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The Labor Department’s August jobs report showed positive growth, with nonfarm payrolls increasing by 187,000. This exceeded the estimated growth of 170,000 and matched July’s increase. However, the unemployment rate rose to 3.8% from the expected 3.5%.
Key earnings movers on Friday morning included Broadcom (AVGO), Dell (DELL), Lululemon Athletica (LULU), and MongoDB (MDB). Broadcom shares fell nearly 4% in premarket trade, while Dell stock surged 10%. Lululemon stock rallied over 2%, and MongoDB shares jumped 5.2%.
In the tech sector, Tesla stock traded slightly higher after the company unveiled an updated Model 3 sedan in China. Additionally, Nvidia stock rose 0.3%, while Apple and Microsoft were modestly higher.
Among other notable stocks, Alphabet and Meta Platforms both gained 0.5% in early action. Baker Hughes, Cadence Design Systems, Shopify, Synopsys, and Tidewater were highlighted as stocks to watch in the ongoing stock market rebound.
Dow Jones futures rose 0.5% before the opening bell, and the Nasdaq 100 futures and S&P 500 futures also saw gains. The 10-year U.S. Treasury yield ticked lower after the jobs report, while oil prices reached their highest level in nine months.
Overall, the market outlook was upgraded to a confirmed uptrend, with recommended exposure in the range of 20%-40%. IBM, Merck, and Visa were among the Dow Jones stocks to watch, each with their own potential entry points.
In the midst of the market rally, Tesla stock made gains and crossed its 50-day line. The company released an updated Model 3 sedan in China, which received minor design changes, a battery range boost, and faster acceleration. Surprisingly, the price of the new Model 3 increased by 12%. Meanwhile, Tesla reduced prices on its Model S and Model X vehicles, as well as its driver-assistance system.
Source: Labor Department, IBD