Futures edge up; BLS benchmark labor revisions ahead - what’s moving markets

Investing.com - U.S. stock futures edge higher, with traders awaiting a revision to U.S. employment numbers which could add to an emerging portrait of a cooling labor market. Software group Oracle (NYSE:ORCL) is set to report after the closing bell on Wall Street, and may provide a new look into the artificial intelligence boom. Meanwhile, Anglo American (LON:AAL) and Teck Resources (TSX:TECKa) agree to merge, while ASML takes a $1.5 billion stake in French artificial intelligence start-up Mistral AI.

1. Futures tick up

U.S. futures pointed higher on Tuesday, as investors geared up for the release of a preliminary nonfarm payrolls benchmark estimate and looked ahead to key inflation data later this week.

By 03:42 ET (07:42 GMT), the S&P 500 futures contract had risen by 15 points, or 0.2%, Nasdaq 100 futures had climbed by 69 points, or 0.3%, and Dow futures had advanced by 81 points, or 0.2%.

The main averages on Wall Street rose in the prior session, with the tech-heavy Nasdaq Composite in particular posting a fresh record high close. Underpinning sentiment were expectations that the Federal Reserve will soon cut interest rates in a bid to help support a potentially slowing U.S. labor market.

In individual stocks, shares in retail trading app Robinhood and software publishers group AppLovin both increased on plans for the stocks to be included on the S&P 500 index. Chipmaker Broadcom also gained 3.2%, its latest jump since the firm saod it anticipates strong artificial intelligence-fueled revenue growth. It now has a market capitalization of $1.6 trillion -- Wall Street’s seventh most-valuable company.

2. BLS benchmark revisions ahead

Traders are hoping to glean more insight into the health of the American job market from the government’s publication of its preliminary nonfarm payrolls benchmark estimate on Tuesday.

Economists are projecting that U.S. employment for the 12 months through March may be lowered by as many as one million jobs. It would yet another indication of an easing labor market -- and even suggest that the trend was beginning to transpire before President Donald Trump rolled out his sweeping "reciprocal" import tariffs on a host of countries in early April.

Analysts have noted that a widespread crackdown on illegal immigration could be contributing to the cooling jobs picture, as well as AI’s rise denting demand for certain workers.

The revision from the Bureau of Labor Statistics would come after BLS data last week showed that job growth in August was weaker than anticipated and the economy lost roles for the first time in 4-1/2 years in June. These figures all but cemented wagers that the Fed will slash interest rates by at least 25 basis points at its upcoming policy gathering next week.

3. Oracle to report

Highlighting the earnings calendar on Tuesday will be software name Oracle, which is due to report its latest quarterly returns after the closing bell.

Markets will be keen to see if Oracle provides another glimpse into the state of a boom in enthusiasm around artificial intelligence.

In a note to clients, analysts at Vital Knowledge said two numbers from the company will be especially important -- backlog, measured by remaining performance obligations, and free cash flow. Wall Street is anticipating the former will stand at roughly $150 billion. The latter, meanwhile, is tipped to come in at $1.8 billion, recovering from a negative cash flow of $2.9 billion in the prior quarter, thanks to a decline in capital expenditures.

In June, Oracle lifted its annual revenue forecast, citing in part strong demand for its cloud services which help companies enhance their AI infrastructure.

CEO Safra Catz told analysts at the time that total revenue for its fiscal 2026 would be at least $67 billion. That would translate to full-year revenue expansion of around 16.7%, up from Oracle’s previous outlook of 15%.

4. Anglo American, Teck agree to merge

Anglo American and Teck Resources have agreed to a merger that will create a combined company worth more than $53 billion, making it one of the world most valuable copper producers.

The transaction, which will create a new entity called Anglo Teck, comes as miners are looking to lock up their interests in a metal which has become a vital part of both the transition to renewable energy sources and the data centers that power AI models. Demand for copper, as a result, is expected to expand rapidly.

Notably, both companies operate copper mines in Chile that are adjacent to each other.

Under the terms of the deal, London-listed Anglo American will own around 62.4% of the combined business, while Canada’s Teck will hold 37.6%.

5. ASML takes $1.5 billion stake in Mistral

Elsewhere, ASML said on Tuesday it had entered an agreement with Mistral AI under which the Dutch chipmaking equipment giant invested 1.3 billion euros ($1.5 billion) to become the top shareholder in the French AI start-up.

ASML also entered a strategic partnership with Mistral that will allow the semiconductor player to explore the use of AI models across its product portfolio and in its research and development operations.

The deal will see ASML invest in Mistral as part of the start-up’s series C funding round, taking an approximately 11% stake in the firm. Reuters had reported the stake on Monday, with the fundraising round -- at $2 billion -- set to make Mistral the most valuable company in Europe with a $10 billion euro valuation ($11.7 billion).

A maker of advanced lithography equipment that is crucial for chipmaking, ASML is a key supplier to majors such as TSMC and Intel. ASML, along with TSMC, has been boosted by rapidly increasing chip demand tied to the AI industry.

Mistral is considered to be Europe’s answer to U.S. AI giants such as OpenAI and Alphabet’s Google.