’s nominee to replace Adriana Kugler as a Federal Reserve Governor. Miran said he wouldn’t fully resign from his current CEA role, instead saying he plans to take an unpaid leave of absence if confirmed by the Senate to join the central bank’s board.

Kennedy, meanwhile, was grilled by senators during a hearing over changes to immunization policy and federal health agencies. In his testimony, as CNBC’s Annika Kim Constantino reports, Kennedy doubled down on false claims around vaccinations.

Broadcom‘s earnings report reaffirmed that the chipmaker is riding the artificial intelligence wave.

The company’s AI-related revenue surged 63% in the third quarter and is expected to rise even higher in the current period. Broadcom also beat Wall Street’s quarterly expectations on both lines and touted a mystery customer that bought $10 billion worth of AI chips. (Yes, that’s billion with a “B.”)

Expectations have been high for the chipmaker. As CNBC’s Kif Leswing and Ari Levy point out, the stock has nearly doubled over the last year as investors increasingly view it as a key AI play. Still, shares of Broadcom were more than 10% higher in premarket trading this morning.

Makeovers are on the menu for around 1,000 Starbucks locations by the end of next year.

As CNBC’s Amelia Lucas reports, the coffee chain is renovating its cafes in hopes of making them feel like a “third place” again for customers. These so-called “uplifts” will cost around $150,000 per store and focus on more seating and other adjustments that aim to make locations feel cozier.

But Starbucks lovers don’t need to fret: This process isn’t expected to result in any temporary closures.

Take a look inside one newly renovated store.

Silicon Valley elite — including Apple‘s Tim Cook, Meta‘s Mark Zuckerberg and OpenAI’s Sam Altman — took a trip to the White House yesterday for a special event with Trump.

Notably absent for the CEO-palooza was Tesla’s Elon Musk, a major backer of Trump’s presidential campaign and former leader of the president’s government efficiency initiative. Musk said he couldn’t attend, but was sending a representative.