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.
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
Last Update: 4:02 PM ET 10/8/2021
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%.
Moderna Stock Hit On Vaccine Halt
Moderna stock was struggling after it emerged Iceland is the latest Scandinavian country to call a halt to giving its vaccine to young people.
Finland, Denmark and Sweden are also limiting use of Moderna’s Covid-19 vaccine in young people, amid concerns of cardiovascular side effects.
Finland’s national health authority is pausing use of Moderna’s vaccine for all males age 30 or younger.
Use of the vaccine is being halted in people born in 1991 or later in Sweden. Denmark is halting the shot in everyone under 18.
Moderna stock ended the day off lows but still fell about 1.4%. Pfizer stock fell 0.7%, while BNTX stock slipped 0.3%.
Tesla Stock Dips After Elon Musk Moves HQ
Tesla stock dipped Friday after CEO Elon Musk told investors the company’s headquarters will move to Austin, Texas, from Palo Alto, Calif.
He also said he thinks the worst of the parts supply crunch, especially chip shortages, will be over by 2023.
The stock got a boost Thursday after Musk tweeted an update on the rollout of the latest edition of Tesla’s Full Self Driving driver assist software.
“FSD Beta 10.2 rolls out Friday midnight to ~1000 owners with perfect 100/100 safety scores,” he said. “Rollouts will hold for several days after that to see how it goes.”
Musk also said that if this “looks good,” beta will gradually roll out to owners with 99 scores and below.
The Leaderboard stock finished the session down 1%, but remains in potential buy zone from a handle entry of 764.55.
Energy Stocks Power Up
Energy stocks were making strong gains again Friday, with a few entering actionable areas.
Apache parent APA is in a buy zone after breaking out of a cup-with-handle base. The ideal buy point here is 23.88.
The relative strength line has been making strong gains since late August, which is a plus. The stock is in the top 8% of stocks in terms of price performance over the past 12 months.
EOG Resources is back in a buy zone after previously passing a cup base entry of 88.09. The firm has been dubbed the “Apple (AAPL) of oil” due to its use of technology to aid operations since breaking away from Enron in 1999.
Stock Forms Rare Pattern
Lending platform stock Upstart is worth adding to one’s watchlist as it forms a rare pattern that can lead to enormous profits.
The stock has been holding gains well since breaking out from a cup base in August. In addition, it has rallied about 100% since gapping up Aug. 11.
This gives its weekly chart the appearance of a high, tight flag. This is a rare, powerful pattern that can lead to rich gains.
Its impressive performance has won it a spot on the Leaders Watchlist. Using its recent high as a potential entry, it is offering up a buy point of 346.64.
This type of base in the past resulted in massive gains for leaders such as Qualcomm (QCOM) and Taser International, now Axon Enterprise (AXON). Keep in mind, though, that successful flag patterns are rare.
Upstart uses artificial intelligence to help improve access to “affordable credit” to 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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