The Dow Jones Industrial Average briefly fell 90 points Friday but turned higher, as U.S. hiring slowed in September. Tesla stock skidded in morning trade.
Tesla (TSLA) declined over 1% Friday morning, but is still just above its latest buy point.
Dow Jones Today: September Jobs Report
Early Friday, the Dow Jones Industrial Average edged up 0.1%, while S&P 500 rose 0.2%. The tech-heavy Nasdaq composite rose less than 0.2% in morning action.
Ahead of the market open Friday, the Labor Department said the U.S. economy added only 194,000 jobs in September, badly missing Econoday consensus estimates for growth of 475,000 jobs. Still, the unemployment rate fell to 4.8%.
Stock Market Rally Attempt
The Nasdaq and S&P 500 continue to rebound from Monday’s correction lows. On Monday, the Nasdaq closed at its lowest level since June 22, but it has since rallied. Meanwhile, the Dow Jones Industrial Average is testing its key 50-day line.
U.S. Stock Market Today Overview
Last Update: 10:20 AM ET 10/8/2021
On Thursday, The Big Picture commented, “The Nasdaq and S&P 500 soon may be testing their 50-day moving averages as they continue to rebound from Monday’s correction lows. Meanwhile, the Dow is already testing, but unable to claim, its own 50-day line. That’s a possible sign of resistance, and the way indexes pared gains also took away from an otherwise bullish session.”
Dow Jones Stocks To Watch: American Express, Merck
Dow Jones leaders American Express and Merck are blue chip stocks to watch in today’s stock market action.
American Express is approaching a 178.90 buy point in a cup with handle, according to IBD MarketSmith chart analysis. Shares rallied more than 1% early Friday, and are about 2% away from the new entry.
Merck threatened to give back a part of Thursday’s 1.6% gain, falling almost 1% Friday. Last week, Merck said its Covid pill reduced the risk of hospitalization by half in a final-phase study, sparking an 8.4% surge and a breakout past a 79.33 buy point in a flat base.
A potential flaw is the stock’s weak 75 IBD Composite Rating.
Stocks To Watch: AMD, Netflix, Palo Alto
IBD Leaderboard stock Advanced Micro Devices threatened to fall after Thursday’s 2.7% rally, moving down 0.5% Friday. Shares are trying to regain their 50-day line. On Leaderboard, AMD exposure was raised after the stock moved above a trend line entry. AMD is also forming a cup-type base.
FANG stock leader Netflix traded just off new highs Friday morning in the wake of Thursday’s 1.1% decline. Shares rallied 1% in early trade. NFLX stock is outside the 5% buy zone past a 593.39 entry point in a consolidation amid the recent global success of its series “Squid Game.”
IBD SwingTrader stock Palo Alto Networks is trying to clear a 496.02 entry in a short consolidation. Shares rallied 0.6%, and are just above the new buy trigger. Bullishly, the stock’s relative strength line hit a new high Thursday, reaffirming the stock’s leadership status.
Tesla stock slid over 1% Friday morning, falling after Thursday’s 1.4% gain and threatening to snap a two-day win streak. TSLA shares are still above a 764.55 buy point in a cup with handle. The stock closed Thursday about 12% below its record high.
CEO Elon Musk said Thursday that Tesla will move its headquarters from Palo Alto, Calif., to Austin, Texas. He also gave comments on supply shortages and the company’s self-driving software updates.
Dow Jones Leaders: Apple, Microsoft
Among the top Dow Jones stocks, Apple moved up 0.3% early Friday, on pace to extend a win streak to four sessions. The stock is still well below the 50-day line.
Software giant Microsoft rose 0.5%, as the stock tries to move above its 50-day line. A decisive retake of this level would be bullish for the stock’s prospects. Meanwhile, a new flat base is forming with a 305.94 buy point.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
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