Financial market participants are focusing on a series of U.S. labor market reports and key technology sector earnings during the holiday-shortened week of Sept. 1. The economic data, including the August nonfarm payrolls report, is anticipated for its potential to influence future Federal Reserve monetary policy, while quarterly results from Salesforce and Broadcom are expected to offer further insight into the artificial intelligence sector.
The releases follow recent remarks from Federal Reserve Chair Jerome Powell, who cited labor market conditions as a factor in potential interest rate adjustments. Fed Governor Christopher Waller stated last week that a particularly weak August jobs report could be a consideration for a larger-than-standard rate cut at the central bank’s September meeting.
Several labor market indicators are scheduled for release. The Job Openings and Labor Turnover Survey (JOLTS) will be released on Wednesday. ADP will release its private employment report on Thursday, with economists polled by Dow Jones forecasting the addition of 75,000 jobs. The weekly initial jobless claims report is also due Thursday, with the Dow Jones consensus expecting 231,000 first-time filings.
The week’s economic reports will conclude with the government’s August nonfarm payrolls report on Friday morning. According to Dow Jones, economists project the U.S. economy added 75,000 jobs last month, with the unemployment rate expected to move to 4.3% from 4.2% in July.
In corporate news, technology companies Salesforce and Broadcom are scheduled to release their quarterly earnings reports.
Salesforce will report after the market closes on Wednesday. According to LSEG data, the consensus estimate is for the company to report quarterly revenue of $10.14 billion and $2.78 in adjusted earnings per share. Market observers are monitoring metrics such as current remaining performance obligation (cRPO) and the performance of the company’s AI-related products, Data Cloud and Agentforce. In a recent note to clients, analysts at Oppenheimer wrote that “Agentforce and Data Cloud are investable themes.”
Broadcom is scheduled to report its earnings on Thursday evening. Wall Street expects the company to report revenue of $15.83 billion and earnings per share of $1.65, according to LSEG. The company’s business includes custom chip design, networking products, and its software division, which includes VMWare. In a client note, Citigroup analysts stated they expect Broadcom will report above-consensus results “driven by continued AI strength.” Analysts at JPMorgan recently reiterated Broadcom as their top semiconductor pick, noting “strong momentum” in the company’s VMWare business.
An additional development for markets is a recent appeals court ruling that struck down most of the “reciprocal” tariffs from the previous administration. The duties are set to remain in effect until mid-October to provide time for a potential appeal.
