Futures Rise; Why The Market Rally Is So Strong

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Investor's Business Daily 06 September, 2021 - 06:24pm 35 views

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Dow Jones futures rose modestly Monday afternoon, along with S&P 500 futures and Nasdaq futures, after U.S. markets were closed for Labor Day. The stock market rally had another solid week, with growth and small-cap stocks leading once again. The S&P 500 index and Nasdaq composite hit record highs.

Negative Tesla (TSLA) headlines are building up on expanding crash probes and product delays, but Tesla stock held its buy point Friday.

PayPal (PYPL), Amazon.com (AMZN), Lululemon Athletica (LULU), Nike (NKE) and Applied Materials (AMAT) are all finding support near their 50-day moving averages, offering potential buying opportunities.

Tesla stock and PayPal are on IBD Leaderboard. PayPal stock also is on IBD Long-Term Leaders.

The video embedded in this article analyzes DocuSign (DOCU), PayPal and Lululemon stock.

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Ryanair (RYAAY), Boeing's top non-U.S. customer, said it is walking away from talks with the Dow Jones aerospace giant over a potential new 737 Max order over pricing. Meanwhile, 787 Dreamliner deliveries will likely remain halted until at least late October Boeing (BA) has been unable to persuade FAA to approve its proposal to inspect the aircraft, the Wall Street Journal reported, citing sources.

In S&P index news, Match Group (MTCH), Ceridian (CDAY) and Brown & Brown (BRO) will move from the S&P MidCap 400 to the S&P 500 before the open on Monday, Sept. 20. Tandem Diabetes (TNDM) will be added to the S&P MidCap 400. Meanwhile, Microstrategy (MSTR) is being dropped from the S&P SmallCap 600.

Dow Jones futures rose 0.1% vs. fair value. S&P 500 futures advanced 0.1% and Nasdaq 100 futures climbed 0.15%.

Dow Jones futures are trading normally, but U.S. stock exchanges were closed Monday for the Labor Day holiday.

Goldman Sachs cut its 2021 GDP growth forecast for the second time in less than a month. It now sees 5.7% growth for the full year after cutting its target to 6% on Aug. 18 from 6.4%.

Remember that overnight action in Dow futures and elsewhere doesn't necessarily translate into actual trading in the next regular stock market session.

Coronavirus cases worldwide reached 221.95 million. Covid-19 deaths topped 4.58 million.

Coronavirus cases in the U.S. have hit 40.86 million, with deaths above 666,000.

New U.S. cases have leveled off in the past few days, as the wave shifts from many Southern states to further north and west.

The stock market rally had another positive week, even though the major indexes were technically mixed.

The Dow Jones Industrial Average dipped 0.2% in last week's stock market trading. The S&P 500 index edged up 0.6%. The Nasdaq composite climbed 1.5% after jumping 2.8% in the prior week. The small-cap Russell 2000 gained 0.7% after surging just over 5% in the week before.

But it was among growth stocks that the market rally really shined. The Innovator IBD 50 ETF (FFTY) popped 5.4% to a record high, clearing a long consolidation after running nearly 6% in the prior week. The Innovator IBD Breakout Opportunities ETF (BOUT) gained 1.7% last week.

The iShares Expanded Tech-Software Sector ETF (IGV) advanced 1%. The VanEck Vectors Semiconductor ETF (SMH) climbed 0.5%.

Reflecting more-speculative story stocks, ARK Innovation ETF (ARKK) rallied 2.5% and ARK Genomics ETF (ARKG) 2.8%. ARKK moved above its 50-day and 200-day lines while ARKG reclaimed its 50-day. Tesla stock is the No. 1 holding across ARK Invest ETFs.

SPDR S&P Metals & Mining ETF (XME) eked out a 0.3% gain, though many steelmakers had rough weeks. The Global X U.S. Infrastructure Development ETF (PAVE) retreated 1.7%. U.S. Global Jets ETF (JETS) sank 2.2%. SPDR S&P Homebuilders ETF (XHB) edged down 0.4%. The Energy Select SPDR ETF (XLE) retreated 1.4% and the Financial Select SPDR ETF (XLF) 2.3%

Tesla CEO Elon Musk confirmed last week that the long-awaited Roadster will be pushed back, again, to at least 2023. Thursday night, Musk reportedly said that the Tesla Cybertruck won't be out until late 2022, with volume production not until late 2023. Those delays strongly suggest 4680 battery cells won't be ready for at least a year as well. The 4680 batteries, assuming they live up to Musk's promises, are key to making the Roadster, Cybertruck and Semi vehicles viable.

