Wake Up Wall Street (SPY): Meme stocks break out, but ADP employment misses big

Here is what you need to know on Wednesday, September 1:

Here we are into September, Autumn and stocks historically looking good after a seven-month winning streak. Usually, that means further gains looking back over the S&P 500 back data. The market certainly is in a healthy position with risk being back on the table following the Fed once again dashing worries over interest rate rises. This bubble has plenty of more inflating left to do. 

Labor Day is nearly upon us, and the CDC says if you are unvaccinated please do not travel as infections surge due to the Delta variant. New Zealand, Australia and Japan remain in various stages of lockdown as infections surge over there too, but economists are staying relatively optimistic with expectations that booster shots and high vaccines should see a move to normality sooner rather than later. New Zealand delayed its planned rate hike, but the economy remains strong as do most other G7 nations. Rate hikes are off the cards for 2021, according to market-friendly Powell.

Speaking of labor, the latest ADP employment report will provide a test for bulls as it comes in well below estimates, 374K versus 625K expected. That is a decently sized miss, but this one is a tad volatile. This big report is on Friday. Markets tend to shrug off bad news anyway, so this will be a test to see if that has changed.

The dollar meanwhile is steady above $1.18 as the aforementioned doveish comments continue to see a retreat from the 1.16 handle of last week. Oil though looks interesting as it pops on the back of OPEC+ comments and hurricane season kicking off, trading at $69. Bitcoin is still holding around the $48,000 level as it battles with breaking $50,000. Crypto stocks are waiting for a move. 

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European stocks are surging to record highs: Dax +0.4%, FTSE +0.8% and Eurostoxx +1.1%. 

US futures are stronger: S&P and Nasdaq are both +0.4%, while the Dow is +0.3%.

SPY stock news

US ADP employment 374K versus 625K estimate. 

ECB Weidman comments that taper should be gradual, not fast, odds stacked against higher inflation.

Bank of Japan says consumption is declining but not much.

CrowdStrike (CRWD) down 2% premarket. EPS and revenue ahead of estimates and outlook raised.

Lucid Motors (LCID) down 17% premarket on PIPE expiration.

Skillz (SKLZ) up 16% premarket on retail interest, possible short squeeze from Wall Street Bets traders on Reddit. See more. 

Anaplan (PLAN) up 15% premarket on results and Wells Fargo raising price target.

Ambarella (AMBA) up 9% on the earnings release. The company makes chips for cameras and cars.

PVH, owner of Tommy Hilfiger and Calvin Klein, reported EPS of $2.72 versus $1.20 estimate. Shares up 7% premarket.

Sunrun (RUN) is up and running by nearly 4% in premarket after analyst notes and Biden proposals.

NIO cuts Q3 delivery outlook.

Southwest Airlines (LUV): LUV pilots are suing the company over changes to working conditions during pandemic-CNBC.

Moderna (MRNA): Japan says it has found another contamination case.

Alibaba (BABA): Chinese state firms are to take a stake in ANT Group's credit scoring venture, according to a report by Reuters. 

Alphabet (GOOGL) to appeal €500 million fine by French antitrust watchdog-Reuters.

DIDI and JD set up unions for staff, according to Reuters.

Robinhood (HOOD) says SEC is reviewing a filing of a share sale by a group of shareholders-Reuters. Robinhood says it submitted a changed filing on Wednesday, but no sales can be done until the SEC gives the ok.

Walmart (WMT) to hire 20,000 workers ahead of the holiday season.

Upgrades, downgrades and premarket movers

Source: Benzinga Pro

Economic releases

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