{"id":63619,"date":"2022-09-02T09:00:52","date_gmt":"2022-09-02T13:00:52","guid":{"rendered":"https:\/\/blog.t3live.com\/?p=63619"},"modified":"2022-09-02T09:00:52","modified_gmt":"2022-09-02T13:00:52","slug":"coffee-with-greta-august-jobs-report-shows-hiring-is-still-strong","status":"publish","type":"post","link":"https:\/\/blog.t3live.com\/2022\/09\/02\/coffee-with-greta-august-jobs-report-shows-hiring-is-still-strong\/","title":{"rendered":"Coffee With Greta: August Jobs Report Shows Hiring is Still Strong"},"content":{"rendered":"

DJIA Futures: <\/b>+118\u00a0 (+0.4%)<\/span><\/p>\n

SPX Futures: <\/b>+17 (+0.4%)<\/span><\/p>\n

NASDAQ Futures: <\/b>+45 (+0.4%)<\/span><\/p>\n

Good morning friends!<\/span><\/p>\n

Futures are up after the August jobs report came in as expected.<\/span><\/p>\n

Let\u2019s get right to it!<\/span><\/p>\n

August Jobs Report Meets Expectations<\/span><\/h2>\n

Job growth came in as expected in August as the labor market maintains strength.<\/span><\/p>\n

The Labor Department reported the U.S. added 315,000 jobs last month, just below expectations for a gain of 318,000.<\/span><\/p>\n

That was a slowdown from the revised 526,000 gain in July and the softest monthly gain since April 2021.\u00a0<\/span><\/p>\n

But the data still shows hiring continuing at a strong pace, which is bad news for the Fed.\u00a0<\/span><\/p>\n

The unemployment rate rose unexpectedly to 3.7% from 3.5% as more people began actively looking for jobs.\u00a0<\/span><\/p>\n

The labor force participation rate rose by 0.3% to 62.4%, that\u2019s still down a full 1% from pre-pandemic levels.<\/span><\/p>\n

Average hourly earnings rose 0.3% monthly and 5.2% annually.\u00a0<\/span><\/p>\n

The Central Bank has said strong wage gains are adding to inflation pressures in the economy. <\/span><\/p>\n

The Fed is looking for an impact on both inflation and the labor market before it will slow rate hikes.\u00a0<\/span><\/p>\n

CME Group\u2019s <\/span>FedWatch<\/span><\/a> Tool shows 68% of traders expect another 0.75% rate hike later this month.\u00a0<\/span><\/p>\n

Lululemon Rallies on Earnings Beat, Strong Outlook<\/span><\/h2>\n

Lululemon Athletica <\/b>(LULU) shares are rallying 9.6% ahead of the open after topping Q2 expectations and hiking its outlook.\u00a0<\/span><\/p>\n

The fitness apparel retailer reported adjusted earnings of $2.20 per share on $1.87 billion in revenue.\u00a0<\/span><\/p>\n

That topped analysts\u2019 expectations for adjusted EPS of $1.87 on $1.774 billion in revenue.\u00a0<\/span><\/p>\n

Lululemon\u2019s same-store sales rose 23% year over year vs 17.6% growth expected.\u00a0<\/span><\/p>\n

The CFO said, \u201cDespite the challenges around us in the macro-environment, guest traffic in our stores and on our e-commerce sites remains robust, which speaks to the strength of our multi-dimensional operating model.\u201d<\/span><\/p>\n

The company now expects full-year revenue between $7.695 billion and $7.940 billion.\u00a0<\/span><\/p>\n

That\u2019s up from the previous forecast for $7.610 billion and $7.710 billion.\u00a0<\/span><\/p>\n

Lululemon also raised its adjusted EPS expectations for 2022 to a range of $9.75 to $9.90 vs prior guidance of $9.35 to $9.50.\u00a0\u00a0<\/span><\/p>\n

Starbucks Names New CEO<\/span><\/h2>\n

Starbucks <\/b>(SBUX) shares are up 0.8% in premarket trade after naming a new CEO Thursday evening.\u00a0<\/span><\/p>\n

The coffee chain announced Laxman Narisimhan will take over in April 2023.\u00a0<\/span><\/p>\n

He previously served as CEO of the English consumer goods company Reckitt.\u00a0<\/span><\/p>\n

Narisimhan will join Starbucks in October and learn about the company until April.\u00a0<\/span><\/p>\n

During that time, Howard Schultz will remain interim CEO.\u00a0<\/span><\/p>\n

Schultz will remain on the board of directors when Narisimhan assumes the CEO role.\u00a0<\/span><\/p>\n

Oil Prices Rise<\/span><\/h2>\n

Oil prices are rising today as the market bets OPEC+ will discuss output cuts at next week\u2019s meeting.\u00a0<\/span><\/p>\n

West Texas Intermediate crude futures are up 3.2% to $89 bbl while Brent crude futures are up 3% to $95 bbl.\u00a0<\/span><\/p>\n

OPEC+ slashed its 2022 demand outlook earlier this week.\u00a0<\/span><\/p>\n

The group expects demand to lag supply by 400,000 barrels per day this year but then sees a market deficit of 300,000 bpd in 2023.\u00a0<\/span><\/p>\n

Both WTI and Brent crude contracts are still on track to post their worst weekly drop in four weeks.\u00a0<\/span><\/p>\n

In Case You Missed It<\/span><\/h2>\n