In a wild session, the Dow Jones Industrial Average swung to a gain of 500 points on Friday afternoon, after dropping to 157 points. The Nasdaq, however, erased a 2.6% loss to turn positive.
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The Dow Jones industrials rose 1.7%, the S&P 500 rose 1.9% and the Nasdaq advanced 1.5% on the stock market today. Small caps monitored by the Russell 2000 added 1% higher after sinking 2% earlier. Volume increased on both major exchanges from the same time on Thursday.
In a round-trip session, the indices opened up amid an optimistic job report. But they sold hard when the 10-year Treasury’s income soared above 1.6%, then rebounded in positive territory in the afternoon’s trades.
The shares were sold hard on Thursday after Fed chief Jerome Powell did not give the market what it wanted. He said the central bank remains highly accommodative and did not suggest a new “turnaround” in policy. This raised the 10-year Treasury yield to 1.55%.
Overview of the US stock market today |
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|---|---|---|---|---|
| Index | Symbol | Price | Gain / Loss | % Change |
| Dow Jones | (0DJIA) | 31464.87 | +540.73 | +1.75 |
| S&P 500 | (0S and P5) | 3838.60 | +70.13 | +1.86 |
| Nasdaq | (0NDQC) | 12914.50 | +191.03 | +1.50 |
| Russell 2000 | (IWM) | 216.57 | +3.38 | +1.59 |
| IBD 50 | (FFTY) | 43.41 | +0.35 | +0.81 |
Last update: 15h08 ET 05/03/2021 |
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Yield on 10-year bonds rose above 1.6% on Friday after a much better-than-expected job report. It was trading around 1.56% at noon.
The US economy created 379,000 jobs last month, clearly greater than Econoday’s forecast of a gain of 175,000 as the hospitality sector began to recover. January payrolls were revised from 49,000 to 166,000. The unemployment rate fell slightly to 6.2% from 6.3% in January.
Market in correction, for now
For the week, Nasdaq predicts a 2.5% loss. The S&P 500 is on track for a 0.4% increase, while the Dow is on pace with a 1.5% weekly gain.
Technology stocks propelled Nasdaq to a 43.6% gain in 2020, its fifth best year ever. The S&P 500 was up 16.3% and the Dow was up 7.2% last year. After a strong start to the year, the market is now correcting itself. Read The Big Picture for a detailed daily market analysis.
The Covid-19 pandemic continues to cloud the US economy as national blockages approach the one-year mark. But there are signs of hope as vaccinations are launched and cases are beginning to stabilize in some states.
Cumulative cases of Covid-19 worldwide have reached 116 million, with almost 2.6 million deaths, according to the Worldometer. In the United States, cases have surpassed 29.5 million, with more than 533,000 deaths, although the number of new cases in the United States has declined dramatically in recent weeks.
Dow winners and losers
Cisco (CSCO) and Chevron (CVX), with more than 3% each, were among the biggest blue chip winners.
Cisco rose 4.5% in heavy trade to resume its 50-day moving average. JPMorgan raised its rating from the network giant from neutral to overweight, citing an expected recovery in corporate technology spending. Cisco’s stock, with about a 6% discount on its 52-week high, may be shaping a new base.
Chevron rose nearly 4% in increasing volume, on the way to extending its winning streak to five. The shares rose more than 4% on Thursday after OPEC and its main partners said they would extend current production cuts. Chevron’s shares are well extended from a flat 95.92 point-of-purchase point, according to analysis by the MarketSmith chart. Light and sweet oil prices rose more than 3% to $ 65.88 a barrel at noon on Friday.
Among other Dow Jones winners, Intel (INTC), Procter & Gamble (PG) and UnitedHealth Group (UNH) advanced more than 2% each. Technology giants Microsoft (MSFT) and IBM (IBM) added 2% each.
The biggest loser was Boeing (BA), 2% drop in trade twice normal. The jet maker’s stock briefly reached a buying point of 229.71 for a cup with handle earlier this week. It is now about 5% below the entrance.
Outside the Dow
Inventories of solar energy, automaker and software led the handicap among the 197 industrial groups of IBD. Utilities, banks and food stocks have advanced as the sector’s rotation is well underway.
In the automaker group, Tesla (TSLA) reduced its loss to about 5%, after dropping 13% earlier. It had drastically reversed downward after opening high on Friday morning.
Tesla’s shares are on their way to a fourth consecutive decline. Last week, it broke below its 10-week line. A global chip shortage is slowing auto production, impacting Tesla and other automakers.
Electric vehicle rival in China Nio (NIO) was still below 8% in fast turnover, as it came back from an even more pronounced loss. The stock has suffered a blow since the EV maker reported fourth quarter earnings on Monday night.
The Innovator IBD 50 ETF (FFTY) reduced its loss from almost 6% to 1.2% at the start of the session. Digital Turbine (APPS), 360 DigiTech (QFIN) and Innovative Industrial Properties (IIPR) were among the biggest losers. But Taiwan Semiconductor (TSM), Polaris (PII) and DR Horton (DHI) performed better.
Follow Nancy Gondo on Twitter at @IBD_NGondo
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