So in 2022, Tesla will have two new plants, but no new products or big new markets. It also means that the Cybertruck will enter the market after the Rivian R1T, the GM Hummer and Ford F-150 Lightning.

Meanwhile, Tesla Autopilot probes expanded.  The National Highway Traffic Safety Administration issued a letter to Tesla, demand a wealth of data as part of its probe of 12 Tesla Autopilot crashes into first responder vehicles parked on the side of roads.  Safety regulators also will probe a Tesla crash in New York killing a person changing a tire.

So, Tesla Inc. faced a bumpy road. But Tesla stock? Shares rose 3% to 733.57, just above an aggressive 730 buy point. Tesla stock moved into a buy zone Monday with a 2.7% gain. After the Cybertruck delay news, TSLA stock dipped below the 730 level, hitting 724.20 intraday but rallied for a 0.2% gain after ARK Invest's Cathie Wood reiterated her $3,000 price target.

More broadly, Tesla stock has been finding support at its rising 200-day line since mid-May. While it isn't a market leader right now, it's been slightly outpacing the S&P 500 index for the last several months.

Amazon stock popped 3.8% to 3,478.05 last week after a 4.7% jump in the prior week. AMZN stock has now reclaimed its 50-day line as builds the right side of a new base with a 3,773.18 buy point, according to MarketSmith analysis. Shares have been rangebound for at least the past year.

A rebound from the 50-day line would offer a buying opportunity, using Wednesday's high of 3,527 as an entry.

Applied Materials stock dipped 0.5% last week to 135.83, but did rise 1% Friday to end the week a fraction above its 50-day line. That also follows a 7.35% spike in the prior week. A rebound from the 50-day line would offer an early entry for AMAT stock, using handle-like mini-consolidation high of 137.89 as an entry.

Applied Materials stock had flirted with buy points at the start of August, but then sold off hard as memory chip demand concerns weighed on memory-exposed semiconductor plays.

Fellow chip-equipment makers Lam Research (LRCX) and Entegris (ENTG) also are showing similar chart patterns to AMAT stock.

PayPal stock has bounced back following mixed results in late July, rising 3.9% to 289.13 last week, regaining its 50-day line. PYPL stock formed a new flat base with a 310.26 buy point. A strong move from current levels could offer an early entry or a good place to start or add a position as a Long-Term Leader. Investors could use 292.65, Tuesday's high as the entry point.

LULU stock had a rough week, falling 4.35% to 388.83, closing slightly below its 50-day and 10-week lines. The reversal from record highs came on higher volume, not a good sign. A lot of retailers have struggled recently, with Covid revival taking a toll. A rebound from the 50-day line could provide an entry – but investors should wait until after Wednesday night's earnings.

Nike stock has pulled back to the 50-day line after a huge earnings gap on June 25 and solid gains into early August. Shares fell 2.6% to 163.29. It was the fourth straight weekly decline for NKE stock, but the retreat came on lighter volume.

Nike stock could move on Lululemon earnings, though it hasn't reacted much to apparel, shoe or sporting goods retailers or makers. Nike earnings are due later this month.

The market rally had another solid week, with Apple, growth stocks and small caps leading the way. Much of the gains came on Monday, with Apple's surge. But growth stocks were strong all week. The Russell 2000 had another strong week, as market breadth showed significant improvement. The Dow fell slightly.

The real strength has been in growth stocks. The FFTY index has had two strong back-to-back gains to record highs after months of choppy action. For growth investors, the past several months have had a lot of ups and downs, with stocks luring traders in and shaking them out.

Not only have growth stocks been in favor, but the trend has continued for more than two weeks, which is actually saying something for 2021.

Think of a stock market rally as a loaf of bread. The "heels" of a rally aren't much fun. Picking the market bottom and top is essentially impossible, so you have to make your bread from the rest of the loaf.

If the broader market or specific sector only trends higher for a few days — you're not going to capture all of that gain — then it's very hard to make headway. But having a sustained run, even for a couple of weeks, makes it's  so much easier. It's the difference between having one piece of bread between the heels or several slices.

