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The Street
The Street
Business
Silin Chen

Nonfarm-payrolls report weighs on midday market. Here are 3 stock movers.

The stock market is on track for its worst week in a year. 

At last check on Friday, the S&P 500 fell 1.8%, the tech-focused Nasdaq Composite was down 2.7%, the Dow Jones Industrial Average declined 1%, and the Russell 2000 Index fell 1.6%.

The decline followed a worse-than-expected nonfarm-payrolls report. Total nonfarm payroll employment increased by 142,000 in August, up from 89,000 in July but short of the 164,000 expected by economists.

Trending stocks:

All Magnificent 7 stocks are down midday. Apple dropped 0.9%, while others in the group gave up more than 3%. Tesla is posting the biggest decline among the seven, down 7%. 

Broadcom fell on weak guidance, while Super Micro dropped on an analyst downgrade.

Broadcom forecasted $14 billion in revenue for its fiscal fourth quarter, falling short of the $14.04 billion expected by analysts.

Shutterstock-T. Schneider

S&P 500 big stock movers today

Five S&P 500 stocks making big midday moves are:

  • Dollar General  (DG)  +2.6%
  • Pulte Group  (PHM) +2.2%
  • Chipotle Mexican Grill  (CMG)  +2.0%
  • D.R. Horton  (DHI)  +1.9%
  • Hormel Foods  (HRL)  +1.7% 

The worst-performing five S&P 500 stocks with the largest midday drops are:

  • Broadcom  (AVGO)  -9.6%
  • Albemarle  (ALB)  -7.6%
  • Tesla  (TSLA)  -7.1%
  • Super Micro Computer  (SMCI)  -6.2%
  • Wells Fargo  (WFC)  -5.1% 

Stocks also worth noting include:

  • Nvidia  (NVDA)  -4.8%
  • Amazon  (AMZN)  -3.2%
  • Apple  (AAPL)  -0.9%
  • Nio  (NIO)  +3.8%
  • Bowlero  (BOWL)  +7.8%

Bowlero pops on revenue beat

Bowlero stock gained 8% after the company posted higher revenue for its fiscal fourth quarter and estimated higher revenue for fiscal 2025.

For the fiscal 2024 fourth quarter ended June 30, the bowling-center operator swung to a net loss of $62.2 million from net income of $146.2 million in the year-earlier quarter. Revenue increased 18.6% from the year-earlier period to $283.9 million. That beat analysts' consensus estimate of $273.4 million. Same-store revenue increased 6.9% to $242.5 million.

For all of fiscal 2024, Bowlero posted a net loss of $83.6 million, compared with year-earlier net income of $82 million. Revenue increased 9.1% to $1.15 billion.

Bowlero expects total revenue for fiscal 2025 to grow in a range of mid-single digits percent to more than 10% from fiscal 2024. That translates to between $1.22 billion and $1.28 billion. The upper end of this revenue forecast exceeds current estimates. 

Broadcom falls despite earnings beat

Broadcom lost 9% after the company reported fiscal-third-quarter results that beat analysts’ expectations for revenue and earnings while posting weaker-than-expected revenue guidance.

For the quarter ended Aug. 4, the company reported adjusted earnings of $1.24 per share, higher than the $1.20 analysts had estimated. Revenue of $13.07 billion also beat the $12.97 billion forecast.

"Broadcom's third quarter results reflect continued strength in our AI semiconductor solutions and VMware. We expect revenue from AI to be $12 billion for the fiscal year 2024 driven by Ethernet networking and custom accelerators for AI data centers," said Hock Tan, chief executive of Broadcom.

Broadcom forecast $14 billion in revenue for its fiscal fourth quarter, just short of the $14.04 billion analysts expected.

Super Micro Computer slides on JP Morgan downgrade

Super Micro Computer dropped 6% following JP Morgan's downgrade to neutral from overweight. The investment firm now has a price target of $500, down from $950.

JPMorgan says the downgrade is based on the short-term perspective that there is no compelling reason for new investors to buy the shares while uncertainty about regaining regulatory compliance remains, according to a note from The Fly.

More AI Stocks:

JP Morgan is waiting for a further response from Super Micro to reassure that customers will not divert orders, "which could involve aggressive pricing," the analyst said.

Related: Veteran fund manager sees world of pain coming for stocks

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