Earnings, jobs report: What to watch this week

Yahoo Finance markets reporter Josh Schafer tells viewers about the earnings reports to watch this week and what economists are expecting from Friday's May jobs report.

Video transcript

- All right, guys, for more on the TAP for this week and May jobs data as well-- investors have got a lot to digest this week. Yahoo Finance's Josh Schafer is here to give you a look ahead. Josh?

JOSH SCHAFER: Yeah, Brad. So a lot going on this week, in a shortened week. But I want to start with the earnings first because I'm excited to hear more about the AI trade. And I think everyone is. And when you take a look at the earnings this week, we actually are going to get a fair amount of commentary on artificial intelligence, I would expect. You see Salesforce on that list coming up on-- that would be Thursday or, no, Wednesday. Sorry, I'm bad at days with a shortened week, right?

[LAUGHTER]

But you have Salesforce tomorrow, Broadcom on Thursday. Also curious what we hear from C3 AI. We've talked about it a lot. That's a company that has obviously soared this year, shares up about 200% as we've seen this AI boom. But the company last quarter did revenue of about $66 million. So it's not that big of a company yet. And I'm curious how the market reacts to a company like that clearly has been a momentum trade.

But what do they actually want to hear from executives? And where are people going to maybe start to take gains off the table, right, when we think about some of these companies that have really boosted over the last week, basically on the back of back of NVIDIA? And how does that happen and react once we see those calls? I'll be curious to see.

- I don't know. We've got the Sozzi Hyman trade later in the week with Lululemon.

JOSH SCHAFER: [LAUGHS]

- I always pay a lot of attention to that to see what the higher end consumer--

- [INAUDIBLE]

- If they're--

JOSH SCHAFER: I just want to see if my pants are on sale.

- [LAUGHS] Yeah. Yeah.

- You guys are both saying the same thing.

JOSH SCHAFER: Well, yeah.

- Exactly, exactly. Hard pants, well, we're all wearing them, unfortunately. But let's talk about the economic data this week as well. Obviously, the jobs report is the big one on Friday.

JOSH SCHAFER: Yeah, I think the jobs report is really what we're looking for here on Friday. And an interesting number to watch is always that non-farm payrolls number and, specifically, if it hits 200,000. So right, now consensus estimates on Bloomberg are a little bit shy of that at 193,000. I should note, that's up from when I normally write our weekly look ahead article on Friday.

But up to 193,000 now, but 200,000 is going to be an interesting number to watch for me, guys, because several banks out, analysts, economists saying that that 200,000 number could be-- if there are more than 200,000 non-farm payrolls, that is more likely for a Fed rate hike. They're circling that as sort of a line in the sand.

Anything above 200,000 is, all right, the job market is still a little bit too hot. Also, that unemployment rate, does that stay historically low? Remember, that 3.4% was the lowest number we've seen since 1969. So if that number stays very low, you get the non-farm payrolls up, we might be talking about a June Fed rate hike, maybe even a July Fed rate hike.

Citi said that this morning, Citi economists out this morning saying, 200,000. If that hits, they are in line for a June Fed rate hike and a July Fed rate hike, which would be very interesting.

- That's the first time I've heard that.

JOSH SCHAFER: Yeah.

- Yeah.

JOSH SCHAFER: Right.

- Citi with the cold water out this morning. Thanks so much, Josh Schafer, encapsulating all of what we're going to be watching for this--