Growth stocks have been looking great. Investors hopefully added exposure to tech and growth names over the past two weeks or so. A lot of these stocks are now extended, though many names like PayPal, Amazon or AMAT stock are trying to rebound from 50-day lines. Tesla stock is still at a buy point.

It wouldn't be surprising if growth stocks overall pause for a time. So keep a close eye on housing, financial and commodity-related plays hovering near buy points. Look for early entries to protect yourself against sector or market pullbacks.

Review your portfolio. Do you have laggards weighing on your portfolios. Do you take some profits in big recent winners or let them ride?

Read The Big Picture every day to stay in sync with the market direction and leading stocks and sectors.

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Tech drives Nasdaq to record finish but Wall Street mixed on jobs report

Yahoo News Canada 06 September, 2021 - 08:40pm

For the Nasdaq though, registering a fifth win in the last six sessions and a weekly gain of 1.6%, investors’ support of heavyweight technology stocks – which tend to perform better in a low interest-rate environment – continues to drive it higher.

Apple, Alphabet, and Facebook all rose between 0.3% and 0.4%.

“Tech has become bullet-proof,” said Mike Mullaney, director of global market research at Boston Partners.

“It’s the anti-COVID sector, where you want to be if you think COVID or a lack of growth is going to be an issue.”

The virus, and its impact on the pace of economic recovery, was evident in the Labor Department’s closely-watched report which showed nonfarm payrolls increased by 235,000 jobs in August, widely missing economists’ estimate of 750,000. Payrolls had surged 1.05 million in July.

“The number’s a big disappointment and it’s clear the Delta variant had a negative impact on the labor economy this summer,” said Michael Arone, chief investment strategist at State Street Global Advisors in Boston.

“You can tell because leisure and hospitality didn’t add any jobs and retail actually lost jobs. Investors will conclude that perhaps this will put the (Federal Reserve) further on hold in terms of the timing of tapering. Markets may be okay with that.”

The S&P 500 and the Nasdaq had scaled all-time highs over the past few weeks on support from robust corporate earnings, but investors have remained generally cautious as they watch economic indicators and the jump in U.S. infections to see how that might influence the Fed and its tapering plans.

The labor market remains the key touchstone for the Fed, with Chair Jerome Powell hinting last week that reaching full employment was a pre-requisite for the central bank to start paring back its asset purchases.

Among the biggest decliners on the S&P 500 were cruise ship operators, whose businesses are highly susceptible to consumer sentiment around travel and COVID-19. Norwegian Cruise Line Holdings, Carnival Corp and Royal Caribbean Cruises all fell between 3.4% and 4.4%.

A majority of the 11 S&P sectors closed down, with the utilities index the worst performer at 0.8% lower. Economically-sensitive manufacturing and industrials slipped 0.7% and 0.6% respectively.

Banking stocks, which generally perform better when bond yields are higher, dropped 0.4% even as the benchmark 10-year Treasury yield jumped following the report. [US/]

“I get the overall market reaction, because it feels a little bit like pricing in a potential policy error from the Fed, but I don’t understand some of the sectors’ reactions today,” said Boston Partners’ Mullaney.

Despite a Labor report number well outside the consensus estimate, the overall reaction of investors was muted, continuing a trend over the last year of a decoupling of significant S&P movement in the wake of a wide miss on the payrolls report.

The S&P 500 lost 1.52 points, or 0.03%, to 4,535.43 and the Dow Jones Industrial Average fell 74.73 points, or 0.21%, to 35,369.09. The Nasdaq Composite added 32.34 points, or 0.21%, to 15,363.52.

For the week, the S&P rose 0.6% and the Dow dipped 0.2%.

Volume on U.S. exchanges was 8.37 billion shares, compared with the 8.99 billion average for the full session over the last 20 trading days.

The S&P 500 posted 50 new 52-week highs and one new low; the Nasdaq Composite recorded 123 new highs and 21 new lows.

For a look at all of today’s economic events, check out our economic calendar.

(Reporting by Shashank Nayar in Bengaluru and Stephen Culp and David French in New York; Editing by Arun Koyyur and Marguerita Choy)

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Stocks end mostly lower even as tech drives Nasdaq higher

The Detroit News 06 September, 2021 - 08:40pm

Stock indexes’ uneven finish followed a government report showing that U.S. employers created far fewer jobs than expected last month. The report led investors to question whether the delta variant is starting to impact economic growth.

