1. U.S. Nonfarm Payrolls Flash Warning
2. Morgan Stanley Fined $2 Million
2. Morgan Stanley Fined $2 Million
4. Canada’s Job Openings Dwindle
5. Nvidia Sheds $400 Billion in Market Value
6. U.S. Sports Betting Tops $220 Billion
7. Apple to Host Product Launch Monday
1. U.S. Nonfarm Payrolls Flash Warning
The U.S. Bureau of Labor Statistics reported today that the U.S. added 142,000 nonfarm jobs in August, falling short of economists’ expectations of 165,000. The 3-month moving average dropped to its lowest since mid-2020.
The unemployment rate fell to 4.2%, the first decline in five months.
Fed Governor Christopher Waller said the new data is a warning signal, showing cracks in the labor market, and the Fed must act.
Following Waller’s comments, the 2-year U.S. Treasury yield declined, and markets raised the probability of a 50-basis-point Fed rate cut.
______
2. Morgan Stanley Fined $2 Million
The Massachusetts Securities Division found that an executive at First Republic Bank sold a large number of shares in the months leading up to the bank’s collapse.
Morgan Stanley, which facilitated the sales, was fined $2 million. The bank agreed to pay the fine to close the investigation.
In May 2023, amid a regional banking crisis, the U.S. Department of Justice investigated employee stock trading at several banks.
The DOJ is examining whether employees may have acted on insider information.
______
3. Morgan Stanley Sees Chewy Doubling
Morgan Stanley analyst Nathan Feather wrote that pet supply giant Chewy’s stock could double in the next 12 months, as its strategy continues to improve profit margins. He raised his price target from $49 to $53.
Feather now expects Chewy’s EBITDA to exceed $750 million in the fiscal year ending January 2026 — 12% above his previous estimate.
Chewy’s stock has climbed over 50% in the past six months, though still well below its February 2021 peak.
______
4. Canada’s Job Openings Dwindle
Statistics Canada reported today that Canada’s working-age population rose by 96,400 in August, largely due to rapid population growth.
However, only 82,000 people found jobs that month, resulting in a net employment gain of just 22,100.
Over the past three months, only one new job has been added for every six new workers — the lowest ratio in over a year.
______
5. Nvidia Sheds $400 Billion in Market Value
Nvidia lost $400 billion in market value this week, dragging down major indexes like the S&P 500, as investors grew concerned about the U.S. economy and cooling AI enthusiasm.
Over the past two weeks, Nvidia’s share price has plunged 20%, outpacing losses in other “Magnificent Seven” tech stocks and even Bitcoin.
Despite the drop, Nvidia’s stock has still more than doubled this year, adding $1.3 trillion in value.
______
6. U.S. Sports Betting Tops $220 Billion
Since the Supreme Court legalized sports betting five years ago, Americans have placed more than $220 billion in bets. Platforms like FanDuel and DraftKings have made gambling more accessible to the public.
But most users have lost substantial amounts. Nathaniel Conrad, a video editor, said he used to bet $300 per game — now, after hard lessons, he bets no more than $5.
Financial advisers are sounding the alarm, warning that the addiction could seriously damage clients’ quality of life and mental health.
______
7. Apple to Host Product Launch Monday
Next Monday, September 9, Apple will hold its annual product launch event, where it’s expected to unveil the iPhone 16 lineup and other new products.
It’s rare for Apple to schedule events on a Monday, but next Tuesday includes a major U.S. presidential debate and an EU ruling on Apple’s $14 billion tax case.
The highlight will be the iPhone 16 Pro, but Apple is also expected to debut new Apple Watches, AirPods, and AI tools under “Apple Intelligence,” including an upgraded Siri.
______
This content is sourced from Financial Times, Bloomberg, and The Real Deal, among other financial news outlets.