Here Are 3 Hot Things to Know About Stocks Right Now
- Nonfarm payrolls in the U.S. rose by 201,000 in August, higher than expected, and the unemployment rate remained unchanged at 3.9%.
- The Nasdaq (^IXIC) turned lower on Friday after closing with losses for three straight sessions.
- Micron Technology Inc. (MU) - Get Report rose 1.2% on Friday after slumping nearly 10% during the previous session.
Wall Street Overview
Stocks fell on Friday, Sept. 7, after a strong U.S. jobs report bolstered the Federal Reserve's case for further increases in interest rates, and Donald Trump said he was ready to levy more tariffs on Chinese imports.
Reuters reported that Trump said he has tariffs ready to go on a further $267 billion worth of Chinese imports, on top of the $200 billion that could go into effect soon.
"The $200 billion we are talking about could take place very soon depending on what happens with them. To a certain extent its going to be up to China, Trump said aboard Air Force One, Reuters reported. "And I hate to say this, but behind that is another $267 billion ready to go on short notice if I want. That changes the equation."
Nonfarm payrolls in the U.S. rose by 201,000 during the month, exceeding the average estimate of 189,000 in a FactSet survey of economists. The report also reflected an acceleration from the 157,000 jobs added in July.
The unemployment rate was unchanged at 3.9%, close to an 18-year low. Average hourly earnings for all employees on private nonfarm payrolls rose by 10 cents to $27.16, for a gain of 2.9% over the past year -- a faster pace than July's 2.7% increase.
"The economy's not slowing down," said Steve Blitz, chief U.S. economist for the forecasting firm TS Lombard. "It certainly keeps consumption strong in the third quarter and into the fourth."
The report is likely to buttress the Federal Reserve's case for increasing interest rates by a quarter point later this month, and again in December, to prevent a surge in inflation, Blitz said.
Start, and end, your trading day right with TheStreet's 'Daily Snapshot' on your favorite smart-speaker. Learn more about TheStreet's market coverage for your trusted smart-speaker here.
Micron Technology Inc. (MU) - Get Report rose 0.5% on Friday to $44.86 after slumping nearly 10% during the previous session on what was a rough day for tech stocks in general, and for chip and chip-equipment companies in particular.
Micron's plunge came after Morgan Stanley and Baird analysts offered cautious remarks on the company, wrote TheStreet's Eric Jhonsa.
Broadcom Inc. (AVGO) - Get Report jumped 7.7% to $232.58 after the chip and hardware maker reported third-quarter adjusted earnings of $4.98 a share, beating analysts' estimates of $4.83, and guided for fiscal fourth-quarter revenue slightly above forecasts.
Revenue in the third quarter rose to $5.06 billion from $4.46 billion a year earlier.
Broadcom estimated fourth-quarter revenue of $5.33 billion to $5.48 billion -- analysts were predicting revenue of $5.37 billion.
Tesla Inc. (TSLA) - Get Report fell 6.3% to $263.24 on news a key short-seller was suing the electric vehicle company for allegedly misleading investors over plans to take the company private and a radio interview that raised further questions about the judgment of founder and CEO Elon Musk. Shares also were lower after the company said its chief accounting officer, Dave Morton, had resigned with immediate effect.
- Tesla Plunges as Musk Smokes Weed During Podcast, Accounting Chief Leaves Company
- Tesla Crashes Below This Key Technical Level as Talent Exodus Rages On
Marvell Technology Group Ltd. (MRVL) - Get Report slipped by 0.1% after gaining earlier on a report that CEO Matt Murphy said the acquisition of Cavium Inc., which closed in the second quarter, would "drive us towards our long term 6% to 8% annual revenue growth target."
Third Point LLC's Dan Loeb confirmed he was seeking to take over the entire board of Campbell Soup Co. (CPB) - Get Report after the snack and soup company completed a strategic review last week that didn't include a plan to auction off the whole business. Campbell shares rose 0.4% to $40.22.
To be a profitable investor and build long-term wealth, you need the right information and techniques. Join TheStreet on Oct. 13, 2018, for a special investing event for sophisticated and active traders. Register for "Invest Like the Pros: Jim Cramer's Boot Camp for Investors" here.