Jobs Report and Broadcom Earnings to Drive Market Direction This Week

The upcoming August jobs report is expected to have a significant impact on the Federal Reserve's next move, with odds of a quarter-point September rate hike jumping to 57% from 40%. The report will be crucial in determining whether the labor market is strong enough to justify further rate hikes. Analysts expect a modest rise in nonfarm payrolls of 55K, but some alternative indicators suggest that job growth may have stabilized.

Broadcom's earnings will also provide insight into AI spending, with analysts expecting EPS of $3.24 on revenue of $29.4B. However, SA analyst Dustin Quasney warns of elevated near-term downside risk due to high expectations set by Nvidia's recent results.

Elsewhere, Apple has announced that John Ternus will take over as CEO from Tim Cook, who will move into the role of executive chairman. Analysts are confident that Ternus will preserve Apple's well-established earning power and shareholder return mechanisms.