The Dow Jones Industrial Average and other major indexes headed toward their first losing week since October during afternoon trading Friday, as stock market gains dissipated in the face of new jobs data.
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The Dow, S&P 500 and Nasdaq initially rose after the Labor Department’s mixed unemployment report Friday morning, but all three reversed course by the afternoon. Down 0.1%, Dow industrials were on track to finish the first week of the new year 0.8% lower. Like the other major indexes, it looks as if the Dow will post its first losing week after nine straight weeks of gains.
The S&P 500 also dipped 0.1% after falling from session highs in the stock market today, and was headed toward a weekly loss of 1.7%. Meanwhile, the Nasdaq sank 0.2%, putting it 3.4% lower for the week.
Volume on the New York Stock Exchange and the Nasdaq was higher compared with the same time on Thursday.
The small-cap Russell 2000 fell 0.5%, while the Innovator IBD 50 ETF (FFTY) climbed 0.5%.
Job Gains Exceed Expectations
December’s employment report showed a higher increase in new jobs than expected. The economy added 216,000 jobs vs. views for 164,000, according to Econoday estimates. December also saw stronger hiring than November’s revised payroll increase of 173,000.
Meanwhile, factory orders increased 2.6% in November, well above the 2% estimate. On the services front, the Institute of Supply Management’s Services Index recorded 50.6 for December. While below estimates for 52.7, the reading indicated expansion in the services sector.
The yield on the benchmark 10-year Treasury note retook the 4% level, climbing 4 basis points to 4.03%.
Dow Jones Stocks
Among Dow Jones stocks, Apple (AAPL) slid and fell further below the 50-day moving average in a five-day losing streak. Microsoft (MSFT) remained in a base with a buy point of 384.30.
Verizon (VZ) and Boeing (BA) led gainers on the Dow. VZ is in a buy zone from a 38.88 entry.
UnitedHealth (UNH) and Walmart (WMT) lagged with losses of more than 1%. And Walgreens Boots Alliance (WBA) turned higher after an earnings sell-off on Thursday.
Magnificent Seven Stocks
Among the Magnificent Seven, Tesla (TSLA) fell but found support at the 50-day moving average. The electric-vehicle maker began its largest recall in China on Friday. Tesla recalled 1.6 million cars in China to fix an Autopilot feature. Tesla also reduced the estimated range of two Model Y variants.
Nvidia (NVDA) is forming a flat base and is rebounding from the 50-day moving average. Amazon.com (AMZN) is also holding the 50-day while Meta Platforms (META) is extended.
Google parent Alphabet (GOOGL) has fallen below a cup-with-handle entry at 139.42.
Warren Buffett’s Berkshire Hathaway (BRKB) acquired 1,090,745 shares of diversified media company Liberty Media SiriusXM (LSXMA) at a price of 29.76 per share. BRKB is just above a buy point of 363.19 in a cup with handle.
Outside The Dow Jones Index
Outside the Dow Jones index, Constellation Brands (STZ) rallied after it reported third-quarter results earlier Friday. Sales of $2.4 billion increased just 1% from the prior year, but earnings for the alcoholic beverages maker of $3.19 per share were 13% higher. Shares rose 3% and cleared resistance at the 200-day moving average, but a buy point at 273.65 remains distant.
Mettler-Toledo (MTD) fell after the company said that sales and earnings for the fourth quarter will be lower than its previous guidance due to delays in shipments. The company makes precision instruments for several industries.
Crypto plays are moving as a spot-bitcoin ETF approval deadline looms. Marathon Digital (MARA) and Riot Platforms (RIOT) sold off after recent hefty gains. The Grayscale Bitcoin Trust (GBTC) fell a little more than 2%, while bitcoin fell a little less than 1%.
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