June 5 2026 Jobs Report Day LULU Guidance Cut Chip Complex Day Two

Good morning. Today is jobs report day. Nonfarm payrolls for May drop at 8:30 AM Eastern and that print is going to set the tone for the entire session. The ADP report on Wednesday showed 122,000 private sector jobs added which was above the 110,000 estimate. That gives us a warm preview but the government number is what moves the market. The consensus is expecting somewhere between 80,000 and 105,000 jobs. With new Fed Chair Kevin Warsh taking a hawkish stance on inflation any hot print pushes rate cuts further out and anything below 80,000 starts the recession conversation. Do not put on aggressive positions before 8:30. Let the number come out first.

While we wait for payrolls the big earnings story this morning is Lululemon. They reported last night and the headline numbers technically beat but the guidance was a disaster. Full year EPS guidance was cut by more than a dollar per share. Full year revenue guidance was cut from $11.35 to $11.50 billion down to $11.0 to $11.15 billion. Q2 guidance came in at $2.45 to $2.48 billion against an expectation of $2.60 billion. The interim CEO blamed negative media commentary on social channels. The stock is down 10% premarket and has already lost 41% year to date before this print. We previewed LULU in Sunday's newsletter as the high end consumer health check. We said to watch for whether LULU results would confirm consumer bifurcation. This guidance cut is telling us even the high end consumer is pulling back.

The semiconductor complex is in day two of the Broadcom hangover. MRVL is down another 4%, MU is down 4.5%, INTC down 3%. These names have not found a floor yet after Wednesday's AVGO sell the news drop. The AI hardware earnings cycle we have been tracking since DELL gapped 33% is now showing its first real cracks.

On the gap up side the most interesting thing is a battery technology company that unveiled a space grade extreme climate battery platform for satellites and lunar infrastructure. Tiny float, no revenue to speak of, but the concept is resonating in the market. A defense tech company also gapped up on completing a military autonomous flight program review.

Two tiny float space and defense technology runners lead the gap up scanner with big percentage moves. A battery tech company unveiled a breakthrough space battery platform and is gapping over 90%. A defense tech company completed a critical US military autonomous flight review and is up 32%. Several other small float names with no confirmed catalysts fill out the rest of the list alongside Sidus Space, Redwire, and FOXX continuing recent patterns.

Lululemon leads the gap down scanner after a brutal guidance cut on full year earnings and revenue. The semiconductor complex is in day two of weakness following the Broadcom earnings disappointment with Marvell, Micron, and Intel all lower. The quantum complex continues to bleed with QTEX down nearly 11%. Planet Labs, AIIO, BMNR, Nokia, MicroStrategy, and PayPal round out the list in a broad risk off tone heading into the jobs number.

Premium members get every ticker below with the full catalyst, float, ATR, and exact price levels I am watching. Get the full list every morning before 9am for $10.99 a month.