After a big week for tech earnings headlined by Nvidia’s quarterly update, the main focus for investors may turn back to economy data in the coming days.
We’ll get a fresh look at the labor market on Friday when the August jobs report lands. Economists were surprised when the U.S. economy lost 23,000 jobs in July and officials revised the number of jobs added in June downward. Yet the unemployment rate came in better than expected at 4.1%, compared to 4.2% in June, as labor force participation approached a five-year low.
The workforce is changing as employers anticipate widespread use of AI and adjust to evolving tariff, trade and immigration policy. The portion of workers who are 55 or older has fallen to a two-decade low. Meanwhile, fewer college graduates and “prime-age” workers are finding jobs. The pool of people seeking work has shrunk because immigration has slowed, economists say, and because Americans may have given up on finding work or decided they have the funds to retire.
The August jobs report will be closely monitored by Federal Reserve policymakers, who have been concentrating on curbing inflation ahead of their second mandate: promoting maximum employment. Deterioration in the labor market could make a Fed rate hike less likely, since higher interest rates deter employers from undertaking major investments and expanding.
Still, holding rates steady or cutting them could make it harder for the Fed to stop prices from rising. Fed Chair Kevin Warsh’s Friday speech was interpreted by markets as suggesting that the central bank would raise interest rates to combat inflation.
Investors will also hear this week from companies that rely on consumers having disposable income. Spirits giant Brown-Forman, discount retailer Five Below and apparel companies Lululemon and Victoria’s Secret are due to report in the coming days. Quarterly results are also coming from companies that make supplies for AI data centers, including Dell Technologies, Hewlett Packard Enterprises and Broadcom.
Market Recap
The major stock indexes logged weekly gains, shaking off a hotter-than-expected inflation reading and growing tension between the U.S. and Canada over trade policy. Nvidia’s strong results helped lift shares, with the Dow ending a two-week slide and the S&P 500 and Nasdaq booking a fourth weekly gain in five weeks, though Friday’s retreat in shares of Marvell Technology showed some wariness in the AI trade. For more, check out Friday’s market recap here.
This Week’s Top Events
Here’s a look at the biggest events of the week ahead. TradingView publishes a more detailed calendar, but clicking the link will take you off the Investopedia site.
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Tuesday, Sept. 1: Palo Alto Networks (PANW) is set to release its fiscal fourth-quarter results after the closing bell and host a video webcast at 4:30 p.m. ET. The cybersecurity company beat expectations last quarter and issued a rosier-than-expected forecast.
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Tuesday: Dell Technologies (DELL) is scheduled to publish its second-quarter results and host a conference call at 4:30 p.m. ET. The hardware company blew past estimates last quarter, with sales of its AI-optimized servers surging 750% compared to the year prior. Dell also raised its outlook.
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Wednesday, Sept. 2: Brown-Forman (BF.B) is slated to release its fiscal first-quarter results by 8 a.m. ET, followed by a conference call at 10 a.m. ET. The parent company of Jack Daniel’s and Diplomático Rum topped expectations last quarter, but shares fell after it described U.S. tariffs as a headwind. Alcohol giants Sazerac and Pernod Ricard discussed a potential merger with Brown-Forman, but conversations with the latter group ended without a deal.
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Wednesday: The Federal Reserve is due to release the Beige Book at 2 p.m. ET. The report—which compiles anecdotes from Fed districts across the country— suggested in July that the economy was improving, but also came amid a lull in the U.S.-Iran conflict.
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Wednesday: Five Below (FIVE) is scheduled to share its results after the stock market closes and host a conference call at 4:30 p.m. ET. The discount chain topped expectations this spring as people across the income spectrum sought out lower-priced stores. Another beneficiary of that trend, Ollie’s Bargain Outlet (OLLI), also reports Wednesday.
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Wednesday: Hewlett Packard Enterprise (HPE) is slated to host a conference call on its fiscal third-quarter results at 4:30 p.m. ET, with the results expected before then. The hardware giant posted better-than-expected results in June, driven by strong demand from AI data centers.
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Wednesday: Broadcom (AVGO) is set to release its fiscal third-quarter results after the closing bell, and host a conference call at 5 p.m. ET. The chipmaker surpassed expectations last quarter, but shares fell from record highs.
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Thursday, Sept. 3: Campbell’s Co. (CPB) is slated to share its fiscal fourth-quarter results at 7:15 a.m. ET, followed by a question-and-answer session at 9 a.m. ET. The food company posted mixed results last quarter, and told investors that inflation would likely weigh on its results for a few quarters.
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Thursday: Tesla (TSLA) is set to hold an event in Austin, Texas, at which the Elon Musk-led company is expected to offer more information about its Cybercab. The business of autonomous taxis has been positioned as a key component of the company’s future business model.
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Thursday: Lululemon Athletica (LULU) is scheduled to host a conference call on its second quarter results at 4:30 p.m. ET, with the numbers expected before then. Shares of the athleisure brand sunk when Lululemon lowered its forecast in June. Heidi O’Neill, a Nike (NKE) alum, is slated to become CEO on Sept. 8. Several other apparel companies report this week, including Lands’ End (LE), Victoria’s Secret (VSXY), PVH Corp. (PVH) and Oxford Industries (OXM).
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Friday, Sept. 4: The Bureau of Labor Statistics is set to release the August Employment Situation Report at 8:30 a.m. ET.
More Investopedia Reads
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