“Investors are saying, ‘looks like this transition from reopening to a reopened economy is going to take a little bit longer,’” said Tom Hainlin, national investment strategist at U.S. Bank Wealth Management.

The indexes’ moves were mostly muted ahead of a long holiday weekend. U.S. stock markets will be closed Monday for Labor Day.

Investors focused Friday on a key barometer of economic health: the Labor Department’s monthly snapshot of hiring by nonfarm companies. The report found that America’s employers added just 235,000 jobs in August, a surprisingly weak gain after two months of robust hiring, at a time when the coronavirus’ highly contagious delta variant’s spread has discouraged some people from flying, shopping and eating out.

Travel companies took some of the heaviest losses. Carnival Corp. slid 4.4% for the biggest decline in the S&P 500. Rival Royal Caribbean fell 4.2%. Las Vegas Sands, Marriott International and Wynn Resorts also fell.

Friday’s weak jobs report could actually benefit stock investors over the longer run. The Federal Reserve has indicated it might begin winding down its bond purchases of $120 billion a month that pump money into the financial system until they have more data that the U.S. recovery is on solid footing. The report may help prompt Fed policymakers to delay those plans.

Bond yields moved higher. The yield on the 10-year Treasury note rose to 1.32% from 1.30% the day before.

Dow Jones Today, Futures Hover Ahead Of August Payrolls; Broadcom Eyes Breakout; Celsius, Matson In Buy

Todayuknews 06 September, 2021 - 08:40pm

Dow Jones futures tacked on a 0.1% gain. S&P 500 futures rose 0.2% above fair value, boosted by rising oil prices. Nasdaq 100 futures showed a 0.1% gain.

Premarket leadership was a bit random, with Autodesk (ADSK) atop the Nasdaq 100 as buyers moved in after four days of steep losses. Occidental Petroleum (OXY) headed the S&P 500, riding the post-Hurricane Ida fluctuations in oil price.

Earnings news sent MongoDB (MDB) and PagerDuty (PD) soaring 14% apiece, and Guidewire Software (GWRE) to a 5.5% gain. Chip giant Broadcom (AVGO) rose 0.6% after making hash of analysts’ fiscal third-quarter forecasts. The chipmaker ended Thursday just below a 495.24 buy point in a shallow, 26-week consolidation.

Upstart Holdings (UPST) ran ahead of the IBD 50 list, up 2.3%, after already racking up a 7.5% gain for the week through Thursday. Steelmaker Cleveland Cliffs (CLF) rallied 1%, as it looks to add a third day to its rebound from its 50-day line.  The stock triggered the automatic sell rule on Wednesday, by falling more than 8% below a cup-base buy point.

Apple (AAPL) and Visa (V) staked out early leads on the Dow Jones today. The premarket landscape often, not always, changes rapidly following payrolls reports.

Visa dived to a test of its 200-day line on Thursday, and will be under a microscope along with other financials after the August payrolls report. JPMorgan Chase (JPM) is trading narrowly below a 162.47 buy point in a cup-with-handle base. American Express (AXP) is attempting to start up the right side of a six-week flat base.

The Labor Department’s August payrolls report is due out at 8:30 a.m. ET. After a couple of months in which jobs growth topped 900,000, economists are targeting a gain below 750,000 in August. That is still a big number, but if growth undercut that target it would signal a sharper-than-expected slowdown in labor demand.

The timing here is particularly crucial. Analysts suspect a shortfall could be linked to impact from the rising numbers of coronavirus infections caused by the delta strain. With the economy heading toward the holiday shopping season, a potential fall-off in consumer spending and demand would force some sharp revisions in forecasts.

Oil futures continued higher, as most major Gulf Coast ports had reopened but with the Department of Energy reporting that more than 80% of oil production in the Gulf of Mexico remained off line following Hurricane Ida. Refiners reported restarts taking longer than expected due to flooding in the wake of the storm. Producers had shut in 91% of oil production ahead of the hurricane, and stockpiles remain well above long-term averages. West Texas Intermediate rose 0.4% Friday, trading above $70 a barrel. Oil prices soared 10% last week and are up 1.8% for the week through Thursday. In early July, WTI hit $76.98, the highest level in almost seven years.

