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In a wild session, the Dow Jones Industrial Average hit a 500 point gain on Friday afternoon, after falling 157 points. The Nasdaq, meanwhile, erased a 2.6% loss to turn positive.
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The Dow Jones Industrialists were up 1.7%, the S&P 500 was up 1.9% and the Nasdaq was up 1.5% in the stock market today. The small caps tracked by the Russell 2000 rose 1% after falling 2% earlier. Volume swelled on both major trades from the same time on Thursday.
In a bullish session, the indexes opened higher amid a bullish jobs report. But they sold hard as the 10-year Treasury yield climbed above 1.6%, then rebounded into positive territory in afternoon trading.
Stocks sold hard on Thursday after Fed chief Jerome Powell failed to give the market what it wanted. He said the central bank remains very accommodating and has not hinted at a further “twist” in policy. This sent the yield of the 10-year Treasury up to 1.55%.
Snapshot of the US Stock Market Today |
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|---|---|---|---|---|
| Index | symbol | Price | Loss of profit | % Change |
| Dow jones | (0DJIA) | 31464.87 | +540.73 | +1.75 |
| S&P 500 | (0S and P5) | 3838.60 | +70.13 | +1.86 |
| Nasdaq | (0NDQC) | 12,914.50 | +191.03 | +1.50 |
| Russell 2000 | (Etc.) | 216.57 | +3.38 | +1.59 |
| IBD 50 | (FFTY) | 43.41 | +0.35 | +0.81 |
Last updated: 15:08 ET 05/03/2021 |
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The 10-year bond yield climbed above 1.6% early Friday after a much better-than-expected jobs report. It was trading around 1.56% by noon.
The US economy added 379,000 jobs last month, significantly more than Econoday forecast for a gain of 175,000, as the hospitality sector began to recover. The January payroll was revised to 166,000 from 49,000. The unemployment rate fell slightly from 6.3% to 6.2% in January.
Market in correction, for now
For the week, the Nasdaq is forecasting a loss of 2.5%. The S&P 500 is on track for a 0.4% increase, while the Dow Jones is on track for a 1.5% weekly gain.
Tech stocks propelled the Nasdaq to a 43.6% gain in 2020 for its fifth best year in history. The S&P 500 rose 16.3% and the Dow Jones added 7.2% last year. After a good start this year, the market is now correcting. Read The Big Picture for a detailed daily market analysis.
The Covid-19 pandemic continues to rock the U.S. economy, as nationwide lockdowns approach the one-year mark. But there are signs of hope as vaccinations roll in and cases start to level off in some states.
Cumulative Covid-19 cases around the world have now exceeded 116 million with nearly 2.6 million deaths, according to Worldometer. In the United States, cases topped 29.5 million with more than 533,000 deaths, although the number of new cases in the United States has slowed significantly in recent weeks.
Dow winners and losers
Cisco (CSCO) and Chevron (CLC), up more than 3% each, were among the biggest blue-chip winners.
Cisco rallied 4.5% in heavy trading to resume its 50-day moving average. JPMorgan upgraded its rating of the networks giant to an overweight to neutral, citing an expected upturn in corporate technology spending. Cisco stock, around 6% below its 52-week record, could form a new base.
Chevron was up nearly 4% in volume up, on pace to extend its winning streak to five. Shares jumped more than 4% on Thursday, after OPEC and its major partners said they would extend current production cuts. Chevron stock is well spread from a buy point of 95.92 to a flat base, according to MarketSmith’s chart analysis. Light and mild crude prices rose more than 3% to $ 65.88 per barrel on Friday at noon.
Among other Dow Jones winners, Intel (INTC), Procter & Gamble (PG) and UnitedHealth Group (UNH) grew by more than 2% each. Tech giants Microsoft (MSFT) and IBM (IBM) added 2% each.
The biggest loser was Boeing (BA), down 2% in twice as normal trade. The jet maker stock briefly traded a buy point of 229.71 for a mug with a handle earlier this week. It is now about 5% below the entrance.
Outside the Dow
Shares of solar, automakers and software led the decline among IBD’s 197 industry groups. Utilities, banks and food stocks have increased, with sector rotation well underway.
In the group of car manufacturers, You’re here (TSLA) reduced its loss to around 5%, having dropped as much as 13% earlier. It had reversed significantly lower after opening higher on Friday morning.
Tesla stock is on track for a fourth consecutive decline. Last week he fell below his 10 week line. A global chip shortage is slowing auto production, affecting Tesla and other automakers.
Rival of electric vehicles in China Nio (NIO) was still down over 8% in terms of rapid revenue, as it comes back from an even bigger loss. Stocks have taken a hit since the electric vehicle maker reported its fourth quarter results on Monday night.
Innovative IBD 50 ETF (FFTY) reduced its loss to 1.2% from nearly 6% at the start of the session. Digital turbine (APPLICATIONS), 360 DigiTech (QFIN) and Innovative industrial properties (IIPR) were among the biggest losers. But Taiwan Semiconductor (TSM), Polaris (PII) and DR Horton (DHI) outperformed.
Follow Nancy Gondo on Twitter at @IBD_NGondo
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