Jobs Report: Can the Labor Market Hold Up? 02/10/2026
Market Wrap
U.S. stocks posted modest gains Thursday, the first trading day of October, recovering from earlier losses as Treasury yields retreated from multidecade highs.
The S&P 500 rose 0.19% to 7,666.45, while the Nasdaq Composite gained 0.04% to 26,871.60. The Dow Jones Industrial Average added 21 points, or 0.04%, to 50,926.56. Small-cap stocks outperformed as the new month and quarter got underway.
Oil prices moved sharply higher as geopolitical tensions returned to focus. Brent crude jumped more than 4% to $102.31 a barrel, while West Texas Intermediate gained 2.7% to $92.87 after reports of an increased U.S. military presence in the Middle East.
Despite Thursday's rebound, elevated Treasury yields and oil prices remain key risks for equities, while technology continues to provide support to the broader market.
Tesla (TSLA) will also be in focus with its latest vehicle-delivery report due shortly, with investors bracing for a decline in sales.
Attention now turns to Friday's September jobs report, with economists expecting 84,000 new jobs and the unemployment rate to remain at 4.1%. The data could help shape expectations for the Federal Reserve's next move, with markets increasingly leaning toward no rate change in October.
Nike Falls as Weak China Sales and Restructuring Cloud Outlook
Nike (NKE) reported mixed fiscal first-quarter results and announced a broader restructuring plan as CEO Elliott Hill looks to revive growth following a prolonged downturn in the sportswear business.
Adjusted earnings came in at 48 cents per share, beating the 43-cent consensus estimate, while revenue of $11.21 billion fell short of the $11.32 billion expected. Sales declined 4% from a year earlier, and net income slipped 2% to $712 million.
Weakness in Greater China remained a major drag, with revenue in the region falling 26%. Nike's sportswear business also declined by a low-double-digit percentage, offsetting progress in its performance categories. North American revenue of $5.13 billion came in slightly ahead of expectations.
Nike expects fiscal 2027 revenue to decline by a high-single-digit percentage and adjusted earnings of $1.15 to $1.35 per share.
The company also unveiled a restructuring program aimed at simplifying operations and improving productivity. The plan, dubbed Pace, includes supply-chain modernization, a reorganization around three geographic regions and workforce reductions beginning in 2027.
Nike expects the program to generate roughly $2.5 billion in savings through fiscal 2031, while restructuring costs are expected to reduce fiscal 2027 earnings by about 15 cents per share.
The results underscore the challenges facing Nike's turnaround as weaker lifestyle demand, pressure in China and cautious consumer spending continue to weigh on growth. Shares fell roughly 3% in extended trading following the report.
Stocks on the Move
- Constellation Energy (CEG): Shares gained nearly 3% after the company announced a 20-year agreement with Amazon (AMZN) supporting an expansion of generating capacity at a Maryland nuclear power plant.
- Synopsys (SNPS): Shares jumped more than 8% after the software company outlined its growth strategy and long-term financial targets at its investor day. Synopsys expects fiscal 2027 revenue of $11.1 billion to $11.2 billion, above Wall Street estimates, and also announced a strategic partnership with OpenAI.
- Sigma Lithium (SGML): Shares tumbled 16% after the Brazilian lithium producer temporarily suspended mining and industrial operations amid a delay in a federal appeals court review related to an ongoing lawsuit.
- Acuity Brands (AYI): Shares fell nearly 4% after the company's outlook for low- to mid-teens sales growth at its Acuity Intelligent Spaces business came in slightly below Wall Street expectations.
Watchlist: NKE, XOM, CVX, MU, RKLB, NVDA, TSLA, AAPL, GOOGL, SPCX, META
Key Economic Events Today
Economic Data (EST)
- 08:30 AM — USD Non-farm Employment Change
- 08:30 AM — USD Unemployment Rate
- 10:00 AM — USD Factory Orders
- 10:00 AM — USD FOMC Member Logan Speaks
Earnings
No significant earnings today!