Bitcoin held steady, trading just below $50,000, according to CoinDesk. Over the past 24 hours, the cryptocurrency moved as high as $50,374, and as low as $48,356.

Bond yields edged narrowly higher, with the 10-year Treasury yield at 1.30%, after settling on Thursday around 1.29%. Yields have spent the week bunched up in a knot of converged technical gauges — above the 21-day average and below the 50-day line. The August payrolls report could potentially break that log jam.

China’s markets fell hard on Friday, snapping a five-day rally in Shanghai and ending Hong Kong’s four-day advance. President Xi Jinping announced late Thursday plans to create a new stock exchange in Beijing, but gave no timeline. The Shanghai Composite dropped 0.4%. Hong Kong’s Hang Seng shed 0.7%. That left the Shanghai benchmark up 1.8% for the week. The Hang Seng has a 1.9% gain.

Among China-based ETFs, the iShares MSCI China ETF (MCHI) dipped 0.6% in early trade Friday, after ending Thursday up 4.5% for the week. The Xtrackers Harvest CSI 300 China A-Shares ETF (ASHR) was unchanged in premarket trade, rising 0.6% through Thursday. The KraneShares CSI China Internet ETF (KWEB) dropped 0.9% in premarket trade, and is sitting on a 9.4% gain through Thursday.

Europe’s markets were mixed as investors eyed U.S. payrolls report. Frankfurt’s DAX was ahead 0.1% near midday, while London’s FTSE 100 added 0.2%. The CAC-40 in Paris slipped 0.4%. The SPDR Portfolio Europe ETF (SPEU) was inactive, but up 0.9% through Thursday. The fund continues to trade a fraction below a 44.06 entry in what IBD MarketSmith analysis marks as an 11-week flat base.

Chipotle Mexican Grill (CMG) is pulling back slightly after a powerful six-week advance. Shares closed Thursday just below a 1,912.85 buy point. The buy point is in a four-weeks-tight pattern, a more bullish variation of a three-weeks-tight setup. The buy range extends to 2,008.49.

Facebook (FB) retreated almost 2% in rising trade on Thursday. That backed the stock out of a buy range, leaving it below a 377.65 buy point. The buy zone extends through 396.53.

Celsius Holding (CELH) is making a strong move this week, with a five-day advance giving the stock a 13.5% gain through Thursday. The IBD 50 stock is in a buy range above an 83.10 buy point. The buy zone tops out at 87.26.

Shipping giant Matson (MATX) recovered nicely after a brief slip early in the week. Shares gained nearly 3% Thursday in soft trade, rising further above a 79.15 entry in what IBD MarketSmith analysis charts as a 27-week cup base. The buy zone extends to 83.11.

The Dow Jones today is nursing a fractional decline for the week through Thursday. The S&P 500 is up 0.6%. The Nasdaq Composite has a 1.3% gain. The Nasdaq and S&P 500 continue to rattle off new highs. The Dow is sitting nicely above its 21-day moving average, but still jammed up below its Aug. 16 high, ending Thursday 0.5% off that peak.

The SPDR Dow Jones Industrial Average ETF Trust (DIA) remains in a buy zone through 366.19. The leveraged ProShares UltraPro Dow30 (UDOW) is also in a buy range, through 80.83, above what MarketSmith chart analysis plots as a flat base buy point at 76.99.

Small caps entered September a little uneven, with the Russell 2000 rising 1.2% for the week through Thursday, while the S&P Smallcap 600 managed only a 0.2% advance.

Growth stocks have seized the initiative for the week. The Innovator IBD 50 ETF (FFTY) clocked a 4.2% gain for the week through Thursday. That put the fund up 22% from a late-July low, and pennies below a 28-week cup base buy point at 50.06. A strong portion of that action has come from growth stocks that were already extended.

The Innovator IBD Breakout Opportunities ETF (BOUT) posted a 1.3% gain for the week, as it continues climbing the right side of its 29-week base. The iShares Russell 1000 Growth ETF (IWF) gained 1%, and is rising in a buy range above a shelf pattern buy point through 298.75.

