US OPEN: Will demand manage to sustain post-NFP gains?

The start of the last trading session on Wall Street this week brings rallies in stock indices. Investor sentiment is being influenced today by the NFP report, which turned out to be relatively mixed. Employment change and the unemployment rate turned out to be higher than forecasts. Investors will still learn about industrial orders data today.

Data:

NFP employment change: 315k (expected: 300k; previous: 528k) + strong revision to 562k.

Wage change: 5.2% y/y (expected: 5.3% y/y; previous: 5.2% y/y)

Unemployment rate: 3.7% (expected: 3.5%; previous: 3.5%)

The market is currently pricing in a 62% chance of a 75 basis point rate hike at the Fed's September meeting. Source: Bloomberg

US index quotes. Source: xStation 5

Compiled charts of the US100 and VIX index on the D1 interval. The benchmark of technology companies is gaining before the US market opens. The VIX fear index loses nearly 4% today. Source: xStation 5

News:

• Lululemon (LULU.US) shares are up nearly 10% early in today's session on the release of better-than-expected quarterly results and earnings forecasts.

Source: Bloomberg

• Shares of Bed Bath & Beyond (BBBY.US) lost more than 5% at the opening of the session, continuing a 4-day downward wave.

• Broadcom (AVGO.US) also boasted good results, with its shares gaining more than 2% at the start of the session. The company's CEO expects strong demand in all of the company's markets this quarter.

Source: Bloomberg

Analyst action:

• Broadcom (AVGO.US) with price target cut to $620 from $720 by Jefferies

• Okta (OKTA.US) with rating upgraded to "neutral" by Guggenheim

• Tesla (TSLA.US) with an upgraded price target to $360 from $344.

News from US companies. Source: Bloomberg