The Dow Jones Industrial Average struggled after falling on a weak labor market report. Tesla (TSLA) shares fell after Elon Musk announced he was relocating the automaker’s headquarters. Modern (MRNA) shares fell when Iceland, along with several Scandinavian countries, stopped using its vaccine among young people.
In the meantime, upstart (UPST) is a stock worth watching as it forms a rare, extremely strong pattern. Energy stocks did well with Apache’s parent company WHAT (APA) pass a buy point and EOG resources (EOG) back into a buy zone. Chevron (CVX) was the top blue chip.
Jobs Report Hits Stocks
The stock market was hit after the latest job report fell well below expectations. The economy created 194,000 jobs in September, well below the consensus estimate of 475,000.
August salary growth increased from 235,000 to 366,000. The unemployment rate fell from 5.1% to 4.8%.
Oanda analyst Edward Moya said it was a “complex” job report that could affect Federal Reserve policies.
“This report further solidifies the Fed’s view that tapering does not start the countdown to rate hikes,” he said in a statement to clients. “The dollar was initially sold after the poor salary report, but quickly made up for most of its losses. If the report also shows a similarly slow hiring pace for the next month, Wall Street could become more skeptical about rate hikes coming late next year. “
Nasdaq lags; Slammed growth stocks
The Nasdaq lagged the other major indices and closed near the daily lows. In the end it fell 0.5%. The S&P 500 briefly reached positive territory, but ended up closing 0.2% down.
Overview of the US stock market today
|index||symbol||price||Gain loss||% Change|
|S&P 500||(0S & P5)||4391.42||-8.34||-0.19|
Last update: 4:02 p.m. ET 08.10.2021
The sectors of the S&P 500 closed mostly negative, only energy and financial stocks made progress. Utilities and real estate were the worst laggards.
Small caps fell again and were sold to the end. The Russell 2000 lost 0.8%.
But it was growth stocks that got the worst of the bears.
The innovator IBD 50 ETF (FFTY) closed 1.4%.
Dow Jones Fights; Chevron stocks
The Dow Jones Industrial Average performed best among the major indices. However, one rally weakened towards the end and ended the day practically flat.
Chevron performed best on the Dow Jones today. The strength of the energy sector helped the large increase in oil prices to a plus of just over 2%.
The stock is back above its 50-day moving average and is targeting a consolidation entry point of 113.21 according to MarketSmith analysis.
Merck (MRK) was the weakest Dow Jones laggard with a minus of 1.6%.
Market rally, top 5 stocks at tipping point
Modern stock hit with vaccine freeze
Moderna stock struggled after it emerged that Iceland would be the last Scandinavian country to stop selling its vaccine to young people.
Finland, Denmark and Sweden are also restricting the use of Moderna’s Covid-19 vaccine in young people amid concerns about cardiovascular side effects.
Finland’s National Health Authority will end the use of Moderna’s vaccine for all men under 30 years of age.
You will be offered the vaccine by Pfizer (PFE) and BioNTech (BNTX) instead.
The vaccine will be discontinued in people born in Sweden in 1991 or later. Denmark stops shooting anyone under the age of 18.
Moderna stock ended the day with no lows but was still down about 1.4%. Pfizer stock fell 0.7% while BNTX stock was down 0.3%.
Tesla shares collapse after Elon Musk moves headquarters
Tesla shares fell Friday after CEO Elon Musk told investors that the company’s headquarters are moving from Palo Alto, California to Austin, Texas.
He also said that he believes the worst of the parts supply crisis, especially the chip shortage, will be over by 2023.
The stock received a boost on Thursday after Musk tweeted an update on the launch of the latest edition of Tesla’s complete driver assistance software for self-driving.
“FSD Beta 10.2 will roll out Friday at midnight for ~ 1000 owners with perfect 100/100 safety scores,” he said. “The rollouts will take a few days after that to see how things go.”
Musk also said that if this “looks good,” the beta will gradually be rolled out to owners with scores of 99 and below.
The leaderboard stock ended the session down 1% but remains in the potential buy zone from a handle entry of 764.55.
Old auto stocks did better. General Motors (GM) rose 3.8% on an upgrade while ford (F) gained 1.5%.
Energy stocks on the up
Energy stocks returned strong gains on Friday with a few entering actionable areas.
Apache parent APA is in a buy zone after breaking out of a mug with a handle. The ideal buy point here is 23.88.
The relative strength line has seen strong gains since the end of August, which is a plus. In terms of price development over the past 12 months, the stock is among the top 8% of stocks.
EOG Resources is back in a buy zone, having previously passed a base cup entry of 88.09. The company was named “Apple (AAPL) of oil “for its use of technology to support operations since it split from Enron in 1999.
Stock forms rare pattern
Borrowing platform stocks Upstart is worth putting on your watchlist as it forms a rare pattern that can result in huge profits.
The stock has held up gains well since breaking out of a cup basis in August. Additionally, it has rebounded about 100% since the Aug 11 rally.
This gives the weekly chart the appearance of a tall, narrow flag. This is a rare, strong pattern that can lead to rich wins.
His impressive performance earned him a place on the Leaders Watchlist. Using its recent high as a potential entry, it offers a buy point of 346.64.
This type of base has resulted in massive profits for executives like in the past Qualcomm (QCOM) and Taser International now Axon company (AXON). Note, however, that successful flag patterns are rare.
Upstart uses artificial intelligence to improve access to “affordable credit” for customers. It also claims to reduce the risks and costs of lending for banking partners.
Please follow Michael Larkin on Twitter at @IBD_MLarkin for more on growth stocks and analysis.
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