Find Alan R. Elliott on Twitter @IBD_Aelliott

Stocks fall, bond yields rise after weak August jobs report

goskagit.com 06 September, 2021 - 08:40pm

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The S&P 500 fell less than 0.1% a day after notching a record high. The benchmark index still managed its second straight weekly gain. Losses in financial, industrial and utilities companies outweighed gains in technology stocks and other sectors of the S&P 500. Energy prices mostly fell. Gold and silver rose. Treasury yields were mixed.

Stock indexes' uneven finish followed a government report showing that U.S. employers created far fewer jobs than expected last month. The report led investors to question whether the delta variant is starting to impact economic growth.

“Investors are saying, ‘looks like this transition from reopening to a reopened economy is going to take a little bit longer,’” said Tom Hainlin, national investment strategist at U.S. Bank Wealth Management.

The S&P 500 slipped 1.52 points to 4,535.43. The Dow Jones Industrial Average fell 74.73 points, or 0.2%, to 35,369.09. The Nasdaq composite rose 32.34 points, or 0.2%, to 15,363.52, its third straight gain. The technology-heavy index also posted a weekly gain.

The indexes’ moves were mostly muted ahead of a long holiday weekend. U.S. stock markets will be closed Monday for Labor Day.

Investors focused Friday on a key barometer of economic health: the Labor Department's monthly snapshot of hiring by nonfarm companies. The report found that America’s employers added just 235,000 jobs in August, a surprisingly weak gain after two months of robust hiring, at a time when the coronavirus' highly contagious delta variant’s spread has discouraged some people from flying, shopping and eating out.

The August job gains fell far short of the big gains in June and July of roughly 1 million a month. Those gains followed widespread vaccinations that allowed the easing of many pandemic restrictions.

Technology stocks did particularly well last year during the pandemic, so it was unsurprising to see traders move back into those investments again. Broadcom and NetApp each rose 1% or more.

Travel companies took some of the heaviest losses. Carnival Corp. slid 4.4% for the biggest decline in the S&P 500. Rival Royal Caribbean fell 4.2%. Las Vegas Sands, Marriott International and Wynn Resorts also fell.

Friday's weak jobs report could actually benefit stock investors over the longer run. The Federal Reserve has indicated it might begin winding down its bond purchases of $120 billion a month that pump money into the financial system until they have more data that the U.S. recovery is on solid footing. The report may help prompt Fed policymakers to delay those plans.

Bond yields moved higher. The yield on the 10-year Treasury note rose to 1.32% from 1.30% the day before.

Copyright 2021 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed without permission.

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Why The Market Rally Is So Strong; 5 Stocks Near Buys

News Nation USA 06 September, 2021 - 08:40pm

Stock indexes’ uneven finish followed a government report showing that U.S. employers created far fewer jobs than expected last month. The report led investors to question whether the delta variant is starting to impact economic growth.

“Investors are saying, ‘looks like this transition from reopening to a reopened economy is going to take a little bit longer,’” said Tom Hainlin, national investment strategist at U.S. Bank Wealth Management.

The indexes’ moves were mostly muted ahead of a long holiday weekend. U.S. stock markets will be closed Monday for Labor Day.

Investors focused Friday on a key barometer of economic health: the Labor Department’s monthly snapshot of hiring by nonfarm companies. The report found that America’s employers added just 235,000 jobs in August, a surprisingly weak gain after two months of robust hiring, at a time when the coronavirus’ highly contagious delta variant’s spread has discouraged some people from flying, shopping and eating out.

Travel companies took some of the heaviest losses. Carnival Corp. slid 4.4% for the biggest decline in the S&P 500. Rival Royal Caribbean fell 4.2%. Las Vegas Sands, Marriott International and Wynn Resorts also fell.

Friday’s weak jobs report could actually benefit stock investors over the longer run. The Federal Reserve has indicated it might begin winding down its bond purchases of $120 billion a month that pump money into the financial system until they have more data that the U.S. recovery is on solid footing. The report may help prompt Fed policymakers to delay those plans.

Bond yields moved higher. The yield on the 10-year Treasury note rose to 1.32% from 1.30% the day before.

Nasdaq ticks to record despite jobs miss

Fox Business 03 September, 2021 - 06:40am

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FOX Business' Cheryl Casone breaks down the August jobs report.

U.S. stock indexes finished mixed Friday, with the Nasdaq closing at an all-time high, after the August jobs report fell short of estimates. 

