The August jobs report may very well be a market-moving occasion, with the information impacting how investors see the economic system and the outlook for Federal Reserve charge cuts. Economists polled by Dow Jones count on a 75,000 job achieve. Daniel Morris, chief market strategist of BNP Paribas, does not see a giant market response except the quantity is roughly 15,000 roughly than anticipated. “If it is a much weaker figure then you would start worrying about recession,” mentioned Morris. “Alternatively, if we get a strong number then the argument would be we don’t need that cut anymore.” Move away from AI and megacaps? Kevin Simpson of Capital Wealth Planning mentioned a charge reduce in September is a close to certainty and is seeing alternative even earlier than the jobs report to put money into shares associated to housing and actual property. “The first thing that comes to mind with lower rates is refi and the housing market. Home Depot , you think of that as a strong beneficiary of lower rates,” he mentioned. Simpson additionally likes Caterpillar as a possible beneficiary of broader constructing that might come if September marks the starting of a rate-cutting cycle. Jimmy Lee of Wealth Consulting Group additionally believes a charge reduce this month is definite and sees a broadening of the market. Lee says investors ought to think about trimming winners in the AI and momentum trades. “We are actually still constructive on that. I am a fan of how well some of our best companies in the U.S. have done. I just wouldn’t keep doubling down in that area. I would make sure that you get more diversified,” Lee mentioned. Matt Powers of Powers Advisory Group can be seeking to play the market broadening with a deal with producing revenue by way of dividends. “We’re targeting dividend growers and dividend payers,” he mentioned about the shares he’s contemplating. Two names he likes are FedEx and PNC Financial . They elevated their dividend by 5% and 6%, respectively, in 2025. Barbara Doran of BD8 Capital Partners sees alternative in client cyclicals together with Lowe’s and Home Depot, huge retailers like Walmart and Costco and cost large American Express . “We’ve been seeing the trading down phenomenon going for the last year,” Doran mentioned, noting she sees that as a tailwind for Walmart and Costco. “You have some $40 trillion in household wealth created since 2019 and pretty much full employment. There is a lot of talk about the lower income totally being squeezed, tariffs do not help them. But still, spending is fine.” Option performs Tom Sosnoff, co-founder of Tastytrade, is utilizing the choices market to play the jobs report. Sosnoff is shorting S & P 500 and Nasdaq-100 futures. “I see the market moving to the downside from here until Friday,” Sosnoff mentioned. “My viewpoint is based on just a very short term time-frame. I might change my mind by Friday but right now I’m short.” Sosnoff mentioned he’s additionally shorting a choose group of shares he believes have ‘gotten forward of themselves’ together with Microsoft and Roblox .