5 Things to Know Before the Stock Market Opens

News of the day for September 6, 2024

Investors will be closely watching for fresh jobs data that could influence the Federal Reserve’s stance on interest rates, Broadcom (AVGO) shares are tumbling in pre-market trading after the chipmaker issued light revenue guidance for the current quarter, the U.S. is rolling out new export controls on critical technologies, and more. Here’s what investors need to know today.

1. Fresh Jobs Data Could Influence Fed’s Stance on Rate Cuts

Investors will be closely watching fresh jobs data due at 8:30 a.m. ET. Weaker-than-expected results could potentially push the Fed to make steeper cuts to its key interest rate at its next meeting this month and at future meetings. The report from the Bureau of Labor Statistics is expected to show employers added 161,000 jobs in August, and the unemployment rate fell a tenth of a percentage point to 4.2% from July. 

2. Broadcom Falls as Disappointing Outlook Weighs on AI Chipmaker’s Stock

Broadcom (AVGO) shares are tumbling nearly 9% in pre-market trading after the chipmaker issued light revenue guidance for the current quarter, despite fiscal third-quarter sales that topped analysts’ expectations. Softer spending in its broadband business and other divisions partially offset strength in its artificial intelligence (AI) segments.

3. US Rolls Out New Export Controls of Advanced Tech

The U.S. is planning to implement new export controls on advanced technologies, including quantum computing and semiconductor goods, the Commerce Department said in a statement, as it continues to target demand from China. While China isn’t named in the statement, the move comes after the U.S. already imposed export controls on advanced semiconductor chips aimed at curbing the country’s access. The controls, made for “national security and foreign policy reasons,” are reportedly set to cover worldwide exports but exempt some nations such as Japan and the Netherlands, home of chipmaking equipment provider ASML Holding (ASML).

4. Salesforce To Buy Data Protection Firm Own for $1.9B

Salesforce (CRM) is buying data protection firm Own Company for about $1.9 billion in cash, the cloud software firm said. Salesforce already owns 10% of the company and Salesforce President Steve Fisher said the acquisition would add to its ability “to offer robust data protection and management solutions to our customers.”

5. 7-Eleven Parent Turns Down Circle K Owner’s $39B Bid

Japan’s Seven & i rejected a $39 billion takeover by Canada’s Alimentation Couche-Tard, opening the 7-Eleven chain operator to another bid by the owner of the Circle K convenience store brand. The Tokyo-based firm said that Alimentation Couche-Tard’s offer “grossly undervalues” the company and that the Canadian proposal doesn’t fully take into account the antitrust hurdles the deal would have to overcome.

Read the original article on Investopedia.