The Dow Jones Industrial Average declined 74 points, or 0.21%, while the S&P 500 index slipped 0.03% and the Nasdaq Composite index edged higher by 0.21% to post its third straight record close.  

The August nonfarm payroll report showed the U.S. economy added just 235,000 jobs, less than the 728,000 estimate. The unemployment rate fell to 5.2%. 

In stocks, banks were mixed as the 10-year yield responded to the jobs report by climbing 3 basis points to 1.32%, swinging the yield curve slightly steeper.

Elsewhere, Apple Inc closed at an all-time high while Facebook Inc. and Alphabet Inc. finished just below their own peaks. 

In deals, the merger between chipmakers Western Digital Corp. and Japan’s Kioxia is on track to receive regulatory approval from Tokyo as long as key technology stays in Japan, Reuters reports, citing two sources with knowledge of the industry regulator’s internal discussions.

Meanwhile, a Bloomberg report said the city of Beijing is considering a plan to take ride-sharing giant Didi Global Inc. under state control.   

In commodities, West Texas Intermediate crude oil lost 70 cents to $69.29 a barrel and gold climbed $24.90 to $1,833.60 an ounce.

European bourses were weaker across the board with Britain’s FTSE 100 slipping 0.46%, Germany's DAX 30 declining 0.37% and France’s CAC 40 sliding 1.08%. 

In Asia, Japan’s Nikkei 225 surged 2.05% after Prime Minister Yoshihide Suga said he would not run in his party’s leadership election. Elsewhere, in the region, Hong Kong’s Hang Seng index lost 0.762%, China’s Shanghai Composite fell 0.43% 

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Wall Street Opens Lower After Jobs Disappointment; Dow Down 120 Pts By Investing.com

Investing.com 03 September, 2021 - 12:00am

Investing.com -- U.S. stock markets opened slightly lower on Friday in response to a hugely disappointing labor market report for August, which showed job creation at its slowest rate in six months. 

The Labor Department said nonfarm payrolls expanded by only 235,000 through the middle of the month, missing consensus forecasts by over half a million. The upward revision of July's data to show an extra 100,000 jobs gained was scant consolation.

By 9:40 AM ET (1340 GMT), the Dow Jones Industrial Average was down 123 points, or 0.3%, at 35,323 points. The S&P 500 was up 0.2% and the Nasdaq Composite was down 0.1%. The latter two indices are still on course for yet another weekly gain, however.

The market appeared unsettled by hints of stagflation in the report, as the spread of Covid-19 puts the brakes on growth while wages continued to grow above expectations. Average hourly earnings growth accelerated to 0.6% from 0.4% in July. Analysts had expected earnings growth to moderate to 0.3%. However, that development appeared due more than anything to the lack of low-paying service jobs created in the leisure and hospitality sectors, which brought average earnings up.

While the Covid-19 infection curve has started to flatten in recent days, the average number of deaths hit its highest since March over the last seven days. Hiring in the leisure and hospitality sector ground to a halt in August as a result, while the retail sector shed a net 28,000 jobs, reversing some of the gains since the economy began reopening in the spring.

Among individual movers, Apple (NASDAQ:AAPL) stock drifted down 0.1% after saying it would delay the rollout of new features in its iOS operating system to help root out child sexual abuse material. The new tools had been criticised by privacy groups and others. 

Virgin Galactic (NYSE:SPCE) stock fel 4.7% after the Federal Aviation Administration grounded its planes while it investigates alleged violations of safety protocols during its debut commercial flight earlier in the summer.

Didi Global (NYSE:DIDI) ADRs rose over 8% after Bloomberg reported that the city of Beijing is considering taking the company under state control, in ways that may or may not affect the ride-hailing share count but will very probably affect its governance. The move reflected expectations that the government would at least partially compensate sharerholders who have lost money since the company's IPO in July. The stock is still down over 30% from its IPO price.

Also gaining was Broadcom (NASDAQ:AVGO) stock, which rose 1.6% after the chipmaker said it didn't expect the pandemic trends that have accelerated demand for its semiconductors to ease off any time soon. DocuSign (NASDAQ:DOCU) stock, which has been supported by some of the same trends in recent months, also gained 6.1% after it, too, reported better-than-expected quarterly earnings. 

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