Weak August Jobs Data
The US private sector added just 38,000 jobs in August. That fell below the roughly 47,000 economists expected and dropped from a revised 46,000 in July. This ADP figure is the weakest monthly gain since January. Job gains were concentrated in education and health services, construction, and leisure and hospitality. Manufacturing and professional services cut jobs. Wage growth stayed contained, with annual base pay up 3% for workers who stayed in their jobs. The open question is whether Friday's more closely watched government jobs report confirms the labor market slowdown.
Uber Cuts 10% of Its Workforce
Uber (UBER) is laying off about 3,000 employees, 10% of its workforce. The stated goal is to make the company simpler and faster and free up capacity to invest in the future. Those plans include committing more than $10 billion to autonomous vehicles over the coming years. The company did not blame the cuts on AI, unlike many other tech layoffs this year, and made no mention of AI in its note or commentary. UBER ended the day up about 1.6%.
Chevron Expands in Venezuela
Chevron (CVX) plans to more than double oil production in Venezuela over the next 5 years. It is investing $7 billion in the country and aims to raise output to 600,000 barrels from the current roughly 280,000. CVX has kept operating in Venezuela while rivals Exxon (XOM) and ConocoPhillips (COP) have stayed out since leaving in 2007.
Tesla's China Sales Slow
Tesla (TSLA) made-in-China sales grew 3.6% year-over-year in August. That is the 10th straight month of growth but a sharp drop from the double-digit gains in July. Month-over-month sales fell nearly 8%. The data covers Model 3 and Model Y vehicles from the Shanghai factory and includes exports. European registration data has shown mixed results for TSLA across the region. TSLA faces competition in China from cheaper local rivals. BYD (BYDDY) is also pressuring TSLA abroad; the Chinese carmaker earned more revenue from outside China than inside it for the first time ever in the first half.
What's Ahead
Earnings due tomorrow morning: Ciena (CIEN), Victoria's Secret (VSCO), and Campbell (CPB). After the close: DocuSign (DOCU), Lululemon (LULU), Zscaler (ZS), and Planet Labs (PL). These span AI, infrastructure, retail, consumer staples, software, cyber, and the space economy, before a lull until October.
Key data to watch tomorrow: Challenger job cuts in the morning, weekly jobless claims, and JOLTS as a prelude to Friday's jobs report, to see if they match the ADP picture. The ISM non-manufacturing PMI carries more weight than the manufacturing PMI released earlier in the week because the US is a services-led economy, so it could move markets.
