Stocks rallied Friday despite a disappointing jobs report, with the Dow Jones Industrial Average at a new high and on pace to extend its win streak to five.
The Nasdaq rallied 1.3%, the S&P 500 rose 0.8% and the Dow Jones industrials added 0.5% in today’s stock market. Small caps tracked by the Russell 2000 gained 1%. Volume was lower on both major exchanges vs. the same time Thursday.
Early Friday, the Labor Department said nonfarm payrolls increased by 266,000 in April, well below the 938,000 projected by economists. The unemployment rate rose to 6.1% last month, above expectations for a dip to 5.8%.
The 10-year Treasury yield dived as low as 1.47% in the wake of the weak jobs report, before cutting losses. It was trading around 1.54% midday Friday, after settling at 1.55% on Thursday.
Tech stocks, hit hard earlier in the week, are rebounding. Last year, tech stocks boosted the Nasdaq to a 43.6% gain — its fifth-best year ever. The S&P 500 rose 16.3% in 2020 and the Dow added 7.2%. After a strong start this year and a short correction, the market has rebounded near record highs.
U.S. Stock Market Today Overview
Last Update: 12:10 PM ET 5/7/2021
Read The Big Picture for more detailed daily market analysis.
The U.S. economy is trying to recover from the Covid-19 pandemic, which triggered nationwide lockdowns over a year ago. But many states are relaxing restrictions, and cases are plateauing or declining in some states as vaccinations roll out.
Cumulative Covid-19 cases worldwide are approaching 157 million, with more than 3 million deaths, according to Worldometer. In the U.S., cases have surpassed 33 million with over 594,000 deaths, although the number of new cases in the U.S. has slowed dramatically in many states.
As countries rushes to vaccinate their populace, BioNTech (BNTX) soared 7% in fast turnover, on track to halt a three-session slide. On Friday, the German biotech and partner Pfizer (PFE) asked the Food and Drug Administration for full approval of their Covid-19 vaccine. The vaccine currently has emergency use approval for people ages 16 and up.
Early Friday, Pfizer stock advanced nearly 2% before reversing to a 0.1% loss. It’s slightly below a 39.77 buy point of a cup with handle, according to MarketSmith chart analysis. Pfizer briefly cleared the entry earlier in the week, but turned south after the Biden administration signaled support for waiving patent rights protecting Covid vaccines. The goal is to help other countries make their own vaccines.
Dow Jones Winners And Losers
Nike (NKE) sprinted 4% higher in fast trade, on pace to close above its 50-day moving average for the first time since mid-March. Late Thursday, the athletic shoe and apparel giant announced a quarterly dividend of 27.5 cents a share. Nike stock has been consolidating for four months. It’s about 6% away from the 148.05 buy point.
Microsoft, up 1.7%, found support at its 50-day line on Thursday. That sets up a new chance to buy near 246, on a rebound off the 10-week moving average. Shares are also back above a 246.23 buy point of a flat base. The stock remains in potential buy range, which goes up to 258.54. Microsoft is an IBD Leaderboard and IBD Long-Term Leader stock.
Disney, also with a 1.7% gain, continues to work on a flat base with a 203.12 buy point. It’s been hitting resistance at the 50-day line for most of the past month. Disney stock is about 9% away from the entry.
The media and theme parks giant, which reopened its California parks last Friday, reports fiscal Q2 results Thursday. Analysts expect Disney to earn 27 cents a share on revenue of $15.85 billion.
Outside The Dow
Square (SQ) surged 7% in heavy trade to retake its 50-day line. It’s still building a cup with handle with a 278.23 buy point. Late Thursday, the digital payments company reported Q1 earnings and net revenue that easily beat Wall Street targets.
Cloudflare (NET) jumped 6% in heavy volume as it aims to reclaim its 50-day average. Late Thursday, the software maker reported Q1 earnings and revenue that topped analyst estimates. Its revenue guidance also came in above Wall Street targets.
On Thursday’s, Cloudflare stock dived 12% to breach its 50-day line ahead of the quarterly results.
But Monster Beverage (MNST) lost 5% in triple normal trade to gap down below its 50-day line for the first time since March. The energy drink and juice maker reported an earnings miss and warned of an industrywide shortage of aluminum cans.
Follow Nancy Gondo on Twitter at @IBD_NGondo
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