Dow Jones Fights After Jobs Blow; Tesla Down As Musk Moves HQ;
The Dow Jones Industrial Average fought back after dipping on a weak jobs report. Tesla (TSLA) stock fell after Elon Musk announced he is moving the automaker’s headquarters. Moderna (MRNA) stock took a tumble as Iceland joined several Scandinavian countries in halting the use of its vaccine in young people.
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Meanwhile, Upstart (UPST) is a stock worth watching as it forms a rare, extremely powerful pattern. Energy stocks were doing well, with Apache parent APA (APA) passing a buy point and EOG Resources (EOG) back in a buy zone. Chevron (CVX) was the top blue chip.
Jobs Report Hits Stocks
The stock market was hit after the latest jobs report came in well below expectations. The economy created 194,000 jobs in September, well below the consensus estimate of 475,000.
August payroll growth was revised higher to 366,000 from 235,000. The unemployment rate fell to 4.8% from 5.1%.
Oanda analyst Edward Moya said it was a “complex” jobs report that could impact Federal Reserve policy.
“This report further cements the Fed’s view that tapering does not start the countdown for interest rate hikes,” he said in a note to clients. “The dollar was initially sold after the weak payrolls report but has quickly erased most of its losses. If next month’s report also has a similar slow pace of hiring, Wall Street might become more skeptical of any rate hikes happening at the end of next year.”
Nasdaq Lags; Growth Stocks Slammed
The Nasdaq lagged the other major indexes, and closed near session lows. It ended up falling 0.5%. The S&P 500 briefly made its way into positive territory, but ended up closing down 0.2%.
U.S. Stock Market Today Overview |
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|---|---|---|---|---|
| Index | Symbol | Price | Gain/Loss | % Change |
| Dow Jones | (0DJIA) | 34746.71 | -8.23 | -0.02 |
| S&P 500 | (0S&P5) | 4391.42 | -8.34 | -0.19 |
| Nasdaq | (0NDQC ) | 14579.54 | -74.48 | -0.51 |
| Russell 2000 | (IWM) | 221.59 | -1.67 | -0.75 |
| IBD 50 | (FFTY) | 46.70 | -0.65 | -1.37 |
Last Update: 4:02 PM ET 10/8/2021 |
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The S&P 500 sectors were closed mostly negative, with only energy and financials making progress. Utilities and real estate ended up being the worst laggards.
Small caps were falling once again, and sold off into the close. The Russell 2000 dropped 0.8%.
But it was growth stocks that suffered the worst mauling from the bears.
The Innovator IBD 50 ETF (FFTY) closed down 1.4%.
Dow Jones Fights; Chevron Stock Leads
The Dow Jones Industrial Average performed best of the major indexes. However a rally weakened into the close, and it finished the day virtually flat.
Chevron was performing best on the Dow Jones today. Strength in energy helped the oil major rise closed with a gain of just over 2%.
The stock is back above its 50-day moving average and is shooting for a consolidation entry point of 113.21, according to MarketSmith analysis.
Merck (MRK) was the worst Dow Jones laggard, falling 1.6%.
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