Dow Jones Reverses, As Economy Loses Jobs; Tesla Surges 8% On New
The Dow Jones Industrial Average rallied nearly 100 points Friday before reversing lower, as 2020’s final payrolls report showed the U.S. economy lost jobs in December. Apple stock rallied, while Nio and Tesla surged in morning trade. Tesla unveiled a new Model Y. Sarepta Therapeutics crashed 50% on mixed gene therapy results.
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Among the Dow Jones leaders, Apple (AAPL) rose 1.2%, while Microsoft (MSFT) moved up 0.1% in today’s stock market. Visa (V) rose 0.6% to add to Thursday’s 0.6% rise.
Tesla (TSLA) surged 8% to hit another record high, after unveiling a new Model Y. Chinese EV rival Nio (NIO) soared 8% to break out above a new buy point.
Stocks in or near buy zones in the current stock market rally are Chipotle Mexican Grill (CMG), Pinterest (PINS) and Qorvo (QRVO).
Apple, Chipotle, Microsoft, and Tesla are IBD Leaderboard stocks. Pinterest is an IBD SwingTrader stock and was also featured in this week’s Stocks Near A Buy Zone column.
Dow Jones Today: Jobs Report
On Friday, the Dow Jones Industrial Average fell 0.3% after reversing lower, while the S&P 500 gained 0.2%. The tech-heavy Nasdaq composite advanced 0.6% in midday trade.
Early Friday, the Labor Department reported nonfarm payrolls fell by 140,000. That was sharply below consensus estimates for a 50,000 increase, according to Econoday. The unemployment rate held steady at 6.7%.
Among exchange traded funds, Innovator IBD 50 (FFTY) traded 1.5% higher Friday. The Nasdaq 100-linked Invesco QQQ Trust ETF (QQQ) moved up 0.8%. Meanwhile, the SPDR S&P 500 ETF (SPY) rose 0.3%.
Coronavirus Updates
According to the Worldometer data tracker, the cumulative number of confirmed coronavirus cases in the U.S. topped 22.1 million on Friday. Total virus-related deaths rose past 374,000.
The cumulative total of worldwide Covid-19 cases confirmed since the start of the outbreak topped 88.6 million Friday, with more than 1.9 million virus-related deaths.
Stock Market Rally Extended?
Looking back at the current uptrend, November was a key month for the stock market. IBD’s The Big Picture flagged the new uptrend following the market’s bullish follow-through day on Nov. 4. Meanwhile, the first week of January 2021 shows major stock indexes at record highs. Be sure to check out IBD’s Stock Market Outlook for 2021.
Thursday’s Big Picture cautioned that the Nasdaq was getting extended, “Keep in mind the Nasdaq is sharply extended from its 50-day moving average, ending more than 7% above it on Thursday. Historically, when the Nasdaq is about 6% above its 50-day line, it will typically begin to pull back.
Pullbacks, even sharp ones, would be considered a natural part of a sustained uptrend. But it’s not an imminent sell signal by any means. Indexes can remain extended for a long time. Ahead of the September correction, the Nasdaq closed 11.6% above the 50-day line on Sept. 2 after being more than 6% above that level for weeks.”
Investors should continue to use the…
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