???? US Jobs Miss the Mark

Hala,

Two YouTubers built a 6.74-foot iPhone 15 Pro Max, ???? earning a Guinness World Record. Arun Maini aka Mrwhosetheboss and Matthew Perks aka DIYPerks created the world's largest working smartphone to celebrate Maini surpassing Apple’s YouTube followers. "Full circle moment," he said.(1) ??

amana’s Take

• Apple’s iPhone 16 launch, dubbed "It's Glowtime," has investors buzzing about how the tech giant will price its newest models. With sluggish iPhone growth, Apple faces a tough call: raise prices to cover costly AI upgrades or hold the line and risk squeezing margins. It's a high-stakes decision with Wall Street watching closely.
• Exclusive AI features could push customers to upgrade, but they come with a catch—higher hardware costs. While Apple has mostly dodged price hikes recently, this time it might not have that luxury. AI may wow users, but it could hit Apple's bottom line.
• Consumer wallets are tightening, and that’s making Apple’s pricing game even trickier. Investors will also have their eyes on carrier subsidies—key to spurring upgrades. Historically, Apple stock shrugs off product launches, but any surprises here could move the needle.

Stock Market Update

??↘? US stocks hit the skids on Friday as a shaky August jobs report had investors hitting the eject button on tech stocks. The S&P 500 lost 1.73% to 5,408.42, suffering its worst week since March 2023. The Nasdaq 100 shed 2.69% to 18,421.31, while the Dow dropped 1.01% to 40,345.41.(2) We'll tell you more about it below! ????

??? Most Gulf stocks followed suit, slipping for the same reason. Saudi slid 1% to 11,982, while Qatar eased 0.6% to 10,261.(3) ??↙?

???? Jobs on a Tightrope: Cool but Balanced

US job growth in August was softer than expected, with data showing nonfarm payrolls up by 142,000 and a revised lower figure of 89,000 for July. The unemployment rate, however, fell to 4.2%, offering some optimism that the labor market isn’t in freefall. Solid wage growth has also kept consumer spending buoyant, and despite slowing momentum, the labor market remains balanced on a tightrope.(4) Analysts now believe that the Fed is likely considering a 25-point rate cut later in September, signaling that while the labor market is cooling, it's not about to lose its footing. ????

????? By the Numbers: A Job Balancing Act

• Nonfarm payrolls: increased by 142,000 in August
• July payrolls growth: Revised down to 89,000 from 114,000?
• June revision: down by 61,000 jobs to 118,000
• Unemployment rate: dropped to 4.2% from 4.3%
• Wage growth: average hourly earnings rose 0.4%, up 3.8% YoY
• Job gains: Construction (+34,000), Healthcare (+31,000), Government (+24,000)
• Job losses: Manufacturing (-24,000), Retail (-11,100) ????

????? Economy: Balancing, Not Breaking

Despite a slowdown in hiring, the economy remains balanced with steady wage growth and job gains in key sectors. While the job market is "bending but not breaking," economists believe the Fed's cautious approach could lead to a soft landing, leaving room for cautious optimism in the economic forecast. Guess we’ll have to wait and see! ????

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Closer to Home?

• ?? Saudi-based Bank Albilad is making it rain with SAR 625M ($166M) in H1 2024 dividends, giving shareholders a 5% boost. With SAR 0.50 per share post-Zakat, 1.25 billion shares are in for a treat.(5) ??
• ?? Also, Saudi-based Nayifat Finance tallied SAR 55.49M ($14.8M) in H1 2024 profits, which was 3.32% up from last year's SAR 53.70M.(6) A modest climb, but hey, profits are still sweeter than coffee! ??
• ?? Meanwhile, UAE tourism is on a roll, contributing AED220B (11.7% of GDP) in 2023 and expecting to hit AED236B in 2024. By 2031, the target is a hefty AED450B, boosted by AED100B in investments!(7) Fingers crossed! ??

What Else Is Trending

• ?? Dell and Palantir took off with about 7% gains in extended trading, thanks to S&P Global adding them to the S&P 500. Say goodbye to American Airlines and Etsy—there are now new players in the house!(8) ??
• ?? Meanwhile, Bitcoin ATMs are growing fast, but hackers are faster. Weak protection mechanisms and irreversible transactions are fueling a 1,000% scam spike since 2020! It’s like the Wild West, but for crypto!(9) ???♀?
• ??? Lastly, oil prices dropped on Friday, thanks to weak US jobs data beating out OPEC+ delays. Brent fell 2.24% to $71.06 a barrel, and WTI shed 2.14%, to$67.67. Weekly wrap: Brent lost 10%, WTI slid 8%.(10) ?

??Quote of the Day

"Businesses are still adding to payrolls but not as indiscriminately. The Fed will likely cut by 25 basis points and reserve the right to be more aggressive in the last two meetings of the year." – Jeffrey Roach, Chief Economist at LPL Financial.

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amana.app

Sources: (1) UPI News, (2) (8) (9) CNBC, (3) (4) (10) Reuters, (5) (6) (7) Zawya