What the Club is watching Friday — solid jobs growth, new Starbucks CEO, Meta-Qualcomm VR

Published Fri, Sep 2 20228:52 AM EDT

Here's what the Club is watching Friday, Sept. 2 The S & P 500 Short Range Oscillator is now very oversold at minus 8.86%. August nonfarm payrolls grew ahead of expectations at 315,000 versus 318,000 consensus estimate from Dow Jones. Still strong number. The unemployment rate increased to 3.7% from 3.5% due to a nice bump in the labor force participation rate, 62.4% from 62.1% in the prior month, meaning more people are coming back into the workforce and that's a great thing. Importantly wage growth is starting to moderate too. Month over month average hourly earnings up 0.3% versus 0.5% in the month before and 0.4% expected. Great numbers from Lululemon (LULU) on Thursday night. EPS of $2.20 vs. $1.86 consensus. Comparable store sales up 18% on constant currency. Adjusted operating margins increased 30 basis points. Guides Q3 EPS to $1.90 to $1.95 versus estimates of $1.78 and raises full-year outlook to $9.75 to $9.90 from $9.35 to $9.50. Morgan Stanley increases price target to $343 from $315. Resilient numbers from chipmaker Broadcom (AVGO) after the bell. EPS of $9.73 topped estimates of $9.56 thanks to strength in cloud, enterprise, and telecommunications. Guides Q4 revenues to $8.9 billion versus $8.73 billion. Jefferies cuts PT to $620, BMO lowers to $650, Truist lowers to $630. Broadcom also said none of its products are affected by the U.S. government's restriction on shipments to China. The China restrictions look more and more like an only- Nvidia (NVDA) issue due the Club holding's superiority in artificial intelligence. Advanced Micro Devices (AMD) also was crushed Thursday despite immaterial impact. Marvell Technology (MRVL) is uninvolved, too. Both chip companies are Club names. Starbucks (SBUX) announced a new CEO, Laxman Narasimhan, and the hire is a win for coffee chain . Jefferies says it "should lead to positive impacts on the company/stock long-term." Two Club stocks — Meta Platforms (META) and Qualcomm (QCOM) — are teaming up on custom chipsets for the Meta's Quest virtual reality headsets. Guggenheim upgrades Salesforce (CRM) to neutral after a 20% decline since its August initiation. Also upgrades identity management software maker Okta (OKTA) to neutral. Atlantic Equities starts cybersecurity firm Fortinet (FTNT) at Overweight, but Palo Alto Networks (PANW) and CrowdStrike (CRWD) at Neutral. JPMorgan downgrades chemical companies LyondellBasell Industries (LYB) and Dow Inc. (DOW) to Neutral. Analyst says the companies are "probably not the best places to put new money to work" with shorter-term commodity chemical and volumes "decidedly lower." Calvin Klein parent PVH Corp. (PVH) price target lowered to $60 from $87 by Barclays. (Jim Cramer's Charitable Trust is long AMD, NVDA, QCOM, META, CRM and SBUX. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust's portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.

Traders work on the floor of the New York Stock Exchange (NYSE) as Federal Reserve Board Chairman Jerome Powell holds a news conference following a Fed rate announcement, in New York City, July 27, 2022.

Brendan McDermid | Reuters

Here's what the Club is watching Friday, Sept. 2

The S&P 500 Short Range Oscillator is now very oversold at minus 8.86%.
August nonfarm payrolls grew ahead of expectations at 315,000 versus 318,000 consensus estimate from Dow Jones. Still strong number. The unemployment rate increased to 3.7% from 3.5% due to a nice bump in the labor force participation rate, 62.4% from 62.1% in the prior month, meaning more people are coming back into the workforce and that's a great thing. Importantly wage growth is starting to moderate too. Month over month average hourly earnings up 0.3% versus 0.5% in the month before and 0.4% expected.