August 2023 Market Insights: Job Growth Slows & Dell Shares Surge

Market Highlights for September 1, 2023

August is shaping up to show the slowest job growth since early 2021, while Dell Technologies is experiencing a stock surge following impressive earnings driven by strong PC demand and reduced component costs. Here’s a detailed look at the top five market developments investors should know today.

1. August Job Growth Projected to Decelerate

Employment gains are forecasted at 170,000 new jobs in August, down from 187,000 in July, marking the smallest monthly increase since January 2021 when the Labor Department releases its report at 8:30 a.m. EDT. Analysts also anticipate average hourly wages to rise by 4.4% year-over-year, maintaining July’s pace, while the unemployment rate is expected to hold steady at 3.5%.

2. Dell Technologies Beats Earnings Expectations on Robust PC Sales

Dell Technologies (DELL) stock jumped nearly 9% after surpassing earnings estimates thanks to strong PC demand and lower component costs amid easing supply shortages. The company reported Q2 earnings of $1.74 per share, significantly above the $1.14 consensus, and projected Q3 earnings of $1.45 per share, outperforming the $1.37 analyst forecast.

3. Nutanix Rises on AI-Driven Revenue Growth and Optimistic Outlook

Cloud computing leader Nutanix (NTNX) posted Q4 revenue of $494.2 million, a 28% increase year-over-year, exceeding analyst expectations of $475 million. The company credits its subscription model and hybrid multi-cloud solutions, alongside growing demand for AI products, for a promising Q1 sales forecast between $495 million and $505 million, surpassing the $487 million estimate. Nutanix shares surged 19% in pre-market trading.

4. Tesla Launches Upgraded Model 3 with Extended Range in China

Tesla (TSLA) introduced an enhanced Model 3 featuring a longer driving range and modernized design, priced 12% higher than the previous version. Sales commenced today in China, with delivery expected in Q4 2023. Tesla shares experienced a slight 0.3% dip in pre-market trading.

5. UAW Files Labor Complaints Against GM and Stellantis Amid Contract Talks

The United Auto Workers union filed unfair labor practice charges with the National Labor Relations Board against General Motors (GM) and Stellantis (STLA), accusing them of bad-faith negotiations ahead of the September 14 expiration of their four-year labor contracts. Unlike Ford (F), which has presented a counteroffer, GM and Stellantis have yet to respond. Pre-market trading showed GM shares up 0.5%, Ford up 0.25%, and Stellantis up 0.2%.

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