The Sun is set for Nvidia revenue week. It’s time to close the store and return after three months of reporting again, as there’s nothing else important, right? There is not at all. It’s the US job market that grabs the spotlight from Nvidia last week. Additionally, there are several notable revenue reports within the broader artificial intelligence complex, including rival AI chip makers and fellow clubs holding Broadcom. It goes without saying that I consider the Friday Court of Appeals ruling, which will break most of President Donald Trump’s “mutual” tariffs, to be a major topic of conversation this week. Let’s take a closer look at what we see in terms of job data and revenue during the week of shortened holiday trading. 1. Employment, Employment, Employment: When Federal Reserve Chair Jerome Powell recently informed the central bank at its policy meeting in September that it could cut fees, he pointed out the labor market situation as justification. “Overall, the labour market appears to be well balanced, but it’s a strange balance due to the significant slowdown in both the supply and demand of workers. This extraordinary situation suggests that the downside to employment is rising,” he said. And given the job market has cooled, Powell said he sees the likelihood of inflation in so-called wage prices as low. Against this backdrop, the question for investors is whether any of the four labor market reports scheduled for release this week are doing something to oppose Powell’s rating, or will it show additional softening that further strengthens expectations for September cuts and additional cuts to the end of the year. In fact, Gov. Christopher Waller, a candidate to replace Powell as chairman next year, suggested last week that the particularly weak August employment report could guarantee a half-century cut in September, rather than the Fed’s traditional quarterly moving approach. The August non-farm salary report is due to be released Friday morning, the biggest release this week. After we saw it in our July employment report, revisions from the previous months are particularly important to monitor in line with the total employment and unemployment rates for August. As of Friday, an economist voted by Dow Jones expects the US economy to add 75,000 jobs last month, but the unemployment rate is projected to rise by up to 4.3% from 4.2% in July. Prior to that, on Wednesday morning, Jolts’ report (officially called the Work Opening and Labor Turnover Survey) will be displayed. It measures labor market tension and affects the aforementioned wage price spiral. Because if there are far more jobs than available workers, the advantage in pay negotiations will be leaning towards employees. Payroll Processor ADP releases its monthly private employment report on Thursdays, not on a regular Wednesday. According to Dow Jones, it is expected that 75,000 jobs have been added to the ADP report. That will be a slowdown from 104,000 in July. On Thursday, we will also be taking an updated look at the first weekly unemployment claims that have recently withdrawn from a higher level seen in June. The Dow Jones consensus is due to the first 231,000 unemployment insurance claims as of Friday. 2. Revenue: A pair report of club stocks that was led by Salesforce on Wednesday night and followed by Broadcom on Thursday evening. Unless otherwise stated, all estimates are from the LSEG. Don’t look now: Beatsup Salesforce stocks are feeling a little more momentum. Stocks are more than 10% ahead of the lowest point in the year on August 12th, significantly outpacing a basket of software stocks that has dropped almost 1% on that stretch. The dark clouds of “AI Eating Software” still hang from Salesforce and its enterprise software siblings. Furthermore, even after the rebound, stock prices have now declined by more than 20%. But long-time investors like us take what we can get – the signs of life, well, the signs of life. It appears that news that activists’ right board value boosted the company’s stock in the second quarter has caused resuscitation. That disclosure came on securities filed the night of August 14th, with the following day’s stock being the first of four consecutive victory seasons. A few days were mixed together, but the uptrend is unharmed. Now we have a revenue test. The market is based on the performance of two AI-related products from Salesforce, as many customers run pilots before a large-scale deployment. Data Cloud and the New Agent Force. These two products, particularly AgentForce, hopefully help Salesforce’s topline return to double-digit growth. Timing is a problem. The current remaining performance obligation (CRPO) is a key metric for measuring its future growth. Wall Street expects Salesforce’s CRPO to close the July quarter at $291.5 billion, meaning 10% year-over-year growth. In a recent note to clients, an analyst at Oppenheimer argued that “AI messaging and estimates are unlikely to substantially change post outcomes and enforcement risk remains, so it is unlikely that anyone will change anyone’s minds on stocks. Still, they have not given up hope, particularly ahead of the influential Dreamforce meeting in October. “Agent Force and Data Cloud are investment-ready themes, with margin growth continuing, and multiples already discounting a lot of risk,” writes Oppenheimer. The consensus is that Salesforce will provide quarterly revenue of $10.14 billion in adjusted earnings per share, with $2.78. Broadcom is in the spotlight on the AI chip boom after the end of Thursday. CEO Hoc Tan is hard to imagine Jensen Fan being so bright on longer-term opportunities than he had been on Nvidia’s conference call. Broadcom’s AI business falls into two camps: custom chip design services and its networking products. They are used to connect large numbers of chips within a data center, and thus are used to smoothly communicate and transfer data. Google, Club Name Meta and Tiktok’s pro-Bitedance are widely understood to be three current customers, with Tan previously saying there are four more prospects in the pipeline. These potential customer updates and general commentary on market opportunities for custom chips are particularly noteworthy. Broadcom’s stock hit Friday with sympathy for the unfortunate quarter from Custom-Chip Peer Marvell technology, but it’s hard to know if these challenges have been extended to Broadcom as the in-house silicon projects are so customer-specific. Meanwhile, Broadcom’s broader chip portfolio services industry, such as telecommunications and automobiles, has been causing growth for some time. Citigroup hopes that Broadcom will report results that go beyond what it means to be “driven by continuous AI strength.” However, the analyst continued, “With a non-AAI semi-business… it’s down by about 40% from its peak, we believe that businesses should recover and offset the gross profit dilution from AI businesses.” Investors also want to see additional traction in Broadcom’s software business, led by virtualization software provider VMware. Acquired by Broadcom under a Blockbuster agreement in late 2023, VMware benefited from migrating customers from traditional software licensing models to subscription-based models and upselling them with expanded versions of the product. JPMorgan told clients last week that it was continuing to observe “strong momentum” at VMware, with analysts repeating Broadcom as a top-notch semiconductor pick. Wall Street expects Broadcom to report $15.83 billion in revenue and earnings per share of $1.65. Monday, September 1st, the US market closed for Labor Day on Tuesday, September 2nd PMI was closed at 10am (NIO (NIO), Academy Sports and Outdoors (ASO), SIGNET (SIG) after Bell: ZSCALER (ZS), Signet (SIG) after HealthEquity (HQY), Labor turn survey in terms of work order at 10AM at term over at 10AM when he played in the opening game of work on September 3rd ((M), Campbell Soup (CPB) after Bell: Salesforce (CRM), C3.AI (AI), American Eagle Outfitters (AEO), GitLab (GTLB), Hewlett Packard Enterprise (HPE), Pagerduty (PD) Thursday, September 4th ADP AM AT Private Payroll Reports 10am before Bell ET: 1-800-Flowers (FLW), Ciena (Cien), Toro Company (TTC) Bell: Broadcom (Avgo), Lululemon (Lulu), Docusign (docu), Samsara (IoT), Uipath (PATH) Friday, August 5th ABM before ABM PayRoll Report Cramer’s Charitable Trusts see CRM, AVGO, NVDA, Meta. Jim waits 45 minutes after sending a trade alert before purchasing or selling stocks in the Charitable Trust portfolio. 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