The Dow Jones Industrial Average sold off 450 points Friday morning after a stronger-than-expected September jobs report from the Labor Department. Advanced Micro Devices (AMD) fell nearly 7%, sparking an early selloff among chip stocks, after it posted weaker-than-expected preliminary third-quarter earnings results late Thursday.
AMD warned that the weakness was a combination of a “weaker-than-expected PC market and significant inventory correction activities across the PC supply chain.” Meanwhile, Taiwan Semiconductor Manufacturing (TSM) reported higher-than-expected quarterly earnings. But shares still fell 3.5%.
Stock Market Today: Employment Report
September Job Report It came out at 8:30 a.m. ET, ahead of Friday’s open. The U.S. economy grew by 263,000 jobs in September, topping the Econoday estimate that called for 250,000 job growth. The unemployment rate fell to 3.5%, down from an estimate of 3.7%.
AHER test systems (ahr) resisted early chip-sector action. It is beat Wall Street estimates It kept its strong growth targets for the first quarter of its fiscal year and for the full year. Shares rose more than 12% in morning trade.
Lift (LYFT) fell more than 5% after RBC downgraded the stock from outperform to a sector outperform rating of 16, with a price target of 30. Twitter (TWTR) was rejected by 1% on Friday morning, a judge ruled Elon Musk must close his $44 billion Twitter deal He must face trial by October 28, or in November.
Electric vehicle leader Tesla (D.S.L.A) traded down 3.1% on Friday. Among the Dow Jones industrials, the tech titans Apple (AAPL) and Microsoft (MSFT) both declined sharply thereafter Today’s stock market Open.
As the stock market continues to wait for a trend-change day, Cummins (CMI), Murphy America (MUSA), Neurocrine Biosciences (NBIX), Vertex Pharmaceuticals (VRTX) and World Wrestling Entertainment (WWE) — as well as Dow Jones stock United Health (UNH) — is one of the best stocks to watch. Amidst this week’s volatility, the market is in “correction” and investors should be on the defensive.
Vertex is a recent addition IBD Leaderboard. Cummins is one IBD SwingTrader Stock. Featuring Murphy USA Near the column of this week’s stock buy zone, along with three other great stock ideas. World Wrestling A Day share Neurocrine A on September 29 Day share On September 26.
Dow Jones today: Treasury yields, oil prices
After the opening bell on Friday, the Dow Jones industrial average fell 1.5%, while the S&P 500 lost 2%. The tech-heavy Nasdaq composite fell 2.6% with AMD, Nvidia (NVDA), Intel (INTC) and ASML (ASML) leads to slopes.
The 10-year Treasury yield rose to 3.9% on Friday morning. The 10-year Treasury yield fell to 3.56% this week before rebounding. Last week, the 10-year Treasury yield briefly hit 4%, a level not done in more than a decade.
Meanwhile, US oil prices continued this week’s recovery, rising more than 1% on Friday. West Texas Intermediate futures climbed near $90 a barrel. Last week, oil fell to its lowest level of the year – around $76 a barrel – before recovering.
Stock market rally attempt
On Thursday, the Dow Jones Industrial Average fell 1.1%, while the S&P 500 fell 1%. The Nasdaq composite lost 0.7%, and the small-cap Russell 2000 fell 0.6%. The S&P 500 and Nasdaq are above their recent lows Their rallying efforts remain the same.
Monday’s market advance started a new rally attempt, and that’s your Day 1. If the major indexes break the lows on September 30, it will disable the rally attempt and leave the market looking for more downside.
The Big Picture commented on Thursday“Thursday was the 4th day of stock market’s rally attempt, so investors are now patiently waiting. Day after day, which will mark the beginning of a new upswing. Note that not all follow-ups work, so it’s important to increase exposure slowly and systematically as improvement proves itself.”
Now, ahead of a potential follow-up day, is the perfect time to build A robust watch list Best performing stocks. Many long-term leaders tend to exit at or near the bottom signal of the market. Missing that early opportunity is a costly mistake.
One challenge of creating a watchlist during a correction is that stock charts can change as you wait for the next day to follow. That means some of the fundamentals on your watchlist stocks may deteriorate. So updating is important.
Dow Jones stocks to watch: UnitedHealth
Dow Jones stock UnitedHealth fell 1.5% Thursday, snapping a three-day winning streak and running into resistance at a key 50-day line. Shares are forming a flat base with a buy point of 553.23 IBD MarketSmith Chart analysis. UNH stock fell 1.55% Friday morning.
UNH share Showing a solid 94 out of a perfect 99 IBD Joint Assessment, for one IBD Stock Checkout. Investors can use the IBD Composite Rating to easily gauge the quality of a stock’s fundamental and technical metrics. UnitedHealth reports its third-quarter results on October 14.
Key Stocks to Watch: Cummins, Murphy USA, Neurocrine, Vertex, WWE
Cummins is moving quickly to the right side of the cup base with a 233.95 buy point. The stock retook its 50-day line high this week, which is a positive sign. The company’s upcoming earnings results are Nov. 4. Cummins stock was down 0.7% on Friday morning.
Gas station and mini-market leader Murphy USA is forming a flat base with a 303.19 buy point. Shares fell 1.5% on Thursday, continuing lower after Tuesday’s retreat. The stock is finding strong resistance at its 50-day line. A decisive revision of this position would be favorable to the stock’s fundamental-structural prospects. Q3 earnings results will be released on October 26. Shares fell 1.4% on Friday.
Neurocrine Biosciences is in a 5% buy zone past the 109.36 buy point of a flat base. IBD MarketSmith Chart analysis. The RS line reached a new high on Thursday, which is a good signal. Shares rose 0.7% in early Friday trading.
Share on the IBD Leaderboard Vertex Pharmaceuticals is quickly approaching the 306.05 buy point of a flat base above the initial entry of 296.24. Even if a weak market condition puts you on the sidelines, the stock’s pullback makes it a good idea to watch. Its RS line has hit new highs, a possible sign of greater stock market performance. VRTX stock fell 0.3% on Friday.
World Wrestling Entertainment is trying to break out above a cup base’s 75.33 entry, but closed about 3% below entry following Thursday’s 0.7% decline. RS tax hit a new high this week. WWE shares rose 0.1% on Friday.
Tesla stock Thursday fell 1.1%, ending at its lowest level since July 13. Shares fell 3.1% Friday morning. CEO Musk tweeted, “Excited to announce that Tesla will begin production of the semi truck with deliveries to @Pepsi on Dec. 1st!.” He added, “500 miles of range & a lot of fun to drive.”
Shares are about 40% off their 52-week highs and below their 50- and 200-day lines. The EV company’s Q3 results are October 19.
Dow Jones Leaders: Apple, Microsoft
in the middle Dow Jones Stocks, Apple shares fell 0.7% Thursday, ending a three-day winning streak. Shares are still 21% off their 52-week highs and below their 50- and 200-day lines. Third-quarter earnings results Oct. 27. Apple stock fell 2.6% on Friday morning.
Microsoft fell 1% Thursday, snapping a three-day winning streak. Shares are still recovering from last week’s 52-week low. The software company is 30% off its 52-week high. Microsoft shares fell 4% in early Friday trading.
Don’t forget to follow Scott Lehtonen on Twitter @IBD_SLehtonen Learn more about growth stocks and the Dow Jones Industrial Average.
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