Dow Jones Dives 500 Points After Jobs Report As Treasury Yields Hit New High

The Dow Jones Industrial Average dived 500 points Friday in the wake of the better-than-expected April jobs report before the open. The 10-year Treasury yield hit a new high Friday morning, following Thursday’s surge. Block and Vertex were earnings movers.


Square-parent Block (SQ), Vertex Pharmaceuticals (VRTX) and World Wrestling Entertainment (WWE) reported their quarterly results late Thursday.

Block stock rallied almost 2%. Vertex shares slid nearly 3%. And WWE stock rose 0.5% in morning trade, just below a flat base’s 63.81 entry.

Electric-vehicle giant Tesla (TSLA) skidded around 2% Friday morning. Dow Jones leaders Apple (AAPL) dropped more than 1% and Microsoft (MSFT) traded down 1.7% in today’s stock market.

Amid a worsening stock market correction, Dow Jones leader Merck (MRK) — along with Cheniere Energy (LNG), Exxon Mobil (XOM), Nutrien (NTR) and World Wrestling Entertainment — are among IBD’s top stocks to watch for Friday.

Cheniere Energy, Microsoft, Nutrien and Tesla are IBD Leaderboard stocks. Exxon and Merck were featured in this week’s Stocks Near A Buy Zone column.

Dow Jones Today: Treasury Yields, Oil Prices, Jobs Report

After Friday’s open, the Dow Jones Industrial Average moved down 1.5%, while the S&P 500 declined 1.8%. The tech-heavy Nasdaq composite fell 2.5%.

Among exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) moved down 2%. The SPDR S&P 500 ETF (SPY) fell 1.5%.

The 10-year Treasury yield ticked above 3.1% Friday morning, hitting a new high. On Thursday, the 10-year Treasury yield surged above 3%, closing at 3.07% — its highest level since November 2018.

Meanwhile, U.S. oil prices gained almost 2%. West Texas Intermediate crude traded just above $110 a barrel.

The April payroll report topped estimates Friday morning. The U.S. economy added 428,000 jobs in April, above estimates that expected nonfarm payrolls to grow 400,000, per Econoday estimates. The unemployment rate held steady at 3.6%.

Stock Market Correction

On Thursday, the stock market posted a disappointing performance, as the major stock indexes plunged, immediately surrendering the entirety of Wednesday’s Fed-fueled advance.

Thursday’s The Big Picture column commented, “With Thursday’s big losses, the stock market rally attempt is in peril. The Nasdaq’s rally attempt is dead because the tech-heavy composite hit new correction lows. The market still has a chance with the S&P 500, which is clinging just above Monday’s lows. Friday will be Day 5 of a rally attempt. But it’s hard to imagine the market mounting a sustained rally after the way that hopeful gains on April 25, April 28, Monday and Wednesday were so swiftly met with selling.”

If you’re new to IBD, consider taking a look at its stock trading system and CAN SLIM basics. Recognizing chart patterns is one key to the investment guidelines. IBD offers a broad range of growth stock lists, such as Leaderboard and SwingTrader.

Investors also can create watchlists, find companies nearing a buy point, or develop custom screens at IBD MarketSmith.

Five Dow Jones Stocks To Watch Now

Dow Jones Stocks To Watch: Merck

Dow Jones drug stock Merck is below a cup-with-handle base’s 89.58 buy point following a brief breakout attempt last week. Shares dropped 0.6% Thursday, ending about 2% below the latest entry. Merck stock traded 0.5% lower Friday morning.

On a positive note, the stock’s relative strength line recently hit new highs, indicating big stock market outperformance during the current stock market correction.

Three Top Growth Stocks To Watch In The Current Stock Market Correction

Stocks To Watch: Cheniere, Exxon, Nutrien

Cheniere Energy is still near a flat base’s 149.52 buy point following Thursday’s 2.4% loss. LNG shares rallied 1% Friday morning.

Energy giant Exxon Mobil broke out past a cup with handle’s 89.90 buy point Wednesday. The stock closed just above the entry despite Thursday’s 1.5% loss. The 5% buy area goes up to 94.40, according to IBD MarketSmith chart analysis. Exxon shares moved up 1% early Friday.

IBD Leaderboard stock Nutrien is still trying to rebound from its 50-day line, a key support level, despite Thursday’s 3.5% loss. Nutrien stock was down 1.5% Friday morning.

Join IBD experts as they analyze leading stocks in the current stock market correction on IBD Live

Tesla Stock

Tesla stock traded down around 2% Friday morning, adding to Thursday’s 8.3% dive. Shares broke down again below their 50- and 200-day lines.

Shares of the EV giant finished Thursday about 24% away from a cup-with-handle base’s 1,152.97 buy point. The stock traded as high as 1,243.49 on Nov. 4 and is about 30% away from that all-time high.

Dow Jones Leaders: Apple, Microsoft

Among Dow Jones stocks, Apple shares tumbled 5.6% Thursday, falling back below their 200-day line. Apple stock fell 1.2% Friday.

Software leader Microsoft dropped 4.4% Thursday, giving up the entirety of Wednesday’s gains. The stock closed more than 20% off its 52-week high. MSFT shares moved down 1.7% Friday morning.

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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